MARKETING OF SERVICES, CHARACTERISTICS OF SERVICES, CLASSIFICATION, CHALLENGES, MARKETING STRATEGY FOR SERVICE INDUSTRY

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                                                            MARKETING OF SERVICES

What is service?

A service can be defined as an act or performance offered by one(1) party to another, although the process may be tied to a physical product. However, the performance is essentially intangible, and does not normally result in ownership of any of the factors of production.
Services can also be referred to as economic activities, that creates value and provide benefit, for customers at specific time and place.

The American Marketing Association (AMA) defined services as activities, benefit and satisfactions which are offered for sale or are providing in connection with the sales of goods.

CHARACTERISTICS OF A SERVICE.

1. Lack of ownership : When you buy product, you become its owner, but incase of service, you can only pay for it use, but you can’t own it.

2. Intangibility: Services cannot be held or touched, unlike a product. This is because a service is something customers experience and they are not physical products.

3. Inseparability: Services cannot be separated from the service provider. A product can be taken away from the producer  but a service cannot be taken away as it involves the service provider or its representatives doing something from the customer.

4. Perishability: Services last a specific time and cannot be stored like a product for later use.

5. Heterogeneity: Firms have systems and procedures to ensure that they provide a consistent service but it’s very difficult to make each service experience identical.

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CLASSIFICATION OF SERVICES

 Services are of great importance hence, they can be categorized into two groups. They are :
1. Product supported services : In this case, there is a wide range of service demerits, that accompany the physical products which are frequently as important as the technical solution offered by the product itself.

2. Pure services : These are marketed  in their own right without necessarily been associated with a physical product. This service includes insurance, consulting, banking and traveling banking services.

CHALLENGES FACED BY THE SERVICE
                             INDUSTRY.

    Most challenges of the service industry, are faced while managing, growing and making profit.

The challenges are :

1. Buyers are uncertain about the quality of a service and they feel they are taken away.

2. While testing new services, there is a constant challenge, communicating the services simultaneously is also not easy.

3. Certain prices doesn’t come easily for service industry.

4. Service industries faces competition not only from fellow service industry but also from their clients who often question themselves whether or not, they should engage in service at all.

MARKETING STRATEGY FOR SERVICE
                             INDUSTRY

Marketing strategy is a single statement indicating the general route to the achievement in shaping marketing strategies for services and the marketing must often face a great number of choice and auction, which if adopted will guarantee their success. These are:

1. The resources available needs to be identified.

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2. The competitors marketing strategies must be identified.
3. The competitive size of the organization and position needs to be identified.
4. The character of economy or environment needs to be well scrutinized.

 

1 Comment

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