Flashcards
Lecture 10
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- 1Provider Gap 4Provider Gap 4: service delivery and the service provider’s
external communication.
Promised made by a service company through its media advertising, sales force and other communications may potentially raise customer expectations that serve as the standard against which customers assess service quality.
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Customer expectations are shaped by both:
• uncontrollable factors: word of mouth communication, social media, publicity.
• company-controlled factors: advertising, corporate website, personal selling, promises mdd by
service personnel. - 2What is Integrated Marketing?• Process for managing customer relationships that drive brand value.
• Cross-functional process for creating and nourishing profitable relationships with customers and stakeholders by strategically controlling or influencing all messages and encouraging data-driven, purposeful dialogue with them.
• Optimizing the marketing mix and improving campaign ROI.
Why integrated marketing communications is a challenge for many companies?
- Because often various parts of the company are responsible for different aspects of communication. - 3Key Service Communication Challenges1. Service intangibility;
Hard to understand before (difficulty understanding what they will be buying), during (often can not see clearly the differences among services) and after purchase (have trouble evaluating their service experience).
2. Management of service promises;
- The vows made by sales person, advertising and service personnel - and service falls short of what is promised.
3. Management of customer expectations;
- Firms feel pressure to acquire new business and to meet or beat competition. Often service firms often over-promise in selling, advertising and other company communications.
4. Customer education;
- Educate customers how the service will be provided, what their role in delivery involves, and how to evaluate services they have never used before (not to get disappointed and blame company).
5. Internal marketing communications;
- Ads - with operations - employees - match image.
- Sales force has to communicate to employees - the lack of knowledge will affect the quality of service.
- Same performance through all outlets. - 4Key Service Communication Challenges: Service intangibilityService intangibility. The difficulties associated with intangibility can be divided into 5 properties:
1. Incorporeal existence - the service product is neither made out of physical matter nor occupies physical scape;
2. Abstractness - service benefits (such as health of fun) do not correspond directly with objects, making them difficult to visualize and understand;
3. Generality - many service and service promises are described in generalities (wonderful experience), making them difficult to differentiate from those of competitors;
4. Non-searchability - because service is a performance, it often can not be previewed or inspected in advance of purchase;
5. Mental impalpability - when customers have not had prior experience, familiarity, or knowledge services are difficult to interpret. - 55 Categories of Strategies to Match Service Promises with Delivery1. Address service intangibility (effective external services marketing communications);
2. Manage service promises;
3. Managing Customer Expectations;
4. Improve customer education;
5. Manage internal marketing communications; - 6Categories of Strategies to Match Service Promises with Delivery Address service intangibility (effective external services marketing communications)• Use narratives to demonstrate the experience;
• Present vivid information;
• Focus on the tangibles;
• Use brand icons to make the service tangible;
• Use 1) association, 2) physical representation, 3) documentation and 4) visualization;
• Feature service employees in communication;
• Feature satisfied customers in the communication;
• Encourage word-of-mouth communication;
• Leverage social media; - 7Categories of Strategies to Match Service Promises with Delivery Manage service promises• Creating a strong service brand; Presented brand, word-of-mouth and external publicity, experience lead to brand awareness and meaning, that create brand equity.
• Coordinate All External Communications:
- Advertising;
- Websites;
- Internet advertising;
- Sales promotion;
- Public relations;
- Direct marketing;
- Personal selling; - 8Categories of Strategies to Match Service Promises with Delivery Managing Customer Expectations• Make realistic promises;
• Offer service guarantees;
• Other choices; Give customers options of aspects of service that are meaningful, such as time and cost. (ex. especially effective in B2B - 2 page proposal in 3 days, 10 page in 1 week);
• Create Tiered-Value service offerings. (ex. American express. different types of credit cards for different prices)
• Communicate the criteria and levels of service effectiveness; (low price - low quality; provide service in 4 days), client will evaluate all the other companies by the same criteria; - 9Categories of Strategies to Match Service Promises with Delivery Improve customer education• Prepare customers for the service process; (ex. step-by-step guidance);
• Confirm performance to standards and expectations; (ex. explain law terms to the customer-friendly language);
• Clarify expectations after the sale;
• Teach customers to avoid peak demand periods and seek slow demand periods; - 10Categories of Strategies to Match Service Promises with Delivery Manage internal marketing communications• Create effective vertical communication; (front-employee training, see all ads, publications, etc. in advance to deliver the promised service);
• Sell the brand inside the company; educate employees that they would deliver brand values to the customers; 1) choose right time; 2) connect internal and external communication (ex. employees hear that serving customers is most important for the company, when all they hear in company is cost saving); 3) bring company alive (ex. employees wear branded shirt at home);
• Create effective upward communication; (from employees to management);
• Create effective horizontal communication (communication across functional boundaries' in an organization). (ex. operations, marketing, HR)
• Align back-office and support personnel with external customers through infraction or measurement:
- Interaction; (show how interdependent front and back line employees are);
- Measurement; (measures performance, lacks reward);
• Create cross-functional teams;
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- Flashcards on Lecture 10, created by Roberta Daugelai on 29/03/2016.
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- Roberta Daugelai
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