Integrated service marketing communication with example

This presentation covers the integrated service marketing communication tools and as well as the role of communication tools for service industry.
It also covers the example relating the successful mix of communication for HOTEL MARISOL.

1. INTEGRATED SERVICE MARKETING COMMUNICATION

2. SERVICE MARKETING COMMUNICATION Service 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 marketing Integrated Services 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

3. CUSTOMER COMPANY External Communications to Customers GAP 4 Service Delivery Provider GAP 4

4. Key Factors Leading to Provider Gap 4

5. 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.

6. Position and differentiate the service Helps Customers to evaluate Service Offerings Promote the Contribution of the Service Personnel Add Value through Communication Content Facilitate Customer Involvement in Production Stimulate or Dampen Demand to match Capacity Role of Marketing communications

7. How is this done in services?

8. Create memorable images of specific companies and their brands Build awareness/interest for unfamiliar service/brand Compare service favorably with competitors’ offerings Build preference by communicating brand strengths and benefits Reposition service relative to competition Reduce uncertainty/perceived risk by providing useful info and advice Common Educational and Promotional Objectives in Service Settings

9. Provide reassurance (e.g., promote service guarantees) Encourage trial by offering promotional incentives Familiarize customers with service processes before use Teach customers how to use a service to best advantage Stimulate demand in off-peak, discourage during peak Recognize and reward valued customers and employees Common Educational and Promotional Objectives in Service Settings

10. Build awareness, inform, persuade, and remind Challenge: How stand out from the crowd? Effectiveness remains controversial Research suggests that less than half of all ads generate a positive return on their investment Messages through Marketing Channels: Advertising

11. PR/Publicity involves efforts to stimulate positive interest in an organization and its products through third parties e.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 company’s expertise Messages through Marketing Channels : Public Relations

12. Mailings, recorded telephone messages, faxes, email Potential to send personalized messages to highly targeted micro segments Need detailed database of information about customers and prospects Messages through Marketing Channels: Direct Marketing

13. Advance in on-demand technologies empower consumers to decide how and when they prefer to be reached, and by whom e.g. email spam filters, pop-up blockers, podcasting Permission Marketing goal is to persuade customers to volunteer their attention Enables firms to build strong relationships with customers e.g., People invited to register at a firm’s website and specify what type of information they like to receive via email Messages through Marketing Channels: Direct Marketing

14. 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 frequently Messages through Marketing Channels: Sales Promotion

15. Interpersonal encounters educate customers and promote preferences for particular brand or product Common in B2B and infrequently purchased services Many B2B firms have dedicated sales force to do personal selling Customer assigned to a designated account manager For services that are bought less often, firm’s representative acts as consultant to help buyers make selection Face-to-face selling of new products is expensive— telemarketing is lower cost alternative Messages through Marketing Channels: Personal Selling

16. The web is used for a variety of communication tasks Creating consumer awareness and interest Providing information and consultation Allowing two-way communication with customers through email and chat rooms Encouraging product trial Allowing customers to place orders Measuring effectiveness of advertising or promotional campaigns Innovative companies look for ways to improve the appeal and usefulness of their sites Messages through Internet: Company’s Website

17. Banner advertising Placing advertising banners and buttons on portals such as Yahoo, Netscape and other firms’ websites Draw online traffic to the advertiser’s own site Web sites often include advertisements of other related, but non competing services Messages through Internet: Online Advertising

18. Search engine advertising Reverse broadcast network: search engines let advertisers know exactly what consumer wants through their keyword search Can target relevant messages directly to desired consumers Several advertising options: Pay for targeted placement of ads to relevant keyword searches Sponsor a short text message with a click-through link Buy top rankings in the display of search results Messages through Internet: Online Advertising

19. There used to be a difference between personal and impersonal communication Technology has created a gray area between the two Direct mail and email can be personalized Electronic recommendation agents can also personalize communications With advances of on-demand technologies, consumer are increasingly empowered to decide how and when they like to be reached Moving from Impersonal to Personal Communications

20. Frontline employees Communication from frontline staff can be for the core service or supplementary elements New customers in particular need help from service personnel Service outlets Can be through banners, posters, signage, brochures, video screens, audio etc. Self-service delivery points ATMs, vending machines and websites are examples Customer Training Messages through Service Delivery Channels

21. Word of Mouth (WOM) Recommendations from other customers viewed as more credible Strategies to stimulate positive WOM: Having satisfied customers providing comments Using other purchasers and knowledgeable individuals as reference Creating exciting promotions that get people talking Offering promotions that encourage customers to persuade their friend to purchase Developing referral incentive schemes Messages Originating from Outside the Organization

22. Blogs – A new type of online WOM Becoming increasingly popular Communications about customer experiences influence opinions of brands and products Some firm have started to monitor blogs as form of market research and feedback Media Coverage Compares, contrasts service offerings from competing organizations Advice on “best buys ” Messages Originating from Outside the Organization

23. 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 performance Over promise to get sales Deceptive promotions Unwanted intrusion by aggressive marketers into people’s personal lives Ethical Issues in Communication

