What is Service Marketing? AI Driven.

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Service marketing is much different from, say, marketing a product

Service marketing is much different from marketing tangible products.

Services are intangible products, and goods are tangible products.

If you’ve come from a product marketing background where you’re selling tangible products, the sales of goods. You may have experienced the challenges that come with selling a single product. Matrix Marketing Group can help you pivot to digital media, where you can create offers and increase your bottom line quickly.

Our team has extensive experience in digital marketing, so we understand what it takes to succeed in today’s competitive marketplace. Website design and management, SEO/SEM optimization, content creation, and promotion are services in marketing that will boost traffic and leads.

Marketing a service company presents several unique challenges for Chief Marketing Officers (CMOs) compared to marketing a company that sells physical products. Why are intangible products harder to sell?

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Major issues that CMOs may encounter with service-based marketing:

  1. Intangibility: Services cannot be seen, touched, or tried before buying. This makes it more challenging to showcase the value of the service, and it can be difficult for customers to perceive the benefits before they experience it.
  2. Inconsistency: Services are typically delivered by people, and people are inconsistent. The quality of service can vary daily, depending on who’s providing it, their mood, their level of expertise, and many other factors. Ensuring a consistent level of service quality is a big challenge.
  3. Inseparability: Services are usually created and consumed at the same time. This means the customer often sees behind-the-scenes processes and interactions, which can affect their overall experience.
  4. Perishability: Services cannot be stored or inventoried. They are perishable because the capacity to perform them may be wasted if unused.
  5. Difficulty Demonstrating Value: Unlike a product that can be displayed or a demo can be given, demonstrating the value of a service can be more abstract and complex. CMOs need to find creative ways to communicate this value to potential customers.
  6. Building and Maintaining Reputation: Word of mouth and reviews can significantly impact a service-based company. Poor customer experiences can quickly damage a company’s reputation, so managing and monitoring customer satisfaction is critical.
  7. Customer Relationship Management: Building and maintaining strong customer relationships is vital for service companies. This means excellent customer service and follow-ups are crucial.
  8. Understanding Customer Needs: For service companies, deeply understanding customer needs, wants, and expectations is vital. As needs change, so too must the service to remain competitive.
  9. Service Innovation: Services can be easily replicated by competitors, so continuous innovation is necessary to stay ahead. This can involve new service offerings, unique delivery methods, or exceptional customer service.
  10. Digital Transformation: The growth of digital and online services is a major challenge and opportunity. This includes website optimization, search engine optimization, social media marketing, and other digital strategies. Implementing and managing these strategies effectively is a key challenge.
  11. Measuring ROI: Measuring the return on investment (ROI) for marketing campaigns can be difficult for service companies. Traditional metrics may not apply, and CMOs may need to develop new methods for assessing the effectiveness of their marketing efforts.

Each of these challenges presents opportunities for CMOs to be innovative and creative in their marketing strategies, to communicate effectively with their target audience, and to deliver a superior customer experience that drives loyalty and repeat business.

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I read a book called ‘Selling the Invisible.’ It helped me understand the differences between product-based and service-based products.

I’ll cover examples of service marketing, some service marketing companies, online service marketing examples, service marketing strategy, and B2B service marketing. A specific example of service marketing can also be applied to B2C companies.

A service-based business differs from a product-based business. Without a physical product and inventory, you must sell ideas, intangibles, and promises. This takes a different strategic approach and practices that many service-based business owners never understand. 

The American Marketing Association defines services marketing as an organizational function and a set of processes for identifying, creating, communicating, and delivering customer value.

And for managing customer relationships in a way that benefits the organization and stakeholders.

What is service commerce?

marketing professional services

The definition of service marketing is the following. Service commerce is much different from product marketing, where the sale of tangible goods is sold. Services, and intangible goods, are broad categories and have different characteristics. Services tend to make the services industry complex.

Service commerce requires you to understand what you’re selling is an intangible product that can’t be physically touched. Your customer experience is spot on at every touch-point. So your marketing efforts require you to wrap around that.

