The Principles of Marketing in the Service Sector
It is evident that both sectors are different in terms of the product as well as the basic business model involved. The marketing techniques used by these sectors also differ as their processes will have varying objectives and goals. Though there are a number of changes in the marketing techniques applied by the service sector, the traditional marketing techniques cannot be considered as completely obsolete for the service sector.Traditional marketers focus on the main transaction factors, as the sales involve tangible goods and affect the direct revenue to the company. Marketing is considered in isolation, as a means to take the product to the customer, i.e., it does not affect the production strategies and the high-level management of the company. Traditional marketing, unlike service marketing, is transaction-focused and product-focused. Marketing was considered as a process of decision making involving price, place, promotion and product. These involved segmenting the market and focusing the target markets, developing products based on customer requirements, choosing the appropriate operational logistics, intermediaries and outlets, and also on setting the prices based on the target segment and the price they are willing to pay. Branding was also given great importance (Jobber, 2004).In the service sector, marketing is considered in conjunction with all the other activities, unlike the goods sector. Marketing is given prime importance and the processes are designed with the focus on the end-user. The service sector mainly focuses on providing excellent service and satisfaction to the end customer. For a service business, the process, people and physical evidence are also equally important. However, the essential elements such as the price, promotion and place are also given prime importance in the service sector.