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MANAGING SERVICE PROMISES 14-1 Provider Gap 4 CUSTOMER COMPANY Gap 4: The Communication Gap External Service delivery communications to customers 14-2 Key Factors Leading to Provider Gap 4 14-3 Integrated Service Marketing Communications The Need for Coordination in Marketing Communication Key Service Communication Challenges Five Categories of Strategies to Match Service Promises with Delivery 14-4 Communications and the Services Marketing Triangle Company Internal Marketing Vertical Communications Horizontal Communications Employees Interactive Marketing External Marketing Communication Advertising Sales Promotion Public Relations Direct Marketing Customers Personal Selling Customer Service Center Service Encounters Servicescapes Source: Parts of model adapted from work by Christian Gronroos and Phillip Kotler Integrated Service Marketing Communications Integrated Service Communications a strategy that carefully integrates all external and internal communication channels to present a consistent message to customers This means coordination across: sales and service people print Internet other forms of tangible communication including the servicescape How is this done in services? advertising sales presentations service encounters with employees servicescape and other tangibles Internet and web presence public relations pricing service guarantees customer education 14-6 Approaches for Integrating Services Marketing Communication Manage Customer Expectations Manage Service Promises Goal: Delivery greater than or equal to promises Manage Internal Marketing Communication Improve Customer Education (1) Approaches for Addressing Service Intangibility Use narrative to demonstrate the service experience Present vivid information Use interactive imagery Focus on the tangibles Use brand icons to make the service tangible Use association, physical representation, documentation, and visualization Feature service employees in communication Use buzz or viral marketing Leverage social media Aim messages to influencers Create advertising that generates talk because it is humorous, compelling, or unique Feature satisfied customers in the communication Generate word-of-mouth through employee relationships 14-8 Services Advertising Strategies Matched with Properties of Intangibility 14-9 (2) Approaches for Managing Service Promises Create a strong service brand Coordinate external communication 14-10 Service Branding Model 14-11 Approaches for Managing Customer Expectations Offer Choices Create Tiered-Value Offerings Communicate Criteria for Service Effectiveness Negotiate Unrealistic Expectations Goal: Delivery greater than or equal to promises Approaches for Improving Customer Education Goal: Delivery greater than or equal to promises Prepare Customers for the Service Process Confirm Performance to Standards Clarify Expectations after the Sale Teach Customers to Avoid Peak Demand Periods and Seek Slow Periods Approaches for Managing Internal Marketing Communications Goal: Delivery greater than or equal to promises Create Effective Vertical Communications Create Effective Horizontal Communications Align Back Office Personnel w/ External Customers Create Cross-Functional Teams Best Practices for Closing the Communication Gap (Gap 4) Employing integrated service 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. 14-15 DHL’s Outdoor Advertising DHL’s Print Advertising DHL’s Print Advertising Links to Employees “Relax, It’s FedEx” Campaign Campaign objective: demonstrate that FedEx’s portfolio of services will help businesses meet their needs more effectively Aimed at all businesses: from small businesses to corporate customers Integrated marketing communications campaign involves TV, print, and radio ads the message: the reliability that customers have come to expect is now more certain than ever, so they can “relax” FedEx Print Advertisements Ad copy: Keeping costs down is the most important thing. Right after the 107 other things. Give your customers what they want, when they want it with FedEx Ground and the vast FedEx® transportation portfolio. It's a variety of services that is sure to meet your variety of transportation needs. Like giving you product visibility throughout the delivery process via FedEx InSight® so you can increase customer expectations and customer service all while keeping costs down. To find out everything we can do for you call 1.800.Go.FedEx (1.800.463.3339). distribution.fedex.com/01 Relax, it's FedEx. FedEx Print Advertisements Ad copy: Make your customers happy, even when they're not. Turn dissatisfied customers into customers who come back. FedEx Ground and the FedEx® transportation portfolio can give you a returns process that's easy for your customers and cost effective for you. Giving the customer what they want, when they want is a must. No matter how many tries it takes. To find out what we can do for you call 1.800.Go.FedEx (1.800.463.3339). retail.fedex.com/03 Relax, it's FedEx. FedEx Website www.fedex.com easy to use ties in with whole value proposition of campaign Print ads drive customers to websites with information on how FedEx provides solutions for specific industries: retail, wholesale, apparel Sports Sponsorship Does not tie in directly with the “Relax, It’s FedEx” campaign, but increases brand awareness FedEx: Metrics for IMC Campaign FedEx must be able to evaluate the effectiveness of integrated marketing communication campaign customer surveys and focus groups about brand awareness number of telephone inquiries number of website hits and click-throughs number of shipments by customer segment growth in sales since campaign inception FedEx: IMC Campaign Effectiveness Consistency of message Use narratives to demonstrate service experience Presents vivid information Promises what is possible Encourages word-of-mouth communication Indirectly features service customers FedEx: Internal Communications Service employees must be well versed in what ads are promising Knowledge of services offered across the organization call centers web design e-mail response mechanisms InSight (new service offered) Cross-functional communication operations public relations/marketing