T o p ic

6 X Communication
for Services

LEARNING OUTCOMES
By the end of this topic, you should be able to:

1.

Explain the roles of marketing communication in services;

2.

Discuss the different marketing communication mix for services;

3.

Elaborate on the steps to develop an integrative marketing

communication programme; and

4.

Identify the implications

communications.

of

Internet

on

marketing

INTRODUCTION

Marketing communication is as important for goods as they are for services. In fact
the intangible nature of service makes marketing communication even more
important. Within the context of marketing, communication focuses on performing
three important roles. They are to inform current and potential customers about
service features, benefits, price, service mix, location of service delivery and the like.
On other occasions marketing communication is aimed at persuading customers to
select and use a particular service and to create brand preference. Consequently,
over time there is a need to remind consumers that your service is still available for

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83

their consumption and use. This is particularly important when your competitors are
aggressively communicating about their service. All of these can be achieved by
using a variety of the traditional communication tools such as advertising, sales
promotion, personal selling and public relations. In addition, the services cape of a
service organisation too is used for the purpose of communication.

ACTIVITY 6.1
From any of the local English newspapers, select an advertisement for
a private college or university and list all the information you can
obtain from the said advertisement.

6.1

ROLES OF MARKETING COMMUNICATION

IN SERVICES

Understanding the role of communication for a service organisation is important in

order for you to develop an effective communication programme. As mentioned
earlier, communication plays an important role of informing, persuading and
reminding consumers about the services offerings of an organisation. However, it is
important to note that the specific roles of communication would depend very much
on the purchase stage a consumer is undergoing.
As discussed in Topic 2, the model of a purchase process comprises THREE key
stages  pre purchase, consumption and post purchase. Table 6.1 below shows the
corresponding roles of communication for each of the stages in the purchase process.
Table 6.1: Roles of Communication in the Purchase Process
Pre purchase Stage
1.

At this stage a
consumer has still not
made a purchase
decision yet.

2.

However, a consumer
who is brand or firm
loyal spends very little
time and effort in
arriving at a purchase
decision. The role of
communication here

Consumption Stage
1.

2.

At this stage, you as a

consumer would be
experiencing/
consuming the
service, delivered by
the service
organisation/
provider.
The role of
communication here
is to enhance a

Post purchase Stage

1.

This is the stage after

service consumption
has taken place.

An important
communication role to
be performed at this
stage is to reduce
cognitive dissonance (a
state where consumers
are unsure that they
have made the right

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Table 6.1 (Continued)

Pre purchase Stage

Consumption Stage

Post purchase Stage

would basically focus

on influencing a
consumer to speed up
their purchase of a
service. For consumers
who have no plans to
buy, communication
would help them make
a purchase decision.

consumers level of
satisfaction from
consuming the service
of a firm.

decision of consuming
a service from your
organisation even after
service consumption).

3.

If you are a new

consumer or first time
buyer, communication
would help to minimise
your purchase risk
which in turn could
increase the probability
of you purchasing the
service.

4.

At this purchase stage

communication too can
help a service
organisation to develop
and establish the
desired corporate
image.

5.

To the potential buyers

communication can
help to increase their
awareness of the
existence the service,
where is sold, how
much and other related
information.

6.

Ultimately, it is also
hoped that through
communication, the
brand equity of the
service can be
established, once the
initial purchase has
taken place.

3.

This is attained by
channelling TWO types
of information: firstly
one that can facilitate
their evaluation of the
service performed by
the service provider
and secondly the
procedures of
delivering the service
(sequential steps
involved in a service
delivery).

2.

Communication here
should focus on
disseminating
information to
reassure consumers
that they have made
the right choice.
Media such as
advertisements and
personal contact with
sales representative
can facilitate this
task.

4.

Once customers are

satisfied, there is a
good possibility that
they would repeat the
purchase of the said
service again in
future.

3.

Once cognitive
dissonance is reduced,
there is a good chance
that there would be
positive word of
mouth and repeat
purchase.

5.

Here, communication
especially through
sales promotion such
as coupons, purchase
with purchase
schemes and
discounts can further
enhance the
possibility of repeat
purchase taking place.

4.

Communications can
play an active role to
promote positive
word-of-mouth such as
giving incentives such
as discounts or
commission for new
customers
recommended.

5.

Repeat purchase can be

stimulated through
discounts, vouchers,
premiums, and
coupons and alike.

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85

SELF-CHECK 6.1

6.2

1.

