BEM120_2024 Service Marketing Chapter 10 Class Slides PDF

2024/09/09 Chapter 9 Service Marketing in Perspective 1 Learning Outcomes After studying this chapter, you should be able to: 1. Explain the role of marketing communication in the...

2024/09/09 Chapter 9 Service Marketing in Perspective 1 Learning Outcomes After studying this chapter, you should be able to: 1. Explain the role of marketing communication in the service organisation. 2. Contrast different marketing communication objectives. 3. Illustrate and explain the marketing communication process. 4. Explain all the different elements of the marketing communication mix. 5. Discuss advertising in terms of its roles, appeals and media types. 6. Discuss sales promotion by referring to the characteristics of sales promotion and the different tools used in sales promotion. 7. Discuss personal selling in a service environment context against the background of the typical stages of the selling task. Grasping Service Marketing. 3rd Edition. 7 1  2024/09/09 Learning Outcomes 8. Discuss the characteristics of public relations. 9. Identify the potential stakeholders of a service organisation by referring to the tools available to execute the public relations function. 10. Describe direct marketing and word-of-mouth as marketing communication tools. 11. Provide practical examples to illustrate any of the theoretical issues discussed in this chapter. 12. Provide service management-related solutions to any marketing problems discussed in this chapter. Grasping Service Marketing. 3rd Edition. 8 Service Marketing Mix Product (Ch4) Process Place (Ch7) (Ch8) Service Marketing Mix People Price (7Ps) (Ch6) (Ch9) Physical Promotion Evidence (Ch10) (Ch5) Also known as marketing communication Grasping Service Marketing. 3rd Edition. 10 2  2024/09/09 Introduction Promotion in perspective Role of communication in service environment? What would we like to achieve with communication? Actions taken to successfully communicate? Combination of elements to used to communicate with target market Grasping Service Marketing. 3rd Edition. 11 The Nature of Communication Role of communication: Inform (1), persuade (2) or influence (3) customer behaviour 1. Used to provide information about where and when the service is available (Place), how much it costs (Price) and what exactly the service entails (Product) 2. Used to persuade that it meets needs 3. Used to influence and motivate purchase It plays a role in positioning and adds value to the service Grasping Service Marketing. 3rd Edition. 12 3  2024/09/09 Communication Objectives Objectives of marketing communication: Build awareness and create interest Differentiate service offering Communicate the benefits of the service Develop and enhance the brand and its image Build and maintain the overall image and reputation of the organisation Persuade customers to buy or use the service Remind customers to use the service regularly 13 Communication Process Grasping Service Marketing. 3rd Edition. 14 4  2024/09/09 Communication Process 1. Objective Create awareness & interest, differentiate service offering etc. Put objective into a workable idea and transform idea into a message. 2. Source Service organisation communicating the message. More credible sources more likely to elicit a response. 3. Message Put ideas, thoughts & objectives into words, pictures & Encoding symbols. Content, structure & format depends on target audience. Grab attention, understandable language, focus on target market needs & how the service organisation will meet them. Grasping Service Marketing. 3rd Edition. 15 Communication Process 4. Medium Message is transmitted via communication channel / medium. Format of message determines appropriate medium. 5. Audience Audience receives message & assigns meaning to the words, Decodes pictures & symbols (i.e. interprets the message) Message 6. Distraction Interference between encoding & decoding. Poor encoding or poor interpretation. Different people interpret the same message differently. 7. Audience Type of response expected influences message & medium. Response Ultimate desired behaviour is a purchase / sale, WOM, attitude change, enhancing corporate image etc. Grasping Service Marketing. 3rd Edition. 16 5  2024/09/09 Do you se the elderly HAIR lady? EYES NOSE MOUTH Decoding …. Grasping Service Marketing. 3rd Edition. 17 Example of Encoding a Message The service organisation puts ideas, thoughts and objectives into words, pictures or symbols Grasping Service Marketing. 