NATURE AND TYPES OF SERVICE MARKETINGS

Contents
 Meaning of Service Marketing
 Nature of Service marketing
 Marketing of Intangible Products
 Non-Transfer of ownership
 Expanded Marketing Mix
 Inseparability of consumption and production
 Heterogeneous products
 Managerial Function
Types of Service Marketing
1. Internal Marketing
2. Interactive Marketing
3. External Marketing

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.

The marketing mix used in service marketing is expanded as compared to product marketing.
The service marketing mix comprises of 7Ps namely- Product, Price, Place, Promotion, People,
Process and Physical evidence. Therefore, through service marketing businesses are able to
create awareness and promote their intangible product in the market.

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.

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.

Types of Service Marketing

Internal Marketing
Marketing that takes place in between company and their employee is termed as Internal
Marketing. This marketing aims at motivating and boosting the confidence of people working
within the organization. Employees are crucial part of business for increasing their customer’s
base and maintaining better relations with them. Internal marketing is the means through which
business train their customers how to interact and provide better service to customers.

Interactive Marketing
This is a marketing that happens in between the customers and employees of a company.
Interactive marketing is one where customers come in touch or interacts with employees. It is
efficient means to influence people and guide them in their buying decision. Personal selling,
interacting with customers on social media and servicing customers are various form of
interactive marketing.

External Marketing
External marketing is marketing between business and customers. It is the most common type of
marketing and a means through which companies interacts with their customers. This marketing
enables business in promoting their products and inducing people’s to buy them. Different types
of external marketing are advertising, direct marketing, sales promotion, public relations etc.
CHALLENGES OF SERVICE MARKETING

Intangibility
Refers that customers cannot initially access the value of a service to be provided.
this requires faith on the customers' part that they will get the desired results from their money

Inseparability
Is the idea that when selling a service, its not always possible to distinguish its production from its
consumption . this leads to different marketing methods and goods than when advertising a physical product.

Perishability
Customers may no be willing to pay higher prices associated with customized services. the speed of service
delivery maybe an issue. customers may not be willing to face uncertainty.

Variability
When two different individuals purchase the same product, they are likely to the same quality. but incase of
services, quality may vary based on who is offering the service and where.