Lecture 7

Question 1

What are some of the reasons for marketing communications in services

Answer 1

• Positions and differentiates service offerings
• > Eg. Rainforest Cafe (environmentally considerate)
• Promotes contribution of frontstage personnel and backstage operations
• > eg. MK Restaurants (thai resturant that show training videos in advertising)
• Adds value through communication content
• > eg. information and consultation to reduce pre purchase risk
• Faciltiates customer involvement in service production
• > eg. Shouldice Hospital Canada (video to watch at home before procedure so have clear expectations)
• Stimulates or dampens demand to match capacity eg. cinema

=>Overcoming the challenges of managing promises and expectations
- Create powerful service brand
eg. Qantas - reliability and experience
Google - cutting edge innovation
- External, controllable company communication must be coordinated
- Dont over promise and under deliver
- Create tiered-value service offerings

Question 2

Steps in planning for IMC…

Answer 2

1. Defining the Target Audience
   - Prospects -> traditional channgels
   - Users -> more cost effective
   - Employees
2. Setting Objectives
   - Before deciding which communication elements to use, in what manner, service marketers must first define their goals and decide what role communication should play in achieving the goal
   - Must formulate specific communications objectives
   - Common educational and promotional objectives:
   - >Create memorable images of companies and their brands
   - >Build awareness and interest in an unfamiliar service/brand
   - >Compare a service favourably with competitors’ offerings
   - >Build preference by communicating the strengths and benefits of the specific brand
   - >Reposition a service relative to competitors offerings
   - >Reduce uncertainty and perceived risk
   - >Provide reassurance eg. promoting service guarantees
   - >Encourage trials
   - >Familiarise customers with service processes in advance of use
3. Sample Measurable Objectives
   - Advertising
   - >Build awareness of… from x% to y% between now and end of December
   - Direct mail
   - >Stimulate target market interest and generate x number of enquiries over a time period
   - Sales promotions
   - >Encourage early response and X number of bookings by a time period
   - Personal selling
   - >Increase revenue by 10% over the next 12 months by encouraging customers to take additional offerings

Question 3

Outline some of the traditional marketing channels

Answer 3

= Public relations
- Involves building credibility and fostering goodwill among individuals and groups
- Sponsorship, fundraising, corporate client entertainment, events, press releases, pro bono work
Eg. Westpac helicopter, Ronald McDonald House

= Sales Promotions

• Communication attached to value-added incentive to push purchasing decision
• Usually offered at point of sale eg. discount, two for one, sample
• Assist in balancing supply and demand eg. short term promotion
• Used to add excitement, stimulate customers, employees and intermediariries
• May induce brand switch/trial

Sales Promotion Methods
- Sampling eg. first promotion free
- Coupons -> price cut
- Sign up rebates eg. zoo membership
- Future discounts (based on volume)
- Gift premiums eg. first class pens
- Prize promotions eg. involvement/excitement
price /quantity promotions eg. limited duration

= Personal Selling

• Interpersonal encounters made face to face or voice to voice
• Tailored message
• Expensive
• B2B dealings
• > Dominant form owing to high complexity and transaction value eg. airlines, charities