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How do you market a service-based business?

As I mentioned, a service-based business is an intangible service or product. Therefore, every customer touchpoint must be a delightful experience.

So before you start, you’ll have to do your homework. For example, understanding your customer’s persona, the target market dynamics, and a customer journey. For example, how will the customer interface with your service offering and learn more about it, and I’ll purchase it?

Here are some tips on how to market a service-based business:

  1. Identify your target audience. Who are you trying to reach with your marketing? What are their needs and wants? Once you understand your target audience, you can tailor your messaging and marketing activities accordingly.
  2. Develop a strong brand identity. What makes your business unique? What sets you apart from your competitors? Your brand identity should be reflected in your marketing materials, from your website to social media posts.
  3. Create a high-quality website. Your website is often the first point of contact potential customers have with your business, so it’s important to make a good impression. Make sure your website is well-designed, informative, and easy to navigate.
  4. Use content marketing to attract visitors to your website and establish yourself as an expert in your field. Create blog posts, articles, and other content relevant to your target audience and provide value.
  5. Get involved in social media. Social media is a great way to connect with potential customers and promote your business. Share your content, engage with your audience, and run social media ads.
  6. Network with other businesses in your industry. Attend industry events, connect with people on LinkedIn, and collaborate with other businesses on projects. Networking is a great way to get your name out there and generate leads.
  7. Offer referral programs and discounts. Encourage your existing customers to refer their friends and family to your business. You can also offer discounts to new customers or for repeat business.
  8. Track your results and make adjustments as needed. It’s important to track your marketing results to see what’s working and what’s not. This will help you to make adjustments to your marketing strategy as needed.

Marketing a service-based business can be challenging, but it’s important to remember that you’re not alone. Several resources are available to help you, such as online courses, books, and articles. There are also several communities and forums where you can connect with other business owners and get advice.

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Here are some additional tips specific to marketing service-based businesses:

  • Focus on building relationships with potential and existing customers. This is especially important in service-based businesses, where trust is key. Get to know your customers and their needs, and show them how you can help them achieve their goals.
  • Offer free consultations or assessments. This is a great way to give potential customers a taste of your expertise and build trust.
  • Highlight your case studies and testimonials. This is a great way to show potential customers the value of your services and the results you’ve achieved for other clients.
  • Offer packages and bundles. This can make your services more affordable and accessible to potential customers.
  • Run limited-time offers and promotions. This can help you to generate leads and boost sales.

By following these tips, you can market your service-based business effectively and grow your customer base.

What is a great service-based marketing strategy

service marketing strategy

Great service marketing strategies begin with a plan and an assessment of where you are today. You want to look at your lead sources and web traffic. What services are the best?

It was back in the 90s when service firms lagged behind manufacturing firms in their marketing use.

Compared to manufacturing firms, service firms appear to be:

  1. Generally less likely to have marketing mix activities carried out in the marketing department
  2. Less likely to perform analysis in the offering area
  3. More likely to handle their advertising internally rather than go to outside agencies
  4. Less likely to have an overall sales plan
  5. Less likely to develop sales training programs
  6. Less likely to use marketing research firms and marketing consultants
  7. Less likely to spend as much on marketing one expressed in a percentage of gross sales
  8. Rely heavily on word of mouth in local markets

There are several reasons service firms neglected marketing in the past. Many service businesses (flower shops, coffee shops, and salons) do not use modern marketing techniques. 

They are also service businesses (medical offices, law firms, and accounting firms) that formerly believed it was unprofessional to use marketing. Other service businesses (colleges, universities, hospitals) faced so much demand until recently that they saw no need for marketing.

 Brick-and-mortar colleges and universities are experiencing a decline in enrollment. Therefore, leading schools are looking to digital marketing agencies, like Matrix Maktrtieng Group, to inject some growth.

Moreover, service businesses are more difficult to manage using only a traditional marketing approach. Today, you’ve got a deal with local SEO. This includes SEO localization directory reviews and more. 

