Definition: Service marketing refers to the application of a different set of tactics or strategies to anticipate the consumer’s need for an intangible product. While selling off services , convincing the consumers and pricing the intangible products is a challenging task.
Services are the non-physical, intangible parts of our economy, as opposed to goods, which we can touch or handle. Services , such as banking, education, medical treatment, and transportation make up the majority of the economies of the rich nations. They also represent most of the emerging nations’ economies.
Example when a person goes to a dentist he use the services of the dentist and returns with a relief. In the process he does not get any physical commodity but still he has consumed a service . Core goods providers provide a significant service component as part of their businesses.
Definition of Service Marketing : Service marketing is marketing based on relationship and value. It may be used to market a service or a product. Marketing services is different from marketing goods because of the unique characteristics of services namely, intangibility, heterogeneity, perishability and inseparability.
They are Product, Price, Place, Promotion , People, Processes and Physical evidence.
A service marketer can use any of the traditional channels of distribution for distributing services to the consumers. 4. Promotion: Promotion is equally important to enhance the sales of the services as it is in the case of tangible goods.
Types of Services – definition Services are diversified in three groups; Business services, social services and personal services. Business services are the services used by businesses to conduct their business activities. Social services are the services provided by NGO’s to pursue a certain set of social goals.
Services can be defined as following: ‘A service is any activity or benefit that one party can offer to another, which is essentially intangible and does not result in the ownership of anything. Its production may or may not be tied to a physical product.’ – Kotler, Armstrong, Saunders and Wong.
The following are common examples of service businesses. Information Technology. Offering technology platforms, software applications and systems as a service with a monthly recurring or usage-based fee. Education. Consulting. Transportation. Events. Entertainment. Media. Infrastructure.
The lines between the points show the different types of marketing that must occur: » External Marketing : occurs between the company and its customers. » Internal Marketing : occurs between the company and its employees. » Interactive Marketing : occurs between the employees and the customers.
The most important characteristics of services are: Lack of ownership. Intangibility . Inseparability . Variability . Perishability . User participation.
While product marketing allows consumers to separate products from their providers, services marketing makes it impossible to separate the service from the person providing it: it’s virtually impossible to separate the service the waiter provides from the waiter himself.
” Relationship marketing is a strategy designed to foster customer loyalty, interaction and long-term engagement. It is designed to develop strong connections with customers by providing them with information directly suited to their needs and interests and by promoting open communication.”
A more general classification of services based on the type of function that is provided through them can be as follows: Business services . Communication services . Construction and related engineering services . Distribution services . Educational services . Environmental services . Financial services .