What Are The Challenges In Service Marketing?


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amber Jhon Profile
amber Jhon answered
Because of the intangibility and immediate consumption of the services, as compare to the tangible products, there are various things which indirectly contribute towards the marketing and promotions of the services. For example, the smiles of the customers' services agents can be an indirect marketing consideration. The ambiance and the atmosphere can be also considered as important marketing considerations for a service business like restaurants. Similarly the list goes on and on therefore, the best way is to explore that why some additional marketing considerations emerge in the service businesses?

Basically all of the things which facilitate the service layout act as promotional tools of the services because service recovery is not possible. If you are operating a restaurant and you being a manager scold your employees and in the meanwhile the customer enters then the impression which the customer has taken will not change. However, in the product business it can reduce after the consumption of the product. In fact services give the experiences to the customers instantly therefore, there are more chances of the failure of services.

Another important marketing consideration can be service design and the layout like if the customer has to stand in a long Que for some minutes, then the chances of his next time service consumption will decrease. Moreover, the way the service is delivered, the time to complete the process and the closing of service can also be assumed as some important marketing considerations in services. Therefore, nowadays, service companies have increased the use of feedback card system.
Scott Thomas Profile
Scott Thomas answered
You there are many challenges in the markey like having a customer to whom you sell your product.But after some time you could be able to learn more things about that ...
Iqra Jabbar Profile
Iqra Jabbar answered
Managing, growing, and profiting with both product and service businesses are challenging tasks. But the challenges are different from one to the other. Listed below are some of the most common and difficult challenges of growing and managing consulting, professional, or technology service businesses that don't necessary apply to product businesses.
Clients can't see or touch services before they purchase them. This makes services difficult to conceptualize and evaluate from the client perspective, creating increased uncertainty and perception of risk. From the firm's perspective, service intangibility can make services difficult to promote, control quality, and set price.
Services are often produced and consumed simultaneously. This creates special challenges in service quality management that product companies do not even consider. Products are tested before they go out the door. If a product has quality problems while in production, the company can fix them and customers are none the wiser. Service production happens with the customer present, creating a very different and challenging dynamic.
Trust is necessary. Some level of trust in the service organization and its people must be established before clients will engage services. This is as important, sometimes more important, than the service offerings and their value proposition.
Competition is often not who you think. Competition for product companies are other product companies. Competition for service companies are often the clients themselves. Sure, sometimes you find yourself in a competitive shootout (some firms more than others), but often the client is asking 'should we engage this service at all' and 'if so, should we just do it in-house'.
Brand extends beyond marketing. Brand in service businesses is about who you are as much as what you say about yourself. And internal brand management and communications can be equally as vital to marketing success as are external communications.
Proactive lead generation is difficult. Many service companies have tried, and failed, at using lead generation tactics that work wonders for product companies. Implemented correctly, traditional product techniques, such as direct marketing and selling, can work for services, but the special dynamics of how clients buy services must be carefully woven into your strategy.
Service deliverers often do the selling. Many product companies have dedicated sales forces. For services, the selling is often split between sales, marketing, professional, and management staff.
Marketing and sales lose momentum. Most product companies have dedicated marketers and sellers. They market and sell continuously, regardless of the revenue levels they generate. In many services companies the marketers and sellers also must manage and deliver. This can often lead to the Services Revenue Rollercoaster-wide swings between revenue and work overflow, and revenue and work drought.
Passion is necessary, yet elusive. The more passion, spirit, hustle, and desire your staff brings to the organization every day, the more revenue and success you will have. The correlation between staff passion and financial success is direct and measurable (as is the correlation between lack-of-passion and organizational failure). Yet institutionalizing passion, while necessary, is agonizingly elusive

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