For a product business, the product is fairly standardized and sits on a shelf, waiting for a customer to reach for it, pay, and leave. Content Marketing Financial Firms

Those were the old days. Today, for online e-commerce businesses, purchasing something and having it on your doorstep the next day is easier than ever. How about the same day?

However, in a service business, there are more elements. For the service-based business, there is external marketing. Which does the company do everyday work to prepare for price distribution and promote the service to customers? 

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Internal marketing describes the work done by the company to train and motivate its internal customers. These include customer contact employees and supporting service personnel, working as a team to provide customer satisfaction. This type of marketing focuses on ensuring employees understand the value of their work and have confidence in the company’s products and services. Internal marketing also includes activities to increase employee morale, such as reward programs and recognition for a well-done job. A successful internal marketing strategy helps ensure that each team member works towards a common goal: providing customers with the best possible service. As a result, customer satisfaction and loyalty increase, leading to more business for the company. SEO for Professional Services Firms

Internal marketing also helps create a sense of community among employees, which can lead to increased commitment and engagement. When employees feel part of something bigger than themselves, it helps motivate them to work hard and do their best. In addition, it can make employees feel more connected to the company and its mission, leading to improved performance.

Finally, internal marketing can help create a positive work environment for everyone involved. When employees are given recognition and rewarded for their efforts, they’re more likely to stay with the company longer. This translates into increased loyalty from customers, as well as improved customer service. By investing in internal marketing, companies can create a positive and long-lasting relationship with their employees, leading to greater success overall.

Everyone must practice a customer-centric orientation, or a high and consistent level of service will not be forthcoming. The most important contribution the marketing department can make is to be exceptionally clever and get everyone else in the organization to practice marketing.

Interactive marketing describes the employee’s skill in handling customer contact. These can be on the front end. For example, a sales development representative or handling some back-end services post-purchase. 

This is especially true for professional services like digital marketing agencies and accounting firms. The client judges service quality not only by its technical quality but also by its functional quality

Professionals cannot assume they will satisfy the person simply because they provide good technical service. Therefore, the professional has to master the skills of interactive marketing as well.

At Matrix Marketing Group, we judge our quality in the eyes of the customer. That’s been our quality mission statement since 2002.

How do service-based firms manage differentiation? 

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Modern service marketers frequently complain about the difficulty of differentiating their services from those of their competitors. When the government went through deregulation, several major service industries—communications, transportation, energy, and banking—participated in intense price competition

Today, we see the FANG stocks all the targets on their back with potential deregulation on the horizon.

The solution to the price competition is to develop a differentiated offer, delivery, and image. The offer can include innovative features to distinguish it from competitor offers. However, the customer expects it to be called the primary service package, and secondary service features can be added.

 Matrix Marketing Group has differentiated Itself by offering marketing strategies, marketing talent, and marketing technologies to startups and small- and mid-sized businesses.

Most service innovations are easily copied. Few of them are preempted in the long run. The service companies that regularly research and introduce service innovations will gain temporary advantages over their competitors. They’re gaining an innovative reputation for customers who want to go with the best.

 The service company can differentiate its service delivery in three ways:

  1. through people,
  2. through physical environment
  3. through the process

The service company can distinguish itself by having more able and reliable customer contact people than its competitors. A service company can develop an ideal physical environment for delivering the service product. Finally, a service company can design a superior delivery process.

Service-based companies can also work on differentiating their image through symbols and branding.

One of the primary ways we have differentiated Matrix Marketing Group is by marrying marketing science with intelligent design. You can create a creative design with specific business outcomes and manage and adapt the program’s success with intelligent marketing data.

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Managing service quality 

Matrix Marketing Group allows our people to be themselves and express their personalities. This can be seen through our marketing materials.

Organizations that share these human characteristics maintain a robust, active online presence.  With Google’s Gen AI and bots, customer service can improve, equipped to understand customer sentiment and respond accordingly. Matrix Marketing Group can help you leverage these options for your organization’s success.

