Question

Identify what might be different in marketing service instead of a product, and what challenges might come from marketing a facility.

Answer 1

Marketing of services is different from marketing of products in a way that marketing of services is focused upon the differentiation aspects of the services even if it is tangible, but products are tangible and it can be felt even if there are differentiation claims about the product in products marketing. Further, marketing of services relies more on the reputation of the service provider and value that it creates, whereas marketing of products, relies on actual experience that confirms the quality. Here, consumers can get a feel of it by using it. But, it is not possible in case of marketing of services.

There are different challenges that can come from marketing of a facility. The first challenge is the intangibility as facility is treated as a services. Unless consumers avail it, they do not get the actual experience of it. It brings a challenge to the marketing initiatives. The second challenge is the personal aspect attached with the facility provider. With the change in name of the facility provider, the perception of the audience changes with the change in facility provider. If facility is a location, than it has the challenge that it is immovable and marketers cannot go for the test marketing. Further, it has the geographical segmentation that is very small area for targeting. It is another challenge.