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How is service marketing different from marketing products? Services: ● are intangible – the fact that, unlike most products, they cannot be tested by potential customers in advance of purchase certainly makes for a different approach to marketing and selling ● are inextricably bound up with service itself – they are the ‘people businesses’, and marketing and the organisation of delivery of the service, overlap ● interface very directly with customers – much more closely than in some other businesses ● allow change and flexibility to be greater, and sometimes easier and faster, than in other kinds of business (producing a new insurance policy, say, is inherently easier than producing a new jet fighter).

All counties and communities have their own culture and knowledge of this is vital, particularly to those organisations operating in other countries. In 2004, HSBC bank, which operates worldwide, ran a series of amusing advertisements highlighting misunderstandings resulting from different practices in different countries. Technological This is concerned particularly with innovation and covers areas such as the use of raw materials, production processes and finished products. Due to technological advances, the development of plastic materials has reduced the use of glass bottles in the soft drinks industry.

The success of these developments has been recognised with many top awards. Physical environment In retailing, the look and layout of stores can be an important factor for attracting customers. Argos has invested heavily in store improvements to ensure customers are attracted by their shops and walk in. Between 2002 and 2003 Argos refurbished over 100 of its stores. Source: The Times 100 Case Studies. biz. qxp 18 24/6/05 10:43 am Page 18 PART ONE Marketing: an overview Summary ● The most widely accepted definitions of marketing highlight the importance of the needs and wants of the customer as the focus of marketing activities.

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