There are quite a significant number of things that are involved in a company’s success. While much of this will focus on creating a high-quality product or service, the rest will be seen in marketing and selling them.
However, what many business owners may not realize is that there can be quite a significant difference between marketing a product and doing so with a service. As a result, what may work when advertising for a product mightn’t do so with a service, or at least not as effectively.
Since so many entrepreneurs fail to realize this, it often means that they’ll end up making several mistakes when marketing their service. While these mightn’t be quite visible at the start of a campaign, they should become much more notable over time.
There can be a variety of negative consequences to this, with one of the more notable being a poor return on investment. This will be driven by the fact that many companies will see fewer sales and leads than they would if they were advertising a product.
Naturally, this is something that every business will want to avoid. As such, they’ll need to pay particular attention to the ins-and-outs of service marketing. By doing so, they should be able to have a drastic impact on how many conversions they see with their advertising efforts.
Difference Between Goods & Services
In the 1980’s the debate pertaining to whether marketing of services was significantly different from that of products. Prior to this, services were considered just an aid to the production and marketing of goods and hence were not deemed as having separate relevance.
Before looking at how to market a service, it’s worth taking a look at what the key differences between a product and a service are. While some of these may seem obvious, they’ll need to be looked at, as they can make quite a notable difference on how to advertise them.
Perhaps the most obvious benefit is that products are tangible things while services are intangible. Since products are tangible things, customers will be able to feel and hold them before purchasing them. As a result, they’ll be able to determine whether or not they like the product.
By being able to hold the product, a consumer will be able to determine its value, which may not be something that they can see with a service. In this case, a buyer will be able to figure out if they truly want the product. These can have quite a significant impact on marketing and sales strategies.
Another important difference between a product and service is the issue of ownership. When someone buys a product, they’ll own it. The same can’t be said for a service, as the provider will still have control over this.
In contrast to a product, a service is work done by a particular vendor or provider. Alongside this, billing is one of the more notable things that will differ between the two. With a product, for example, a customer will pay once, whereas someone taking advantage of a service may have to pay a monthly subscription.
Though many of these differences between a product and service may seem obvious, they’re things that many business owners may overlook. This shouldn’t be the case, as the various differences will need to be understood before a company can properly advertise them.
There are a variety of things that you should know when it comes to marketing your service.
The 7 P’s Of Services Marketing
When it comes to marketing a service, there are seven P’s that you need to focus on, with some of these being adapted from advertising a product. By focusing on and perfecting each of these, then a business should be able to refine and improve a marketing campaign.
The first of these is “product”, although in this case the term is used in reference to the service itself. When focusing on this, there are a few factors that are at play, with many of these being related to its production and consumption since these are inseparable.
However, this means that there’s a certain amount of customization for each of your campaigns and customers, which can be quite beneficial.
The second P is “pricing”, which can be much more difficult here than with physical products. There will be a variety of things that are involved in pricing an actual product, although there are many more that will affect a service’s cost. For example, there are the raw materials, as well as various other overheads, such as the people performing the service, among others.
However, you should aim to ensure that the price of the service is at a level that your target customers will like.
Thirdly is ‘place,’ which is something that affects services much more than products, primarily because service providers can only work in a certain area.As such, where a company is marketing their product or service can make quite a significant difference.
The fourth P you’ll need to look at is ‘promotion,’ which is something that will help your product differentiate itself from others. This is something that can be vital for many service providers, as many services can be identical, which means differentiating them through a promotion is something to focus on.
Next is ‘people,’ which refers to the service providers rather than the target customer. This is primarily because the people providing the service will have quite a significant effect on whether a customer is satisfied. As such, ensuring that you have the right people doing so can be essential to marketing, as this can be the largest drivers of word-of-mouth marketing.
The sixth P that you’ll need to look as is the ‘process.’ How a company delivers a service can be essential to its success, as they’ll need to provide the same quality of care with each customer. This will primarily be done through having a process that ensures customer satisfaction as much as possible.