3rd Edition. 19 6  2024/09/09 Example of decoding a message The audience assigns meaning to the words, pictures and symbols received. “Squashed like sardines” Grasping Service Marketing. 3rd Edition. 20 Example of a distraction Interference between the encoding of the message by the source and the decoding of the message by the target audience If you’ve never heard of the idiom “Squashed like sardines” you might interpret the message differently than an individual who has. Grasping Service Marketing. 3rd Edition. 21 7  2024/09/09 Explain each element in the marketing communication process with reference to the MTN advertisemen Grasping Service Marketing. 3rd Edition. 22 Explain each elements in the marketing communication process with reference to the MTN advertisement 1. Objective 2. Source 3. Message Encoding 4. Medium Grasping Service Marketing. 3rd Edition. 23 8  2024/09/09 Explain each element in the marketing communication process with reference to the MTN advertisement 5. Audience Decodes Message 6. Distraction 7. Audience Response Grasping Service Marketing. 3rd Edition. 24 Communication Mix COMMUNICATION MIX Communication elements that can be used to communicate with target audience: Advertising S Sales promotion W A Personal selling P Public relations P Direct marketing E Word-of-mouth D Grasping Service Marketing. 3rd Edition. 28 9  2024/09/09 Grasping Service Marketing. 3rd Edition. 29 Advertising mass, paid communication which is used to transmit information, influence attitudes and induce some form of response on the part of the audience. Grasping Service Marketing. 3rd Edition. 30 10  2024/09/09 The purpose of advertising is to bring about a response (sometimes attitudinal, sometimes behavioural) by providing information to potential customers Grasping Service Marketing. 3rd Edition. 31 5 Roles of Advertising 1. To introduce and describe the service organisation to the customer; 2. To build a personality for the service organisation; 3. To integrate the needs, values and attitudes of customers with the capabilities of the service organisation; 4. To motivate the service organisation’s personnel to support the marketing effort and to serve customers appropriately; and 5. To create an enabling environment by supporting sales representatives and intermediaries to execute their responsibilities effectively. Grasping Service Marketing. 3rd Edition. 32 11  2024/09/09 Advertising Appeals The right appeal is important to ensure the desired effect: Rational messages Emotional messages Moral messages Competitive advantage messages Grasping Service Marketing. 3rd Edition. 33 Advertising Appeals Rational messages Important/factual information (e.g. benefits, value, quality, service characteristics etc.) Grasping Service Marketing. 3rd Edition. 34 12  2024/09/09 Advertising Appeals Emotional messages Evokes emotions (fear, sadness, humour, happinesso) and often uses visuals of beauty, children or animals and music to create a mood. Grasping Service Marketing. 3rd Edition. 35 Advertising Appeals Moral messages Elicit feelings of right and wrong (commanding tone used) Grasping Service Marketing. 3rd Edition. 36 13  2024/09/09 Advertising Appeals Rational messages Important, factual information Emphasises benefits, price, quality, value, service guarantees, service excellence, service availability or service characteristics. Emotional messages Tries to evoke emotion Use humour, fear, sadness, pride or happiness appeals. TV: Use visuals such as scenic beauty, children or animals and music to create a mood. Shows product/brand infrequently or only at end. Moral messages Evokes feelings of right and wrong. Commanding / righteous tone. Competitive Position service offering in relation to competition. advantage messages Useful for new services – promote distinctive benefits/advantages in direct relation to established competitors. Grasping Service Marketing. 3rd Edition. 38 Which advertising appeal is Telkom using? Motivate your answer. Grasping Service Marketing. 3rd Edition. 39 14  2024/09/09 Which advertising appeal is Unicef using? Motivate your answer. 40 Which advertising appeal is Orbit (chewing gum) using? Motivate your answer. Grasping Service Marketing. 3rd Edition. 41 15  2024/09/09 Which advertising appeal is Dove using? Motivate your answer. 42 Media Decisions Decisions related to which media to use to get message to the target market Reach Frequency number of people number of times an exposed to an individual is exposed to an advertising message advertising message Grasping Service Marketing. 