Explain the general and

communication for services.

specific

roles

of

marketing

2.

If you are managing a hair saloon with a big number of loyal

customers, what are the communication tools you wold use to
stimulate positive word-of-mouth and repeat purchase.

MARKETING COMMUNICATION MIX FOR

SERVICES

Now that we have looked at the roles of communication during the stages of the
purchase process, let us proceed to look at the communication tools that are
available for the use of service organisations.
There are essentially two major components of communication tools that should
be used integrative to optimise the effects of communication for services. These
two components are services cape and promotion options (as depicted below).

Figure 6.1: Servicecape

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(a)

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COMMUNICATION FOR SERVICES

Servicescape
This is an important component of communication and it consists of both
the physical elements and human elements.
When communication programmes are developed it is essential to include
service personnel in them. For example, Malaysian Airline System features
their air stewardess in their advertisements.
As the airline emphasises on high quality service, their stewardess via their
personality, smile and disposition displays it. As service personnel it is also
your duty to minimise the consumers cognitive dissonance. Ensure that the
customer is happy with the service you deliver to them. Make them feel
that they have made the right choice by purchasing the service from your
organisation. Consequently, at the end of the service delivery process, get
feedback on your customers level of satisfaction.
In addition, the human element the physical component is also an essential
component of a service organisations communication programme. The physical
elements offer an excellent form of tangibilisation for an organisations service.
The physical element consists of the interior and exterior of the facility. They
include decor, furnishings and equipment. These tangibles are useful to
reinforce the service organisations communication efforts.

Figure 6.2: Promotion options

(b)

Promotional Options
Now let us examine the second major component of communication tools.
The promotional components here would include advertising, sales
promotion and personal selling.

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87

ADVERTISING: As advertising is public, it is able to reach a large number

of audiences simultaneously. Advertisements too are flexible as changes/
modifications to their message, timing and media choices are possible. In
Malaysia we have observed how banks, hotels, airlines and educational
institutions advertise rather aggressively in both the electronic and print
media.
Advertisements can perform the roles of informing, persuading,
reminding and inducing action. Informative advertisements provide
information on the price, location, service mix and operating hours.
Persuasive advertisements are aimed at convincing consumers on the
merits of the service offered from consumers point of view. Reminder
advertisements facilitate consumers to recall the services they have
bought in the past and to enhance the image attached to a brand.
Consequently, advertisements to induce actions would persuade
consumers to buy a service or at the very least inquire about the service
offering.

Figure 6.3: Roles of Advertisements

It is also possible for you to use advertisements to manage service

characteristics. Advertisements can tangibilise a service by displaying
the physical elements (such as medical facilities and equipments of a
hospital). Perishability can be reduced by informing consumers about
high demand and low demand period. Inseparability on the other
hand can be minimised through the automation of a service. Lastly,
variability can be reduced through the industrialisation (through
hard, soft and hybrid technology) or customisation of a service.
(ii)

SALES PROMOTION: Sales promotion can focus on either businesses

or consumers. Sales promotion is gaining popularity in recent years
with a much higher budget allocation compared to advertisements
because of the following reasons:

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The impact of sales promotion on sales is immediate.

Many brand varieties are available on the market and consumers

have a choice and may want to occasionally switch brands.

Consumers are very receptive to sales promotion and at times

demand for them.

The impact of advertisements are diminishing.

Many sales promotion options are available

Table 6.2 lists sales promotion options.

Table 6.2: Sales Promotion Options
Sales Promotion
Tools

Description

(a) Coupons

They have a face value that allows a consumer to get a

reduction in price for that value, upon redemption. Can
be effective to stimulate sales.

(b) Premiums

Consumers are given a free merchandise or service for

purchasing a service at a full price. Often used on regular
customers in appreciation of their loyalty. Effective to
induce trial purchase.

(c) Contests

Consumers must perform an activity or make a purchase

to qualify for participation in a contest. Attractive prizes
can stimulate high participation.

(d) Sweepstakes

Consumers can participate even without having to make

a purchase. A draw is carried out to determine the
winner.

(e) Frequency
programmes

Aimed at rewarding current customer to establish loyalty

and repeat purchase.

(f) Price-offs

Consumers pay a reduced price when they buy a service.

It can attract new buyers.

(g) Tie-ins

Two or more goods/services are offered during the sales

promotion period. Can be done on an inter or intra
company basis. Effective to stimulate sales for the service.

