The Importance of Service Marketing – 101 Guide

The Importance of Service Marketing

Service marketing is a way of marketing that provides service to customers to increase sales and brand awareness. Service marketing refers to both business-to-business and business-to-customer services. It focuses on advertising ethereal transactions that offer value to customers. Service marketing strategy help in meeting customers’ needs. 

The service of professionally skilled and trained employees helps to create trust among people. People who are unsure about a specific service depend on professional services for better decisions. 

Know more about service marketing.

The Definition of Service Marketing

Service marketing is the marketing of non-physical commodities by a company to sell them. Unlike goods, these commodities are intended to be consumed immediately after manufacturing. As opposed to manufacturing goods, service commodities cannot be resold in the same form or kept for extended periods. These aspects of the service commodities make them unique.  

A product and a service are distinguished by the ability to touch them and the difference between tangibility and intangibility. Where non-service marketing offers tangible products to customers, service marketing offers intangible products. Although, in most cases, these two goods and services are closely connected or interdependent. Cases where companies have to offer the services of an expert to sell their product, comes under that purview. 



Service Marketing Examples

Examples of service marketing include people and services offered by them in their industries. Depending on the industry, we can overlook the examples as such:

Hospitality Industry Services

Hospitality Services make up a fraction of the services industry, including lodging, etc. It also extends the services to hotels, tourist agencies, and restaurants.

Apart from offering food, drinks, and lodging services, the hospitality industry employs waiting staff, room cleaners, and managers. They offer assistance with the help of their expertise and the products hotels or restaurants have to offer. The services of the hotel staff decide the safety and enjoyment of your stay.

Healthcare Industry Services

The Healthcare industry includes the experience and expert services offered by doctors, nurses, and remaining hospital staff. The healthcare industry is an excellent example of service marketing.

Healthcare or medical services help cure, prevent, and rehabilitate patients with disease or health issues. Establishments such as hospitals or clinics are run based on the expertise of healthcare staff.


Services offered by Various Professions

Services offered by various other professions can include lawyers, accountants, teachers, bankers, or gardeners. They use various goods and products to aid their services. Still, the essential part remains the services of their intellect and experience to ease the process and provide optimal value to the products offered by their industry.

Types of Service Marketing

When we talk about service marketing types, we talk about the various strategies involved in the service marketing sector. Since the services offered by the people can not be touched, the strategies employed to convince people to try these services can be tricky and require creative ways to approach the audience or the customers. 

During the campaign for service marketing, marketers need to add a more visual and auditory explanation to include relevant information in the campaigns related to the services. Thus, strategies are tried and tested to accompany those in the campaigns for optimizing the importance of service marketing. On this basis, there are the following types of service marketing strategies:

Through Demonstration

The product demonstration or demo is a technique of marketing used in the industry to give people an actual feel of the product through demonstrating its working and usage to the potential base of the customers. Customers are apprehensive at first to try a new product they might not have heard before and about which they do not have any reviews to cross-check or compare with. 

Live or pre-recorded demonstrations are exemplary ways to gain trust among potential customers by highlighting the product’s essential features, which they might not be able to understand entirely through a printed advertisement. Customers are more likely to believe a product when the demonstration is accompanied by a competent expert who knows the product thoroughly. 

Through Referrals

Someone who has experienced the expertise of people in the industry is more likely to present a glowing review of the services to their friends and family circle. Referral through word-of-mouth publicity is an excellent tool for marketing the product. The satisfaction with the product and the services show in the happy and positive reviews.

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Through Educating the Consumers

The hardest part of promoting a product is to educate people about it when they have not heard or seen a product like it before. Demonstrations are one way to do this. However, marketers require equally competent and experienced experts to carry on the task of educating people about their services and the product. Customers tend to believe and trust a product or its company more when they can see its optimal value demonstrated by skilled service. 


marketing service

Through Social Media Campaigns

Given the number of active users daily visiting and spending a significant amount of their time on the various social media applications, the campaigns run over these apps tend to bring excellent traction of potential buyers to the product. These campaigns, however, require skilled influencers and creative writers to carry the task. More than the product, it is the written and spoken words, along with the demonstration of the products through innovative and creative methods, that attract the potential base of customers. 

See Also: Marketing Goals.

What is the Importance of Service Marketing?

Sometimes the services are independent of the manufacturers. In either case, the services offered by the companies hold much power and importance in the existence and growth of the company.

However, the importance of service marketing has gained momentum only recently. Companies invest heavily in marketing their products to increase their reach through various marketing strategies such as demonstrations, referrals, etc. Authorities in companies tend to believe that the only way to convince people is to demonstrate its features creatively. 

With time, the mindset began to change as the service of skilled and experienced employees instilled trust among people. The service enhances and brings a positive experience to customers.

Marketers notice that when people are unsure about a service or a product, they depend on an experienced service to make better decisions by realizing its optimal value. 

Service marketing goes a long way among customers, which helps them when they launch a new product.




The significance of service marketing gets lost among various other kinds of marketing campaigns and strategies. Many companies put all their efforts into marketing and allocate only a fraction of the total budget for service marketing. Educating the self with the definition, examples, types, and importance of service marketing is a way to create awareness and harness its potential for our benefit.


What is service marketing?

Service marketing refers to the marketing of service commodities by a company. Here the emphasis is on the services provided by the manufacturer rather than their products.

Give an example of service marketing.

An example of service marketing involves selling the expertise of an ophthalmologist for the eye examination to sell and offering prescription medications and spectacles to the patients and customers.

How many types of service marketing exist?

About three types of service marketing exist used as business strategies by marketers. These are the three main types: Business-to-Consumer (B2C), Business-to-Business (B2B), and Post Purchase Service (PPS).

What is the importance of service marketing?

The importance of service marketing lies in the importance of expertise and experience offered by skilled people in the field as they extend their services to promote the products by manufacturers and companies employing them. Thus, marketing focuses on this aspect of the services and how it helps people make an informed decision regarding the optimal value of the goods they want.

What are the characteristics of services?

The essential characteristics of the services are their perishability, intangibility, heterogeneity, inseparability, any change in demand, and the pricing of these services.

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