ROLE OF ADVERTISING

IN SERVICE

By
Himanshu S Mishra
 Advertising A Service
Instead Of A Product
Advertising services is one of the most difficult type of
advertising.

You don't have a tangible product you can put in

someone's hand.

They can't touch it, feel it, see it or smell it.

It must often be explained as well as demonstrated.

 Service Operations
Characteristics of Service Operations
 Tangibles - appearance of physical facilities, equipment,
personnel, and communication materials
 Reliability - ability to perform the promised service
dependably and accurately
 Responsiveness - willingness to help customers and to
provide prompt service
 Assurance - knowledge and courtesy of employees and their
ability to convey trust and confidence
 Empathy - provision of caring, individualized attention to
customers
 Service Operations
Defining Services
Goods Services
100% 75 50 25 0 25 50 75 100%

Video Rental Stores

Appliance Stores
Florists
Fast-food Restaurants
Gourmet Restaurants
Lawn Services
Hospitals
Banks
 Service Operations
Types of Service Operations
Service

Capital Intensive Labor Intensive

Automatic Monitored by Operated by Unskilled Skilled Professionals

Unskilled Skilled Labor Labor
Operators Operators

Vending Movie Airlines, Lawn care, Appliance Doctors,

machines, theaters, medical janitorial, repair, lawyers,
automated taxis, dry testing, guards banks, consultants
car washes cleaners excavating catering
 Service Operations
Defining Services - Types of Processes
Type Mfg. Example Service Example
Project Construction, Consulting,
Shipbuilding Software Devel.
Job Shop Sign-making Auto Repair
Tailoring Restaurant
Flow Shop Automobiles Fast Food Rest.
Appliance Shop Car Wash
Continuous Oil Refinery ATMs
Process
Cereal Plant Police / Fire Svc
 Service Operations
 Characteristics of Service Operations
Characteristic Manufacturing Service

t
Nature of Location
Number of locations few many

i cu l
Placement of locations near key resources

Dif f
near customer

s
Nature of Customer Involvement
Physical contact little
es i great
Customer participation low

r vi c high
Nature of Employee

g
Skill type
S e
technical behavioral

agi n
Nature of Deliverable

ManPerishable no
Ability to measure quality moderate
Productivity measurement routine
likely
difficult
difficult
cs
cs

Nature of Capital Structure

Fixed or variable costs high fixed/low variable low fixed/high variable
 A “GAPS” MODEL OF SERVICE QUALITY

CUSTOMER SERVICE ORGANIZATION

Market Organization’s Service

Information Understanding of Standards
Gap Expectations Gap
Customers’
Service Organization’s
Expectations GAP 1 Service Standards
GAP 2
Service Service
Quality GAP 5 Performance
Gap GAP 3 Gap
GAP 4 Organization’s
Customers’ Service
Service Performance
Perceptions
Organization’s Internal
Communications to Communication
Customers Gap
 Definition of Advertising

Advertising is bringing a product (or service) to the

attention of potential and current customers.

Advertising is typically done with signs, brochures,

commercials, direct mailings or e-mail messages,
personal contact, etc.
 Definition of Promotion

Promotion keeps the product in the minds of the

customer and helps stimulate demand for the product.

Promotion involves ongoing advertising and publicity

(mention in the press).

The ongoing activities of advertising, sales and public

relations are often considered aspects of promotions.
FAQ regarding advertising
in service
Does advertising have a role to
play?

'Why should I advertise?‘

'How will advertising improve my

service ?'

Why should I advertise?

How will advertising improve my

service ?
Lifestyle
Need
Predictability
Drivers

Fairness
 Lifestyle
Need
Predictability
Drivers

”Do they care for

my interests and
the things I Fairness
believe in” equality, flexibility, intent,
individualization, ethics
 Lifestyle
Need
Predictability
More money, more
time, less stress,
Drivers
more enjoyment

”what I really want

is more from my
life”
Fairness
Lifestyle
Need
Predictability
Drivers Consistency & Security
Of Costs & Benefits

”can I be sure
about the
future”
Fairness
 Advertising is paid for...
(((“Noise”))) (((“Noise”)))
Coded Medium of Decoded Receiver or
Source
Message Transmission Message Audience

Feedback
 Model for developing an
Advertising Campaign
Ide ntify & De te rmine
De fine the Cre ate the
Analyze the
Adve rtis ing Adve rtis ing
Targ e t Adve rtis ing
Obje c tive s Platfo rm
Audie nc e Appro priatio n

Evaluate Cre ate the De ve lo p

Exe c ute
Adve rtis ing Adve rtis ing the Me dia
Campaig n
Effe c tive ne s s Me s s ag e s Plan
MAJOR METHODS OF
ADVERTISING AND PROMOTIONS
 Using Direct Mail