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(iii) PERSONAL SELLING: Salespeople plays an important role of

bridging between the customer and service organisation. They
undertake different roles when a customer is in the prepurchase,
consumption and postpurchase stage.
In the prepurchase stage, a salesperson would disseminate sufficient
information to help reduce a consumers perceived risk. This in turn
would increase their purchase probability. Salespeople too can help to
build brand equity and enhance the image of the service organisation.
During the consumption stage, a salesperson can help to clarify
consumers expectations. This is achieved by disseminating sufficient,
clear and accurate information about the service offered.
In the postpurchase phase salespeople play an important role of reducing
a consumers cognitive dissonance. They should reassure a consumer
that they have made a good decision by buying from your service
organisation. They should also ensure that the consumer receives what
has been promised to them. Only then customer satisfaction and repeat
puchase can be achieved. It is also the job of a salesperson to ensure that
there is positive word of mouth among their consumers.

SELF-CHECK 6.2
1.

Explain how elements of the servicescape and promotion

options performs the role of communication.

2.

Select a service of your choice and show how advertisement can

be used to manage service characteristics.

6.3

STEPS TO DEVELOP AN INTEGRATIVE

MARKETING COMMUNICATION
PROGRAMME

Now we will proceed to see what are the steps you would have to undergo in
developing an effective communication programme. According to Kurtz and
Clow (1998) there are eight steps and they are:

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Figure 6.4: Steps to develop an integrative marketing communication programme

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91

Step 1: Identify the target market.

Here, the target group for your communication efforts must be identified. There
are essentially THREE major groups namely users, nonusers and deciders and
influencers. Customers of your service organisation are your users, nonusers can
be individual or organisations who have not bought your service before or they
may be your competitors customers. Deciders and influencers are those who are
not consumers of your service but may influence the purchase of your service.
Step 2: Identify the target purchase stage.
At this stage there is a need to determine at which stage of the purchase
processes are your target market at? They can be at either the prepurchase stage,
consumption stage or postpurchase stage.
Step 3: Identify consumption value.
Consumers would make a purchase based on their perceived value. Among these
values are the functional value, social value, emotional value, epistemic value
and conditional value. This is important because your communication
programme must address the consumption values of your target market.
Step 4: Set the communication objective.
The communication objective set must be appropriate for your target market and
their purchase stage. When designing communication for the consumption and
postpurchase stage the major target market would be users followed by
influencers and deciders.
Step 5: Determine consumer image position.
Here there is a need to determine which image position your service
organisation wishes to occupy in the mind of their consumers. Among them are
service use, service attribute, price/quality relationship, service user, service
usage etc. It is important for communication programmes to strengthen and
reinforce this position as this is what consumers would associate with in
carrying out their purchase.
Step 6 and 7: Undertake the message design and select the promotion mix.
These two steps should be executed together. The choice or promotional tool will
directly influence the content decision for the message. It is common for
communication programmes to use a combination of promotional tools, as their
combined effects are far more effective that using the tools as individuals. Choice of
promotional tools would include advertising, sales promotion and personal selling.
Step 8: Evaluate the effectiveness of the communication programme.
The final stage of the communication programme involves deciding on the most
suitable method to measure the designed communication effects. Among the

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common methods discussed in marketing communication literature are recall

tests, recognition tests, opinion tests and sales data.
Recall tests and recognition tests measures consumers awareness of your service
offering. Here consumers would be asked to identify advertisements they
actually saw on television the previous day and they may be asked questions to
measure the impact of the advertisement on them. Opinion tests on the other
hand measure consumers attitude after they were exposed to the advertisement.
Sales data before and after the communication programme was implemented
would also indicate the effectiveness of the said programme.

SELF-CHECK 6.3
Outline and explain the elements involved in developing an effective
communication programme.
As accountability is gaining importance in many organisations,
identify and explain other methods that can be used to evaluate the
effectiveness of your communication programme.

ACTIVITY 6.2
Your college is going to launch a new postgraduate programme for
senior managers in the Klang Valley. Develop a communication
programme to facilitate this launching.