3rd Edition. 43 16  2024/09/09 Media Decisions Disneyland Paris launched a new campaign, consisting of 10 different print ads, in December 2014, which emphasises their tariffs for the peak season. This advert appeared 25 times in the Travel Magazine between March and November and was read by 40% of its target audience during that period. Yet, they predicted that 80% of their target audience would have read the magazine during that period. Grasping Service Marketing. 3rd Edition. 44 Types of Media (Media Mix) Newspapers Outdoor advertising Television Radio Cinema Transit Advertising SMS and email Grasping Service Marketing. 3rd Edition. 45 17  2024/09/09 Types of Media (Media Mix) Newspapers Pictures & text Local newspaper (benefit = geographical Lo segmentation, while national newspapers cannot) Outdoor Billboards , posters, advertising on public transport (all outdoor / Out-of-home) Decisions related to which media to use to get message to the target market advertising Strategic placement can appeal to specific segments. Television !!! Expensive (Media & production costs). Appeals to senses Decisions - sight related & sound, to which mediauses colour to use & movement. to get message to the target market Generally cannot segment audience geographically, only if use regional TV stations. Radio Not as expensive as TV - lower production cost. Decisions Allows related to which for local/regional media to use to get message to the target market segmentation. Audience can be involved in other tasks while listening to advertisement. Cinema Local services. Decisions related to which media to use to get message to the target market Captive audience = maximum attention on advertisement Transit Advertising in- and outside of public transport (‘moving billboards’). Inside = commuters Decisionsshould relatedbetotarget whichaudience. media to use to get message to the target market Outside = travel routes/areas where target market is situated. Transit TV. SMS / e-mail Cost-effective, high response rate. High reach at relatively low cost. NBDecisions – permission-based, relevant related to which & meaningful. media to use to get message to the target market Email – personalisation based on purchase history. SMS – instant delivery, high open & and conversion rates. 46 Newspaper Advertising Grasping Service Marketing. 3rd Edition. 47 18  2024/09/09 Newspaper Advertising Grasping Service Marketing. 3rd Edition. 48 Outdoor Advertising / OOH Grasping Service Marketing. 3rd Edition. 49 19  2024/09/09 Television Advertising Grasping Service Marketing. 3rd Edition. 51 Radio Advertising Grasping Service Marketing. 3rd Edition. 52 20  2024/09/09 Cinema Advertising Grasping Service Marketing. 3rd Edition. 53 Transit Advertising Grasping Service Marketing. 3rd Edition. 54 21  2024/09/09 Transit Advertising Grasping Service Marketing. 3rd Edition. 55 SMS Advertising WhatsApp Advertising Grasping Service Marketing. 3rd Edition. 56 22  2024/09/09 Email Advertising Grasping Service Marketing. 3rd Edition. 57 Making Media Decisions… You were recently appointed as the Marketing Manager for UBER South Africa. Your first task is to communicate to potential customers how to book an UBER taxi. Suppose that the UBER taxi service is only available in Gauteng. Discuss TWO media channels that would be most appropriate for UBER to use and motivate why you have chosen each media channel Grasping Service Marketing. 3rd Edition. 58 23  2024/09/09 Communication Mix COMMUNICATION MIX Communication elements that can be used to communicate with target audience: Advertising Sales promotion Personal selling Public relations Direct marketing Word-of-mouth Grasping Service Marketing. 3rd Edition. 59 Sales Promotion A variety of activities with the common purpose of stimulating customer buying behaviour, especially in the short-term Grasping Service Marketing. 3rd Edition. 60 24  2024/09/09 Sales Promotion Tools Characteristics of sales promotion tools: Beneficial to internal and external customers Stimulate positive word of mouth communication Provide tangible cues to the service offering Help customer understand the service Enhance overall message of service org Encourage customer loyalty Grasping Service Marketing. 3rd Edition. 61 Sales Promotion Tools Coupons and groupons Sampling Premiums Competitions Price discounts Frequency programmes Bonuses and awards Grasping Service Marketing. 3rd Edition. 