Services Marketing Chapter IX

Services Marketing Communication

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Presentation by Prof. H.Ganguly.

Role of Marketing Communication Marketing Communication or Promotion basically * informs * persuades or * reminds target audience (publics) about service provider and / or its services to influence publics behaviour favourably. Important segment of publics who are influenced by Promotion are : * Current and potential customers * Trade intermediaries, suppliers * Government, Consumer Advisory groups, Society * Opinion making groups, critics, media * Employees, other stakeholders etc.
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Service Marketing Communication Mix 1. Personal Selling Personal presentation made by service-providers to make sales and build relationship. 2. Advertising -- It is a paid form of non-personal presentation and promotion of service-provider and its offerings by identified sponsor. 3. Direct Marketing -- Communicating directly with customers through letters, telephone, e-mail and other non-personal media for direct response. 4. Sales Promotion -- Providing short term incentives like discounts, coupons, premia etc. to stimulate purchase by customers. 5. Public Relations -- Developing favourable image of service-providers with their publics through publicity and other tools. Presentation by Prof. H.Ganguly. 3

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Marketing Communication or Promotion -- A service designed and developed up to prospective customers expectations and delivered through competent service - providers fail if the prospective customers are not aware of the service. -- So a basic tenet of successful marketing is to make prospective customers aware to the level of being interested in the service. -- The element of Service Marketing Mix that carries this task is referred to as Marketing Communication or Promotion.
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Service Communication Programme Effectiveness of service marketing communication depends on successful implementation of : Setting Communication objective(s) -- i.e. deciding in advance what is to be achieved Identification of Target audience : market research market segmentation target selection.

Deciding Budget Break-up of likely expenditure on campaign elements to act as guideline.

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 Message Development -- Designing packet of information to be used in changing opinion and behaviour of prospective customers called message. -- It is done around AIDA i.e [Attention, Interest, Desire & Action line or AIBM i.e. [Attention, Interest, Benefit & Motivation ] line. Selection of Communication mix For effective delivery of message to target audience, appropriate communication mix elements are to be chosen. Evaluation Regular feed-back is collected through suitable research to control progress towards achieving objective(s).

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Presentation by Prof. H.Ganguly.

Key Issues in Service Communication Customers derive satisfaction when delivered-service matches customers expectation. General reasons for dissatisfaction in service communication are : 1. Overpromise Expectation is created in prospective customers through a) promises made by management in advertisements b) promises made by sales and service-providers ; In case promises made are exaggerated or produces higher than realistic expectation it is likely to lead to dissatisfaction of customers on availing service. -- Therefore service-providing companies should be rational in their promotion and also train sales and contact employees not to overpromise.
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2. Inadequate Management of Customer Expectation To gain Competitive Advantages deliberately or otherwise , service-providers may exaggerate their offer to beat competition, leading to dissatisfaction. -- Service marketing personnel designing promotion campaigns should do so carefully to avoid any reference to unrealistic aspects. 3. Inadequate Customer Education In case of services not availed before, prospective customers may not be conversant with how the service shall be provided, what shall be customers role in service delivery , how to evaluate the service etc. The customer may feel disappointed due lack of knowledge and blame service- provider for it. -- So service-provider should educate customers about these parameters in advance to avoid dissatisfaction.
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4. Inadequate Internal Marketing Communication Next challenge arises out of lack of coordination between different functions like marketing, service-delivery etc. -- This challenge is managed by improving Internal Marketing Communication and maintaining proper integration of different functions as a team. Be careful with service marketing communication -- Marketing communication are powerful double edged instruments. If communication is not undertaken with customers, they shall not be aware of serviceprovider and their service and if communication is done unrealistically, it may generate exaggerated expectation may lead to dissatisfaction.
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Role of Communication in Service Marketing Service communication adds Value to service : prospective customers need information about services where and when are these available how much is their cost specific features, benefits over competitors etc. in addition maintains contact with existing customers. Further Service Communication helps in Internal Marketing -- developing contact channel with employees nationally and internationally. -- through training and developing contact employees -- in receiving feed-back from customers via serviceproviders.
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Service Marketing Communication Mix Elements

I. Personal Selling It is an important tool in service marketing communication because of its high power in persuading customers who are unable to decide readily. In addition Personal Selling can create personal contact useful for long term contact help in personalising communication to suit customers needs enable an assortment of services to be sold. Word of Mouth Publicity Referral by satisfied customers , relations, friends and acquaintance can be immensely effective through word of mouth publicity. It may be of equally negative effect.
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II. Direct Marketing This mode of promotion is being increasingly used in service marketing for its benefits : * Personalisation - Message may be customised to suit highly segmented prospective customers. * Efficiency -- A properly planned direct mail may be very effective, efficient and economical. * Prompt Feedback -- Generally response of customers to direct marketing offers are prompt. Modes of Direct Marketing * Database Marketing -- well composed letters, recorded telephone messages, e-mail etc. sent to former or existing customers containing an important message. * Mail Orders -- Sending detail of services by mail for favour of service-order. * Tele / Internet Marketing -- Making use of telephones, Presentation Prof. H.Ganguly. 12 SMS and now internetbyto contact customers.

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III. Advertising -- It is the most dominant form of communication in service marketing. -- Advertising provides message i.e. factual information about services, its features, capabilities etc. also its difference from competitors service. -- It tries to change customers attitude towards positive disposition. -- Generally advertising is directed towards achieving sales growth by synchronising it with other elements of marketing mix like new service, price etc. -- Advertising carries message by making use of suitable media like TV, newspapers, periodicals, cinema, outdoor media like billboards, posters, pamphlets, brochures, direct mail, internet etc.
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Selection of media for advertisement is done based on * profile * coverage * characteristics and * cost

One of the serious challenges in advertising is how to get the message noticed? in the clutter of commercials and print messages. -- Advertisers either incorporate Unique Selling Propositions in message or differentiate it from other ads.

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IV. Sales Promotion in Service Marketing These are short term incentives used as tools to boost sale of services like introductory discounts. Sales Promotion at Customers : -- It is directed at customers to motivate them to patronise services more during a short period. Service Providers offer various schemes for short period to generate a Pull by customers viz. Price-off schemes, Freedies, Coupons, samples, Cash Refund on loyalty programme, Lucky Draws, Contest Schemes etc. Sales Promotion at Intermediaries : It is directed at middlemen like credit, discounts, free goods with service, co-operative advertising etc.
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Sales Promotion at Internal Customers This scheme is addressed at sales force or service-providers to generate greater Push on sales and customer satisfaction through Bonus -- on volume and extent of service provided Contests -- on no. of services sold, new services etc. Awards & Prizes Recognition of performance in a given period Sales Promotion Campaigns Objective : To achieve growth in service delivery on short term basis. Decide objectives with period; Decide sales promotion budget ; Decide sales promotion tools to be used ; Draw sales promotion activity time-table ; Launch Sales Promotion programme ; Evaluate for control.
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V. Public Relations in Service Communication Public Relations is defined as The planned and sustained efforts to establish and maintain goodwill between service-provider and its publics. -- British Institute of Public Relations. Functions of Public Relation PR seeks to change attitudes of publics by changing their opinion through -- regular PR exercises of advertising, direct mail, Trade shows etc. to reinforce service positioning -- organising corporate events like AGB Meeting, Press Meets, troubleshooting , publishing house journals, Annual Reports, Maintaining relation with media etc. Public Relation Tools -- Trade shows, sponsoring social events, community projects, Investor by Prof. H.Ganguly.Programmes etc. Presentation Relation 17 --------

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