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INTEGRATED SERVICE MARKETING COMMUNICATION

SERVICE MARKETING COMMUNICATIONService marketing communication is all about promoting yourself and the service of your company.It has direct impact on the communication gap, in Gap model of Service marketingIntegrated Services Communicationsa strategy that carefully integrates all external and internal communication channels to present a consistent message to customersThis means coordination across:sales and service peopleprintInternetother forms of tangible communication including the servicescape

CUSTOMERCOMPANY

External Communications to Customers

GAP 4

Service Delivery Provider GAP 4

Key Factors Leading to Provider Gap 4

Best Practices for Closing the Communication Gap (Gap 4)Employing integrated services marketing communication strategies around everything and everyone that sends a message or signal.Manage customer expectations effectively throughout the experience.Develop mechanisms for internal communication to avoid over-promising and ensure successful delivery.

Position and differentiate the serviceHelps Customers to evaluate Service OfferingsPromote the Contribution of the Service PersonnelAdd Value through Communication ContentFacilitate Customer Involvement in ProductionStimulate or Dampen Demand to match Capacity

Role of Marketing communications

How is this done in services?

Create memorable images of specific companies and their brandsBuild awareness/interest for unfamiliar service/brandCompare service favorably with competitors offeringsBuild preference by communicating brand strengths and benefitsReposition service relative to competitionReduce uncertainty/perceived risk by providing useful info and adviceCommon Educational and Promotional Objectives in Service Settings

Provide reassurance (e.g., promote service guarantees)Encourage trial by offering promotional incentivesFamiliarize customers with service processes before useTeach customers how to use a service to best advantageStimulate demand in off-peak, discourage during peakRecognize and reward valued customers and employeesCommon Educational and Promotional Objectives in Service Settings

Build awareness, inform, persuade, and remindChallenge: How stand out from the crowd?Effectiveness remains controversialResearch suggests that less than half of all ads generate a positive return on their investment

Messages through Marketing Channels: Advertising

PR/Publicity involves efforts to stimulate positive interest in an organization and its products through third partiese.g., press conferences, news releases, sponsorships

Corporate PR specialists teach senior managers how to present themselves well at public events, especially when faced with hostile questioning

Unusual activities can present an opportunity to promote companys expertiseMessages through Marketing Channels: Public Relations

Mailings, recorded telephone messages, faxes, email

Potential to send personalized messages to highly targeted micro segmentsNeed detailed database of information about customers and prospects

Messages through Marketing Channels: Direct Marketing

Advance in on-demand technologies empower consumers to decide how and when they prefer to be reached, and by whome.g. email spam filters, pop-up blockers, podcastingPermission Marketing goal is to persuade customers to volunteer their attentionEnables firms to build strong relationships with customerse.g., People invited to register at a firms website and specify what type of information they like to receive via email

Messages through Marketing Channels: Direct Marketing

Defined as Communication that comes with an incentive

Should be specific to a time period, price, or customer group

Motivates customers to use a specific service sooner, in greater volume with each purchase, or more frequentlyMessages through Marketing Channels: Sales Promotion

Interpersonal encounters educate customers and promote preferences for particular brand or productCommon in B2B and infrequently purchased services Many B2B firms have dedicated sales force to do personal sellingCustomer assigned to a designated account managerFor services that are bought less often, firms representative acts as consultant to help buyers make selectionFace-to-face selling of new products is expensive telemarketing is lower cost alternative

Messages through Marketing Channels: Personal Selling

The web is used for a variety of communication tasksCreating consumer awareness and interestProviding information and consultationAllowing two-way communication with customers through email and chat roomsEncouraging product trialAllowing customers to place ordersMeasuring effectiveness of advertising or promotional campaignsInnovative companies look for ways to improve the appeal and usefulness of their sites

Messages through Internet: Companys Website

Banner advertisingPlacing advertising banners and buttons on portals such as Yahoo, Netscape and other firms websites

Draw online traffic to the advertisers own site

Web sites often include advertisements of other related, but non competing servicesMessages through Internet: Online Advertising

Search engine advertisingReverse broadcast network: search engines let advertisers know exactly what consumer wants through their keyword searchCan target relevant messages directly to desired consumersSeveral advertising options:Pay for targeted placement of ads to relevant keyword searchesSponsor a short text message with a click-through linkBuy top rankings in the display of search results

