In today’s competitive market, making your product stand out from the rest is vital. However, the struggle arises when you have to market something that is not tangible. The answer to this is – service marketing. This marketing strategy is aimed at highlighting the features of non-tangible offerings – ranging from financial, consulting to other professional services. Whether you are a new or experienced B2B marketer, service marketing can open the door to many strategies for acquiring and maintaining good relationships with clients. Let’s take a deep dive into the main features, advantages, and characteristics of service marketing.

What is Service Marketing?

As we established above, Service marketing is the process of marketing intangible services. It is a modern strategy for promoting services in the global market and presenting them to customers. While product marketing entails selling physical goods, service marketing has the herculean task of marketing something that the consumer can’t see. It’s all about effectively communicating why your service is worth choosing. 

For example, suppose a cloud computing firm wants to promote the benefits of its data storage service. Instead of focusing on technical aspects, they focus on how their service can boost productivity. They emphasize on how their service costs cheap, enhances efficiency and improves data security. By highlighting the issues their service solves and the resulting advantages that come with these efforts, the firm is successfully marketing an intangible product.

There are 4 types of service marketing:

Internal Marketing

Internal marketing is about training and motivating your employees within the organization. It makes sure that employees are well informed and keen about the offerings, allowing you to create a culture focused on exceptional service. 

External Marketing

External marketing includes traditional marketing activities aimed at potential customers. This involves advertising, promotions, public relations, and direct marketing, all designed to develop awareness and attract customers.

Interactive Marketing

Interactive marketing happens during the interactions between service providers and customers. It focuses on the quality of these interactions and the overall service experience, directly impacting customer perceptions and satisfaction.

Relationship Marketing

Relationship marketing emphasizes building enduring relationships with customers. It involves loyalty programs, personalized communication, and collecting customer feedback, aiming to retain customers and foster repeat business.

Characteristics of Service Marketing

There are 4 different characteristics of service marketing. They are as follows:

Intangibility

McDougall and Snetsinger (1990) described intangibility as the absence of physical evidence and the inability of a product or service to create a clear, concrete image. Services cannot be seen, tasted, felt, heard, or smelled before purchase. 

For instance, a customer booking a hotel room only has a reservation and the promise of a comfortable stay. The hotel wants to present itself as professional and yet display personalization. They need to ensure their exterior and interior are clean and display high-quality amenities. The staff should dress appropriately and be friendly and approachable. The rooms and facilities must look clean and modern. The hotel’s value proposition should also be reflected in its online presence. Its website, social media, email campaigns, loyalty programs, and other communications should convey a sense of professional service and quality.

Inseparability

Inseparability in layman’s terms means something that cannot be separated or divided. This is a key trait in service marketing. Unlike products, where customers can separate the item from the person who sells it, services are often consumed at the time of purchase. This makes it hard to separate the service from the service provider. 

For example, a spa offers massages & aims to provide excellent customer service during this process. They provide treatments, use various products, and create a relaxing environment. When customers visit a spa, they receive their treatments on-site. Even if the treatments are excellent, their overall experience can be affected by the service, ambiance, or location. It’s difficult for guests to separate the service from the quality of the treatments because many factors influence their experience. Every interaction contributes to the overall experience.

Variability

Variability refers to the lack of consistency and measures how much experiences or data differ. When buying a physical item, the product remains consistent regardless of the store or online vendor. However, services show greater variability, as the experience can change with different providers. 

For instance, at a coffee shop, one barista might be friendly and efficient, while another could be slow and arrogant. The same barista might provide different levels of service to various customers, influenced by their workload and mood at that moment. The quality of service a customer receives depends on the vendor they choose and the staff member who serves them.

Perishability

Perishable goods are products and services that come with an expiration date. Movie tickets, theater reservations, doctor’s appointments, and hotel bookings cannot be stored and used later. If no use is made of the service, it becomes invalid, and a new ticket or reservation has to be made. 

For instance, service providers such as airlines give different tariffs depending on the time of the year, that is, the time of high demand and low demand. They may also recruit more employees during periods that are usually busy to accommodate passengers and trips.

Advantages of Service Marketing

Understanding the concept of service marketing might seem challenging, but it has clear benefits. It improves cash flow and enhances a company’s reputation. Let’s explore the advantages of service marketing.

Improved Business Reputation

In any B2B business, trust is key. Effective service marketing is your key to success. When you excel in this type of marketing, people perceive your business as dependable and trustworthy. This is an effective way to drive in more customers.

Better Cash Flow

Market your services strongly, and you can witness an increase in profits. In today’s competitive market, making your services different from others can attract new customers and boost your earnings. Even less profitable services can shine with excellent marketing. This extra cash is a boost that can be used for expanding your business and exploring new opportunities.

Data-driven decision making

Service marketing allows you to make better decisions by offering insights into customer behavior, preferences, and requirements. These details can be utilized to enhance your services, improve marketing campaigns, and allocate resources more effectively.

Customer Acquisition and Retention

Strategic service marketing brings in fresh customers by focusing on the benefits and solutions you provide. It also creates loyalty by persistently showing a commitment to customer satisfaction and exceeding expectations.

Enhanced Customer Experience

Service marketing focuses on the quality of interactions between service providers and customers. By improving these interactions, businesses can enhance the overall customer experience, leading to customer satisfaction and recurring business.

What is the Difference Between Product and Service Marketing?

Conclusion

Service marketing is paramount for any organization that deals in the sale of services. It assists in attaining and establishing a good brand image, improving overall customer experiences, and increasing the efficiency of the team. Thus, by recognizing the peculiarities of service marketing, companies can build a competitive advantage and receive higher financial results. 

Looking to level up in the way you market your service? Contact Marketboats, your top-choice provider for B2B leads, and let us take your business to the next level!