What is service marketing?
A large number of people build their businesses on the basis of providing services, an advantage that cannot be tangible, measured, or maintained. With the increasing popularity of services (such as international shipping, finance, repairs, etc.) in the global economy and the increasing number of services provided by different companies,
Services marketing has become a subject that needs to be studied separately. Services marketing is relationship and value-based marketing, and what it offers to the customer is not an objective object.
Since we are not dealing with a tangible product in services marketing, the marketing process and activities are much more difficult and complex. Services marketing refers to the use of a set of strategies to anticipate the consumer’s need for an intangible product and create maximum value for him and is different from product marketing. Convincing consumers and pricing intangible products while selling services is a challenging task.
According to the definition of the American Marketing Association, services are activities, benefits, and satisfactions that can be sold separately or are offered in connection with the sale of goods.
Services are intangible activities or benefits that one party provides to another and do not involve ownership of anything. The production of a service may or may not be dependent on a physical good. For example, renting a hotel room, repairing household appliances, watching a movie, taking clothes to the dry cleaner, consulting a lawyer, etc., all of which require the purchase of a service.
Service marketing specifications
Services are very different from tangible goods or products, and their marketing needs are also different. General marketing strategies may not apply to marketing intangible products. Some of the key features that distinguish services marketing from conventional marketing are as follows:
Inconspicuousness
Services are considered an intangible product that cannot be seen, touched, or physically felt, but can be experienced, and the customer’s purchasing decision is entirely based on his or her perception of the service offering.
Customers spend a lot of time and effort in making decisions, especially for services that involve a lot of investment and risk. The marketer’s confidence in the performance of the service influences the consumer’s decision. However, even a little negative publicity may lead to the consumer’s disapproval of the service.
Use of tangible products
Service providers use various tangible or real products to provide appropriate services to consumers. The products used to provide services create value for the customers. For example, a travel agent has to book train tickets (which are usually physically available) for the customers. Therefore, the passenger’s experience of the trip is based on the ticket available with him.
No need to store goods
Services are intangible, so unlike products, they do not require inventory. Profitability in the service industry depends on the excellence of the service provider and business operations. For example, a photographer is known for his skills, clicks, and portfolio and does not need to stock inventory. Conversely, someone who sells cameras and albums is known for the quality of the product and must have sufficient inventory.
Sensitivity to low prices
When we talk about the service industry, we find that consumers are not price conscious but are more concerned about the quality of the services they receive.
A service product with zero defects has the highest revenue potential. Therefore, it can be said that the consumer’s price sensitivity to services is inversely related to the level of performance expectations. For example, in the case of service products such as car mechanics, price sensitivity is very high. Even though the level of performance expectations is low (i.e. there is a range of tolerance to defects.) However, in financial products such as education, there is little price sensitivity, but the level of performance expectation is also very high (with zero tolerance to defects).
Service Marketing Triangle:
The three basic elements involved in the service industry are the company, the employees, and the consumers. Services marketing focuses on the distinctive characteristics of services and shows how the services provided influence customer behavior and marketing strategy.
Services marketing has a wide scope and encompasses many things, including creating customer loyalty, managing relationships, handling complaints, improving service quality and improving the efficiency of service processes, and ultimately achieving the best position among competing companies. Kirke’s point shows the relationship between the three basic elements of the service industry and emphasizes the division of service marketing strategies into three general categories:
بازاریابی داخلی
Through this marketing, the company connects with employees who are trained and equipped to provide customer service and help, guide and educate them.
بازاریابی خارجی
This is a direct form of service marketing. Here, the company communicates with target customers through a website, advertising, social media, and other means to drive business.
بازاریابی تعاملی
One of the most important tasks of marketing is the actual provision of services by employees to the consumer. Success in interactive marketing depends on the correct implementation of internal and external marketing. The goal of employees in interactive marketing is customer satisfaction, long-term relationship and customer retention. In fact, the positive or negative image of a company is in the hands of its employees.
Objectives of service marketing:
In general, services marketing seeks to achieve the following objectives:
- Attracting new customers
- Introducing the brand
- Service recommendations from current customers
- Retaining existing customers and selling them more advanced services
While only some business sectors deal solely in intangible products, other sectors either deal in 100% tangible products or involve both real and intangible products. The service industry has grown significantly in recent years to assist the manufacturing industry and also contribute to the development of the economy.
An example of services marketing in the construction industry
The One Iranian Marketing and Sales Engineering Company is the first company providing marketing and sales engineering services in the construction industry in Iran. Considering the provision of services in the construction industry, the goals of this company are in the field of service marketing. In general, a marketing and sales engineer is someone who has the necessary scientific and technical information about the product or service he intends to sell or provide and has received the necessary training in this regard.
Sales engineers determine how products and services can be designed or modified to suit customer needs and also advise their audience on how to best use the products or services offered.
For example, construction industry marketing and sales engineers advise owners on how to operate a commercial center, or they brand and introduce a commercial or residential center to target audiences for the purpose of selling and renting units, and they provide and sell services instead of tangible products.
The construction industry is one of the most influential industries in the world today. The competitive and complex markets and the increasing pace of technological change have challenged the survival of companies and businesses related to this industry.
Therefore, the presence of a professional and expert team that can implement a set of related processes in an integrated and informed manner so that the services provided are fully aligned with the needs of the audience and bring them satisfaction seems essential.
The One Iranian Company has taken a scientific approach to marketing and selling construction industry services and provides valuable and significant services in this field, many of which have been introduced for the first time in Iran.
These services include opportunity studies, market research, determining pricing, assignment, and sales strategies, as well as managing the layout of the complex’s departments, managing brand attraction, branding, determining identity, and developing various marketing strategies, including advertising strategies (holding marketing campaigns, etc.).