Definition of service marketing?

Service marketing refers to the activities and strategies employed to promote and sell intangible
products, known as services, rather than physical goods. It involves understanding and addressing the
unique characteristics of services, such as inseparability, variability, perishability, and the importance of
customer experience. The focus is on creating and communicating value in services to attract, satisfy, and
retain customers.

Nature and Characteristics of Service marketing?

Service marketing involves promoting and selling intangible products or experiences rather than physical
goods. Key aspects include:

1. **Intangibility:** Services lack physical presence, making them intangible. This poses challenges
in marketing as customers can’t see or touch the service before purchase.

2. **Inseparability:** Production and consumption often occur simultaneously in services.

Customers are often part of the service creation process, leading to a close interaction between
service providers and consumers.

3. **Perishability:** Services can’t be stored or inventoried. Unused capacity during a specific time
is lost, and demand fluctuates, making capacity management critical.

4. **Variability:** Services are often heterogeneous as they depend on the people delivering
them. Maintaining consistency in quality can be challenging.

5. **Ownership:** Customers do not own a service; they buy the benefits and experiences it
provides. This affects how services are marketed and perceived.

6. **Customer Involvement:** Customers play a role in the service delivery process. Their
satisfaction is influenced not only by the service outcome but also by the process of service
delivery.
Difference between goods vs service marketing ?

Goods marketing involves promoting tangible products, emphasizing features, quality, and
branding. Service marketing, on the other hand, focuses on intangible offerings, emphasizing
customer experience, expertise, and relationship-building.

1. **Nature of the Offering:**

- **Goods Marketing:** Involves physical, tangible products that customers can touch, see,
and possess.
- **Service Marketing:** Deals with intangible, non-physical offerings like expertise, advice, or
experiences.

2. **Tangibility:**
- **Goods Marketing:** Tangible products allow customers to evaluate quality through
physical inspection.
- **Service Marketing:** Intangibility makes it challenging for customers to assess the service
before consumption.

3. **Inseparability:**
- **Goods Marketing:** Production and consumption are often separate processes, allowing
for storage and transportation.
- **Service Marketing:** Production and consumption are often simultaneous, meaning the
service Is created and consumed in real-time.

4. **Perishability:**
- **Goods Marketing:** Physical products can be stored for later use, reducing the impact of
perishability.
- **Service Marketing:** Services are perishable; they cannot be stored, making time a critical
factor.

5. **Customization:**
- **Goods Marketing:** Customization is often limited to product variations or optional
features.
- **Service Marketing:** Customization is more prominent as services can be tailored to
individual customer needs.

6. **Promotion Focus:**
- **Goods Marketing:** Emphasizes features, quality, and tangible benefits through visual and
descriptive means.
- **Service Marketing:** Emphasizes customer experience, expertise, and building trust
through testimonials and personal interactions.

7. **Branding:**
 - **Goods Marketing:** Branding is crucial for product recognition and differentiation.
- **Service Marketing:** Branding is often associated with the reputation of the service
provider, customer testimonials, and the overall service experience.

8. **Customer Interaction:**
- **Goods Marketing:** Customer interaction is typically limited to the point of sale and after-
sales support.
- **Service Marketing:** Requires ongoing customer interaction, as service delivery often
involves continuous communication and feedback.

Service marketing mix?

1) Product

The product in service marketing mix is intangible in nature. Like physical products such as
a soap or a detergent, service products cannot be measured. Tourism industry or
the education industry can be an excellent example. At the same time service products
are heterogeneous, perishable and cannot be owned.

The service product thus has to be designed with care. Generally service blue printing is done
to define the service product. For example – a restaurant blue print will be prepared before
establishing a restaurant business. This service blue print defines exactly how the product (in
this case the restaurant) is going to be.

2) Price
Price involves determining the right amount customers should pay for the service.
Considering various factors like cost, competition, and perceived value is crucial. Pricing
strategies, such as discounts, memberships, or packages, can attract different customer
segments. The price should reflect the service’s value, ensuring it’s affordable for
customers while generating revenue for the business
3) Place:
Place refers to the accessibility of the service to customers. It involves choosing the
right location and platform to offer the service. For physical locations, convenience,
ambience, and facilities matter. For online services, a user-friendly website or app is
essential. Ensuring easy access and convenience enhances the customer experience
and satisfaction.
4) Promotion
Promotion involves creating awareness and interest in the service. Effective promotional
strategies include advertising, social media marketing, public relations, and sales
promotions. Clear, compelling messages communicate the service’s benefits, attracting
customers and encouraging them to engage with the business. Consistent, targeted
promotion increases visibility and builds a strong brand image.
5) People
People are crucial in service marketing as they directly interact with customers.
Employees should be well-trained, professional, and courteous. Excellent customer
service creates positive experiences, leading to customer satisfaction and loyalty. Hiring
the right people and investing in their training ensures they represent the business
positively and meet customers’ expectations.
6) Process
Process involves the procedures, mechanisms, and flow of activities by which the
service is delivered. Efficient, customer-friendly processes enhance the service
experience, ensuring satisfaction. Streamlining operations, minimizing wait times, and
ensuring reliability in service delivery contribute to a positive customer experience and
encourage repeat business.
7) Physical Evidence
Physical evidence refers to the tangible elements customers encounter while interacting
with the service. It includes the physical environment, facilities, and branding elements.
A clean, comfortable, and aesthetically pleasing environment enhances the customer
experience. Consistent branding and high-quality facilities reinforce the service’s value
and build customer trust and confidence.
How 7P’s of Service Marketing Differs from 7P’s of Product Marketing
Service Product
Aspect
Marketing Marketing

Focuses on Centers on
selling intangible tangible goods
services, that can be seen,
Product
consumed touched, and
immediately and owned by
cannot be owned. consumers.

Uses
subscriptions, Involves cost of
hourly rates, or production,
Price bundled services distribution, and
reflecting physical attributes
immediate like size, quality.
consumption.

About
accessibility and Focuses on
convenience, physical
Place distribution
often digitally or
at a comfortable channels including
location. stores,
 warehouses, and
logistics.

Emphasizes
Highlights
benefits,
features,
experience, and
Promotion specifications, and
value, using
physical attributes
testimonials and
of the product.
case studies.

People play a
People are
crucial role as
involved in sales
service providers,
People and customer
impacting
service, but their
customer
role is less direct.
experience.

Involves
Vital to ensure
manufacturing,
efficient and
distribution, and
Process satisfactory
sales, not
service delivery,
immediate service
often in real-time.
delivery.

Includes the
environment and Relates to the
elements that actual product,
Physical
support and packaging, and
Evidence
enhance the branding
service elements.
experience.