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4.1 The Role of Marketing (Several differences between marketing goods…
4.1 The Role of Marketing
Tangible, physical
consumer goods
are often marketed in different ways to intangible
consumer services
consumer good
- tangible physical product marketed to end users (consumers)
consumer service
- intangible provision of an activity to end users (consumers)
Several key differences between goods & services for selling services handled by managers:
Services are consumed immediately
- they cannot be stored
Services cannot be taken back to be repaired or replaced
Consumers find it much more difficult to compare service quality than for manufactured goods
People (trained, approachable and helpful employees) are very important to the successful marketing of services.
Several differences between marketing goods & services
Building trust
For newly formed & other small businesses, the entrepreneur has to sell confidence & trust in themselves, & their ability to perform the services as described
Time for delivering the service
Time is an important part of marketing a service bc if a promise is made to provide a service within a given time frame, the business must be certain it is able to deliver while still managing & providing services for others.
Accurate time estimates & effective time management when delivering services to clients will aloow more customers to be seen & provided with services to an appropriate standard.
Deliverability
A major challenge with marketing services is being able to convinve customers that quality results can be delivered within a given period of time.
Usually service marketing material such as websites have testimonials & case studies from other satisfied clients that are designed to prove that the business is able to deliver on the promises contained in the promotional materials
Relationships
Marketing a service-based business relies more on building long-term r'ship with consumers than marketing goods does.
When service businesses build up trust & a long record of reliably supplying high-level service consistently, they establish r'ships that can help to provide long-term sources of revenue as well as providing a greater chance of +ve feedback via social media.
Perceived value
Many service companies focus their marketing efforts on the goal of instilling a high perceived value of the service in the minds of the customer. If the customer is made to feel easier, betetr or richer in some way from using the service then the marketing is a success.
Marketing of goods is often focused on the price level. Most high-end service providers do not compete on price - largely because they know that it is a losing proposition.
Price cutting can lead to devaluation of the service being provided & also lead to a decline in the quality of services being offered as a result of lesser-qualified firms entering the market to compete on the basis of price alone.