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    Building a Strong

    Services Brand

    Leonard Berry

    Mays Business SchoolTexas A&M University

    2005 AMA SERVSIG Doctoral Consortium

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    Question

    What do Mayo Clinic

    and Starbucks

    have in common?

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    A Service Branding Model

    Organizations

    Presented Brand Brand Awareness

    External Brand

    Communications

    Customer Experience

    with Organization

    Brand Equity

    Brand Meaning

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    Goods Versus Service Brands

    Labor-Intensive Goods Brands

    (Judith Leiber Handbags)

    Equipment-Intensive Goods Brands

    (Crest Toothpaste)

    Labor-Intensive Service Brands

    (Ritz Carlton Hotels)

    Equipment-Intensive Service Brands(AT&T)

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    Equipment-Intensive Labor-Intensive

    Goods Brand Service Brand

    Focal Brand Product Company or Person

    Primary Sources Product People, Facilities,

    of Benefit and Equipment

    Quality Level Uniform Variable

    Experience Relatively Few Numerous

    Touchpoints

    Production Site Not experienced Usually experienced

    by customers by customers

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    The more consequential,complex, and variable the

    service, the more customersneed brand reassurance.

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    A strong brand is a safe

    place for customers.

    Stan Richards, FounderThe Richards Group

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    For labor-intensive services,

    the most important marketers

    are the employees who

    perform the service.

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    Principles of Branding

    Labor-Intensive Services

    Orchestrate the Clues

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    Customers always have an

    experience when they interact

    with an organization.

    They cannot avoid one.

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    Customers consciously and

    unconsciously filter a barrage

    of clues and organize theminto a set of impressions --

    some rational, some emotional.

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    Each clue carries a message

    and the composite of cluescreates the total experience.

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    Functional Clues

    Clues emitted by the functionality

    of the good or service.

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    Mechanics Clues

    Clues emitted by stimuli

    associated with things --sights, smells, sounds, textures.

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    Humanics Clues

    Clues emitted by stimuli associated

    with people -- choice of words, toneof voice, level of enthusiasm,

    appearance, body language.

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    Clue Categories

    Functional

    Mechanics

    Humanics

    Rational perceptions ofbenefits/burdens

    Emotional perceptions of

    benefits/burdens

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    A Lesson to Remember

    Excellent mechanics clues

    cannot overcome

    poor humanics clues

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    Services branding requires

    orchestrating clues to tellthe services story.

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    Principles of Branding

    Labor-Intensive Services

    Orchestrate the Clues

    Connect Emotionally

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    The truth is, what makes a

    brand powerful is the

    emotional involvement ofcustomers.

    Charlotte Beers

    Retired Advertising Executive

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    Emotional connection

    requires values

    alignment between

    brand and customers.

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    Authenticity

    Generosity

    Kindness

    Honesty

    Personal Relationships

    Innovations

    Emotional Connectors

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    Services with Most or All of these

    Characteristics Offer the Best Opportunityto Create an Emotionally-Rich Brand

    periodically deliveredperiodically delivered personally importantpersonally important

    interactiveinteractive

    intimateintimate

    complexcomplex

    variablevariable

    familyfamily--orientedoriented

    P i i l f B di

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    Principles of Branding

    Labor-Intensive Services

    Orchestrate the Clues

    Connect Emotionally

    Internalize the Brand

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    Internal branding means

    teaching, selling, and

    reinforcing the desired

    brand to employees.

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    External brand

    development requires

    internal brand

    development.

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    Branding Labor-Intensive Services

    Orchestrate the Clues

    Connect Emotionally

    Internalize the Brand