6.4

IMPLICATIONS OF INTERNET ON
MARKETING COMMUNICATION

The subject of Internet is no longer alien to many of us today. Infact many

personal computer users today tend to spend more time online then viewing the
television or reading printed materials (Lovelock, 2001). This signals the need for
service organisations to seriously consider the use of Internet as a medium to
implement their marketing communication programme to cater to this changing
pattern of viewership among consumers.
To date there is already evidence on the growing realisation among marketers
pertaining to this issue. Many marketers have responded to this change by

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making their presence on the web, developing creative web sites, advertising and
sending customised mails through e-mails.
One factor that has drawn organisations interests to Internet advertising is its
ability to measure advertising effectiveness to precision. This is one factor that is
lacking in the traditional advertising media such as television, radio, display and
print. In these traditional medias it is rather difficult to accurately measure
awareness, knowledge, preference, conviction, media exposure and consumers
buying behaviour.
However through the Internet it is possible at a click of a button to measure the
number of people who are exposed to your service organisations advertisement
and ascertain the number of people who actually click through your
advertisement to get more information. In fact there are softwares now that
enables individuals navigating into different websites to be tracked and their
duration of stay at those webs determined.
As a marketer you are able to use the Internet for communication purposes in
numerous ways. For instance you may be able to elevate consumers awareness
and interests in your services, disseminate information about your services,
establish a two-way communication with you customers online/through e-mail
and invite customers to place an order. Among these, the ability to develop a
two-way communication seems to fascinate service marketers most as it allows
you as a service organisation to build a good rapport with you customers,
understand them better and it gives customers the freedom to shop at their own
time and pace.
Lastly, it is important for service organisations to ensure that web sites they
create would be able to disseminate useful information to their customers,
interesting enough to induce purchase and promote repeat visits. Only then will
this medium be valuable to them in complementing the traditional mediums that
are used concurrently.

ACTIVITY 6.3
Log onto the Internet and choose any advertisement for a service that
you are familir with. Lists down the content of the message that you
are able to capture. Is is sufficient to make you buy the service or
repeat your visit again? In your opinion how can the advertisement
on the web be made more interesting and rewarding.

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Informing, persuading and reminding are the general roles of marketing

communication.

Specific communication roles in the prepurchase stage are: to influence

consumer to speed up their purchase, make a purchase decision, minimize
consumers perceived risk and build an organisations corporate image.

During the consumption stage, communication roles are aimed at enhancing

customer satisfaction and promote repeat purchase.

Communication roles during the postpurchase stage are to reduce cognitive

dissonance, promote positive-word-of-mouth and repeat purchase.

Services cape and promotional options are components of communication

tools that should be used integrative.

Services cape comprises of the human element and physical element.

Promotional options consists of advertising, sales promotion and personal selling.

There are eight steps to ensure the development of an effective communication

programme. They are: identify the target market, identify the target purchase
stage, identify consumption value, set the communication objectives,
determine image position, undertake the message design, select the promotion
evaluate mix and the effectiveness of the communication programme.

Internet as a medium for marketing communication is gaining rapid popularity.

For example web sites and e-mails are increasingly being used to communicate
with customers.

Communication roles: general and

specific
Informing, persuading and reminding
Repeat purchase, positive-word-ofmouth
Stage in purchase process:
prepurchase, consumption and
postpurchase.

Servicescape: human and physical

element
Promotion options: advertising, sales
promotion and personal selling
Marketing communication
programme
Internet marketing/ advertising
Website
E-mails

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COMMUNICATION FOR SERVICES

1.

Discuss the specific communication roles during the prepurchase,

consumption and postpurchase stages.

2.

Assuming that you are the marketing manager for Mariotts

Putrajaya. How would you design your servicescape to gain
consumers confidence in your service, extend their stay and
promote positive word of mouth.

3.

What would be the choice of sales promotional tools you would

recommend to complement your servicescape discussed in
Question 2 and why?

4.

If you are given the task to develop an effective communication

programme for a commercial bank what would be your choice of
promotional tools and content of your message for your potential
customers.

5.

In your opinion could the Internet completely take over the roles
of traditional mediums of advertising in time to come? Justify
your answer.

95

BOOKS
Kurtz, D. L., & Clow, K. E. (1998). Services marketing. New Jersey: John Wiley and
Sons.
Lovelock, C. (2001). Services marketing  People, technology, strategy. New Jersey:
Prentice Hall.
INTERNET RESOURCES
Champion Outdoor advertising (n.d.). [Electronic version]. Retrieved from
http://championoutdoorads.com/services.htm
Shinmamura, K. (n.d.). The role of integrated marketing communication on the
internet [Electronic version]. Retrieved from http://wwwciaadvertising.org/
student_account/summer_01/kazues/project/IMC.htm