Question 1 (b)
Services marketing, how it differs from product marketing, with examples
9 marks
- Time to write
- About 18 minutes
Question
Question 1 (b) · 9 marksDefine services marketing. In what way does it differ from product marketing? Also provide some examples.
Reworded from the university paper; the task is the same. The original paper belongs to the University of Delhi. See DU's question bank.
Before you write
Read off the question and its marks
Read from the question
- Define…What…?Two asks in one question: answer both.
- differ fromSet the differences out in a table, basis by basis, not as two separate essays.
- examplesExamples are asked for: one short example with each point.
Write it in this order
- Read; underline the asks; jot your points 1 min
- 1 Definition of services marketing 2 marks 2 min
- 2 Differences from product marketing 5 marks 10 min
- 3 Examples 2 marks 4 min
- Check: every ask answered, key terms underlined 1 min
Easy marks
- Definition of services marketing (step 1, 2 marks): a clear definition and a line on what it covers. It opens the answer, so it takes a minute or two.
Short on time? Keep step 1 short. Trim steps 2 and 3 evenly rather than skip one: each is capped at its own marks.
Try it first. About 18 minutes for 9 marks. Write it out, then open the solution.
Solution
Hover or tap a marked figure, like 72,000, to see how it is made and where else it appears.
A service is something done for a buyer rather than a thing handed over: the buyer pays for an activity or a benefit and owns nothing physical at the end of it. Services marketing is the work of finding out what customers need from such offerings, banking, insurance, telecom, healthcare, education, hospitality, transport and professional services, and then designing, pricing, promoting and delivering the service so as to satisfy those needs, build lasting relationships and meet the organisation's goals. Because services are performances rather than objects, their marketing depends heavily on the people who deliver them, the way they are delivered and the tangible surroundings in which they are delivered.
How services marketing differs from product marketing
| Basis | Product (goods) marketing | Services marketing |
|---|---|---|
| Tangibility | Goods can be seen and tested before purchase | Services are intangible; buyers rely on cues and reputation |
| Production and consumption | Produced first, sold and consumed later | Produced and consumed at the same time (inseparability) |
| Role of the customer | Usually not involved in production | Often takes part in producing the service |
| Standardisation | Quality can be standardised in a factory | Quality varies with provider, time and place (variability) |
| Storage | Goods can be stored as inventory | Services are perishable and cannot be stored |
| Ownership | Ownership passes to the buyer | Only use or access is obtained |
| Marketing mix | Four Ps: product, price, place, promotion | Seven Ps: adds people, process and physical evidence |
| Distribution | Through channels of intermediaries | Often direct, as the service is produced where it is delivered; agents, franchises and digital platforms are also used |
| Demand management | Inventory absorbs demand fluctuations | Pricing, reservations and capacity planning manage demand |
| Quality judgement | Based on product features and performance | Based on the service experience and staff behaviour |
These differences mean that services marketers must make the intangible tangible (through physical evidence and brands), train and motivate front-line staff (internal marketing), design efficient service processes, manage demand and capacity, and build trust through consistent quality.
- A hotel. Guests cannot test a stay in advance; they judge from photographs, reviews and the lobby. A room left empty tonight cannot be sold tomorrow, so hotels use advance-booking discounts and peak-season prices.
- A bank. Customers deal with staff and apps; courteous service, quick processes and secure systems decide satisfaction.
- A coaching institute. The quality of teaching varies with the teacher; institutes standardise study material and train faculty.
- An airline. The seat is perishable, so fares change with demand; cabin crew, punctuality and the booking process make up the experience.
By contrast, a refrigerator can be inspected in a showroom, stored in a warehouse and judged by its features.
Services marketing applies the marketing concept to intangible offers. Because services are intangible, inseparable, variable and perishable, it adds people, process and physical evidence to the marketing mix and relies more on trust and relationships than goods marketing does.
Where the 9 marks sit
| # | Component | Marks |
|---|---|---|
| 1 | Definition of services marketing | 2 |
| 2 | Differences from product marketing | 5 |
| 3 | Examples | 2 |
| Total | 9 |
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