Consumer Services Marketing

Posted in Marketing and Strategy Terms, Total Reads: 367
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Definition: Consumer Services Marketing

When businesses formulate strategies to advertise and sell their services to households, as their sole target audience, then this form of marketing is called customer services marketing.

The strategies employed here are very different from those used in industrial services marketing. Example of such services are: Banking, insurance and travel.


An extended marketing mix, which is an integral part of services blueprint design, but is little different from product marketing mix, is used to denote the services marketing mix. It consists of 7Ps rather than the 4Ps used in product marketing mix. All these factors (7Ps) are necessary to deliver an optimum service.


The 7ps are as follows:

• Product: It is intangible in nature. Tourism and Education industries are good examples where products, that is, services, are perishable, heterogeneous and cannot be owned.

• Place: This factor evaluated the location of the service products. For example, a petrol pump should be located on a highway and that too on a crowded one.

• Promotion: The most important factor in services marketing. This is because the services are common among various businesses but it is the brand and the promotion that differentiated them from each other.

• Pricing: This is very difficult to evaluate. Material costs, overhead costs and labor need to be considered along with some profit margin, to calculate the price of the service products.

• People: It is one of the key elements in services marketing and define the services. For this reason, the staff of an organization is trained in inter-personal skills. This final goal is customer satisfaction, which in fact, is the USP of services.

• Process: The process defines the way in which a service product is made available to the end-users. Before deciding on the services, it is critical for companies to establish their processes.

• Physical Evidence: To create a better experience of customers, some tangible products are also made available to the customers along with the intangible services.


Research is a very important element in customer services marketing. This is because the exact target audience, to focus promotion and advertisements, need to be established. And the cost of all this research is passed along to the end user as the cost of services.


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