62 25  2024/09/09 Sales Promotion Tools Coupons and groupons – Coupons are sales certificates entitling the bearer to a discount on the purchase of a specific service Sampling – Gives customers the opportunity to experience the actual service free of charge- often in small qualities or short duration, without purchasing the service Premiums – These are give-away items – Are free merchandise or additional services offered when purchasing a particular service. Competitions – The inclusion of competition in a service offer adds of the value of products Price discounts – Discounts and price reduction can also be seen as sales promotion tools Frequency programmes – Long term sales promotions targeted at current customers. Are designed to encourage repeat purchases Bonuses and awards – Can be used to stimulated sales among sales personnel during periods of low demand or develop loyalty among intermediaries Grasping Service Marketing. 3rd Edition. 63 Sales Promotion Tools Coupons and groupons – Coupon: Certificates that entitle bearer to discount on a specific service – Groupon: Middleman service that promote service on behalf of provider (get commission when customer referred) Grasping Service Marketing. 3rd Edition. 64 26  2024/09/09 Sales Promotion Tools Sampling – Experience actual service free of charge (in small quantities or short duration) without purchasing service Grasping Service Marketing. 3rd Edition. 65 Sales Promotion Tools Premiums (‘give-away’ items) – Free merchandise or additional service offered when purchasing a particular service Grasping Service Marketing. 3rd Edition. 66 27  2024/09/09 Sales Promotion Tools Competitions – Adds value to total offer (encourages trial, seasonal demand, raise awareness etc.) – To attract new customers / to reward existing customers Grasping Service Marketing. 3rd Edition. 67 Sales Promotion Tools Price discounts (price reductions) Grasping Service Marketing. 3rd Edition. 68 28  2024/09/09 Sales Promotion Tools Frequency programes – Long term sales promotions targeted at existing customers in order to build repeat purchases, and brand loyalty by rewarding their long term patronage Grasping Service Marketing. 3rd Edition. 69 Sales Promotion Tools Bonuses and awards – Stimulate sales among sales personnel during low periods demand or to develop loyalty among intermediaries which promote service offering 70 29  2024/09/09 Aerial advertising 71 Communication Mix COMMUNICATION MIX Communication elements that can be used to communicate with target audience: Advertising Sales promotion Personal selling Public relations Direct marketing Word-of-mouth Grasping Service Marketing. 3rd Edition. 72 30  2024/09/09 Personal Selling A promotional tool used by salespeople to engage customers using skills and techniques to convince them to purchase the service by demonstrating the ways in which the service will meet their needs Grasping Service Marketing. 3rd Edition. 73 Personal Selling The differences between selling physical goods and selling services: Service purchasing is sometimes less pleasant buying experience Customer’s perception of the service organisation is an important factor when deciding to purchase a service Customers attach particular importance to the level of support received from a particular salesperson, especially their attitude and personality Customers are influenced by personal recommendations to a greater extent than by advertising Customers may do fewer price comparison when purchasing services Customer involvement is of more importance when purchasing services compared to physical products Grasping Service Marketing. 3rd Edition. 74 31  2024/09/09 Personal Selling Stages of personal selling: Stage 1: Preparation and planning Stage 2: Sales presentation Stage 3: Negotiations and closing Stage 4: Follow-up Grasping Service Marketing. 3rd Edition. 75 Public Relations An indirect promotional tool with the purpose of establishing and enhancing a positive image of an organisation and its services amongst its various stakeholders Grasping Service Marketing. 3rd Edition. 76 32  2024/09/09 Publics or Stakeholders Several additional audiences (known as publics and/or stakeholders): Intermediaries Suppliers Employees Investors Government Local communities Grasping Service Marketing. 3rd Edition. 77 Example of an organisation getting involved in the local community Grasping Service Marketing. 3rd Edition. 78 33  2024/09/09 Public Relations Tools Events Lobbying Publications Publicity Sponsorship Crisis management Grasping Service Marketing. 3rd Edition. 