Service marketing test 3

Gap 4
Communication Gap
Communication Gap definition
difference between service delivery and external communications to customers
Factors that lead to communication gap
lack of integrated services communication
not managing customer expectations
bad horizontal communication
inappropriate pricing
Service marketing triangle
Internal marketing
External marketing
Interactive marketing
Internal marketing
horizontal communication
vertical communication
External marketing
sales promotion
direct marketing
interactive marketing
personal selling
customer service
service encounters
social media
Integrated Service Communications
a strategy that carefully integrates all external and internal communication channels to present a consistent message to customers
Five Major Approaches to Overcome Service Communication Channels
address service intangibility
manage service promises
manage customer expectations
manage customer education
manage internal marketing communication
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
Approaches for Managing Service Promises
Create a strong service brand
Coordinate external communication
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
Approaches for Managing Customer Education
Prepare customers for the service process
Confirm performance to standards and expectations
Clarify expectations after the sale
Approaches for Managing Internal Marketing Communication
Create effective vertical communications
Create effective horizontal communications
Sell the brand inside the company
Create effective upward communication
Align back-office and support personnel with external customers through interaction or measurement
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
Which of the following statements about communications and the service marketing triangle is true?
External marketing communications include advertising, public relations, personal selling and sales promotions
Which of the following describes a reason why integrated marketing communications have not been the norm in many companies?
Various parts of the company are responsible for different aspects of communication
Time cost
How long it takes to achieve the desired outcome
driving further to work
search cost
the financial and opportunity costs consumers pay when searching for a good or service
psychological cost
not picking brand that you don’t know
different customers have different relationship between…
value and price
What is service value?
Mental tradeoff of perceived quality and perceptions of sacrifice
Can include both monetary and non-monetary sources of sacrifice
Four Customer Definitions of Value
low price
everything I want in a service
quality I get for the price I pay
all that I get for all that I give
Pricing Strategies When the Customer Defines Value as Low Price
odd pricing
penetration pricing
Pricing Strategies When the Customer Defines Value as Everything Wanted in a Service
prestige pricing
skimming pricing
skimming pricing
new services are introduced at high prices with large promotional expenditures, then lowers the price over time
prestige pricing
practice of pricing goods at a high level in order to give the appearance of quality
Pricing Strategies When the Customer Defines Value as Quality for the Price Paid
value pricing
market segmentation pricing
Pricing Strategies When the Customer Defines Value as All that Is Received for All that Is Given
pricing framing
price bundling
result-based pricing
A prestige pricing strategy is appropriate when customers define value as:
Everything I want in a service
In a _____ pricing strategy, new services are introduced at high prices with large promotional expenditures.
Balanced Scorecard
financial measures
customer perspective
operation perspective
innovation and learning perspective
The _____ is a set of measures that gives top managers a fast, but comprehensive view of the business. It complements financial measures with operational measures of customer satisfaction, internal processes and the organization’s innovation and improvement activities
Balanced Scorecard
Many companies do not identify and act on the correct non-financial measures. One mistake the companies make is _______ that involves not laying out the cause-and-effect relationships between drivers and strategic success
Not linking measures to strategy
Offensive marketing
using marketing to get more sales
Defensive marketing
do everything possible to keep customers

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