Importance of Marketing of Service
Given the intangibility of services,
marketing them becomes a particularly challenging and yet extremely important
task.
1. 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. For Example – 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. Hence, marketers can leverage on the service offering to differentiate
themselves from the competition and attract consumers.
2. 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. Hence, the need to listen to the needs of the customer and
fulfil them through the appropriate service offering and build a long-lasting
relationship which would lead to repeat sales and positive word of mouth.
3. 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. Thus, they offer greater scope for customization according to
customer requirements thus offering increased satisfaction leading to higher
customer retention.
The U.S. economy has evolved into a
service economy with services like health care, education and consulting making
up a larger part of the overall economy. Marketing such services is an
important skill-and a tough one-for businesses to have. Without a tangible
product to show and tell customers about, service marketers must be adept at
pulling together all the pieces of the marketing mix to create value for their
intended consumers.
4. Relationships are Key:
In service marketing, because there is no
tangible product, relationships are key. Service marketers must listen to and
understand the needs of customers and prospective customers to build loyalty
and trust. Ultimately, effective relationships in service marketing will lead
to repeat sales and positive word of mouth.
5. Multiple Touchpoints:
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.
6. 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.
7. 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.
8. 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. Having a
website is important, because people like to get information about service
providers before deciding which one to use.
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