Objectives:

1. Differentiate a service company from a

goods based on their key differences;
2. Identify the principles of product
marketing and traditional services marketing
3. Determine the principles of traditional
services marketing
 Introduction
Marketing can be viewed as an organizational
function and a set of process for creating,
delivering, and communicating value to customers,
and managing customer relationships in ways that
benefit the organization and its shareholders.
Marketing is the science off choosing target
markets through market analysis and market
segmentation, as well as understanding consumer
buying behavior and providing customer value.
 Marketing is a flow of goods and services
from the producer to the consumer.
 In common parlance, it is the distribution and
sale of goods and services.
 Marketing can be differentiated as either the
marketing of products or marketing of
services.
 Marketing of services, now commonly known
as services marketing, has been relatively
gaining ground in the overall spectrum of
marketing and business education.
Product Marketing
 Marketing a product requires gaining
understanding of what is generally known as
the 4Ps:
 the product,
 price,
 place and
 promotion.
 Product marketing, as compared to product
management, deals with more outbound
marketing tasks.
 For example, product management deals
with the nuts and bolts of product
development within a firm, whereas
product marketing deals with marketing
the product to prospects, customer and
others
Service Marketing
 Marketing service add three more Ps to the traditional
4 Ps.
 These re
 people,
 physical evidence, and
 process.
 It also includes the marketing components of what is
known as the services cape or the service setting which
is the sum total of ambiance and physical environment
where service occurs, such as aesthetics of the office
and the professional image of company employees
Marketing a service-based business is
different from marketing a goods-based
business terms of the following aspects:
1. The buyer’s purchase is intangible
2. The consumer’s concept of a service is
oftentimes based on merely the reputation
of one person.
3. It is more difficult to compare the qualities
of similar services.
4. The buyer cannot return the service
 Marketing a service can at times be
more challenging than marketing a
product because the thing being sold is
something that is not tangible.
 In service marketing, the real product is
the experience that the people will
derive from the physical product.
 The customer experience, after all, is
extremely important in closing the deal
and marketing the product or service
effectively.
 Undeniably, the quality of the product
has an impact on the perceived value of
the service.
 For instance, in the business of Spa
Services, the product is the reflexologist
while in the business of computer
manufacturing, the product is the
computer. The service is delivered by
reflexologist, a unique person which skills
distinct characteristics while computers of
the same unit model have similar features
and capabilities.
 Traditional Service Marketing
 Traditional marketing is a rather broad
category that incorporates many forms
of advertising and marketing.
 It’s the most recognizable types of
marketing, encompassing the
advertisements that we see and hear
every day.
Most traditional marketing strategies fall
under one of four categories:
1. Print: Includes advertisements in
newspapers, newsletters, magazine,
brochures, and other printed material for
distribution.
2. Broadcast: Includes radio and television
commercials, as well as specialized forms
like on-screen movie theater advertising
3. Direct Mail: Includes fliers, postcards,
brochures, letters, catalogs, and other
materials that is printed and mailed directly
to consumers
4. Telemarketing: Includes requested calling
and cold calling of consumers over the
phone.
Physical Evidence
• Physical evidence is the environment in
which the service is delivered and where the
firm and the customer interact and any
tangible commodities that facilitate
performance or communication of the service.
• Physical evidence includes the servicescape,
a term used to describe the physical facility
where the service is produce and/or delivered.
• Service design is of utmost importance
• People visit expensive restaurants to relish
dishes otherwise available in less costly
eating houses because of better ambiance,
• Luxury buses/better maintained busses are
preferred over lousy staff to traverse same
distance.