Assignment About The Service Marketing

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Service Marketing
Vasileios Karagiannis
Department of Business and Technology, Webster University Athens
MNGT 2500: Marketing
Dr. Adel Sakr
February 15, 2022

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Service Marketing
A service is any act or performance that one party can offer to another that is essentially
intangible and does not result in ownership of anything. Its production may or may not be
associated with a physical product. The marketing of services is referred to as services
marketing. Services marketing is a strategy used to advertise and present a company's intangible
benefits and offerings in order to increase value to the end customer. In services, consumers rely
on word of mouth rather than advertising. They rely heavily on price, service providers, and
physical clues to judge quality. Consumers are very loyal to service providers who satisfy them.
For example, they always go to the same hairdresser. Since switching costs are high, consumer
inertia can make it difficult to poach a competitor. The service component can be a small or large
part of the overall offering. There are five categories of offerings: pure tangible goods such as
soap, tangible goods with an accompanying service such as a car, mixed goods such as restaurant
food, large service with an accompanying smaller good and service such as air travel and the
snacks offered, pure services such as psychotherapy. These can be stand-alone service offerings
or complementary services to tangible products.
Services marketing is a concept that focuses mainly on the business of non-physical,
intangible goods. This involves services provided by the company that cannot be seen, touched,
felt, etc. These are services, mostly provided by people and processes, that the customer cannot
keep. Industries such as hospitality, tourism, financial services, professional services, etc. use
services marketing to drive their business. Marketers market different types of entities such as
goods, services, events, people, etc. Excellent services marketing requires excellence at three
levels: external, internal, and interactive marketing. External marketing includes pricing,

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distribution, and promotion of services to consumers. Internal marketing involves training and
motivating employees to serve customers well. Interactive marketing describes the skills of
employees in serving customers.
Features
Unlike physical products, services are intangible; they cannot be seen, touched, or
smelled. In addition, consumers cannot try out a service in advance. Accordingly, it is difficult
for consumers to evaluate a service before they buy it; they cannot know its exact outcome in
advance. In other words: Unlike a product, you cannot hold or touch a service in your hand.
Although services are intangible, the experience consumers have with the service affects how
they will perceive it.
Inseparability is the next unique characteristic of services. Services cannot be separated
from service providers. A product produced can be taken away from the producer. However, a
service is produced at or near the point of purchase. When you visit a restaurant, you order your
meal, the waiting and delivery of the meal, the service by the waiter/waitress is part of the
production process of a service and cannot be separated from it.
Services are also characterized by variability or heterogeneity. There are three reasons for
this: First, the inseparability of the service from the provider leads to some variability. Second,
services are highly person-dependent. Third, the effects of services vary depending on when and
where the service is provided.
Services are also perishable. They cannot be stored. This is because services are produced
and consumed simultaneously. There is no inventory in a service. Services last a certain amount
of time and cannot be stored for later use like a product. When you travel by train, bus, or plane,