79 Public Relations Tools Events - To attract media attention or to build its corporate image - e.g. presentations and seminars, public speeches, exhibitions, social events Grasping Service Marketing. 3rd Edition. 80 34  2024/09/09 Public Relation Tools Lobbying: - To influence legislators and government officials to promote or oppose legislation and regulation - Purpose = to inform and influence key decision-makers who may be critical in allowing elements of a marketing plan to be implemented Grasping Service Marketing. 3rd Edition. 81 Public Relation Tools Publications: - Includes annual reports, brochures, magazines, newsletters, posters, articles and employee reports 82 35  2024/09/09 Public Relation Tools Publicity: - An objective source of information that it is particularly influential (e.g. media releases commonly used to announce new service or changes to organisation; or media conferences commonly used when a major event is to be announced - two-way dialogue between the organisation and the media) Grasping Service Marketing. 3rd Edition. 83 Public Relation Tools Sponsorship: - An investment in events or causes - Helps to increase awareness levels or enhance its reputation Grasping Service Marketing. 3rd Edition. 84 36  2024/09/09 Public Relation Tools Crisis management - A crisis may be a one-time event (oil spill, fire, recall) or a long- running problem (labour strike) Grasping Service Marketing. 3rd Edition. 85 Direct Marketing An interactive marketing system NOTE! which uses one or more Constitutes a specific “call to action” such as Call this toll free number; Click here;media Subscribe, Buy now; Shop now VS to acquire a difficult to measure effectiveness measurable General advertising (e.g. billboards) that does not call for specific response and therefore more response at a given location Grasping Service Marketing. 3rd Edition. 87 37  2024/09/09 Direct Marketing Telemarketing Marketing via telephone = immediacy. Inbound (receive) or outbound (send messages) Effectiveness measured by cost per call/hour & number of quality enquiries received. Direct Mail Useful for targeting specific groups of private business customers. High degree of creativity required. Email Reach wide audience in short period of time. Marketing Cost-effective. Measurable (track open rates, CTR, conversion rates) Direct response Interactive advertising to generate measurable response. print, radio & Evoke immediate response & specific action. TV Mobile SMS/MMS. Wide audience in short time at low cost. Personal devices – Marketing don’t overuse, be courteous, relevant & allow unsubscribe. Social Media Direct interaction. User can easily share, click on links and be Marketing redirected. Helps service organisation better understand customers – ideal for building relationships. Reach millions around the world, but can be targeted. Grasping Service Marketing. 3rd Edition. 88 Direct Marketing Media Example of direct mail Grasping Service Marketing. 3rd Edition. 89 38  2024/09/09 Direct Marketing Media Example of email marketing Grasping Service Marketing. 3rd Edition. 90 Direct Marketing Media Direct response print / radio & television Grasping Service Marketing. 3rd Edition. 91 39  2024/09/09 Direct Marketing Media Mobile marketing Grasping Service Marketing. 3rd Edition. 92 Direct Marketing Media Social media marketing Grasping Service Marketing. 3rd Edition. 93 40  2024/09/09 Word-of- mouth An unpaid form of promotion in which satisfied customers tell other people how much they like a business, product or service Grasping Service Marketing. 3rd Edition. 94 Word-of-mouth Testimonials: Encourage current users to inform others of good service in return for discount or free gift Use satisfied customers’ experiences as testimonials Use PR activities to identify opinion leaders and persuade them to recommend your service Provide loyal customers with promotional items Establish a formal complaints procedure to deal with dissatisfied customers’ complaints & motivate satisfied customers to share their experiences with their friends Grasping Service Marketing. 3rd Edition. 95 41  2024/09/09 Word-of-mouth Inform others (get discount): Grasping Service Marketing. 3rd Edition. 96 Word-of-mouth Testimonials: Grasping Service Marketing. 3rd Edition. 97 42  2024/09/09 Viral Marketing The spread of information about a product or service from one person to another by harnessing the electronic connectivity of individuals through network effects of the internet and mobile networks. Grasping Service Marketing. 3rd Edition. 98 END… 99 43