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Module 1: Marketing of Services

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Promoting Services and Educating Customers - Part 3

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MODULE OVERVIEW

Know communications mix elements that originate outside the firm.
Understand when communications should take place (“When”), how to set budgets for service communications and programs, and how to evaluate these programs.
Appreciate ethical and consumer privacy-related issues in service marketing communications.
Understand role of corporate design in communications.
Highlight the importance of integrated marketing communications to deliver a powerful brand identity.

 
MESSAGE ORIGINATING OUTSIDE THE ORGANIZATION

Some of the most powerful messages about a company and its products come from outside the organization and are not controlled by the marketer.
They include word-of- mouth (both in person and in electronic form on social media), online reviews on third- party websites, blogs, twitter, and media coverage

TIMING DECISIONS OF SERVICE MARKETING COMMUNICATIONS

Service firms, in contrast, are capacity constrained and generally do not promote during heavy usage periods.
Rather, timing is closely matched to the various perceptions and behaviors the firm wants to manage in the service communications funnel.
Often, different communications channels are used to move a customer along from awareness, preference all the way to the post-consumption

BUDGET DECISIONS AND PROGRAM EVALUATION

Service firms use a number of methods to determine their communications budget like-
Allocating a percentage of sales or profit.
Matching competitors’ spent.
Using last year’s budget and adding to or subtracting from it.
However, the most logical method is the objective-and-task method, which is also known as the budget buildup method.
This method entails three steps:
Defining the communications objectives along the services marketing communications funnel.
Determining the tasks needed to achieve these objective
Estimating the costs of the program. BN
The estimated costs become the basis for the proposed promotions budget.

ETHICAL AND CGNSUIMER PRIVACY  ISSUES IN COMMUNICATIONS

Few of ethical and consumer privacy issues are highlighted below.
Unrealistic service promises result from poor internal communications between operations and marketing personnel concerning the level of service performance that customers can reasonably expect.
Unethical advertisers and salespeople deliberately make exaggerated promises to secure sales.
Deceptive promotions that lead people to think that they have a much higher chance of winning prizes or " awards than is really the case.
A different type of ethical issue concerns unwanted intrusion by aggressive marketers into people’s personal lives.
The increase in telemarketing, direct mail, email, and messaging is frustrating for those who receive unwanted sales communications.

THE ROLE OF CORPORATE DESIGN

Corporate design is key to ensure a consistent style and message is communicated through all of a firm’s communications mixchannels.
Corporate design is particularly important for companies operating in competitive markets where it’s necessary to stand out from the crowd to be instantly recognizable in different locations.
Many service firms employ a unified and a distinctive visual appearance for all tangible elements to facilitate recognition and reinforce a desired brand image.

Corporate Design Strategies

Name as a central element
Using trademark symbol as primary logo
Using corporate brand names
Using colours in corporate design

CONCLUSION

In this module we learnt about communications mix elements that Originate outside the firm.
Understood when communications should take place (“When”), how to set budgets for service communications and programs, and how to evaluate these programs.
Learnt about ethical and consumer privacy related issues in service marketing communications.