24. Marketing Communications Planning

25. 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

26. Prospects Employ traditional communication mix because prospects are not known in advance Users More cost effective channels Employees Secondary audience for communication campaigns through public media Shape employee behavior Part of internal marketing campaign using company-specific channels Target Audience: 3 Broad Categories

27. Five Major Approaches to Overcome Service Communication Channels

28. (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

29. Services Advertising Strategies Matched with Properties of Intangibility

30. (2) Approaches for Managing Service Promises Create a strong service brand Coordinate external communication Goal: Delivery greater than or equal to promises Offer Service Guarantees Create Effective Services Communications MANAGING SERVICE PROMISES Make Realistic Promises Coordinate External Communication

31. Service Branding Model

32. (3) Approaches for Managing Customer Expectations Make realistic promises Offer service guarantees Offer choices Create tiered-value service offerings Communicate the criteria and levels of service effectiveness

33. (4) Approaches for Managing Customer Education Prepare 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

34. (5) Approaches for Managing Internal Marketing Communication Create effective vertical communications Sell the brand inside the company Create effective upward communication Create effective horizontal communications Align back-office and support personnel with external customers through interaction or measurement Create cross-functional teams of sales, service, and operations people when developing new services or engaging in service improvements Maintain a customer focus throughout all functions

35. Interactive Imagery: Travelers

36. Service Brand Icon: The GEICO Lizard

37. Focusing on Tangibles Associated with the Service: The Sierra Club

38. THE MOST TOP RATED BOUTIQUE HOTEL IN AMERICA

39. “Little Island, Big Escape” “Where Modern Comfort Meets Historical Charm” Taglines

40. INTERNAL COMMUNICATION MARISOL Management Training Program (MMTP ) MARISOL Management Training Program (MMTP ) Operations / Food Production Hotel Operations Management Trainee Program (HOMT ) 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

41. INTERACTIVE COMMUNICATION Digital Marketing Trip Advisor Website Facebook

42. Website Cross-marketing Public Relations Direct Marketing Internet Marketing Social Media Event Marketing Print Media Soft Opening Media Tools

43. Timeline of Media Tools

44. Launch new site - May Streamline the User Experience To be maintained all year long Easy and accessible reservation system Updated photos and content Link the website to social media platforms Optimize the Website’s Content (SEO- also to be maintained all year) Keywords, descriptions, site map Website

45. Ongoing initiative Helps to attract more customers with local businesses while satisfying services and amenities Hotel Marisol cannot directly deliver Ability to successfully expand using other business’ customer base Chance to introduce and market itself in an inexpensive way, I deal local businesses to cross-market with would include gyms, restaurants, and spas. Cross-marketing

46. Cross-marketing: Gyms

47. Cross-Marketing: Restaurants

48. Cross-Marketing: Spas

49. Press Releases: UT San Diego WHERE Magazine Coast Magazine San Diego Magazine CoastalLiving.com PR NewsWire - iReach Per release/bundle Public Relations

50. Direct mailers to be sent out bi-annually July ‘14 & January ‘15 Utilize email opt-ins on website Create an inquiry-based direct marketing plan Creates the ability to send personalized mailers Easy to track as far as ROI and effectiveness Direct Marketing

51. SEO(search engine optimization) Keywords: Hotels in Coronado, Hotels in San Diego, Romantic Hotels in Coronado, Boutique Hotels in Coronado Optional: SEM if organic leads need to be supplemented Hotel Review Sites/Business Listings Yelp, TripAdvisor, Hotels.com, Travelocity, SanDiego.Org, GreatSmallHotels.com, i-escape.com Banner Ads Targeted on TripAdvisor, Expedia Online Event Calendars DiscoverSD, SanDiegoReader, UT San Diego E-Newsletters Internet Marketing

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

53. Social Media

54. Del Mar Village Summer Solstice Estimated attendance 700-800 June 19th 5-8pm Bronze Sponsorship Event Marketing

55. Seasonal Packages “Summer Fun in the Sun” “Valentine’s Romantic Getaway” Spring Special Wedding Group Rates” Sales Promotion

56. Magazines aimed at target market June ‘14, July ‘14, January ‘15 Print Media

57. Soft Opening May 2014 Extend invitations to influentials Coronado Chamber of Commerce Members Local Business Owners and Managers Co-marketing partners Travel Bloggers and Travel vloggers Budget: $10,000

58. Drop-down menu of referrals upon booking online “How did you hear about us ?” Cross-Marketing Event Marketing Clipping Service Third Party Measuring Effectiveness

59. Promotional code redemption upon booking online from direct mailers and various ads Click-through metric platforms from online efforts Google Analytics Measuring Effectiveness

60. Challenges of Service Communications

61. Intangibility creates 4 problems : Generality Items that comprise a class of objects, persons, or events Non-searchability Cannot be searched or inspected before purchase Abstractness No one-to-one correspondence with physical objects Mental impalpability Customers find it hard to grasp benefits of complex, multidimensional new offerings Problems of Intangibility

62. To overcome intangibility Use tangible cues in advertising (showing physical evidence) Use metaphors to communicate benefits of service offerings Overcoming Intangibility