Write short notes on challenges of Service Marketing.
Answers
There are some inherent challenges in marketing a service business, but they can be overcome. When marketing services, you apply the same marketing mix principles used for products: place, price, promotion and product -- which is your service. Added to this mix are emphases on people, process and physical evidence. Develop a plan that carefully considers these essentials so you can identify the challenges and devise strategies to overcome them.
Intangible
One of the most obvious challenges in marketing services is that you are selling something intangible. People can touch and see a product and are exchanging money for something they need and can take home to use. Conversely, people only see the results of a service, which may not always be immediate. It requires faith on the customers’ part that they will get the desired results for their money. For example, if you own a cleaning service, you have to convince your customers to trust you that their homes will be cleaned to their satisfaction.
Demonstrating Empathy
Convince your customers in your marketing efforts that you understand their problems and are offering a solution. Do this using people, processes and physical evidence. For example, if you and your employees have families and work full time, this identifies with working families who have no time for housecleaning. Before-and-after pictures in your marketing materials, such as your website, brochures and advertising, are all physical evidence. Finally, you may need to interact personally with customers multiple times as part of the marketing process to establish a relationship and convince them you understand their needs.
Competitive Pricing
How you price your services is an important marketing element. You need to be competitive, so research several competitors’ prices to gauge what your prospective customers expect to pay. Then assess your costs -- your overhead such as rent, insurance, salaries and supplies -- to determine if you can meet your costs and make a profit with that pricing. Consider bundling extra features with your services to differentiate your company and garner a higher price. For example, you can offer to wax floors as part of your service, or do laundry as part of a bonus package.
People
As a services company, marketing your people, including you, is paramount. A service is consumed when it’s purchased or produced -- just the results or effects linger, and sometimes temporarily. For example, your customer’s home will get dirty again, so the result of your cleaning delivery is temporary. The client may or may not call you again based on the overall experience. How your people performed that service will impact repeat business. The relationship is also important; follow up with your customer with personalized notes or a telephone reminder as part of your marketing tactics.