chapter 7 developing the service communication strategy
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Chapter 7Developing the Service
Communication Strategy
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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.
©2011 Cengage Learning. All rights reserved.
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Opening Vignette: Geico
• GEICO offers a classic illustration that as environmental forces change the course of a company’s overall marketing strategy, the service firm’s communication strategy should adapt to fit changing business conditions.
©2011 Cengage Learning. All rights reserved.
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Personal Selling
Personal Selling
AdvertisingAdvertising
Publicityand
PublicRelations
Publicityand
PublicRelations
SalesPromotions
SalesPromotions
Communication Mix
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SponsorshipsSponsorships
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Figure 7.1 Managing the Service Communication Strategy
Selecting Target Markets
Establishing Communication Objectives
Setting the Communication Budget
Formulating the Positioning Strategy
Establishing Message and Media Strategies
Monitoring, Evaluating and Controlling the Communication Strategy
©2011 Cengage Learning. All rights reserved.
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Product Life Cycle Stage
Introduction
Growth and maturity
Maturity and decline
Communication Objective
Informational
Informational and persuasive
Persuasive and reminder
Communication TacticsIntroduce the service offeringCreate brand awarenessPrepare the way for personal selling effortsEncourage trial
Create a positive attitude relative to competitive offeringsProvoke an immediate buying actionEnhance the firm’s image
Encourage repeat purchasesProvide ongoing contactExpress gratitude to existing customer baseConfirm past purchase decisions
Figure 7.2 PLC Stage and Communication Objectives
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Figure 7.3 Budget TechniquesBudget Setting Technique
Description
Top-down budgeting Set by upper management
Bottom-up budgeting Set by the product level or brand manager
Bottom-up/Top-down budgeting
Set by the product level and then revised by upper management
Top-down/Bottom-up budgeting
Set by upper management and then revised by product level
Percentage-of-sales Set based on a percentage of the previous year’s sales
Incremental Increased by a fixed percent every year
All-you-can-afford approach
Set based on what is left over after the firm pays for operating expenses and planned profits
Competitive Parity Set based on promotional spending behavior demonstrated by the competition
Objective-and-Task method
Set based on the amount necessary to achieve stated communication objectives
©2011 Cengage Learning. All rights reserved.
8Source: Adapted from Philip Kotler, Marketing Management, 9th ed. (Englewood Cliffs, NJ: Prentice-Hall, 1997), p. 283.
Product DifferentiationPersonnel Differentiation
Image Differentiation Service Differentiation
FeaturesPerformanceConformanceDurabilityReliabilityRepairabilityDesign (integrates the above)
SymbolsWritten, audio/visual mediaAtmosphereEvents
CompetenceCourtesyCredibilityReliabilityResponsivenessCommunication Style
Delivery (speed, accuracy)InstallationCustomer trainingConsulting serviceRepairMiscellaneous service
Figure 7.4 Differentiation Approaches for Effective
Positioning
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Media Strategies for Targeting Users
• Type 1 Staff– Deal with customers quickly and effectively– “once only” situations
• Type 2 Staff– Requires some independent decision making – More intense communication than Type 1
• Type 3 Staff– Tasks are complex and often nonrepeatable
©2011 Cengage Learning. All rights reserved.
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Figure 7.1 Managing the Service Communication Strategy
Selecting Target Markets
Establishing Communication Objectives
Setting the Communication Budget
Formulating the Positioning Strategy
Establishing Message and Media Strategies
Monitoring, Evaluating and Controlling the Communication Strategy
©2011 Cengage Learning. All rights reserved.
11
Special Challenges Associated with the Service Communication
Strategy• Mistargeted Communications
• Managing Expectations & Perceptions– Technical service quality
• Advertising to Employees
• Selling/Operations Conflicts
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Specific Guidelines for Developing Service
Communications• Develop a word-of-
mouth communications network
• Promise what is possible• Tangibilize the
intangible• Feature working
relationships between customer and provider
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Figure 7.5 The Impact of Intangibility: Different Communication Strategies for Different Products
Source: Adapted from G. Lynn Shostack, “Breaking Free from Product Marketing,” The Journal of Marketing (April 1977).
Tangibledominant
Tangible evidence
Intangibledominant
Intangibleimage
Perfume
Fast foodoutlets
Insurance
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Specific Guidelines for Developing Service
Communications• Reduce consumer fears about
variation in performance
• Determine and focus on service quality dimensions
• Differentiate the service product from service delivery
• Make the service more easily understood
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15
Special Consideration for Professional Service
Providers
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1. Third-party accountability
2. Client uncertainty
3. Experience is essential
4. Limited differentiability
5. Maintaining quality control
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Special Consideration for Professional Service Providers
6. Turning doers into sellers
7. Dividing the professional’s time between marketing and operations
8. Tendencies to be reactive rather than proactive
9. The effects of advertising are unknown
10.Limited marketing knowledge base
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Communications Tips for Professional Service Providers
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• Turn current clients into company spokespersons
• First impressions are everything• Create visual pathways that reflect
quality• Establish regular communications with
clients• Develop a firm brochure• An informed office staff is vital
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mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.
Copyright © 2011 Cengage Learning.
©2011 Cengage Learning. All rights reserved.