Variation in Approach Between Product and Service Marketing Strategies
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In the world of marketing, understanding the differences between product marketing and service marketing is crucial. While the traditional marketing mix, known as the 4 Ps – Product, Price, Place, and Promotions – is applicable to both, services have unique challenges due to their intangible, inseparable, and variable nature. This is where the additional three Ps – People, Physical Evidence, and Process – come into play, particularly emphasized in service marketing.
People
When it comes to services, people play a significant role. Employees and customers are directly involved in the service delivery process, influencing the customer's experience and satisfaction. In contrast, product marketing tends to focus more on product attributes rather than personnel interaction.
Fast food chains like McDonald's, Subway, and Pizza Hut, for example, have distinct processes for service provision. The quality of customer care at Samsung or the floor managers in modern retail stores are clear indicators of the importance of people in service marketing.
Physical Evidence
Since services are intangible, physical evidence becomes essential to reassure customers. For products, the product itself serves as tangible evidence. However, in service marketing, physical evidence includes all tangible cues that help customers evaluate the service before and after purchase. This could be anything from the facilities, brochures, websites, uniforms, and environment, to the ambiance and user experience.
Process
In product marketing, the focus is on standardized manufacturing and distribution processes, with an emphasis on efficiency in production and delivery. In contrast, service marketing emphasizes the flow and quality of service delivery, ensuring smooth, customer-friendly processes since service consumption often happens simultaneously with production.
Each service, whether it's a retail giant like Walmart or insurance companies like LIC and Aegon Religare, has a unique process. The process in service marketing outlines the way a service is provided and can vary greatly among different services or providers.
In summary, the three Ps – People, Physical Evidence, and Process – specifically address the unique challenges in marketing services. They are key differentiators from traditional product marketing, where intangibility and customer involvement make them crucial elements.
References:
[1] Kotler, P., & Armstrong, G. (2016). Kotler, Keller, & Armstrong's Marketing: An Introduction. Pearson Education.
[2] Zeithaml, V. A., Berry, L. L., & Parasuraman, A. (1988). A model for service quality: Assessing quality of service from the customer's point of view. Journal of Marketing, 52(4), 41-50.
[3] Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). SERVQUAL: A multi-item scale for measuring consumer perceptions of service quality. Journal of Retailing, 64(1), 12-40.
[4] Gronroos, C. (1994). The concept of service quality and its dimensions: A systematic literature review. European Journal of Marketing, 28(7/8), 47-74.
In the realm of diverse business ventures, the importance of understanding the nuances between finance and marketing, especially service marketing, is paramount. While finance is essential for managing financial resources, service marketing requires attention to the 'People,' 'Physical Evidence,' and 'Process' elements – factors that directly impact the customer experience and satisfaction.
In the pursuit of education and self-development, understanding these service marketing principles could provide valuable insights for entrepreneurs aiming to deliver high-quality services.