Messages through Internet: Online Advertising

There used to be a difference between personal and impersonal communicationTechnology has created a gray area between the twoDirect mail and email can be personalizedElectronic recommendation agents can also personalize communicationsWith advances of on-demand technologies, consumer are increasingly empowered to decide how and when they like to be reachedMoving from Impersonal to Personal Communications

Frontline employeesCommunication from frontline staff can be for the core service or supplementary elementsNew customers in particular need help from service personnelService outletsCan be through banners, posters, signage, brochures, video screens, audio etc.Self-service delivery pointsATMs, vending machines and websites are examplesCustomer TrainingMessages through Service Delivery Channels

Word of Mouth (WOM)Recommendations from other customers viewed as more credibleStrategies to stimulate positive WOM:Having satisfied customers providing commentsUsing other purchasers and knowledgeable individuals as referenceCreating exciting promotions that get people talkingOffering promotions that encourage customers to persuade their friend to purchaseDeveloping referral incentive schemes

Messages Originating from Outside the Organization

Blogs A new type of online WOMBecoming increasingly popularCommunications about customer experiences influence opinions of brands and productsSome firm have started to monitor blogs as form of market research and feedbackMedia CoverageCompares, contrasts service offerings from competing organizationsAdvice on best buysMessages Originating from Outside the Organization

Advertising, selling, and sales promotion all lend themselves easily to misuse

Communication messages often include promises about benefits and quality of service delivery. Customers are sometimes disappointed

Why were their expectations not met?Poor internal communications between operations and marketing personnel concerning level of service performanceOver promise to get salesDeceptive promotions

Unwanted intrusion by aggressive marketers into peoples personal livesEthical Issues in Communication

Marketing Communications Planning

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?The 5 Ws Model

ProspectsEmploy traditional communication mix because prospects are not known in advanceUsersMore cost effective channels EmployeesSecondary audience for communication campaigns through public mediaShape employee behaviorPart of internal marketing campaign using company-specific channelsTarget Audience: 3 Broad Categories

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Five Major Approaches to Overcome Service Communication Channels

(1) Approaches for Addressing Service IntangibilityUse narrative to demonstrate the service experiencePresent vivid informationUse interactive imageryFocus on the tangiblesUse brand icons to make the service tangibleUse association, physical representation, documentation, and visualizationFeature service employees in communication

Use buzz or viral marketingLeverage social mediaAim messages to influencersCreate advertising that generates talk because it is humorous, compelling, or uniqueFeature satisfied customers in the communicationGenerate word-of-mouth through employee relationships

Services Advertising Strategies Matched with Properties of Intangibility

(2) Approaches for Managing Service PromisesCreate a strong service brand

Coordinate external communication

Goal:Delivery greater than or equal to promisesOfferServiceGuaranteesCreate EffectiveServices CommunicationsMANAGING SERVICE PROMISESMakeRealisticPromisesCoordinate ExternalCommunication

Service Branding Model

(3) Approaches for Managing Customer ExpectationsMake realistic promises

Offer service guarantees

Offer choices

Create tiered-value service offerings

Communicate the criteria and levels of service effectiveness

(4) Approaches for Managing Customer EducationPrepare customers for the service process

Confirm performance to standards and expectations

Clarify expectations after the sale

Teach customers to avoid peak demand periods and to seek slow demand periods

(5) Approaches for Managing Internal Marketing CommunicationCreate effective vertical communicationsSell the brand inside the companyCreate effective upward communicationCreate effective horizontal communicationsAlign back-office and support personnel with external customers through interaction or measurementCreate cross-functional teams of sales, service, and operations people when developing new services or engaging in service improvementsMaintain a customer focus throughout all functions

Interactive Imagery: Travelers

Service Brand Icon: The GEICO Lizard

Focusing on Tangibles Associated with the Service: The Sierra Club

THE MOST TOP RATED BOUTIQUE HOTEL IN AMERICA

Little Island, Big Escape

Where Modern Comfort Meets Historical Charm

Taglines

INTERNAL COMMUNICATION MARISOL Management Training Program (MMTP)MARISOL Management Training Program (MMTP)Operations / Food ProductionHotel Operations Management Trainee Program (HOMT)Service employees must be well versed in what ads are promisingKnowledge of services offered across the organizationcall centersweb designe-mail response mechanismsInSight (new service offered)Cross-functional communicationoperationspublic relations/marketing

Taj wants its employees to succeed. Through their world class training and development programs, they ensure employees are constantly learning and continuously growing. they provide the tools necessary to become successful. And with these tools and a host of developmental options, how you grow with the Taj is only limited by your imagination.

