Services surround our lives these days. From getting a haircut to hiring a consultant, services surround us.
But what is service marketing? Let's dig deeper into that!
Definition of Service Marketing
Service marketing is a process of selling services, rather than the traditional products. Services cannot be held or felt like tangible products. Thus, their selling becomes different from that of products.
While marketing service is about benefits and values provided by them, it involves everything ranging from advertising to building strong relationships with customers.
Types of Service Marketing
There are several types of service marketing, with each type having specific characteristics:
1. Business-to-Business Service Marketing
B2B service marketing involves one business providing services to another. These can be, for example, consultancy firms providing advice to businesses while IT firms provide their technical services.
Such marketing is based mainly on long-term relations that rely on the involvement of trust.
2. Business-to-Consumer Service Marketing
Service marketing to B2C involves marketing service directly to a consumer. Restaurants, hair salons, or agencies handling travel are great examples.
Here, direct emotional appeals and direct experience are typical attractions to draw the attention of clients.
3. Consumer-to-Consumer (C2C) Service Marketin
C2C service marketing is a situation whereby the delivery of service occurs from one customer to another.
A perfect example is the allocation of homes by individuals to people traveling and staying in their places through the use of websites like Airbnb. Word-of-mouth and social media are good marketing tools in this industry.
4. Government and Non-Profit Service Marketing
In short, such a type of service is offered either by the government agency or non-profit service provider.
In such marketing, the focus is on creating awareness among people and getting involved in the communities by helping to educate them on health issues, for instance, or the importance of education.
5. Marketing Services Personal
Personal services basically encompass services such as personal training or fitness coaching, therapy, or personal shopping.
Here, the marketers tend to use personal branding and testimonials to gain clients.
6. Professional Services Marketing
This list includes professional services such as lawyers, doctors, and accountants.
Here, trust and credibility become the heart of the matter, often through networking and thought leadership.
Characteristics of Service Marketing
Services have certain characteristics that distinguish them from physical products.
Knowing what these are is important to marketing success:
1. Intangibility
Services cannot be touched or owned. Rather, they are felt.
For instance, you might not have the capability to physically own a massage, but you can experience it.
2. Inseparability
Services are often produced and consumed simultaneously.
For instance, a haircut is delivered and received at the same time.
3. Variability
The quality of services could differ from one provider to another, or even from one experience to another.
A restaurant meal will taste differently for different chefs or at different times of the day.
4. Perishability
Services cannot be stored for later use. For instance, a vacant seat on a flight cannot be sold when the plane has taken off.
Importance of Service Marketing
Service marketing is important for a number of reasons:
1. Growing Service Sector
The growth of service sectors is proportional to the growth of economy.
Marketing services effectively is essential for companies to progress in those economies.
2. Building Relationship
Service marketing is linked to providing a long-term customer relationship.
These ensure repeat business and a loyal customer base, which forms an essential requirement to achieve success in any venture.
3. Customer Experience
The effective marketing of the service can alter the whole experience by customers, making them feel appreciated and understood.
4. Differentiation
In a competitive market, service marketing assists in differentiating businesses.
Unique marketing strategies can position a service above those in competition.
Challenges in Service Marketing
Despite its importance, service marketing has not been without its challenges:
1. Intangibility
Marketing intangible services can be tough because customers cannot experience these before buying them.
Marketers have to find creative ways of showing the customer what value the service is going to add.
2. Managing Customer Expectations
The expectations among customers can be very different. The expectations, therefore have to be managed so as not to disappoint.
3. Consistency
Quality of service is very hard to maintain continually, especially in businesses with more than one employee.
4. Handling Customer Complaints
Negative comments can prove catastrophic for a business offering services.
Companies require strategies to cope with complaints in the right measure.
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The 7 Ps of Service Marketing :
Other terms that are frequently used by businesses include the 7 Ps of service marketing, which can be used to more effectively market services.
Let's break it down:
1. Product
This is a very simple concept-the service itself. Marketers need to focus on designing and delivering a service suitable for the customer.
2. Price
Pricing strategies for services are very different from those of goods. Consideration should be given to competition, customer perception, and costs.
3. Place
This is how the service is offered to the customer.
For instance, the restaurant's atmosphere can influence the way in which a meal is being enjoyed.
4. Promotion
Adverts, PR, and social media represent the promotion policies of services. These are aimed to pass messages about benefits and value.
5. People
The most significant people in delivering a service are individuals.
Working hard for the delivery of a service with good and friendly behavior can be quite effective at improving experience for customers.
6. Process
The processes involved in delivering the service matter. Efficient processes can improve customer satisfaction and operational effectiveness.
7. Physical Evidence
This encompasses all the tangible aspects that support the service, such as the printed and the website, and the physical environment where the service is being delivered.
Example of Service Marketing
Let's have a look at a practical example of service marketing.
- Consider a local gym :
Marketing Strategies:
- Intangible Benefit:
They don't just promote the equipment but also the community vibe and benefits that train personally.
- Promotions:
Free trial class to invite newer members.
- Engagement:
Stories of successful active members on social media, using it as inspiration for attracting potential customers.
Conclusion :
Service marketing plays an essential part in today's economy because invisible offers are marketed.
Familiarity with the forms, characteristics, importance, challenges, and the 7Ps will empower the business firms in developing appropriate marketing strategies.
This is only justified by the fact that services are becoming a predominant service in the markets such that mastery of service marketing is a technique to success.
This way, their application will not only attract more customers but develop relationships toward long-term growth.
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