 Welcome everyone to my presentation on Selling Services.

 Today, I will explain what services are, their characteristics, and how they are
marketed.
 I will also discuss the 7Ps of service marketing and a case study on Argos to
understand real-world applications.

Slide 2: Introduction to Selling Services

 Unlike physical products, services are intangible, meaning they cannot be touched or
seen before purchase.
 However, some services are supported by physical elements, such as contracts,
licenses, and infrastructure.
 The goal of selling services is to satisfy customer needs, but unlike products, the
benefits of services are often experiential and transient.
 For example, in transportation, customers pay for the experience of moving from one
place to another, not the seat on a train itself.
 Key takeaway: Selling services involves creating trust, as customers cannot evaluate
the service beforehand like they would with a product.

Slide 3: Understanding Services

 Services cover a wide range of industries and are used by both consumers and
businesses.
 Examples include:
o Transportation (airlines, taxis, shipping)
o Power supply (electricity, gas, coal)
o Hospitality (hotels, restaurants)
o Communication (phone networks, emails, text messaging services)
o Financial services (banking, insurance, stock brokerage)
o Professional services (accounting, legal advice, marketing consultancy)
 Each service is different, and the selling approach must be tailored to the customer's
needs.
 Key takeaway: Service businesses must focus on understanding customer
preferences and delivering high-quality service experiences.

Slide 4: Growth of the Service Sector in Britain

 Over the years, Britain has transitioned into a service-based economy.

 This shift happened due to several factors:
o Decline in heavy industry: Manufacturing became less competitive globally.
o Increased disposable income: People have more money to spend on services
like dining out and travel.
o More women in the workforce: This created demand for convenience-based
services (e.g., childcare, cleaning, dining out).
o Technology improvements: Growth of internet banking, insurance, and other
digital services.
 Key takeaway: The service sector is now dominant, and businesses must innovate to
remain competitive.

Slide 5: Special Characteristics of Services

 1. Intangibility – Services cannot be physically seen, touched, or stored. Customers
base their decision on trust and past experiences.
2. Inseparability – Production and consumption occur at the same time (e.g., a haircut,
a flight).
3. Variability – Quality can differ based on the provider and situation (e.g., two taxi
rides can provide different experiences based on the driver).
4. Perishability – Services cannot be stored or inventoried (e.g., an unsold hotel room is
lost revenue).
5. No Ownership – Customers pay for the experience or access but do not own the
service (e.g., gym membership, Netflix subscription).

 Key takeaway: These characteristics make selling services challenging, requiring

businesses to focus on trust, consistency, and quality assurance.

Slide 6: The 7Ps of Service Marketing

 The traditional 4Ps (Product, Price, Place, Promotion) are expanded to include three
additional Ps for services:

1. People – Employees directly affect service quality; well-trained staff can create a
great customer experience.
2. Process – The way a service is delivered impacts satisfaction (e.g., smooth airline
check-in processes, restaurant order management).
3. Physical Evidence – Since services are intangible, businesses use physical elements
to reinforce trust (e.g., hotel ambiance, bank interiors).

 Key takeaway: The 7Ps framework helps businesses structure their service
marketing strategies effectively.

Slide 7: Challenges in Selling Services

 Selling services is more abstract than selling tangible products.

 The service provider often plays a dual role – delivering and selling the service at
the same time (e.g., a financial advisor is both a seller and a consultant).
 Trust and reputation are critical, as customers cannot assess the service
beforehand.
 Image-building is essential, particularly in industries like banking and insurance
where security and reliability are key.
 Key takeaway: Service businesses must develop strong branding, train employees
effectively, and ensure consistent service quality.

Case Study – Argos and the 7Ps

 Argos is a great example of a company that uses the 7Ps effectively to improve
service delivery.

1. People – Argos invests heavily in staff training to provide excellent customer service.
2. Process – Innovative services like ‘Text and Take Home’ allow customers to check
product availability via SMS before visiting the store.
 3. Physical Evidence – Argos stores are designed to make the shopping experience easy
and convenient.
4. Technology & Convenience – Introduction of ‘Quick Pay’ self-service kiosks allows
customers to check stock, order, and pay without waiting in long queues.

 Key takeaway: By integrating technology, convenience, and customer service,

Argos remains competitive in the retail sector.

Selling Services

What Are Services?

Services are actions or performances—like transportation, hotel stays, or banking—that you
can buy even though you cannot touch or store them. While physical items (such as contracts,
buildings, or equipment) might support these services, the main offering is intangible.

Examples of Services:

 Transportation: Air, sea, rail, and road travel.

 Utilities: Electricity, gas, or coal supply.
 Hospitality: Hotels and restaurants.
 Communication: Telephone, email, and text messaging.
 Financial Services: Banking, insurance, and stockbroking.
 Professional Services: Accounting, consultancy, architecture, and more.
 Public Services: Local authority services like waste disposal or road repairs.

Why Selling Services Is Different:

 Intangibility: You can’t see or touch a service before you buy it.
 Simultaneous Production and Consumption: Many services are made and used at
the same time (like a train journey).
 Variability: The quality of service can change depending on who delivers it, when,
and where.
 Perishability: Services cannot be stored for later use (for example, an empty hotel
room for one night cannot be “saved” for the future).
 No Ownership: When you buy a service, you don’t own something; you just get
access to it (like paying for a gym membership).

