Paradigms in Services Marketing

-

New Service Marketing Paradigms in Detail

  • From Making Contacts to Building Assets
    • Old Paradigm: The traditional approach to marketing was about managing reach and frequency. Marketers aimed to contact as many people as possible, ensuring that they did not overexpose some audiences while neglecting others. This was particularly challenging with TV advertising, but manageable.
    • Challenges: Media fragmentation led to smaller, more segmented audiences, increasing the cost of reaching a "mass" audience. Digital media introduced banner ads similar to 30-second TV spots, but efficiency measures devalued the impact of individual ads.
    • New Paradigm: The focus has shifted to creating valuable owned media assets, such as content marketing and mobile apps. These assets are designed to engage consumers and build lasting relationships rather than just capturing eyeballs.
    • Example: Nike+iPod collaboration is an early example of this shift, offering consumers a unique, immersive experience that goes beyond traditional advertising.
  • From Campaigns to Platforms
    • Old Paradigm: Marketing used to rely heavily on campaigns—a series of ads run until their effectiveness decayed. Once a campaign ended, a new one would begin, often without much connection to previous efforts.
    • New Paradigm: Now, marketers need to build platforms that develop and evolve over time. These platforms can include websites, YouTube channels, social media followings, and e-commerce integrations that persist beyond any single campaign.
    • Ads as Platforms: Modern ads are increasingly personalized, adapting to consumer interactions and past behaviors. This approach requires continuous storytelling and engagement, akin to a brand being in "perpetual beta," always evolving and improving.
    • Example: Instead of just running a series of TV ads, a brand might develop a YouTube channel with regularly updated content that engages viewers over the long term.
  • From Awareness to Activation
    • Old Paradigm: Advertising primarily aimed to increase brand awareness, keeping the brand top of mind to boost purchase likelihood. The goal was to familiarize consumers with the brand so they would choose it when making a purchase.
    • New Paradigm: Simply being aware of a brand is no longer enough. Engagement and advocacy, driven by owned and earned media, are crucial. Brands need to activate their audiences, encouraging interaction and participation.
    • Role of Paid Media: Paid media now serves to activate engagement with owned assets. It is a starting point for deeper interactions rather than an end goal. Effective promotions must reach a significant number of consumers to have a business impact.
    • Example: An ad might direct viewers to a website where they can engage more deeply with the brand through interactive content or community forums.
  • From Transactions to Experiences
    • Old Paradigm: Marketing focused on one-time transactions where the brand promised certain product features and attributes. If the product met expectations, customer satisfaction was high.
    • New Paradigm: Consumers now expect brands to be partners, helping them get the most out of their purchases. This means providing ongoing support, advice, and experiences that enhance the product’s value.
    • Example: L’Oreal Paris created the Destination Beauty channel on YouTube to offer consumers advice on using their products. Similarly, the Apple Store provides a high-touch retail experience that enhances the overall brand perception.
    • Retail Evolution: Traditional retailers like Macy’s and Neiman Marcus are adapting by creating engaging in-store experiences and integrating digital touchpoints to keep up with consumer expectations.

Detailed Examples

  • Nike + iPod: This collaboration provided a unique experience by integrating Nike’s athletic products with Apple’s technology. It allowed users to track their workouts, set goals, and receive feedback, creating a long-term engagement tool rather than a one-off marketing effort.
  • YouTube Channels and Social Media: Brands now invest in YouTube channels where they can post regular content, interact with viewers, and build a community. This ongoing engagement helps maintain a connection with the audience beyond traditional advertising periods.
  • Interactive Ads: Modern ads on platforms like Facebook and Google can change based on the user’s past behavior. For instance, if a user has shown interest in certain products, the ads they see will reflect that interest, making them more relevant and engaging.
  • Apple Store Experience: Apple Stores are designed to be more than just places to buy products. They offer workshops, personal setup services, and an overall aesthetic that reinforces the brand’s premium image. This creates a memorable and valuable experience for customers.

Conclusion

The shift in service marketing paradigms highlights the importance of building long-term relationships with consumers through valuable, engaging experiences. By moving away from traditional, transactional approaches, brands can foster deeper connections, drive ongoing engagement, and ultimately build stronger loyalty. This evolution reflects the changing expectations of consumers in a digital and connected world.