service industries

service industries

In service industries, the product or service is the center for attraction and meeting the customer needs. Ariffin, Nameghi, and Khakizadeh (2013) note that the corporate image or identity is the fundamental concept that the consumer keeps in mind. In the airline industry, the image is vital in demonstrating how the company maintains the customer’s preferences. These aspects are exemplified in the organizational vision and mission statements. In developing the marketing strategy, the product aspect of the 7Ps marketing mix is essential in demonstrating how the company strives to meet the customer’s needs. In the banking industry, for instance, the product is intangible and include saving account and how employees engage with customers. Other elements include loans and investment advice. The bank, as an image, is based on how the customer is satisfied with the services. In a bank setting, the customer uses the services to define the firm and appeal to the customers.

Brand in marketing is vital in promoting the company’s competitive advantage. In contemporary organizations, the brand is the foundation of the company’s competitiveness. According to Niculescu, Dumitriu, Purdescu, and Popescu (2019), brand entails the liabilities and assets that are topped or subtracted from the service or product. Brand value, on the other hand, is the intangible asset in the company’s accounting setting and is analyzed according to the development period. Drawing from the consumer behavior model, the marketer is tasked with understanding the customer preferences and factor the information in the continuous development of the brand. In strong brands that have been developed with time and factoring the consumer preferences, they are the foundation of making the customer feed better regarding the organization and themselves. Notably, brand value results from holistic elements interacting dynamically, such as performance, communication, prominence, and emotional cost. Also, the importance of the brand is defined by how effective it engages with the consumer.

Marketing a brand extension is essential in increasing market share. In the 21st country, several brands have emerged and awareness regarding the different products considered necessary in an organizational competitive advantage. As espoused by Ogbuji, Kalu, and Oluchukwu Samson (2014), marketing resources should be treasured to ensure the firm’s success and acceptability. In most global conglomerates, their success is owed to their brands. Liu and Chou (2016), the brand is the organization’s primary asset, similar to equipment, capital, and employees. However, organizations should overcome the pitfalls associated with brand development. A firm may explore four brand development strategies, including the introduction of a new brand, multi-brand, brand extensions, and line extensions. According to Ogbuji et al. (2014), brand extension ensures the new brand draws support for the current brand that has an auspicious name. In Apple’s case, for instance, the introduction of the iPhone series is based on the first phone. The brand extension is centered on the customer’s feedback and organizational research and development.

There is a significant relationship between brand awareness and marketing approach. In contemporary organizations, the internet is used as the central marketing platform. Organizations should, therefore, strive to ensure their brands are well understood to the target audience. Under the promotion aspect of the 7Ps marketing mix, Mohammad (2015) note that organizations should profoundly communicate about the services or products. The main approaches to achieving this include public relations, branding, social media, sales management, and exhibitions. The promotion should attain attention, appeal to the customer, and send a consistent message regarding the product or service. The way a company presents its brand to the target audience has a significant relationship with the success of the product. In the banking industry, for instance, the communication should not only focus on the services provided by the organizations but the process of achieving the objectives.

The identity of an organization ensures a large customer share and introduction of new customers. In the 7Ps marketing mix, physical evidence is another crucial aspect of organizational success. For new customers, the selection of a new brand is a risk, and these individuals require assurance for their uncertainties. Under the physical evidence dimension, customers are likely to purchase a product or use services according to what they view. In a study by Loo and Leung (2018) regarding service failures in luxury hotels in Taiwan, it was revealed that customers examine the testimonies of an organization online, which informs their decision. From the 411 comments extracted from review websites, most luxury hotels in Taiwan had product-related issues, which affected the number of new customers. Organizations should, therefore, focus on establishing physical evidence that places the consumer’s preferences as a priority. Also, companies, especially those offering services should focus on getting positive customer reviews. New customers may not experience the services before purchase. Such individuals rely on customers’ reviews, which influence the individual’s intention to purchase a product.

The use of social media marketing has a significant relationship with customer response and brand equity. In a survey by Seo and Park (2018), among 302 passengers, the data collected through social media revealed that trendiness is an essential social media marketing element. Notably, airlines social media marketing approach affects the brand image and awareness. The brand image, on the other hand, affects commitment. Under the promotion element of the 7Ps marketing mix, communication allows for more dialogue with customers both online and in person. Using social media to communicate about the brand in the airline industry, organizations should ensure awareness about the product’s or services’ features and the benefits that customers yield from the identity. Every organization should focus on the commercial value of the brand rather than the services or products themselves. According to Hazee, Van Vaerenbergh, and Armirotto (2017), brand equity or market value of the product is derived from the customer’s perception regarding the brand name. Notably, new customers depend on other customers’ views to decide on using the product or service.

Successful global brands in modern organizations focus on demonstrating their uniqueness and meeting diverse consumer needs. Among the successful brands include Google, Microsoft, Apple, and Coca-Cola. Notably, the brand represents the organization. Coca-Cola, as a brand, has focused on ensuring the uniqueness of the soft drink, which no other organization can imitate. Besides, these organizations have patented their brands and have ensured they suffice different customers’ needs. Toyota for instance markets its products globally, including the developing and developed nations. Also, these brands have provided they meet the needs of customers across various social-economic statuses. Simao and Lisboa (2017) examined the green brand and marketing of Toyota. The case study revealed that Toyota as a brand has focused on sustainability efforts. Green marketing is aimed at aligning with the environmental goals. The strategy has allowed Toyota to be recognized as a global brand by meeting sustainability objectives and customer needs.

Successful brands consider the social dimension of the servicescape for competitive advantage. According to Bitner (1992), the social element of servicescape involves the relationship between various stakeholders in the organization, such as employees and customers. In the 21st century, the majority of organizations use environments such as websites for their operations. According to Lopez Garcia, Lizcano, Ramos, and Matos (2019), the use of digital marketing actions by these organizations should consider the social aspect of the servicescape. Firms should demonstrate their image through digital marketing. Under the place aspect of the 7Ps marketing mix, it entails the location or area that the customer purchases the product. Presently, e-commerce is widely used by organizations, including Alibaba. These corporations are global brands that operate exclusively through the internet. Social servicescape in contemporary organizations has been replaced by virtual platforms that allow interaction in the global setting. Compared to traditional retail environments, the current organizational approaches have minimized the physical interaction between the customer and the firm. As a brand, e-commerce organizations must ensure simplicity, safety in the consumer’s information, and convenience. All these elements should be identified in the marketing mix.

In summary, the marketing strategy remains a critical tool for organizations. The 7Ps marketing mix considers seven elements in the marketing approach, including place, price, product, promotion, people, physical evidence, and process. In the marketing efforts, establishing a strong brand is vital in promoting the organizational competitive advantage, attracting new customers, and retaining the loyal ones. A strong brand is characterized by both features and a demonstration of how it meets customer needs. In the 21st century, the majority of organizations use the internet and virtual environments to conduct their business. Companies should, therefore, focus on establishing a unique brand to promote their competitiveness. When companies are developing their brands, they should consider the customer’s needs. Drawing from Maslow’s hierarchy of needs, the brand should aim at meeting the psychological, social, and self-actualization aspects. Major brands such as Apple, Microsoft, and Amazon continue to thrive based on their marketing strategy, which ensures confidence among the customers. Also, competitive organizations should consider current issues in their marketing strategies. For instance, Toyota, as a global brand, continues to thrive through green and brand marketing.