Question

Which category of products (goods or services) is more challenging to market? Why? Support your thoughts with examples. Given the changing marketing environment, are marketing plans outdated? Use examples to support your points.

Answer 1

Answer:

Between the choices of goods or services, services are more challenging to the market.

Below are few illustrations to support the above statement:

• Simultaneity: Mostly the services are produced & consumed simultaneously. e.g.: Treatment of an aliment cannot be stored in hospitals and used whenever a patient arrives, it depends on the availability of related medical staff at the point of requirement.
• Perishability: Manufactured products can be inventoried however this is not the case with Services. e.g.: Services of a personal trainer at a fitness center cannot be inventoried.
• Services are more people oriented which involves complex network of clients and value chains.
• Services are more people intensive as it involves service providers without which it cannot be delivered to the target customer.
• Services needs a strong flow of information in terms of marketing and also needs to be very responsive.

Old Marketing in the changing environment is mostly outdated because:

• Marketing must plan in its activities in such a way that it assures the customers of on-time fulfillment without exceptions since in case of services generally inventories cannot be kept for future use.
• Marketing plan should take utmost care of the Pricing is one of the main levers in this process, it being one of the most important constituents for driving sales.
• Marketing should also work with supply chain and customers together for making sure that there is a sense of Delivery reliability in place.
• Unlike goods manufacturing or trading firms, service firms are have to be more decentralization to take care of the services delivery.
• Quality: Service quality needs special care by the marketing as customers generally deal with the lowest level of pyramid of the service firm.

The old marketing practices were more focused on the goods centric, however with changing business environment services require a more proactive and focused approach. e.g.: Antivirus update targeting a specific virus/malware if not properly marketed, will not see it being consumed by the customers. The marketing needs to device right pricing, proper solution to the virus/malware, communicating its proper reliability & making sure its proper delivery reliability.'