We offer various services, including website design, content creation, SEO optimization, social media management, advertising strategy, and more. From developing an effective content marketing plan to optimizing a mobile-friendly website that converts leads into customers – we can help you achieve your goals. Contact us today, and let’s get started.

You can add fun facts about your people and their journey and expertise. The marketing team should ensure employees are active on relevant social media platforms like Twitter, Facebook, and LinkedIn.

Service-based Marketing Case Studies

1. Dunkin’ Donuts

Dunkin’ Donuts is a small business that has succeeded with service sales plans. They offer a wide variety of products and services and have been able to create a strong brand identity. Additionally, they constantly innovate and expand their menu, which keeps customers returning.

2. The UPS Store

The UPS Store is another small business that has succeeded with service-based marketing. They offer a wide range of shipping and packing services and other business services like copying and printing. This allows them to cater to a wide range of customers, which has helped them grow their business.

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3. Zappos

Zappos is a small business that has succeeded with digital and online service sales strategies. Their focus on customer service has allowed them to build a loyal customer base. Many customers are so happy with the service they receive that they are willing to pay more for shoes from Zappos than other retailers.

4. The Ritz-Carlton Hotel Company

The Ritz-Carlton Hotel Company is a small business with incredible digital service-based success. They focus on providing luxury accommodations and world-class customer service. This focus on service has allowed them to become one of the most prestigious hotel chains in the world.

5. Four Seasons Hotels and Resorts

Four Seasons Hotels and Resorts is another small business with incredible service-based marketing success. They focus on providing luxury accommodations and world-class customer service.

This focus on service has allowed them to become one of the most prestigious hotel chains in the world. Additionally, they have built a strong brand identity by offering unique experiences and amenities.

These are great examples of service-based marketing companies using marketing strategies to grow their businesses.

Wrap up about what service-based is.

Marketing goods and services are very different in each product category. Just remember that marketing a service at every customer touchpoint is important.

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Every touchpoint with the customer must be an experience that the customer expected and move them to the next stage

Service industries have typically lagged behind manufacturing firms in adopting and using marketing concepts, but this is now changing.

Services marketing strategy calls not only for external marketing but also for internal marketing with great customer service. You need to motivate the employees, and their interactive marketing to create skills in the service provider.

Intangible services cannot be seen, touched, or heard. Examples of intangible services include consultancy and advice, financial management, web design and development, legal representation, information technology support, advertising, and marketing campaigns. Intangible services offer value to the customer but cannot be physically experienced.

Matrix Marketing Group is a full-service marketing agency that can help manage performance-based marketing for professional service firms and more. We specialize in creating unique marketing strategies to target potential customers, drive engagement, and generate leads.

Our experienced professionals are well-versed in developing tailored solutions based on each client’s needs.

We focus on helping our clients reach their desired business growth objectives through creative content and campaigns, comprehensive market research, and data-driven insights.

Matrix Marketing Group, a full-service marketing agency, has the resources and expertise to develop effective marketing strategies to ensure your business is well-positioned for success.

We also provide ongoing support so you can stay up-to-date on industry trends and take advantage of emerging opportunities. Contact us today to learn how we can help you achieve your digital marketing goals.

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General FAQs

1. What is service marketing?

service marketing agency

Service marketing creates customer value by designing, delivering, and managing services. It involves understanding customer needs and desires and creating a unique offering that meets those needs.

2. What are the key concepts of marketing?

service marketing agency

The key concepts of service-based marketing include customer focus, relationship marketing, service quality, and innovation.

3. What are the benefits of marketing?

service based marketing

Service-based benefits include greater customer satisfaction, customer loyalty, and increased profits.

What is an intangible product?

ai service digital marketing agency

Intangible products are goods sold by a company that is not physical, like Matrix Marketing Group services. The most popular are usually products that exist digitally, such as licenses and software like HubSpot CRM.

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