TMTP: This intensive MTP prepares young people as thorough professionals with the Taj. Each year, the Taj fortifies its Operations functions with raw talent from the best hotel and graduate schools in the country. They offer the TMTP comparable to an MBA in hospitality that moulds young budding hotel professionals into future business managers. A typical career path could include joining as a Taj Management Trainee and attaining the position of a General Manager of a Hotel by lateral movements through various functions such as Human Resources, Sales, Food & Beverage and Front Office.

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INTERACTIVE COMMUNICATIONDigital Marketing Trip AdvisorWebsiteFacebook

WebsiteCross-marketingPublic RelationsDirect MarketingInternet MarketingSocial MediaEvent MarketingPrint MediaSoft OpeningMedia Tools

Timeline of Media Tools

Launch new site - MayStreamline the User Experience To be maintained all year longEasy and accessible reservation systemUpdated photos and contentLink the website to social media platformsOptimize the Websites Content (SEO- also to be maintained all year)Keywords, descriptions, site map

Website

Ongoing initiativeHelps to attract more customers with local businesses while satisfying services and amenities Hotel Marisol cannot directly deliverAbility to successfully expand using other business customer baseChance to introduce and market itself in an inexpensive way, Ideal local businesses to cross-market with would include gyms, restaurants, and spas. Cross-marketing

Cross-marketing: Gyms

Cross-Marketing: Restaurants

Cross-Marketing: Spas

Press Releases: UT San Diego WHERE MagazineCoast MagazineSan Diego MagazineCoastalLiving.com

PR NewsWire - iReachPer release/bundlePublic Relations

Direct mailers to be sent out bi-annuallyJuly 14 & January 15Utilize email opt-ins on website Create an inquiry-based direct marketing planCreates the ability to send personalized mailersEasy to track as far as ROI and effectiveness Direct Marketing

SEO(search engine optimization) Keywords: Hotels in Coronado, Hotels in San Diego, Romantic Hotels in Coronado, Boutique Hotels in CoronadoOptional: SEM if organic leads need to be supplemented Hotel Review Sites/Business ListingsYelp, TripAdvisor, Hotels.com, Travelocity, SanDiego.Org, GreatSmallHotels.com, i-escape.comBanner Ads Targeted on TripAdvisor, ExpediaOnline Event CalendarsDiscoverSD, SanDiegoReader, UT San DiegoE-NewslettersInternet Marketing

Peak times - June, July, August, March (Banner Ads)Keywords: Hotels in Coronado

Social Media

Del Mar Village Summer SolsticeEstimated attendance 700-800June 19th 5-8pmBronze SponsorshipEvent Marketing

Seasonal PackagesSummer Fun in the SunValentines Romantic GetawaySpring Special Wedding Group RatesSales Promotion

Magazines aimed at target marketJune 14, July 14, January 15Print Media

Soft OpeningMay 2014

Extend invitations to influentialsCoronado Chamber of Commerce MembersLocal Business Owners and ManagersCo-marketing partnersTravel Bloggers and Travel vloggersBudget: $10,000

Drop-down menu of referrals upon booking online How did you hear about us?Cross-MarketingEvent MarketingClipping ServiceThird PartyMeasuring Effectiveness

Promotional code redemption upon booking onlinefrom direct mailers and various ads

Click-through metric platforms from online effortsGoogle Analytics

Measuring Effectiveness

Challenges of Service Communications

Intangibility creates 4 problems:GeneralityItems that comprise a class of objects, persons, or eventsNon-searchabilityCannot be searched or inspected before purchaseAbstractness No one-to-one correspondence with physical objectsMental impalpabilityCustomers find it hard to grasp benefits of complex, multidimensional new offerings

Problems of Intangibility

To overcome intangibility

Use tangible cues in advertising (showing physical evidence)

Use metaphors to communicate benefits of service offerings

Overcoming Intangibility