service

1. Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 5 - 1
Chapter 5
Designing the
Communications Mix
for Services

2. Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 5 - 2
Advertising Implications for
Overcoming Intangibility (Fig. 5-1)
Problem Advertising Strategy
 Generality
- objective claims Document physical system capacity
Cite past performance statistics
- subjective claims Present actual service delivery incident
 Nonsearchability Present customer testimonials
Cite independently audited performance
 Abstractness Display typical customers benefiting
 Impalpability Documentary of step-by-step process,
Case history of what firm did for customer
Narration of customer’s subjective experience
Source: Mittal and Baker

3. Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 5 - 3
Other 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
 Simulate 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 personnel

4. Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 5 - 4
Setting Clear Objectives: Checklist for
Marketing Communications Planning (“5 Ws”)
 Who is our target audience?
 What do we need to communicate and achieve?
 How should we communicate this?
 Where should we communicate this?
 When do communications need to take place?

5. Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 5 - 5
Common Educational and Promotional
Objectives in Service Settings (Table 5-2)
 Create memorable images of specific companies and
their brands
 Build awareness/interest for unfamiliar service/brand
 Build preference by communicating brand strengths and
benefits
 Compare service with competitors’ offerings and counter
their claims
 Reposition service relative to competition
 Stimulate demand in off-peak and discourage during peak

6. Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 5 - 6
Educational and Promotional Objectives (cont.)
 Encourage trial by offering promotional incentives
 Reduce uncertainty/perceived risk by providing useful info
and advice
 Provide reassurance (e.g., promote service guarantees)
 Familiarize customers with service processes before use
 Teach customers how to use a service to best advantage
 Recognize and reward valued customers and employees

7. Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 5 - 7
Word-of-mouth
(other customers)
Marketing Communications Mix for Services
(Fig. 10.4)
Personal
Communications
Selling
Customer
service
Training
Advertising
Broadcast
Print
Internet
Outdoor
Direct mail
Sales Promotion
Sampling
Coupons
Sign-up
rebates
Gifts
Prize
promotions
Publicity &
Public Relations
Press
releases/kits
Press
conferences
Special
events
Sponsorship
Instructional
Materials
Web sites
Manuals
Brochures
Video-
audiocassettes
Software
CD-ROM
Voice mail
Signage
Interior decor
Vehicles
Equipment
Stationery
Uniforms
Corporate
Design
Telemarketing
Word of mouth
Trade Shows,
Exhibitions
Media-initiated
coverage
*
Key: * Denotes communications originating from outside the organization

8. Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 5 - 8
Originating Sources of Messages Received by a
Target Audience (Fig. 5-5)
Messages originating
within the organization
Messages originating
outside the organization
Front-line staff
Service outlets
Advertising
Sales promotions
Direct marketing
Personal selling
Public relations
Word of mouth
Media editorial
A
U
D
I
E
N
C
E

9. Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 5 - 9
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
Insights
 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

10. Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 5 - 10
A Service Branding Model:
How Communications + Experience Create Brand Equity
Firm’s Presented Brand
(Sales, Advertising, PR)
What Media, Intermediaries,
Word-of-Mouth Say re: Firm
Customer’s Experience
with Firm
Awareness of
Firm’s Brand
Meaning Attached
To Firm’s Brand
Firm’s
Brand Equity
Source: Adapted from L. L. Berry ( Fig. 1)
Marketer-controlled communications
Uncontrolled brand communications

11. Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 5 - 11
Marketing Communication and the Internet (1)
 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

12. Slide ©2004 by Christopher Lovelock and Jochen Wirtz Services Marketing 5/E 5 - 12
Marketing Communications and the Internet (2)
 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 (“eyeballs”) 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)