James Hortons Secrets of Sservice Marketing - Essay Example

Service marketing journal report Introduction Service marketing involves marketing of services to those who need them and it refers to both businesses to consumer as well as business to business services. This involves marketing of services such as telecommunication services, hospitality services, financial services, professional services such as accounting and health care services. Performance of a service is often time based and it brings the desired results to the recipients. Customers usually expect value to access to the services in exchange for money although they do not take possession of the physical elements involved in provision of the services. There are seven elements of services marketing which include; product- which is the creation of a service concept that delivers value to the customer and satisfy their needs in a better manner than the competing alternatives. Place involves both electronic and physical channels through which service is delivered such as the ATMs. Promotion involves creating awareness on the services benefits to the customer. The process of service delivery is also an important element of service marketing. Physical environment involves the appearance of the avenue in which the service is offered and has a great impact on the level of satisfaction the customer derives from the service provided. The final element is people which imply the human capital involved in service delivery (Fredrick, 2003). The interaction of the above elements in service marketing determines whether service marketing is successful or not. Successful service marketing also calls for commitment and consistency. This paper aims at analyzing a service marketing journal article by James Horton in a bid to come up with recommendations for successful service marketing in professional firms. Analysis of James Horton’s secrets of service marketing In his article, James argues that service marketing in professional firms is an uphill task since service firms marketing departments lack strategy with their public relation functions being disorganized and always planned depending on the interest of the individual owners of such firms. Although many people believe that the secret of service firm marketing is a mystery, James believes otherwise. According to him, it takes commitment and consistency for successive service marketing although these are virtues hard to achieve. To him, this is the reason why many service firms fail to succeed. James identifies some of the barriers to committing to marketing and public relations programs of service marketing firms. Many service firms are partnerships which do not favor marketing and public relations. This is because the firms have many leaders each with his own opinion and no one willing to compromise. As a result, the workers get confused as they labor at cross purposes. The result of this is loss of direction as well as consistency of application and persistence of marketing programs within the firm. Furthermore, partners in service firms assume the role of marketers and public relations although they themselves are not professionals in this field, a reason which greatly hinders success of services marketing. Most service firms deal with many businesses and hence lack cohesion among them especially in consulting where there is normally no relationship between disciplines and no common set of customers. These firms are therefore not able to relate their marketing messages to one single business they offer to clients. Clients also become confused as to what the service firms are offering in the market. As it is widely known, service marketing is relationship driven and it depends on whether a business relationship has been established between the firm and the client. There is therefore no need of advertising or engaging in PR as long as the firm is widely known by customers and prospective customers. Many firms have always avoided active marketing but successfully done business underground (Kostecki, 2004). In many instances, marketing has been reserved for firms without public access but which need to sell services. However, even in such a case, marketing is supposed to supplement relationship selling but not supplant it. Marketing programs are supposed to raise awareness of what a firm does while sales come from partners (owners) working with the clients or prospective clients. Sales in a service marketing firm originate from response to requests for proposals. Unfortunately this takes a great deal of time which could be used in raising awareness of the firm to many prospective buyers. Lack of consistency also acts to hinder service marketing firms from committing to marketing and public relations programs. When most firms are busy, they stop marketing until when business goes down again. Unfortunately, service marketing is more effective when continuous rather than when disjointed. This is because when customers can identify a firm with a specific message, then relationship marketing will be easier for it. In service marketing, time is money as one sells his personal time to clients. Time used in marketing is taken from time that would have been used in producing revenue. Service marketing firms therefore find it difficult in deciding whether to spend time generating revenue or marketing their services. Unfortunately most service firms chose revenue to marketing. James identifies consistency and commitment as the secret to effective service marketing. The presence of a firm over a long time period will establish it as an expert more than mere salesmanship. It is only through commitment as well as consistent service, marketing and counsel that service marketing firms will be able to establish themselves in the long run. However, service firms are ever shortsighted about consistency. They prefer a few big accounts to many small accounts. The problem is that big accounts may take a lot of the firm’s effort and time to get, establish big rate cuts and go away before the firm recovers its expenses of getting the business. Establishing consistency in a turbulent environment involves the firm accepting the environment the way it is. And get adapted to it. The firms should develop programs that fit a service professional’s work schedule and culture so as to gain professional commitment. As such, one should analyze his business and behavior in a bid to find what professionals can implement regularly without wasting many billable hours. Hence the programs to be implemented should have a lot of simplicity (Mike, 2009). An important way of achieving consistency is rationing the application of expensive talent. A firm could start by developing an event or study which defines the firm and its practice so as to gain recognition that could be solidified in the long run in little events, interviews and articles. However, developing such events would call for researching on what the competitors are doing. This can be done through the internet where useful ideas to advance the industry can be got. It is worth noting that it is better to fund a single big event than many small ones since each event wastes resources in its planning as well as execution. However, in planning an event, it is important to seek the input of clients in planning the vents as the events are not meant for the professionals who in most cases pick the events they want to attend. It is worth noting that events are opportunities for firms to deepen relations with clients and prospects rather than mere giveaways and perquisites. Clients and prospects should also not attend an event unaccompanied by a professional who should seize the moment to sell the business or deepen the existing business. James further argues that a challenge in learning about clients is making use of marketing data to maintain consistent communications. Professionals usually have a lot of information regarding clients. Unfortunately the details never reach a central source where it could be put to use. As such, firms should establish customer relationship management systems which would be better than misdirected communications or even mailings which serve to waste marketing budgets (Berry, 2006). To achieve consistency, it is also important to take material distribution duties from professionals as they know very little on how to it. It should be the work of professionals to prepare mailings. Web sites could also be used in a bid to maintain consistency in service marketing. They should be used to display information on what the firm offers, responding to clients queries as well as showing the achievements of firms as far as responding to clients requirements is concerned. Firms should also maintain relationship with professionals who leave the firm for corporate positions. This is because the professionals are likely to bring in business from the corporate world as well as from new clients. Finally, firms should employ advertising and public relations in a bid to establish consistent service marketing. This will raise the awareness of the firm’s name especially if the firm has a compelling differentiation. Conclusion Success in service marketing is mo longer mysteries contrally to what many believe. It calls for consistency and commitment and not just creativity. Public relations practitioners as well as marketers should find processes which will ensure commitment as well as consistency. While this is difficult, it is achievable and requires firmness and flexibility in adopting processes without compromising messages. By being committed and consistent in their service marketing efforts, firms will be successful in their effort to ensure that they remain relevant in the market. References: Fredrick, G. (2003). Professional services marketing: strategy and tactics, Melbourne: Longman Kostecki, M. (2004). Marketing strategies for services. London: Routledge. Mike, S. (2009). Professional services marketing. Sydney: MacMillan. Berry, A. (2006). Marketing services: competing through quality. Oxford: Oxford university press. Read More