Companies Advertising

Products and services http://www.vimle.com/ advertising has incurred an explosive amount of scholarly investigate from the past twenty years, however due to the fact 1986 there was no discussion relating to the idea that expert services are distinctive from products and solutions, and thus deserve a exclusive approach, a list of ideas and a entire body of knowledge (Brown, Fisk, & Bitner, 1994). This essay will explain the distinguishing features of solutions marketing, giving examples where possible. It will begin by defining expert services marketing and giving some background understanding on its divergence from product marketing. It will then examine the four characteristics of expert services, and then finish with an explanation of the extra P's found during the solutions marketing mix.

In the previous century there have been a large shift in 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 solutions as the application of specialized competences (know-how and skills) through deeds, processes, and performances for the benefit of another entity or the entity itself. Four idiosyncratic features of providers will now be given, highlighting why solutions advertising and marketing is different from basic product marketing.

Arguably the most distinguishing feature about solutions is their intangibility. Solutions 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 within 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 expert services cannot be shown or displayed to customers, making it hard for marketers to advertise the quality of the service. And finally, because 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 merchandise 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 list of expectations in mind, based primarily on what was promoted in the service and previous experiences in the particular industry.

Another distinguishable feature about companies is the fact that it's both produced and consumed at the same time, as opposed to solutions 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 advertising and marketing. In a service, operational staff carries out much of the promoting function (Klassen, Russel, & Chrisman, 1998), and marketers are left to the advertising and promotion.

The final distinction that differentiates solutions from products is their perishability. While some merchandise perish very quickly (like water balloons), providers 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 marketing the promoting mix includes the four P's; product, price, place and promotion. Providers 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 from 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.