1. Developing the Service Communication Strategy
Chapter 7
Developing the Service Communication Strategy

2. Chapter Objectives
Discuss the steps necessary to manage the firm’s service communication strategy effectively.
Understand the special challenges associated with developing service communications.
Describe specific guidelines for developing service communications.
Appreciate the special considerations faced by professional service providers and recommend solutions to overcome these challenges.
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

3. Opening Vignette: TripAdvisor
TripAdvisor became a very early adopter of user- generated content as consumer reviews far outpaced professional reviews within a short time of its founding
Now touted as the largest travel site in the world, TripAdvisor claims 60 million members and over 170 million reviews and suggestions about hotels, restaurants, and other travel-related attractions and businesses
Positive reviews and personal recommendations can have a very profound effect on the life of a single service provider at a destination
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

4. Communications Mix Personal Sales Selling Promotions Publicity
Advertising
Sponsorships
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5. Figure 7.1: Managing the Service Communication Strategy
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

6. Selecting Target Markets
The service firm must first analyze the needs of consumers in the marketplace and then categorize consumers with similar needs into market segments
Each market segment should then be considered based on profit and growth potential and the segment’s compatibility with organizational resources and objectives
Segments that become the focus of the firm’s marketing efforts become target markets
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

7. Establishing Communications Objectives
At the broadest level, the service firm’s communication objectives seek to inform, persuade, and remind current and potential customers about the firm’s service offerings
The objectives of a firm’s communication mix often relate directly to the service offering’s stage within the product life cycle
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

8. Figure 7.2: Product Life Cycle Stage and Communication Objectives
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

9. Establishing Communications Objectives (cont’d)
When developing communication objectives, each objective should be stated in SMART terms:
Specific
Measurable
Achievable
Relevant
Time-bound
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10. Figure 7.3: An Overview of Communication Strategy Budget-Setting Techniques
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

11. Setting the Communications Budget
Ideally, the communications budget should provide the resources needed for the service firm to meet its established communication objectives
In other words, the firm’s communication objectives should drive the budget
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

12. Figure 7.4: Differentiation Approaches for Effective Positioning
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

13. Media Strategies for Targeting Nonusers
If the objective is to reach nonusers of the service, then the choice of communications channel is to reduced to either:
Media advertising
Selling performed by a sales force rather than a service provider
Public relationships
Sponsorships
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

14. Media Strategies for Targeting Users
Type 1 service staff
Deal with customers quickly and effectively in “once only” transaction-based encounters where large numbers of customers are present
Exchanges consist of simple information and limited responses to customer requests
Examples: front-line personnel at fast-food restaurants
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

15. Media Strategies for Targeting Users (cont’d)
Type 2 service staff
Requires some independent decision making on the part of the staff member
Communications are generally more intense than Type 1 situations
Example: an effective wait staff person at a fine dining establishment
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

16. Media Strategies for Targeting Users (cont’d)
Type 3 service staff
Interactions are more extended and complex and often nonrepeatable
Example: staff members who are likely to be qualified as professionals
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

17. Special Challenges Associated with the Service Communication Strategy
Mistargeted communications
Managing expectations and perceptions
Technical service quality
Advertising to employees
Selling/operations conflicts
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

18. Specific Guidelines for Developing Service Communications
Develop a word-of-mouth communications network
Promise what is possible
Tangibilize the intangible
Feature working relationship between customer and provider
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

19. Figure 7.5: The Impact of Intangibility: Different Communication Strategies for Different Types of Products
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20. Specific Guidelines for Developing Service Communications (cont’d)
Reduce consumer fears about variations in performance
Determine and focus on relevant service quality dimensions
Differentiate the service product via the service delivery process
Make the service more easily understood
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

21. Developing Communication Strategies for Professional Service Providers
The 10 most frequent problems encountered include:
Third-party accountability
Client uncertainty
Experience is essential
Limited differentiability
Maintaining quality control
Turning doers into sellers
The challenge of dividing the professional’s time between marketing and providing services
Tendencies to be reactive rather than proactive
The effects of advertising are unknown
Professional providers have a limited marketing knowledge base
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

22. Special Considerations for Professional Service Providers
First impressions are everything
Halo effect
Create visual pathways that reflect the firm’s quality
© 2017 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.