 Mailing Lists

 Using Signs and Displays

 Using Classified Ads in Newspapers and Magazines

 Advertising on Radio and T.V

 On-Line Advertising and Promotion

 Yellow Pages

 Telemarketing

 Trade show participation

 NEWS /Press releases

 Integrated Communications

Personal Selling
Direct
Marketing Advertising
Product Promotion

C
Sales Price Distribution
Promotion Publicity

Trade Shows
 Developing the Media Plan
 Media Exposure: GRP = Reach x Frequency
 Media Selection, Costs & Schedules
 - Radio/TV/Internet/Newspaper/etc.

In-store
media
Other: Transit
The K.I.S.S. Principle

- KEEP IT SHORT AND

SIMPLE
Advertisements painted on the side of buildings were common
in the early-20th century U.S. This instance, now faded from
lack of upkeep, is an example of a ghost ad.
A promotional agency advertises its services

One crude but effective

advertising method is to
pay someone to stand
on a corner and wave a
sign all day

Trade Show Attracts

TYPES OF MEDIA ‘S
ADVANTAGES AND
DISADVANTAGES
YELLOW PAGES
Advantages
 One ad works all year long.

 Gives your prospect a method of easily locating and contacting

your business,even if they didn't initially know your name.
 Can help you describe the differences between you and your
competition.
 You pay by the month instead of one large payment.
Disadvantages
 You must commit to an entire year of advertising.

 You are immediately placed with a group of your competitors,

making it easy forthe prospect to comparison shop.
 Some classifications are so cluttered with advertising, your ad
is buried and ineffective.
 It is only effective when a prospect looks you up in the correct
classification.
Newspaper
Advantages

 From the advertiser's point-of-view,newspaper advertising can be

convenient because production changes can be made quickly,
 Even though you may not have a lot of money
in your budget, you can still place a series of small ads, without making
a sacrifice.

Disadvantages

 Newspapers usually are read once and stay in the house for just a day.
 The print quality of newspapers isn't always the best, especially for
photographs. So use simple artwork and line drawings for best results.
 The page size of a newspaper is fairly large and small ads can look
minuscule.
 You're not assured that every person who gets the newspaper will read
your ad.
Radio Advertising
Advantages

 The ability to easily change and update scripts are paramount

to radio broadcasting,since news stories can and often do
happen live.
 If a radio personality announces your commercial, it's almost an
implied endorsement.
 Radio is also a way to support your printed advertising. You
can say in your commercial, "See our ad in the Sunday Times,"

Disadvantages

 You can't review a radio commercial. Once it plays, it's gone.

 Since there are a lot of radio stations, the total listening
audience for any one station
 is just one piece of a much larger whole.
 People don't listen to the radio all the time ... only during
certain times of day.
Television Advertising
Advantages

 Television reaches very large audiences –

 TV offers the greatest possibility for creative advertising.
 With a camera, you cantake your audience anywhere and show
them almost anything.
 TV audience is divided into much larger segments, which
enables you to reach a larger, yet, more diverse audience.

Disadvantages
 the stations can charge more for commercials
 Producing a commercial is also an important variable to
consider.
 Creativity: A Vital Element
 you shouldn't attempt it unless you have enough money in your
budget to do it
OUTDOOR ADVERTISING
Advantages
 People can't "switch it off" or "throw it out."
 people who drive by or walk past see the same message a
number of times.
 A billboard located a block in front of your business can
direct people to your showroom
Disadvantages
 Outdoor advertising is a glance medium. At best, it only
draws 2-3 seconds of a reader's time.
 Messages must be brief to fit in that 2-3 second time frame.
Ninety-five percent of the time, either the message or the
audience is in motion.
 The nature of the way you buy outdoor advertising (usually
a three-month
The reasons that advertising
fails are many:
1 . Inadequate briefs from advertisers to their agency.
2. Agencies seldom quantify their own objectives - the perceptions they
wish to create.
3. Sending the wrong message that does not address the perceived
deficiencies.
4. The poor selection of media (budget limitations are generally used as the
'excuse' for poor performance - so, advertise less to the correct audiences).
5. Not allowing the campaign to run long enough to achieve the objectives.
6. Too much spent on production.
7. Pre and post-testing.
8. Research.
9. Unqualified personnel:,/I> it is critical to have both parties 'qualified' in
advertising and marketing and, leave this job to the appointed personnel.
10. Advertising must move away from a 'spend' to an 'INVESTMENT'.
If you don’t take care of your
customers, someone else will.
THANK YOU