What is services marketing? Importance, types and tips

services marketing

Have you ever wondered what services marketing is all about? Most likely, when you think about marketing, you see actual goods. You frequently encounter advertisements for clothing, cars, computers, and gadgets.

However, services marketing is a whole different term, with its primary objective being the promotion of intangible rather than tangible goods.  

In this article we will explore what exactly services marketing entails, why its importance for certain businesses, different types of services marketing, tips for effective strategies.

Whether you run consulting firm, restaurant, law office or financial services, this article will cover you.

What is services marketing?

Services marketing refers to the marketing of services instead of physical products. It focuses on intangible offerings like banking, tourism, education, consultant etc. The key characteristics of services are:

  • Intangibility: Services are inherently intangible; they cannot be seen, tasted, felt, heard, or smelled before they are bought.
  • Variability: This intangibility is coupled with variability, as services can differ each time they are delivered, even with the same parameters. 
  • Inseparability: Services are characterized by inseparability and perishability. Inseparability means services are produced and consumed simultaneously, often requiring the presence of the consumer.
  • Perishability: Perishability refers to the fact that services cannot be stored for later use; they exist only at the moment of their creation.
  • People Involvement: At the heart of service marketing is the people who deliver these services. Their skills, attitudes, and interactions with customers significantly influence the perception of service quality.

This human element means that service marketing strategies must not only focus on promoting the service itself but also on managing and training the people responsible for its delivery.

The importance of services marketing

Since services make up more than 60% of the world economy, service marketing is essential to economic growth. It increases sales and profit while bringing in new clients and keeping hold of current ones. These form the cornerstone of any prosperous business.

services marketing

Without it, your customers won’t know about your company and the value you provide.

1. Builds brand awareness

A company’s identity is established and brand recognition is increased with the help of effective service marketing. You may advertise your business and the kind of experience people can expect on social media.

The more people know about your brand, the more likely they are to become customers.

2. Attracts new customers

Services marketing also attracts new potential customers by highlighting the key benefits of using your business. Whether it’s cost savings. high quality or excellent customers services.

You need to communicate the value to capture people’s interest. So services marketing is vital for growth and success. 

3. Improves customers retention

Service marketing helps to improve customer retention by strengthening relationships and loyalty. Long-term customers are foundation of a thriving company. 

Reminding customers why they choose your business and the value they continue to receive will make them less likely to switch to a competitor

4. Driving revenue growth

Ultimately, effective service marketing leads to higher sales and revenue. By spreading brand awareness, you ‘ll drive more people to purchase your products and services.  

Service marketing is a key driver of growth and profitability, so investing in sound strategy and consistent efforts will pay off significantly in the long run.

Types of services marketing

Services come in all shapes and sizes. Some of the major categories includes:

1. Professional services

These are provided by individuals with specialized expertise, like doctors, lawyers, and accountant. The key is the skill and knowledge of the service provider. Professional services tend to be highly customized to each cllient’s needs.

2. Retail services

These are provided by individuals with specialized expertise, like doctors, lawyers, and accountant. The key is the skill and knowledge of the service provider. Professional services tend to be highly customized to each cllient’s needs.

3. Technology-based services

Technology drive­s a range of services, like­ mobile apps, cloud computing, and streaming media. The­ business must ensure its te­chnology works reliably and without issues for customers.

Cle­ar communication and effective proble­m-solving are crucial to maintain client satisfaction.

4. Hospitality services

People­ visit hotels, restaurants, and use transportation to re­ceive hospitality service­s. These companies want to give­ a good time to customers. The companies work to give guests an e­xcellent expe­rience when visiting the­m and using their services

Re­turning visitors are crucial for these busine­sses to maintain steady profits

5. Financial services

Financial services such as banks, insurance companies, investment firms, and payment services are crucial in providing necessary assistance. It is imperative for these entities to prioritize security, compliance, and transparency to establish credibility and trust among customers.

Key elements of services marketing mix

The marketing world isn’t just for tangible products! Services marketing requires a unique approach to attract and retain customers. Here, the “product” is the experience you deliver.

Services marketing mix plays a pivotal role in shaping a company’s success. This mix is a unique blend of seven key elements, often referred to as the 7 P’s: Product, Price, Place, Promotion, People, Process, and Physical Evidence.

1. Product

Product refers to the service that a company offers. It includes range, quality, and branding. For instance, in the hospitality industry, the product could be the comfort and convenience provided by a hotel.  

2. Price

Price is what consume­rs spend to obtain a service. Airlines, for example, may have a complex pricing strategy considering factors like seat demand, flight timing, and group bookings.

3. Place

How customers re­ach your service is place. It might be­ through a physical store or an online site. Place­ covers the ways customers can acce­ss your offering, whether that’s a location or a digital platform.

4. Promotion

Promotion encompasses the strategies used to communicate the service to the target audience. This could include advertising, public relations, and sales promotions.

5. People

The competence and behavior of people play a critical role in shaping the customer experience. It is imperative to ensure that staff are trained and equipped to interact with customers effectively.

6. Process

Process refers to the procedures involved in delivering the service. For example, the check-in and check-out procedures at a hotel

7. Physical evidence

Providing tangible e­vidence of your service­’s worth is essential in the unse­en realm of intangible offe­rings. You can achieve this by incorporating client          te­stimonials, case studie­s, or the cleanliness of a hotel room. 

These­ tangible eleme­nts serve as powerful tools to highlight the­ value you deliver to your clie­nts.

Highlight the value your services provide to customers. Explain the customers how your services solve their problems or make their lives easier. You can also share them testimonial, case studies to demonstrate your value.

Effective Tips for Successful Service Marketing

For successful service marketing, consider these pivotal strategies and tips:

  1. Foundation and Research:

    • Begin with a thorough understanding of your customers, service strengths, and competitive advantages.
    • Conduct market research to grasp client needs, evaluate operational processes, and measure progress effectively.
  2. Specialization and Online Presence:

    • Target niche markets to establish authority within a specific industry.
    • Enhance online visibility through quality content creation, including newsletters, blogs, videos, and social media engagement.
  3. Engagement and Measurement:

    • Leverage social media, advertising, and referrals for broader service promotion.
    • Regularly evaluate service performance using precise metrics to ensure continuous improvement.


Services marketing is critical for any business to understand and implement effectively. By focusing on intangible experiences your customers receive through the outstanding service delivery.

Keep an eye on those pain points and find ways to not just meet but exceed expectations. With the right mix of service marketing strategies tailored to your customers.

The importance of service marketing lies in its ability to build relationships, influence perceptions, and retain customers. By understanding the different types of service marketing, businesses can create a compelling and differentiated service offering.