Critics the world over have had their say on the differences inherent in services marketing as opposed to traditional product marketing. Whilst some argue that they should be approached in a similar manner, the majority acknowledge the differences required for successful execution in the services market. However, I believe this is made much more difficult when the lines between product and service become blurred. Should a company’s product when it is presented primarily as a service, then be treated as a separate entity from the traditional definition of a product or a service?

Maildistiller as an Example

Maildistiller, for instance offers a service. However there are two services at work in the company’s one offering. On the one hand, the ‘service product’, is the actual physical benefit offered by the company, i.e. protecting mailboxes from spam and viruses and safeguarding web browsing. Although this is in essence the company’s ‘product’, due to its nature as a cloud-based service and the fact that the company is web-based, the output is therefore more aligned with a service and can’t really be labelled as a product. A company that offered anti-virus protection through software packages, is a much more obvious product-based supplier and hence would follow the typical marketing approach. Maildistiller, as well as offering their ‘product’ in a service form, have to offer the additional benefits bundled into traditional ‘service’ offerings. This is referred to as the additional value and intangible benefits that a company attaches to its initial product, e.g. 24hr support, advice and tips, loyalty and approachability etc. Is this then describable as a service accompanying the ‘service’? Is their room for the existence of a third category, which has evolved from the increase in web-based IT companies offering ‘cloud’ services, the ‘service as product’, which expels characteristics of both the traditional product and the generic service benefits? If so, does that mean a new marketing strategy also needs to be born?

Services

In short, a service can be described in 5 words:

(1) Lack of ownership
(2) Intangibility
(3) Inseparability
(4) Perishability
(5) Heterogeneity.

In quantitative terms the marketing and services are simply separated by 3P’s!  People, Process and Physical evidence, factors associated with the services marketing mix being added to the traditional 4P’s of the marketing mix; product, price, promotion and place!

So then if a company’s offering is more than just a product but has more tangibility than your typical product, how do you market this???

Marketing the quasi service-product

The newness of the cloud phenomena means the associated marketing process is more trial and error than concrete theory. The best advice I can offer is to go with what best represents your company and the image you want your customers to perceive. The actual tools you use to do so are more important in creating the right perceptions than guaranteeing sales!

Believe in your product/service thoroughly and others will follow… choose what’s right for your company, employees and customers rather than worrying what you should do!! For instance social media though it’s something I firmly believe in as an invaluable marketing too, if you haven’t the staff to control, monitor and remain proactive on these sites they are ultimately useless. In some cases they may even be damaging, as an unattended Facebook page, may create the negative perception that the company simply doesn’t really care or they’re unorganised or overstretched. It gives frustrated customers or competitors a platform to ridicule your company and if you appear unconcerned by leaving these sites unattended for long periods of time, this reflects badly on the company’s overall image.

Likewise, if your company is struggling to put aside the finance in the monthly budget for the outbound marketing required to keep up with your competitors, scrap it! Yes… I said it, cut any anchors loose! The fact is that inbound marketing is a much cheaper alternative and if executed correctly can be much more effective! Make it easy for people to find you, rather than spread yourself and your message thin trying to cover ground on the web with the best advertising you can afford on a tight budget (these don’t look great). Instead concentrate on making yourself known and accessible, create a strong brand that people will be drawn to.

In my opinion if you can’t keep up with the big guns don’t try to! Find your niche and dominate that market. SMBs often make the mistake of trying to emulate the market leaders from the outset, and whilst it is good to see how they do things, its best to understand your position in the market and what your business is offering that makes you different! That’s your message! If you do something well and within your means, dominating a particular niche, your brand and service will grow without the same conscious action. When this happens go after the big dogs if that’s what you want!

Cloud-based services, i.e. the service-product, are in reality no different. The general rules apply in relation to both product and service marketing; it’s simply a matter of deciding which methods will work best for you. The point is product and service goes hand in hand. We live in a time where even the most basic of products are accompanied by a service, or at least the product’s brand is wrapped up in the service attributes presented by the company. In the current economic climate and the rifeness of competition in all sectors, a sole ‘product’ no longer cuts it, and the intangible benefits that an accompanying ‘service’ represents, are expected! If the service element doesn’t exist this is when problems arise!

Price thus is often the greatest hurdle for many companies. Do you slash your price to ward of competition and attract more customers, or do you stand your ground as you know you are offering the best value? In my opinion, if you are certain that your price is as competitive as you can offer given the quality of your product and any add-ons, then it’s your marketing that’s the problem. If your customers think you’re too expensive, the quality and additional benefits inherent with your service, as opposed to that of your competitors, has simply not been communicated to your customers properly! They aren’t being made aware of what exactly your price is inclusive of and what the cheap alternatives are missing.

So don’t be afraid to shout… sing your praises, because you can be sure if you don’t there won’t be a queue of strangers waiting to!