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�ݺ�ߣ © 2010 by Lovelock & Wirtz Services Marketing 7/e Chapter 7 – Page 1
Chapter 7:
Promoting Services
and Educating
Customers
Services Marketing 7e, Global Edition

Overview of Chapter 7
 Role of Marketing Communications
 Challenges of Services Communications
 Marketing Communications Planning
 The Marketing Communications Mix
 Role of Corporate Design
 Integrating Marketing Communications

Role of Marketing
Communications

Specific Roles of Marketing
Communications
 Position and differentiate service.
 Help customer evaluate offerings and highlight differences that
matter
 Promote contribution of personnel and backstage operations
MacDonald's and Starbucks to enhance trust

Specific Roles of Marketing
Communications
 Add value through communication content(information about
when, where and how to receive the service)
 Facilitate customer involvement in production (training
customers about their role in service ex: self-serving
technology.)
 Stimulate or reduce demand to match capacity (sales
promotions )

Marketing Communications
Planning

Checklist: The “5 Ws” Model
 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?

Who :Target Audience: 3 Broad
Categories
 Prospects
 Employ traditional communication mix because prospects are not
known in advance such as media advertising, PR, etc…
 Users
 More cost effective channels utilized such as Point of purchase
stimuli, email, sms, telephone.
 Employees
 Secondary audience for communication campaigns
 Shape behavior

What :Educational and Promotional
Objectives in Service Settings
 Create memorable images of specific companies and their
brands
 Build awareness and interest for unfamiliar service
 Compare service favorably with competitors’ offerings
 Build preference by communicating strengths and benefits
 Reposition service relative to competition
 Reduce perceived risk by providing useful info and advice

What :Educational and Promotional
 Provide reassurance (e.g., promote service guarantees)
 Encourage trial by offering promotional incentives
 Familiarize customers with service processes before use
 Teach customers how to use a service to best advantage
 Stimulate demand in off-peak, discourage during peak
 Recognize and reward valued customers and employees

Educational and Promotional
Create memorable
images of specific
companies and
their brands
Build awareness
and interest for
unfamiliar service
Compare service
favorably with
competitors’
offerings
Build preference by
communicating
strengths and
benefits
Reposition service
relative to
competition
Reduce uncertainty
or perceived risk by
providing useful info
and advice
Provide
reassurance (e.g.,
promote service
guarantees)
Encourage trial by
offering promotional
incentives
Familiarize
customers with
service processes
before use
Teach customers
how to use a
service to best
advantage
Stimulate demand
in off-peak,
discourage during
peak
Recognize and
reward valued
customers and
employees

The Marketing
Communications Mix

Sources of Messages Received by
Target Audience
Source: Adapted from a diagram by Adrian Palmer, Principles of Services Marketing, London: McGraw-Hill,4th ed., 2005, p. 397

Marketing Communications Mix
for Services

Messages transmitted through
Traditional Marketing Channels
Channel Aim Challenges
Advertising: Done via
media channels
Build awareness, inform,
persuade, and remind
Needs to be … generate a
positive ROI
Public relations: Efforts
to stimulate positive
interest.
Builds reputation and credibility
to secure an image conducive
to conduct business
Form relationships with its
employees, customers, and
the community
Direct Marketingsuch
as mail, e-mail& text
messages
Send personalized messages
to highly targeted micro-
segments.
empower consumers to
decide how and when they
prefer to be reached, and by
whom

Messages transmitted through
Traditional Marketing Channels
Channel Aim Challenges
Sales Promotion:
Communication attached to
an incentive that is specific
to a period of time, price, or
customer group
Generate attention and
speed up introduction
and acceptance of new
services
Motivating customers to use a
service sooner, in greater
volume, or more frequently
especially during periods when
demand would be weak
Personal Selling:
Common in b2b and
infrequently purchased
services
Educate customers and
promote preferences for
particular brand or
product
Relationship marketing strategies
based on account management
programs incur high staffing
costs
Trade Shows Stimulate extensive
media coverage with
many prospective buyers
Opportunity to learn about latest
offerings from wide array of
suppliers and high number of
prospects in one place

Messages transmitted through the internet:
Internet Marketing Offers Powerful Opportunities
 Supplement traditional marketing channels at a reasonable
cost
 Can market through the company’s own website or through
online advertising
 online advertising includes:
1. banner advertising
2. search engine advertising

Website Design Considerations
 Used for a variety of
communication tasks
 Promoting consumer
awareness and interest
 Providing information and
consultation
 Facilitating 2-way
communication
 Stimulating product trial
 Enabling customers to place
orders
 Design should address
attributes that affect website
 High quality content
 Ease of use
 Quick to download
 Updated frequently
 Memorable Web address helps
attract visitors to the site
www.google.com
www.ritzcarlton.com

Effective Advertising on Internet:
Banner Advertising
Banner Advertising: Placing advertising banners and buttons
on portals such as Yahoo and other firms’ websites to draw
online traffic to own site
 Easy for advertisers to measure how many visits to its own
website are generated by click-throughs
 Limitations
 Obtaining many exposures does not necessarily lead to increase in
awareness, preference, or sales
 Fake click-throughs

Effective Advertising on Internet:
Search Engine Advertising
Search Engine Advertising (Reverse broadcast network):
search engines let advertisers know exactly what consumer
wants through their keyword search

Messages Transmitted through
Service Delivery Channels
• Messages reach customers through the
service delivery environment
• Servicescape: Physical design
Service outlets
• Shape customer’s perceptions
• Delivers supplementary services
• Cross-selling of additional services
Front-line
employees
• ATM, vending machines and websites
• Require clear signage and instructions on
how to use the service
Self-service
delivery points
• Familiarize customers with service
product and teach them how to use it to
their best advantage
Customer
training

Messages Originating from Outside
the Organization
 Word of Mouth (WOM)
 Recommendations from other customers viewed as more credible
 Strategies to stimulate positive WOM:
 Creating exciting promotions that get people talking about firm’s
great service
 Offering promotions that encourage customers to persuade others
 Developing referral incentive schemes

Messages Originating from Outside
the Organization
 Blogs – A new type of online WOM
 Twitter
 Media Coverage

Ethical Issues in Communication
 exaggerated promises to secure sales
 Deceptive promotions
 Unwanted intrusion by aggressive marketers into people’s
personal lives

Role of Corporate Design

Strategies for Corporate Design:
unifying theme
 Many service firms employ a unified and distinctive visual
appearance for all tangible elements
 e.g., Logos, uniforms, colors, physical facilities
 Provide a recognizable theme linking all the firm’s
operations use of physical evidence
 Use of trademarked symbol as primary logo, with name
secondary
 McDonald’s “Golden Arches”

Strategies for Corporate Design
 International companies need to select designs carefully to
avoid conveying a culturally inappropriate message
 Easily recognizable corporate symbols important for
international marketers in markets where:
 Significant portion of population is illiterate

Developing An Integrated Marketing
Communications Strategy
 IMC ties together and
reinforces all
communications to deliver
a strong brand identity
 Communications in
different media should form
part of a single, overall
message about the service
firm

Summary
 Marketing communications adds value through its content
 Overcome problems of intangibility – use metaphors to
communicate value proposition
 Communication planning involves knowing (5Ws)
 Marketing communications originate from within the
organization through production and marketing channels

Summary
 Service delivery channels include
 Service outlets
 Front-line employees
 Self-service delivery points
 Marketing communications originating from outside
organization include
 Word of mouth
 Blogs
 Twitter
 Media coverage
 Corporate design strategies are part and parcel of
communication mix

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