Part 5 MANAGING SERVICE PROMISES Mc GrawHillIrwin 2003

Part 5 MANAGING SERVICE PROMISES Mc. Graw-Hill/Irwin © 2003. The Mc. Graw-Hill Companies. All Rights Reserved

Provider GAP 4 CUSTOMER COMPANY Service Delivery GAP 4 External Communications to Customers Part 5 Opener Mc. Graw-Hill/Irwin © 2003. The Mc. Graw-Hill Companies. All Rights Reserved

Chapter 15 Integrated Services Marketing Communications • The Need for Coordination in Marketing Communication • Key Reasons for Service Communication Problems • Four Categories of Strategies to Match Service Promises with Delivery • Exceeding Customer Expectations: Caveats and Strategies Mc. Graw-Hill/Irwin © 2003. The Mc. Graw-Hill Companies. All Rights Reserved

Objectives for Chapter 15: Integrated Services Marketing Communications • Introduce the concept of integrated services marketing communication. • Discuss the key reasons for service communication problems. • Present four key ways to integrate marketing communication in service organizations. • Present specific strategies for managing promises, managing customer expectations, educating customers, and managing internal communications. • Provide perspective on the popular service objective of exceeding customer expectations. Mc. Graw-Hill/Irwin © 2003. The Mc. Graw-Hill Companies. All Rights Reserved

Figure 15. 2 Communications and the Services Marketing Triangle Company Internal Marketing External Marketing Communication Vertical Communications Horizontal Communications Employees Advertising Sales Promotion Public Relations Direct Marketing Interactive Marketing Personal Selling Customer Service Center Service Encounters Servicescapes Customers Source: Parts of model adapted from work by Christian Gronroos and Phillip Kotler Mc. Graw-Hill/Irwin © 2003. The Mc. Graw-Hill Companies. All Rights Reserved

Figure 15. 3 Approaches for Integrating Services Marketing Communication Manage Customer Expectations Manage Service Promises Goal: Delivery greater than or equal to promises Improve Customer Education Manage Internal Marketing Communication Mc. Graw-Hill/Irwin © 2003. The Mc. Graw-Hill Companies. All Rights Reserved

Figure 15. 4 Approaches for Managing Service Promises MANAGING SERVICE PROMISES Create Effective Services Communications Mc. Graw-Hill/Irwin Coordinate External Communication Make Realistic Promises Offer Service Guarantees Goal: Delivery greater than or equal to promises © 2003. The Mc. Graw-Hill Companies. All Rights Reserved

Table 15. 1 Services Advertising Strategies Matched with Properties of Intangibility Mc. Graw-Hill/Irwin © 2003. The Mc. Graw-Hill Companies. All Rights Reserved

Figure 15. 7 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 Mc. Graw-Hill/Irwin © 2003. The Mc. Graw-Hill Companies. All Rights Reserved

Figure 15. 8 Approaches for Improving Customer Education Goal: Delivery greater than or equal to promises Mc. Graw-Hill/Irwin 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 © 2003. The Mc. Graw-Hill Companies. All Rights Reserved

Figure 15. 9 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 Mc. Graw-Hill/Irwin © 2003. The Mc. Graw-Hill Companies. All Rights Reserved