Service Marketing Essay Example

Published: 2018-07-16
Service Marketing Essay Example
Type of paper:  Essay
Categories:  Marketing Sales
Pages: 6
Wordcount: 1437 words
12 min read

Service Marketing for The Real Estate Agency Business

Services have unique characteristics that must be taken into consideration when selling. The primary characteristics include the fact that services are unlike products in that they are intangible, inseparable from the providers, they are also variable, perishable and cannot be owned. The real estate agency is one of the major service categories that have unique sales processes that can be differentiated to the company's competitive advantage and for the benefit of the customer. Selling services is not like selling products or goods in that one cannot use the same marketing mix (4p) of marketing to sell services. For the real estate agency, services marketing require the use of 7Ps of marketing (Lusch, & Vargo, 2015)

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Describe these characteristics and consider which of them are most relevant for an Estate Agency business.

Intangibility- the services offered by the real estate agencies cannot be touched, but the processes can be improved. To market the real estate services, it is important to note that the services can only be assessed after the service id delivered and not before service delivery


The real estate agent's service cannot be separated from the provider, as a real estate agent, they have to provide the service, but the problem is that the consumers are also the co-providers who must influence the nature or quality of service delivered. The agency cannot package the service and leave the consumers to administer themselves (Skalik, 2017). They have to control, modify or define the service process and in most cases, collaborate with the customers to establish a befitting service. However, the company can outsource their n services to other providers primarily marketing agencies or freelance marketers.


Even though the property being sold can be one, the quality of service provided by the real estate agency can vary from a company to the other. For example, one company can be very responsive while the other is non-responsive. The service can be adapted by offering more customized service, reaching out to the customers, and adapting the marketing strategy to the market characteristics (Lusch, & Vargo, 2015)


The fact that the buyers are only buying the process means that neither the buyer nor the seller owns the process. The seller can differentiate the services processes to gain a competitive advantage. However, the real estate service is not perishable as the resources are not used and the processes and systems are not assigned for delivery before the company has completely scanned the market to allocate resources for marketing. Therefore, the services of real estate agencies are not perishable.

Pure Service Companies

Explain how you would market an agency in addressing these characteristics and best present the agency to its target audience.

To market an agency, it is important to take into consideration these unique features of the service. A real estate company is a pure service. For example, an agency is a type of pure services, and the only product it sells is the services. The most important thing to note is that marketing the agency needs dominant service logic in the application. For example, the company has to ensure that the customers are put at the center of the sales and marketing activities

Customer-Focused Orientation

Service-centric organizations such as the agency can g increase their market share, acquire more customers, and retain their customer base by being a customer-focused organization. All operational activities should be driven towards customer satisfaction. From the sales, and marketing to service design, customer satisfaction should be at the core. The company should aim at sharing their customer's passion and working with the customers to help them create and deliver a unique customer solution The Company just, therefore, look at the customers from the customer's perspective and improve customer- company interaction, build rapport and facilitate quality customer contacts. The goal is to co-create home ownership by meeting and exceeding customer needs and revealing their core values

Improving the sales skills

As real estate is becoming more competitive, the sales skills should be improved. Many changes in the real estate landscape require more than just customer service such as customer relationship; the dialogue is important to the customers just as it is to the agency because they need to understand each other's perspective and needs.

Leverage Market knowledge and Customer Knowledge

Feedback from the market and the customer is important in redefining the agencies marketing efforts. Market and customer knowledge can be the company’s main source of competitive advantage if the company can leverage the differentiated knowledge from both the customers and the general market.

Communicate Value Propositions, and co-creates a customer-oriented solution.

Based on the 7P of marketing, a company has a duty to propose value to its customers. The company has to communicate value to the customers through the sales personnel. For example, the client needs more than just the agency’s services but also need the company to communicate its services. The company should inform the customers who all solution would be co-created with them, as they are the real homeowners and not the company. The company should be flexible to accept the perspective of the client (Lusch, & Vargo, 2015).

Different Marketing Strategies

How the company will market its services:

The agency can combine both marketing and promotional mix to market its services.

Promotional mix

The promotional mix includes all promotional acetifies that the company can conduct (Skalik, 2017). For example, the agency would advertise its services, employ public relations officers, sponsor events, and promote the business over the internet. The company would also hold expiation and rent spaces in home expos across the country as a way of promoting its services. It is important to note that in the current marketing platform, the most cost-effective marketing methods is to use an integrated marketing communication

Marketing mix

In addition to the promotional mix, the company will also use the marketing mix of service marketing. For example being an agency, the company will have to use competitive précising (price) as almost all agencies would be competitive because of the quality of services. The company can charge a competitive price as it is the only way that the company can drive sales and revenue. In the beginning, the company will use the market penetration pricing by offering the customer discounts while delivering quality service. The company will strive to ensure that all its customer take an active part in refining the service offerings. The customer would co-create their customer experience, and along the way, the company could learn from the customers what the entire real estate market is expecting and actively pursue such ideas, practices, and service features. Pricing is the favorers that keep the customers interested or drives them away. Secondly, the company had to communicate the location of its offices. All clients require knowing the location of the company's offices, so this must be communicated to them. The company should also use a unique promotional strategy to market its services. It is important to understand that the services have unique characteristics that make promotion different (Skalik, 2017). The company would also leverage the knowledge and expertise of its staff. The staff must promote the company's image as a reliable and professional company. The employees must, therefore, be trained properly on how to manage customer service and deliver unique customer experience (Winer, 2000). The processes should also be clearly differentiated to gain a competitive advantage. However, the most important thing is that the methods promised should be the procedures followed by the salespeople. The physical evidence includes the marketing material, the staff attitude, and their unique characteristics that the customers see. The company would strive to ensure that it presents a positive image that can boost the confidence of the client in the company's services (Winer, 2000)


Apart from pricing, the company has to leverage all the 7Ps of marketing to promote its services. However, the company’s source of competitive advantage would be pricing. However, it needs to use the marketing promotion mix especially the integrated marketing communication In consideration of the unique characteristics of the services it officers. The company must strive to make its services tangible memorable, relevant and sustain a positive brand image in the real estate market.


Lusch, R., & Vargo, S. (2015). The service-dominant logic of marketing (1st ed.). London ; New York: Routledge.

Skalik, M. (2017). Staff As An Essential Element Of Marketing-Mix In Business Service. Scientific Journal Of Polonia University, 20(1), 90-97.

Winer, R. (2000). Marketing Management (1st ed.). Upper Saddle River, N.J.: Prentice Hall.

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