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What Are the Unique Challenges of Working in a Service Industry?

The marketing of services requires a different approach than the marketing of goods. An online MBA program can help you learn how to overcome some of the service marketing challenges you and your team are facing. Keep in mind that service marketing uses a strategic approach to differentiate your company’s service from competitors that offer a similar one.

What to expect in a service industry

Trying to sell the intangible, which a customer cannot see, is one of the unique factors that impact the service industry. Your service is invisible and cannot be touched, which makes it difficult to determine its value and quality. And, when it comes to service marketing, you want to create an effective campaign to increase sales and foot traffic. It is a challenge to know how to separate your business from the competition. Additionally, understanding how consumers behave further complicates the service industry-landscape.

Do not be tempted to rely on low prices, alone, because the competition will likely match your prices, potentially causing a price war. As you will learn in your online MBA classes, there are three different types of business strategies to consider: cost leadership, differentiation and focus. These are helpful to keep in mind for service marketing as well. You may not be able to compete on price, but there are other strategies to help your service firm become competitive. Ultimately, building up your clients’ confidence in your service is the goal.

How is marketing in a service industry different than working on goods marketing?

Keep in mind that service marketing is different than product marketing, which focuses on something that customers can touch. Other differences:

  • You cannot return a service.
  • Dissatisfied customers may believe their time has been wasted.
  • If your service did not meet their expectations, they will tell other people.

Learn how to do advanced service marketing

An online MBA program can help prepare you for a career in service marketing by discussing solutions that challenge service managers and helping you create a marketing system for the delivery of quality service. Specifically, you will study the production, consumption and marketing of services in detail, and learn the steps to service marketing success.

Learn more about the UT Tyler online MBA program in Marketing.


Four Factors That Distinguish Services Marketing

Marketing a Service: Do It Effectively

What is Services Marketing?

Porter’s generic strategies

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