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IMC Lecture 10 1920
This document discusses integrated marketing communications and services marketing. It covers several key points: B2B marketing differs from B2C in that the markets are larger but have fewer customers, there is a higher average spend per customer, and buyer behavior is more complex. Personal selling is important for B2B as messages can be adapted and objections overcome. Services marketing is complex due to factors like intangibility, inseparability, heterogeneity, perishability, and lack of ownership. This impacts communications and requires informing and persuading customers to manage risk. Consistency and reputation are important. The services marketing triangle shows the relationship between a company, its customers, employees and communications. The service quality gaps model outlines
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IMC Lecture 10 1920
- 1. Integrated Marketing Communications andservices marketing process 10 Using communications for B2B
- 2. B2B… …the business tobusiness channel of marketing There are some significant differences with B2C the size of the markets are larger, but there are less customers There is a higher average spend per customer, a wider geographic spread… …and buyer behaviour is more complex
- 3. B2B buying ismade up of four main sub-sectors… Buying for own consumption Buying for incorporation and/or assembly Resale to another organisation Retail to be sold on
- 4. why use personalselling? messages can be adapted on the spot to meet the requirements of both parties this flexibility allows objections to be overcome, information to be provided and demonstration to be brought to the buyer messages can be much more personal than any of the other methods of communication easier to induce a change in behaviour
- 5. prospecting – findingnew customers monitor competitor action – informing about competing products maintaining relationships – critical relationships will have a single sales person project management - coordinating within the organisation, representing the customers interests tasks of personal selling
- 6. persuading – thatthe product offered is the best solution to their problem installing and demonstrating –e.g. get equipment installed identifying and reporting issues/problems informing – giving customers adequate, detailed and relevant information tasks of personal selling
- 7. Supporting tools… There aremany communications tools can be used to support the personal selling effort Trade promotions Trade advertising exhibitions Technology, and especially the internet, offers new methods of communications that are great for delivering communications content Direct marketing Public relations
- 8. networks and relationships… Thereis significant strategic value in marketing channels, partnership, alliances and networks The structure of a network has one focal organisation (yours) and those connected to it for various reasons… predominantly exchanges …networks are maintained for the potential opportunities they offer Those that are more profitable or beneficial can develop through relationships, into partnerships… …with a mutual desire to maintain that value
- 9. Trust, commitment andloyalty Necessary for development of relationship marketing Trust… necessary in all relationships… needs credibility …the brand is a great tool to instill trust
- 10. trust, commitment andloyalty commitment… the desire for an enduring relationship we achieve commitment through… shared values good communications The potential for losses through termination are high
- 11. …evolution of KeyAccount Management key accounts are customers in a business-to-business market identified by selling companies as of strategic importance …think about Pareto’s 80-20 rule Millman, 1995 …relationships matter more than products
- 12. Company CustomersEmployees External marketing communications… Advertising Sales Promotion PublicRelations Direct Marketing Internal marketing communications… Interactive marketing communications… Personal Selling Service Encounters Servicescapes Communications and the services marketing triangle Wilson, A. et.al, (2008) adapted from Kotler (1997)
- 13. services marketing… A complexpart of marketing and communications due to 5 key factors… heterogenity ownership inseperability intangibility perishability
- 14. intangibility implications Customers needmore information to make a decision… …there are higher levels of perceived risk word of mouth… both face to face and online is very powerful …informing and persuading are key tasks it’s important to build a good reputation
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- 17. inseparability implications The serviceis not separate from the provider High quality customer facing staff supported by high quality training Employees (customer facing staff) are key here
- 18. Heterogeneity implications… Variability ofquality can affect the service Standardisation of the service offered Influence or control over customer perceptions of service Consistency of quality control, customer service
- 20. Perishability implications… Particular servicesare perishable… … for example a show at a theatre Meet customer demands when needed Stimulate off-peak demand
- 22. Ownership implications… No tangibleproduct or good transferred to customer Brochures, programmes, photos, giftware… Offer symbolic tangible items
- 23. Service quality gapsmodel Word-of-mouth Communications Personal needs Past experience Expected service Perceived service Service delivery Service quality specifications Management perceptions of customer expectations External communications to customers Gap 5 Gap 4Gap 1 Gap 3 Gap 2 Zeithaml, Parasuraman & Berry, 1996
- 24. managing the gaps... Gap1 – Consumer expectations and management perceptions gap… knowledge and research Gap 2 – Management perceptions and service quality specification gap… policy, standards and management of them Gap 3 – Service quality specifications and service delivery gap… quality of delivery Gap 4 – Service delivery and external communications gap… consider promises being made Gap 5 – Expected service and perceived service gap… customer expectations
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