Nature and Characteristics of

Service Marketing

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Meaning of Service Marketing

Service marketing is a branch of marketing concerned with marketing of
intangible products. This marketing is based on value and relationship. It
involves marketing of various economic activities offered by business
comprising of both Business-to-Business (B2B) and Business-to-
Consumer (B2C) services.

The various economic services included in this marketing are

telecommunication services, health services, financial services,
entertainment and tourism services, trade and professional services.
Service marketing emerges as a separate field of marketing in the 1980s
keeping in view the unique and different characteristics of economic
services from tangible products. With the growing competition of
services in the global market, service marketing achieves the great
importance making it a separate subject to be studied.

Nature of Service marketing

Marketing of Intangible Products
Service marketing deals with the marketing of products that can’t be
seen or touched. It deals with the marketing of various economic
services provided by the businesses to its client. There is no physical
possession of products marketed in service marketing. Services are the
activities which can only be experienced and provide satisfaction to the
public.

Non-Transfer of Ownership
The products marketed in service marketing do not possess any
ownership. Nor the service provider nor the consumer availing the
service has any ownership of the service. The service provider only
owns the physical infrastructure necessary to deliver the service.
Services are intangible products and can’t be owned by anybody. It
becomes non-existent after consumption and only provides experiences
to consumers.
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Expanded Marketing Mix

The marketing mix used in service marketing is expanded as compared
to the one used in product marketing. Service marketing has in total
seven Ps namely- Product, Price, Place, Promotion, People, Process,
Physical evidence. Whereas product marketing mix has only four Ps-
Product, Price, Place and Promotion. Additional three Ps are included in
the service marketing mix considering the unique and different
characteristics of services as compared to physical product.

Inseparability of Consumption and Production

Service marketing promotes such products which are produced and
consumed at the same time. Service provider and services can’t be
separated from each other. Presence of a service provider is a must in
order to deliver services to clients. Services are unlike physical product
which can be used by consumers without the presence of its producer. In
the case of services, the service provider generates and delivers the
service at the same time to the consumers.

Heterogeneous Products
The products marketed in service marketing are generally heterogeneous
in nature. These intangible products differ in their nature and each one is
unique. These products are not identical as in the case of physical
products. Every customer gets different level of satisfaction with the
services delivered by the same service provider. Even the same customer
gets a different level of satisfaction if he avails the same service from the
same service provider at different times. No standardization and quality
control factor can be applied to service, unlike physical products.

Managerial Function
Service marketing is a managerial function for promotion of intangible
products. It manages all activities concerned with the marketing of
services provided by the business. Service marketing designs different
strategies that are adopted by business for promoting their intangible
product. These strategies are framed and implemented as per the unique
characteristics of services that are intangibility, perishability,
inseparability, variability etc. Service marketing aims at promoting the
intangible products at a large scale to create large awareness in the
market.
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Characteristics of Service Marketing

Promotes Intangible Products

Service marketing aims at promoting intangible products of business in
market. It is one which creates wide awareness and informs customers of
various economic services. Marketing of services helps in providing full
information regarding these services to people and induce them to avail
them.

Increase Sales
It play an efficient role in boosting the sales and revenue of business
organizations. Service marketing helps in acquiring more customers and
motivating them to try these economic services. All marketing strategies
are designed as per the people’s need which directly affect their mindset
and attract them towards business products. It eventually leads to
increase the sales of companies.

Bring New Ideas

Marketing is a tool through which business acquires new ideas and
concepts from market. It is the medium which enables in knowing all
market trends and technological changes. All this information is utilized
in framing strategies and producing products in accordance with market
needs.

Better Relation with Customers

Improving better relations with customers is another important role
played by marketing activities. It is the one through which business
interacts with their customers and understand their wants. Proper
understanding of customers helps in serving them properly and
developing better relations with them.

Generates Employment
Marketing activities helps in generation of more employment
opportunities in country. There are large numbers of people working
with various marketing agencies. There are different peoples which are
involved in successful implementation of marketing strategies of
company. This way a large portion of society gets employment due to
these marketing activities.
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Helps in Economic Development

Marketing plays a key role in overall development of an economy. It
helps in generation of sufficient funds by increasing sales of business
and improving job opportunities. All this revenue is used for
infrastructural development and removing poverty from country. It
eventually strengthens the economic conditions of country.