Hoffman 4e Ch. 7 Communication Strategy 2 PDF

Midterm ! Date: Tuesday 24th Time: 8-9 am (60 minutes) Place: C DEX Zone A Male (Examsoft) Chapters: 1,3,4,5,6 Exam Format: 21 Multiple Choices 3 Open-Ended questions 1 ©2011 Cengage Learning. All righ...

Midterm ! Date: Tuesday 24th Time: 8-9 am (60 minutes) Place: C DEX Zone A Male (Examsoft) Chapters: 1,3,4,5,6 Exam Format: 21 Multiple Choices 3 Open-Ended questions 1 ©2011 Cengage Learning. All rights reserved.  Chapter 7 Developing the Service Communication Strategy  Chapter Objectives Discuss the steps necessary to manage the firm’s service communication strategy effectively. Understand the special challenges associated with developing service communications. Describe specific guidelines for developing service communications. Appreciate the special considerations faced by professional service providers and recommend solutions to overcome these challenges. 3 ©2011 Cengage Learning. All rights reserved.  Opening Vignette: Geico GEICO offers a classic illustration that as environmental forces change the course of a company’s overall marketing strategy, the service firm’s communication strategy should adapt to fit changing business conditions. ©2011 Cengage Learning. All rights reserved. 4  Marketing Communication Mix 1. Advertising 2. Sales promotion 3. Personal selling 4. Public relations 5. Sponsorship 6. Social media 7. Event 5 ©2011 Cengage Learning. All rights reserved.  6 ©2011 Cengage Learning. All rights reserved. Figure 7.1 Managing the Service Communication Strategy 1. Selecting Target Markets 2. Establishing Communication Objectives 3. Setting the Communication Budget 4. Formulating the Positioning Strategy 5. Establishing Message and Media Strategies 6. Monitoring, Evaluating and Controlling the Communication Strategy 7 ©2011 Cengage Learning. All rights reserved. Product Life Cycle 8  Figure 7.2 PLC Stage and Communication Objectives Product Life Communication Communication Tactics Cycle Stage Objective 1. Introduce the service offering 2. Create brand awareness Introduction Informational 3. Prepare the way for personal selling efforts 4. Encourage trial Growth and maturity Informational and persuasive 5. Create a positive attitude relative to competitive offerings 6. Provoke an immediate buying action Maturity and decline Persuasive and 7. Enhance the firm’s image reminder 8. Encourage repeat purchases 9. Provide ongoing contact 10.Express gratitude to existing customer 11. base 9 ©2011 Cengage Learning. All rights reserved. 12.Confirm past purchase decisions  Figure 7.3 Budget Techniques Budget Setting Description Technique 1. Top-down budgeting Set by upper management 2. Bottom-up Set by the product level or brand manager budgeting 3. Bottom-up/Top- Set by the product level and then revised by upper down budgeting management 4. Top-down/Bottom- Set by upper management and then revised by up budgeting product level 5. Percentage-of-sales Set based on a percentage of the previous year’s sales 6. Incremental Increased by a fixed percent every year 7. All-you-can-afford Set based on what is left over after the firm pays for approach operating expenses and planned profits 8. Competitive Parity Set based on promotional spending behavior demonstrated by the competition 9. Objective-and-Task Set based on the amount necessary to achieve stated method communication objectives 10 ©2011 Cengage Learning. All rights reserved.  Figure 7.4 Differentiation Approaches for Effective Positioning Product Differentiation Personnel Differentiation 1. Features 1. Competence 2. Performance 2. Courtesy 3. Conformance 3. Credibility 4. Durability 4. Reliability 5. Reliability 5. Responsiveness 6. Repairability 6. Communication 7. Design (integrates the Style above) Service Differentiation Image Differentiation 1. Delivery (speed, accuracy) 2. Installation 1. Symbols 3. Customer training 2. Written, audio/visual media 4. Consulting service 3. Atmosphere 5. Repair 4. Events 6. Miscellaneous service 11 Media Strategies for Targeting Users Type 1 Staff – Deal with customers quickly and effectively – “once only” situations Type 2 Staff – Requires some independent decision making – More intense communication than Type 1 Type 3 Staff – Tasks are complex and often nonrepeatable 12 ©2011 Cengage Learning. All rights reserved.  Special Challenges Associated with the Service Communication Strategy 1. Mistargeted Communications 2. Managing Expectations & Perceptions 1. Technical service quality 3. Advertising to Employees 4. Selling/Operations Conflicts ©2011 Cengage Learning. All rights reserved. 13 Figure 7.5 The Impact of Intangibility: Different Communication Strategies for Different Products Tangible Tangible dominant evidence Perfume Fast food outlets Insurance Intangible Intangible dominant image Source: Adapted from G. Lynn Shostack, “Breaking Free from Product Marketing,” The Journal of Marketing (April 1977). 14 ©2011 Cengage Learning. All rights reserved.  Specific Guidelines for Developing Service Communications 1. Develop a word-of- mouth communications network (trial, guarantee) 2. Promise what is possible 3. Tangibilize the intangible 4. Feature working relationships between customer and provider 15 ©2011 Cengage Learning. All rights reserved.  Specific Guidelines for Developing Service Communications 5. Reduce consumer fears about variation in performance 6. Determine and focus on service quality dimensions 7. Differentiate the service product from service delivery 8. Make the service more easily understood 16 ©2011 Cengage Learning. All rights reserved.  Special Consideration for Professional Service Providers 1. Third-party accountability 2. Client uncertainty 3. Experience is essential 4. Limited differentiability 5. Maintaining quality control 17 ©2011 Cengage Learning. All rights reserved.  Special Consideration for Professional Service Providers 6. Turning doers into sellers 7. Dividing the professional’s time between marketing and operations 8. Tendencies to be reactive rather than proactive 9. The effects of advertising are unknown 10.Limited marketing knowledge base 18 ©2011 Cengage Learning. All rights reserved.  Communications Tips for Professional Service Providers Turn current clients into company spokespersons First impressions are everything Create visual pathways that reflect quality Establish regular communications with clients Develop a firm brochure An informed office staff is vital 19 ©2011 Cengage Learning. All rights reserved.  Digital Marketing Case Study : American E xpress Financial Services Marketing: SimplyCast 360 Problems With Sports Marketing Marketing Ideas For Your Luxury Spa How Luxury Brands Can Thrive in a Digital World How can banks use social media to get mo re customers? | World Finance Experiental 20 ©2011 Cengage Learning. All rights reserved.  All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2011 Cengage Learning. 21 ©2011 Cengage Learning. All rights reserved.