Products and services Marketing and advertising

Services http://www.vimle.com/ promoting has incurred an explosive level of scholarly study during the past 20 years, on the other hand considering the fact that 1986 there was no discussion relating to the idea that services are unique from solutions, and therefore deserve a particular approach, a set of concepts along with a body of knowledge (Brown, Fisk, & Bitner, 1994). This essay will explain the distinguishing features of products and services advertising and marketing, giving examples where possible. It will begin by defining companies promoting and giving some background know-how on its divergence from product advertising and marketing. It will then examine the four characteristics of companies, and then finish with an explanation of the extra P's found in the companies advertising and marketing mix.

During the past century there have been a large shift in marketing and advertising thought; evolving from a goods-dominated view, in which tangible output and discrete transactions were the focus, to a service-dominant view, in which intangibility, exchange processes, and relationships are central (Vargo & Lusch, 2004). Vargo and Lusch define companies as the application of specialized competences (knowledge and skills) through deeds, processes, and performances for the benefit of another entity or the entity itself. Four idiosyncratic features of products and services will now be given, highlighting why solutions advertising is different from basic product internet marketing.

Arguably the most distinguishing feature about companies is their intangibility. Providers are defined in (Zeithaml, Bitner, & Gremler, 2006) as "deeds, processes, and performances". None of these are physical objects in which a customer can take ownership of, even though during a service physical evidence will be apparent inside the form of things like medicine the doctors prescribes to you, the photo taken of you riding the rollercoaster, or the food on your plate in a restaurant. This invisibility creates a number of issues for marketers. Firstly there is no stock, making it hard to manage supply and demand. Secondly solutions cannot be shown or displayed to customers, making it hard for marketers to advertise the quality of the service. And finally, because products and services don't physically exist, there is difficulty in patenting them, making it easy for other firms to copy your service.

Another notable aspect about products and solutions is that on average they stay the same. If you buy a Ford Focus here in Australia, and then go and buy the same model in America, chances are they will both be exactly the same. Products and services are different in that they are heterogeneous, meaning they differ with each use. For example a wildlife tour will never be the same twice, not only because of the random and unpredictable nature of the animals, but the guide may be in a different mood, the weather will have changed, and there will be different customers each time. These factors make it harder to consistently give quality service, which is important to marketers because customers will have a particular set of expectations in mind, based primarily on what was promoted in the service and previous experiences during the particular industry.

Another distinguishable feature about products and services is the fact that it's both produced and consumed at the same time, as opposed to merchandise where customers do not see how the product is manufactured. A good metaphor for this is being at the theatre. Consumers can be compared to an audience, where they watch actors (employees) perform on stage (physical location like a business store) amongst props (physical objects like chairs, tables, pot plants etc). The actors are 'live' and performing (producing) at the same time as the audience are watching (consuming). This brings us to the concept of interactive marketing and advertising. In a service, operational staff carries out much of the marketing function (Klassen, Russel, & Chrisman, 1998), and marketers are left to the advertising and promotion.

The final distinction that differentiates expert services from goods is their perishability. While some merchandise perish very quickly (like water balloons), services simply cannot be stored, saved, resold or returned at all. Marketers main concern would be the procedure for when things do not go as planned. Customers cannot simply return the service and ask for another one; it is up to the service provider to offer the customer some kind of compensation. If passengers are forced to wait a long time for their flight, employees could provide free coffee and refreshments while they wait, in an attempt to make up for their failing service.

With product advertising the advertising and marketing mix includes the four P's; product, price, place and promotion. Products and services use the same elements plus three more to help account for their unique nature.

Firstly there is people, which comprise of everyone that influences the buyer's perceptions, including the buyer themselves. Customers have an active role while in the production, and so can influence the outcome of their own service or the service of others. For example a large family with screaming children interrupting a young couples romantic dinner at a restaurant. Every person is important to the marketer, no matter how small their role may be. Consider an IT professional who installs computers in people's homes. During that installation the buyer may form an opinion of the service provider as a whole based purely on that IT professionals performance. Sometimes a person is the sole service provider, for example a dentist or lawyer, making their performance and appearance critical to gaining a high perceived quality of service.