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By Jill Verstage

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How is service marketing different from marketing products? Services: ● are intangible – the fact that, unlike most products, they cannot be tested by potential customers in advance of purchase certainly makes for a different approach to marketing and selling ● are inextricably bound up with service itself – they are the ‘people businesses’, and marketing and the organisation of delivery of the service, overlap ● interface very directly with customers – much more closely than in some other businesses ● allow change and flexibility to be greater, and sometimes easier and faster, than in other kinds of business (producing a new insurance policy, say, is inherently easier than producing a new jet fighter).

Services: ● are intangible – the fact that, unlike most products, they cannot be tested by potential customers in advance of purchase certainly makes for a different approach to marketing and selling ● are inextricably bound up with service itself – they are the ‘people businesses’, and marketing and the organisation of delivery of the service, overlap ● interface very directly with customers – much more closely than in some other businesses ● allow change and flexibility to be greater, and sometimes easier and faster, than in other kinds of business (producing a new insurance policy, say, is inherently easier than producing a new jet fighter).

In this wider sense they too are operating profitably. ’ (Kotler et al 1999) This definition is similar to the previous one, but highlights the importance of the exchange process. The obvious exchange process is one where an organisation offers a product or service, and the customer gives a sum of money in return. For example, Coca-Cola offer a can of drink and the customer offers payment. The assumption is that both parties value what the other has to offer, and so an exchange takes place. This exchange process is true of a range of other types of organisations; for example: Public services Charities Political parties Pressure groups People pay taxes to fund useful services such as a police force that in turn will protect them and their property.

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