Why is there so much buzz about services?
More and more developed countries are shifting from a product and production-oriented economy to a more service-oriented economy. So many successful countries depend primarily on the service sector. Canada is one of those countries, it is in the top ten list of countries with the highest GDP while it is not producing any physical products and is dependent mainly on services. It has been predicted that as time goes by, more countries will jump on the bandwagon and more will depend on the services in the future. This has many implications, one of the most important one being the need for Service Marketers in the future.
What are some examples of services industries?
Some very profitable services in the world are Tourism, Airlines, education, and so many other examples. One interesting fact is that the line between products and by that I mean physical products and services is blurring. Some product companies such as Apple, Tesla, and Microsoft are providing both products and services or provide their physical products with some value-added services.
Why should you be concerned?
The implication of all the things I have mentioned above is that, in the future so many people will be working in the service sector. One of those areas will be service marketing managers or professionals who need to be familiar with the nuts and bolts of service marketing processes and strategies to develop effective marketing strategies and plans so that their service firm will prosper in the competitive arena.
What are the differences between service marketing and product marketing?
Most of the processes in the service marketing and product marketing fields are similar but there are some differences that need to be taken into account. One of the differences is that services, unlike products, are intangible. What does that mean for a marketing manager of a service firm? It means that most of its customers will need more proof to trust their company than is needed for a product company. Another difference that needs to be taken into account is that services are perishable. They are purchased and consumed in an instant and it cannot be stored. What are the implications for a service marketing manager? They need to depend more on reminding advertising strategies and CRM marketing activities.
People management, a very important task
One very important aspect of service marketing and business is the hiring of competent employees. Employees are the most important touchpoint with your customers. Service marketing managers need to pay extra attention to the staff members and have collaborative sessions with the people in the Human Resources department.
Quality is not the same every day
One of the characteristics of the services compared with products is that services are variable. This is one of the differences that cause lots of headaches for customers and as a result of service marketers. One day you go to a hairstylist and you are totally satisfied with the service you received there. The other day you go and the hairstylist happens to have had a terrible day. The quality of the service you are going to receive will be highly different from the previous experience.
To sum up
To sum up, all the facts above services are different from products in that they are perishable and cannot be stored, they are intangible, they are variable and their quality is subject to change on a daily basis and they depend a lot on the staff as they are the most important touchpoint for your brand.
