Meaning of Service Marketing
Service marketing is a branch of marketing concerned with marketing of intangible products. This marketing is based on value and relationship. It involves marketing of various economic activities offered by business comprising of both Business-to-Business (B2B) and Business-to-Consumer (B2C) services.
The various economic services included in this marketing are telecommunication services, health services, financial services, entertainment and tourism services, trade and professional services. Service marketing emerges as a separate field of marketing in the 1980s keeping in view the unique and different characteristics of economic services from tangible products. With the growing competition of services in the global market, service marketing achieves the great importance making it a separate subject to be studied.
The marketing mix used in service marketing is expanded as compared to product marketing. The service marketing mix comprises of seven Ps namely- Product, Price, Place, Promotion, People, Process and Physical evidence. Therefore, through service marketing businesses are able to create awareness and promote their intangible product in the market.
Scope of Service Marketing
Service marketing deals with marketing of intangible products. It creates awareness about economic services offered by the business. Customers get full information about services through marketing activities of the business. It provides full details to customers and motivates them to avail different services offered by a business.
Boosts Sale and Increase Revenue
Marketing of services helps businesses in attracting more and more customers. Marketing strategies are designed according to the needs of people and these strategies directly affect the mindset of people. Customers are induced to avail the services offered by the business. Once these customers are satisfied and happy with these services, they will promote these services by word of mouth publicity. This will eventually increase the sale of these services thereby raising the revenue for the business.
Raises Standard of Living
Through the marketing of services, people become aware of different economic services available in the market. These services are availed by different people when they came in contact with these promotional activities. People are able to use continuously this better service available thereby providing them more satisfaction. By availing these services standard of living of people is raised.
Marketing activities provide employment to a large number of people. Implementation of marketing strategies designed by business requires large no. of people. There are different peoples that act an intermediary in providing full information regarding services offered by the business to its different customers. Customers clear all their doubts and acquire full detail through the people engaged in marketing activities of a business. This way a large portion of the population gets employment through marketing programmes.
Source of New Ideas
Business acquires information about new ideas and concepts through their marketing programmes. They got to know about market trends and technological changes in the market. The information acquired through these marketing programmes is implemented in their production processes to deliver the services as per market trends.
Basis for Decision Making
Decision regarding what to produce and what to deliver to its customers is always a tough decision before every business. Through marketing strategies business interacts with its customers and understands their need and demand. Once their requirements are known it can be used in decision making regarding production processes. This will help in serving the customer in a better way.
Helps in Economic Development
Marketing helps in developing the economy of the country. Businesses are able to raise their revenue by increasing their sales through their marketing strategies. This increased revenue helps in removing the poverty from the country and helps in infrastructural development. This overall development helps in improving and strengthening the economy of the country.