According to the CIA’s World Factbook, approximately 60% of the World’s GDP comes from providing services rather than from the tangible goods produced in agriculture and manufacturing (www.cia.gov). But how do you market a service? Insurance coverage or financial services from a bank cannot be photographed, touched, or seen in the same way as a car or bottle of shampoo. Marketers have to create different strategies for generating revenue through services. How should firms market services differently from marketing tangible goods?
For this week’s Discussion, you take a closer look at how marketing services is different from marketing tangible goods. Select one service MY SELECTION BANKING (insurance, banking, healthcare, etc.) and one tangible good MY SELECTION FASHION (automobile, shampoo, computers, etc.). Then, research and compare the marketing strategies for each.
Post by Day 3 an explanation of how the marketing of the service you selected differs from the marketing of the tangible good you selected. Then, explain how the unique characteristics of marketing a service affect the marketing process. Support your conclusions with references to your research, resources, and—where applicable—your personal or professional experience.
reference
Cialdini, R. B. (2009). Influence: Science and practice (5th ed.). Boston, MA: Pearson Education.
Chapter 2, “Reciprocation: The Old Give and Take…and Take” (pp. 18–50)
The rule of reciprocation is one of the most powerful and pervasive weapons of influence. In this chapter, Cialdini reviews how people and organizations use reciprocation effectively and to their benefit. The author also provides techniques that individual customers can use to avoid being exploited by the rule of reciprocity.
Perreault, W. D., Jr., Cannon, J. P., & McCarthy, E. J. (2013). Basic marketing (19th ed.). New York, NY: McGraw-Hill.
Chapter 8, “Elements of Product Planning for Goods and Services” (pp. 196–223)
In this chapter, Perreault et al. look more deeply at one of the four Ps of marketing: products. The authors illustrate how products can satisfy a range of needs for a target market, how marketers make product area strategy decisions in ways that add value for customers, and how product strategy impacts the other Ps of marketing.
Chapter 13, “Promotion—Introduction to Integrated Marketing Strategies” (pp. 329–355)
In this chapter, Perreault et al. examine how marketers approach promotion. The authors review the pros and cons of different promotion methods, the concept of integrated marketing communications, the way marketers and customers communicate with each other, how promotion budgets are created, and how those budgets impact promotion decisions.
