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August 29, 2012

Essay paper on Service Goods Marketing


Introduction

Marketing can be best described as, a tool used by companies to persuade customers in order to buy a product or service. This includes not only bringing in awareness to a specific target market about what a product or a service has to offer, but includes at first understanding the environment where the product or service shall be made available, and evaluating as to how best the product or service can then be catered out to the target audience, that ensures maximum awareness and greater consumption side by side.
With regard of what has been stated above, the basic concept of marketing may be seen as being similar when inferred from literature, but when it’s more what about knowing about marketing for goods or for service, the characteristics of each variable, that being goods and the service, then tend to change the approach of how one should consider marketing activities to be carried.

Marketing for goods V/s marketing for services

Marketing for good or for service can be said as being different. This being mainly because of the 4 major characteristics as identified by Lamb et al (p .277 2008). Following diagram gives a bird’s eye view over such major characteristics that then tend to differs the marketers approach when talking about marketing for goods or for service.
 1.      Intangibility
Services are intangible in nature that is they cannot be touched, felt, smelled or even tasted, however in this regard goods are relatively tangible that is they can be touched, tasted, smelled, or even felt.

2.      Inseparability
Services are sold consumed and even produced at the same time however for goods this does not happen. Goods are first produced, where after having produced are then sold and in the end is then consumed by the end user.

3.      Heterogeneity
Services are less standardised and uniform then as compared to goods. That is greater variability in input and output. However for goods this may not be the case.

4.      Perish ability
Services cannot be stored, warehoused or even inventoried. However goods on the other hand can be stored warehoused and even inventoried.
With these basic characteristics that distinguish goods with services, the marketing activities too tend to change when marketing for goods or even for service.
Diagram below shows this difference when marketers would be involved in preparing marketing mix
.1.      Product
This includes product taste, smell, feature, attributes brand name
2.      Price
Includes price as decided by company to be set for a particular product or service
3.      Place
Describes as to where would the product or service be made readily available.
4.      Promotion
Defines of what different promotion tools would be used to bring in awareness to a greater target market. Be it for service or for goods. Example sales promotion, events, advertisements Porter (2003, p.108)

Marketing mix tools remains same till this point for goods and service but 3P’s further add up in marketing mix when marketing is for services. This accounts People, Physical Evidence and Process. That is how many people would be required to provide the service, specific physical evidence of where the service shall be provided and lastly the process through which service passes through.
All this signifies as to how one could see marketing of good and service differ where difference arising from the basic characteristics what both elements seem to posses.

Technology impact on customer service and service offering

After inferring from all the information that distinguishes services from goods and how marketing is then carried out for either the good or a service, the advancement in technology, has thus redefined the term customer service and service offerings.
No company is now considering focusing just towards providing goods or even pure service. As in a competitive and a much technological environment where internet has taken most of the attention, every company is seen of using a perfect blend of both the ingredients to not just persuade customers to buy a product or avail a service but to also retain them in the end. Example many companies that are involved in marketing goods now opt for value added services (VAS) such as 24/7 customer support to ensure maximum retention and satisfaction of its customers.
Where for service oriented companies, apart from being termed as being pure service provider value added tools are added up with the package to ensure greater sales and greater market share. Example of this being telecom companies offering internet service, providing free routers to customers that being goods to ensure every member becomes their member.
All such activities have redefined the term customer service and service offering where from customer’s perspective this being seen when they carry more demand since they all are much aware of the product and other substitutes, that being through the use of internet.  From business perspective greater service offerings for companies that sell goods, since this tool acts as a saviour in retaining and attracting clients in a much competitive environment where customers are demanding and there are numerous number of suppliers.

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