The 7Ps of Service Marketing

Traditional marketing covers the 4Ps: Product, Price, Place, and Promotion. For services,
three extra Ps are added to better capture what matters:

1. People:
Employees delivering the service need to be well-trained, friendly, and
knowledgeable because they represent the company directly to customers.
 2. Process:
How the service is provided is key. A well-organized process—such as a smooth
boarding procedure or efficient check-out—improves customer satisfaction.
3. Physical Evidence:
Even though the service is intangible, physical elements (like store design, equipment,
or even the ambiance) help show customers the quality they can expect.

Selling Services – Challenges and Strategies

Challenges:
Selling services is often tougher than selling physical goods because you can’t “show” the
product in advance. Trust, a good reputation, and a strong brand image become crucial since
customers rely on past experiences or the company’s image to judge what they are buying.

Strategies:

 Focus on Training: Ensure staff are equipped with the skills and attitude to offer
excellent customer service.
 Build a Trustworthy Image: Invest in building a stable and reliable brand
appearance, which is essential for sectors like banking and insurance.
 Use Technology: Modern digital solutions (e.g., online banking or reservation
systems) make it easier to deliver consistent and accessible services.

Case Study: Argos and the Extended Marketing Mix

How Argos Applies These Concepts:

 People:
Argos trains its staff to ensure they provide friendly and knowledgeable service,
giving the company a competitive edge.
 Process:
They introduced innovative methods like:
o Text and Take Home: Customers can send a text to check if a product is
available and reserve it.
o Quick Pay: This system allows customers to check availability, order, and
pay using self-service methods, reducing queues and speeding up the shopping
process.
 Physical Evidence:
Argos invests in well-designed, modern store layouts that attract customers and create
a positive shopping environment.
 Technology:
By integrating digital tools, Argos enhances the customer experience both online and
in-store, streamlining the buying process and reducing waiting times.
Result:
These efforts have not only improved customer satisfaction but also earned Argos recognition
and awards for their innovative approach to selling services.

Speaker Notes:

 What is PR?
o Explain that Public Relations (PR) is much more than just advertising or
selling. It covers every part of an organization and deals with all groups (or
“publics”) that the company interacts with.
 Why is PR important?
o Point out that PR helps create a positive image of the company. It supports
everyday sales by ensuring that the message the company sends out is clear
and consistent.
 Who are the key publics?
o Mention that PR isn’t just for customers. It also includes employees, local
communities, government bodies, financial partners, distributors, and opinion
leaders.
 Key Message:
o Emphasize that a strong PR strategy helps build trust and a good reputation for
the company.

Slide 2: 5.8 Public Relations – Communication and Relationships

Speaker Notes:

 Communication is at the Heart of PR:

o Describe that effective PR relies on two-way communication—listening to the
public as well as sharing important information.
 Building Trust and Understanding:
o Explain that by talking with people, PR helps fix problems and change
negative views into positive ones. This is mainly done through honest
conversations and encouraging word-of-mouth.
 Social Responsibility:
o Add that PR also shows that the company cares about doing the right thing in
the community and with the environment, which builds even more trust.

Slide 3: 5.8 Public Relations – Corporate Identity and What PR Is Not

Speaker Notes:

 Corporate Identity:
o Explain that every organization has a personality or image. This personality
should be consistent and reflect the company’s values and the style of its
leaders. A strong, positive identity makes the company memorable.
  What PR Is Not:
o Not Free Advertising:
 Clarify that although PR can spread information, it isn’t just about free
ads. It takes time, expertise, and resources to create clear, helpful
messages.
o Not Propaganda:
 Make it clear that PR is honest and ethical. Unlike propaganda, which
might twist facts, PR works to win people over with true and fair
information.
o Not Just Publicity:
 Explain that publicity happens when news is shared without control. In
contrast, PR works actively to shape how people see the company,
ensuring that the image remains positive.

Slide 4: 5.9 Corporate Public Relations – Group Image and Long-Term Planning
Speaker Notes:

 Focus on Corporate Image:

o Describe that corporate PR is all about creating a strong, long-lasting image
for the entire company. This is done over time with well-planned efforts.
 Key Goals:
o The aim is for everyone—employees, customers, and the public—to
understand and recognize what the company stands for and how well it
performs.
 Media Tools in Corporate PR:
o Prestige Advertising:
 Talk about how companies use high-quality advertising to show a
progressive and inspiring image (like Richard Branson’s Virgin™).
o House Style:
 Mention that a consistent visual identity (like a special logo) helps
people remember the company.
o Sponsorship:
 Explain that sponsoring events or activities (such as sports or
community projects) allows the company to connect with people while
also boosting its image.

Slide 5: 5.9 Corporate Public Relations – Making PR Work Effectively

Speaker Notes:

 Setting Clear Goals:

o Emphasize that for PR to be successful, the company must set specific and
measurable objectives. This makes it easier to know if the PR work is
effective.
 Integration in the Organization:
o Explain that PR should be a part of the overall strategy—not an afterthought.
It should work closely with marketing, sales, and other areas of the company.
 Right People, Right Skills:
o Highlight the importance of having well-trained PR professionals who
understand both the company and its audience.
 Top Management Support:
o Stress that having direct support from the company’s leaders is crucial. When
the board backs PR efforts, the company can make better decisions and
execute PR plans more effectively.