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What is Services Marketing? – Why Services Marketing Matters

business services marketingThis is for our business graduates out there. If you have had a class on marketing, I bet you were taught product marketing. Even those that attended business school, your professors most likely taught product marketing as well. Services marketing was of course discussed but it went ignored. Why is that?

Why Not Services Marketing?

One reason for professors teaching product marketing is because it’s how marketing has always been taught. Those marketing professors from before were taught marketing from their professors. And your professor’s professor taught your professor’s professors professor and so on. The same thing goes with our textbooks, scholarly articles, and ordinary books.

Another reason has to with it’s simplicity. Not that marketing is simple at all! But product marketing is more simple than services marketing. Also because students grasp the concept behind product marketing faster and at higher percentages than services marketing. The answer for why services marketing is more difficult is comprehend revolves around the fundamentals of services marketing. That is, what is services marketing?

What is Services Marketing

Services marketing is the other aspect of marketing. Instead of marketing products, we market services.

A product vs a service are the things businesses sell to make money. Products and services add value to the lives of consumers.

A product is usually a physical aspect a business or organization produces. Samsung sells many different products. Their laptops, cellphones, TVs, refrigerators, are all products.

A service is usually when a personal creates value by preforming actions on products or other people. For example, daycare workers spend all day looking after and taking care of multiple kids while their parents are at work. These workers preform a service to the parents by looking after their children.

Products and Services in Economies

The United States economy is an unindustrialized economy. This is where economies end up after industrialization. Only the most advanced economies in the world are unindustrailized.

Countries become unindustrialized for many reasons.

  1. Before the Industrial Revolution, Americans were unskilled workers. As workers gained more marketable skills, a larger salary was required to be payed in contribution.
  2. The further and further industrialized a country becomes, the more competition a country gains. More competition means less profit to be made, and essentially businesses and products become more expensive.

To beat the rising costs, countries outsource production in other, less expensive countries.

So what we have here is a industrialized (production economy) to a unindustrialized economy (service economy). Note that there is nothing wrong with being am unindustrialized country! This is where we want to be in terms of an economy.

Why Services Marketing

We Americans have become so creative in creating value through services. Your work car can become a taxi with just a smartphone and an app. We have computer applications that make your tax returns much simpler.

And there is a free computer application called Honey that instantly searches and finds the best coupons from all around the web. You don’t have to do any work at all. Whatever website you are on, the Honey plugin is waiting you at checkout with the best coupons available. Galizer highly recommends Honey, and again, it’s free! Download Honey here!
Marketing honey and saving money

But with a 65%-85% chance that you will one day work in a service industry or work a service job, services marketing is highly needed. Consumers should be offered and faced with facilitation if your business is going to survive. Because services are largely dependent on people to preform the service rather than rely on a product, this makes services marketing even more difficult.

Humans have many flaws and disadvantages that products have. It’s much more difficult to promote the unpredictable human rather than a basic, reliable product. But because of this, services marketing makes marketing 50x more involved.

Using service dominant logic we can add additional services on-top of our service to create additional revenue and a widened profit margin. Additionally, there is an increased chance of a public relations (PR) disaster to break out.


If Americans are interested in starting a business, it will most likely be a business reliant to providing services. It’s our job as marketers to market those services to consumers.

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