Services marketing unit 6
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Services Marketing Unit-6. Service Marketing Strategies MBA-3 rd Sem-2009-2011. Formulating service marketing strategies Designing communications mix for promoting services Role of information technology in marketing of services. Learning Objectives.

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Services Marketing Unit-6

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Services marketing unit 6

Services MarketingUnit-6

Service Marketing Strategies

MBA-3rd Sem-2009-2011

Services marketing unit 6

Formulating service marketing strategies

Designing communications mix for promoting services

Role of information technology in marketing of services

Learning objectives

Learning Objectives

  • To understand the general role of communications in services marketing

  • Understand the effective use of communications channels

  • To understand the role of corporate design/brand within marketing communication strategy

  • To understand the use of Internet in communicating services

Issues in communicating services

Issues in communicating services


Performance not the object

Provide tangible clues

Information helps to

reduce risk


In some services

Can be very important

But not all




Use personnel to

educate customers

“how it works”

Poor information =

Nasty surprises

Personal information =



Promote specific

periods when


Services marketing unit 6

  • Use analogy: Accenture Performance / golf


  • Tarpon


Communications challenges in services marketing

Communications Challenges in Services Marketing

  • Facilitate customer involvement in production

    • prepare customers for service experience and demonstrate roles

    • teach customers about new technologies, new features

  • Help customers to evaluate service offerings

    • provide tangible or statistical clues to service performance

    • highlight quality of equipment and facilities

    • emphasize employee qualifications, experience, professionalism

  • Stimulate or dampen demand to match capacity

    • provide information about timing of peak, off-peak periods

    • offer promotions to stimulate off-peak demand

  • Promote contribution of service personnel

    • help customers understand service encounter

    • highlight expertise and commitment of backstage


People as communication platform virgin atlantic vs singapore airlines

People as communication platform Virgin Atlantic vs. Singapore airlines


  • Singapore Airlines

Goods v services implications for communications strategy

Goods v ServicesImplications for communications strategy

  • Provide tangible clue/evidence

  • Educate and train customers to use and to evaluate services

  • Help manage demand levels to match firm’s capacity

  • Reduced communication role for intermediaries

  • Importance of contact personnel requires internal communication to inform, motivate and create role models

Education as part of communications

Education as part of communications

Educate employees

to deliver




what the

company does


how it’s done


WOM support

Maintain contact


Further education


Renewable service


that the best

solution is


Common educational and promotional objectives

Common educational and promotional objectives

Create tangible, memorable images

Build awareness and interest to stimulate trial

Communicate brand’s strength and benefits

Counter competitive claims

Reposition service relative to competition

Teach customers how to use the service

Manage demand levels

Reduce uncertainty by providing useful

information and advice

Provide reassurance (eg service guarantees)

Recognise and reward valued customers

Smart objectives

SMART objectives






The 5w s model for communication plan

The 5W’s model for communication plan

  • Who is our target audience?

  • What do we need to communicate and achieve?

  • hoWshould we communicate this?

  • Where should we communicate this?

  • Whendo the communications need to take place?

The integrated services communications mix

Messages originating

within the organization

Front-line staff



Service outlets




Sales promotions

Direct marketing

Personal selling

Public relations


Word of mouth

Media editorial

Messages originating

outside the organization

The integrated services communications mix









Word of mouth

Word of Mouth

  • Perceived as more credible than firm-initiated promotional activities

  • Have a powerful influence on people’s purchasing decision

  • The higher the risk the more important for WoM

  • Less knowledgeable customers rely more on WoM

  • Dissatisfied customers are more likely to pass negative WoM than satisfied customers

  • Indicator for profitability (Reichheld, 2003)

Wom con

WoM (con.)

  • Stimulate positive and persuasive comments from existing customers by:

    • Referencing other purchasers and knowledgeable individuals

    • Create Buzz – exciting promotion, events

    • Developing referral incentive scheme

    • Publicising testimonials that simulate WoM

  • Internet is ubiquitous & openly accessible, it has accelerated the spread of personal influence which evolves into a “viral marketing” phenomenon. e.g. blogs



What is brand equity and why does it matter from berry cultivating brand equity

What is Brand Equity and Why Does It Matter?(From Berry, “Cultivating Brand Equity”)

Definition: A set of assets and liabilities linked to a brand’s name and symbol that adds to (or subtracts from) the perceived value of the product

  • Brand equity can be positive or negative

  • Positive brand equity creates marketing advantage for firm plus value for customer

  • Perceived value generates preference and loyalty

  • Management of brand equity involves investment to create and enhance assets, remove liabilities

Corporate design name colour image recognizable symbols

Corporate design, name, colour, image -recognizable symbols

A service branding model how communications experience create brand equity

Firm’s Presented Brand (Sales, Advertising, PR)

Awareness of

Firm’s Brand

Uncontrolled brand communications


Brand Equity

What Media, Intermediaries,

Word-of-Mouth Say re: Firm

Meaning Attached

To Firm’s Brand

Customer’s Experience

with Firm

A Service Branding Model: How Communications + Experience Create Brand Equity

Marketer-controlled communications

Source: Adapted from L. L. Berry ( 2000) Cultivating Services Brand Equity, Journal of the Academy of marketing Science, 28(1), 128-137

Integrated communications




Integrated communications


Design Elements



Brand Name

And Positioning






Marketing communication and the internet

Marketing Communication and the Internet

  • International in Scope

    • Accessible from almost anywhere in the world

    • Simplest form of international market entry

  • Internet Applications

    • Promote consumer awareness and interest

    • Provide information and consultation

    • Facilitate 2-way communications through e-mail and chat rooms

    • Stimulate product trial

    • Enable customers to place orders

    • Measure effectiveness of specific advertising/promotional campaigns

Marketing communications and the internet

Marketing Communications and the Internet

  • Web Site design considerations

    • Memorable address that is actively promoted

    • Relevant, up-to-date content (text, graphics, photos)

    • Contain information that target users will perceive as useful/interesting

    • Easy navigation

    • Fast download


  • Internet advertising

    • Banners and buttons on portals and other websites seek to draw online traffic to own site

    • Limits to effectiveness—exposure may not lead to increases in awareness/preference/sales

    • Hence, advertising contracts may tie fees to marketing relevant behavior (e.g., giving personal info or making purchase)

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