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February 6 2012.
Jan 06
Challenges of services marketing.

In the last article, we understood the fundamental differences between Products & Service viz;

Sr.
Products
Services
1. Tangible. Intangible.
2. Production separate from consumption. Simultaneous production & consumption.
3. Standardized. Non-Standardized.
4. Nonperishable. Perishable.
5. Ownership. Non-ownership.

Now let's look at critical issues which makes marketing of Services' a unique challenge.

Apart from the traditional 4 P's of marketing ( Product, Price, Promotion & Place) which we are well aware of, the unique nature of services' brings into focus 2 more P's ! viz;

People & Processes.

*People: For most of the Services, people are the vital element of services maketing mix. The areas where there is high level of contact with the customers the 'people' element is the only differentiator between the competing service providers. During each customer contact you face the moment of truth. Each impression, the service providers makes is temporarily at least the last. So its critical to have people in the organisation, who will make these interactions a lasting one !

*Processes:The production processes in a manufactured product, are usually of little concern to the customer. However they become critical for consumers of 'service'. Services' are essentially about processess rather than tangible outcomes, & for many services consumers are closely involved in the production process. Hence the design & flawless execution of service processes, is crucial for customer satisfcation for a Service 'product'.

Some thoughts on services marketing.
- The core of Services' marketing is the service itself !
- The first step in service marketing is your service.
- Every act is a marketing act. Make every empoyee a marketing person.
- Setting your price for the service is like setting a screw.A little resistance is a good sign.
- Give your service a name not a monogram.
- Watch what you show.
- Make your service easy to buy.
- Write mission statements, but keep it private.
- Don't raise expectations you cannot meet.

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