The last P for service marketing is ‘physical evidence.’ This refers to incorporating some tangible evidence for the service, which can be done in a variety of ways. Much of this will focus on ensuring that customers will have a beneficial experience while receiving the process.
3 Types Of Service Marketing
What many people may not realize is that there are three main types of service marketing. Each can have their own benefits and drawbacks, which means that they should each be considered. These types are:
- External Marketing: This involves marketing to your consumers.
- Internal Marketing: As the name would suggest, this involves marketing to employees, which can help to inspire trust and morale in your company.
- Interactive Marketing: This is an area that many business owners may not think of, and typically involves your employees marketing to your consumers in every interaction.
You should be able to implement each of these types of marketing into your service.
Five Tips For Marketing Your Service-Based Business
When it comes to marketing a service, many business owners may not know where to start. However, there are a few tricks and tips that many entrepreneurs will be able to take advantage of when doing so. Some of the more notable include:
- Use Incentives: Many service providers can seem identical from a customer’s perspective, so entrepreneurs will need to differentiate themselves from the competition. Using incentives should allow you to do so.
- Stay In Touch: Many entrepreneurs may not contact their customers again after the service has been provided or when they marketed to them. This could be a mistake, as staying in touch with them could create a loyal customer base.
- Have Business Cards: While the majority of businesses will focus on other marketing techniques, a business card can have quite an impact.
- Connect With The Community: What many services may not realize is that connecting with the local community can help them significantly. As such, it’s highly recommended.
- Compete On Value: Many service owners may try to compete on price, although this mightn’t be effective. Instead, you should compete on the value you provide a customer.
While there can be a variety of other tips to take advantage of, each of the above should provide quite a positive impact on your service marketing strategy. As such, you should implement them as much as possible.
How To Market A New Service Effectively
When it comes to marketing a service effectively, many business owners may not realize what they’ll need to do. There are a variety of things that you’ll need to think of to make the results as large as possible.
The first thing that you should do is to research and plan as much as possible before you start the campaign. By doing so, you’ll be able to ensure that you know who your target audience is and what they’ll respond to.
By taking advantage of this, you’ll be able to maximize the potential results of a campaign while keeping the return on investment as much as possible. Alongside this, you should also be prepared to adapt during the campaign.
By remaining flexible, you’ll be able to adjust to what is and isn’t working in your campaign.
5 Marketing Strategies For Increasing Leads For Your Service Based Business
There are quite a significant number of ways that companies can market their service. Each of these have varying degrees of success, which means that they’re all worth some consideration. Some strategies that have been effective for the majority of service companies include:
- Social Media Marketing: This will allow you to connect with potential audiences across the community.
- High Performing Website: By having a high-performing website, you should be able to attract interest and turn them into sales.
- Search Engine Optimization: This is the process of optimizing a website so that it ranks well for your service and location.
- Search Advertising: By paying for your services to be promoted ahead of your competition, you should see a significant amount of conversions.
- Referral Marketing: Depending on the type of service that you offer, you may be able to take advantage of referral marketing, especially if you’re B2B.
There are a variety of other ways that you’ll be able to advertise a service company, although these may be less successful than the above. However, it’s worth noting that each of the above can be used in conjunction with each other, which should maximize results.
How To Measure Marketing Success
The majority of businesses will want to ensure that their marketing campaign is as successful as possible. However, they may not realize how they can measure their success when doing so.
While the number of customers you receive as a result will be one of the most notable ways of measuring it, it mightn’t be the only way. Instead, there can be a variety of other things that will affect your success rate.
For example, your cost per lead and conversion rate will play quite a substantial role in whether or not your marketing strategy has been successful. By lowering costs and increasing conversion rates, you should see a much more successful marketing campaign.
Thanks for reading "How To Effectively Market and Grow A Service-Based Business", by the Linchpin Team in Chicago, Raleigh, and Wake Forest.