Service Marketing? Importance of Service Marketing

 Services marketing is a sub field of marketing, which can be split into the two main areas of goods marketing (which includes the marketing of fast moving consumer goods (FMCG) and durables) and the marketing of services. Services marketing typically refers to both business to consumer (B2C) and business to business (B2B) services, and includes marketing of services like telecommunications services, financial services, all types of hospitality services, car rental services, air travel, health care services and professional services.

Philip Kotler & Gary Armstrong: A service is any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anything.

W.J. Stanton, Etzel & Walker: Service are identifiable intangible activities that are the main objects of a transaction designed to provide want satisfaction to customer.

Importance of Service Marketing:

Given the intangibility of services, marketing them becomes a particularly challenging and yet extremely important task.

§  A key differentiator: Due to the increasing homogeneity in product offerings, the attendant services provided are emerging as a key differentiator in the mind of the consumers. Eg: In case of two fast food chains serving a similar product (Pizza Hut and Domino’s), more than the product it is the service quality that distinguishes the two brands from each other.

§  Importance of relationships: Relationships are a key factor when it comes to the marketing of services. Since the product is intangible, a large part of the customers’ buying decision will depend on the degree to which he trusts the seller.

§  Customer Retention: Given today’s highly competitive scenario where multiple providers are vying for a limited pool of customers, retaining customers is even more important than attracting new ones. Since services are usually generated and consumed at the same time, they actually involve the customer in service delivery process by taking into consideration his requirements and feedback.

§  Multiple Touch points : Service marketing involves many touchpoints for the consumer. Interactions with multiple people and experiences that are less tangible than when buying an actual product all impact the consumer's perspective of the purchase process. These touchpoints work together to establish a perception in the consumer's mind.

§  Services Proliferate: Consumers have many service options to choose from, and because the product is intangible, the challenge for the service marketer is to somehow make her services stand out from the crowd. Because service marketing is so prolific, marketers must think of ways to communicate the benefits of the service they offer in language that reflects consumer need and value.

§  Feedback Improves Service: Unlike the marketing process for a tangible product, service marketing actually involves the consumer in the marketing process. He is engaged in the process and contributes to a positive outcome. For this reason, it is important to seek consumer feedback and to use that feedback to improve service marketing effectiveness.

§  Technology Impacts: Technology is having a major impact on the service economy. You can use technology to streamline service activities and provide do-it-yourself options for consumers. Internet-based services, for instance, allow consumers to participate actively in the service marketing process, often never involving contact with another human being.