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Examine how the difference between goods and services impacts on marketing decisions.

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Introduction

Examine how the difference between goods and services impacts on marketing decisions. The aim of this essay is to identify the difference between goods and services. To determine how this affects the marketing decisions which organisations within the leisure sector undertake. Leisure theory accents that leisure involves an expression of freedom. This can be achieved through leisure goods and services supplied by both the public and the private sector. Resulting in the creation of a leisure market, where suppliers compete to supply the demand of the consumer. The market will therefore need to adapt to provide the consumers with their demands. Arguably marketing will, to some extent, aim to create demands. This is significant to marketers in leisure sector organisations, as the leisure market is constantly changing resulting in a need to be increasingly responsive to survive competitively. Notably both marketers of goods and services will need to watch for shifts between home-based leisure activities and service based leisure activities. In understanding the marketing of leisure it should be taken into consideration that leisure is more satisfying when there is a not a division between production and consumption, for example, making ones own meal or music, in contrast to eating in a restaurant or buying a CD. In the marketing of leisure a key component to the marketing mix of leisure organisation is the fact that leisure aims to provide choice. The promotional activity of leisure organisation can be defined as 'an exercise in communications'1. Therefore in the marketing of goods and services the organisation will aim to provide awareness of benefits to their potential or current customers. At the core of the marketing approach to business is the marketing concept (McKitterick, 1957), which holds that the key to achieving organizational goals consists of determining the needs and wants of target markets, and then attempting to satisfy them more effectively and efficiently than competitors (Kotler & Turner, 1989). ...read more.

Middle

Notably in the advertising or promotional forms, services organisation shall consider quality cues in the marketing decisions. Evidently, marketers for service should place importance on the contact personnel in the advertising strategy. This is evident in Topshop7 marketing stratgey although the company predominantly sales leisure goods, they have focus their business on to create a leisure service within retail shopping sector. The company use their employees to their advantage to create a quality service from the moment the consumer enters the shop. The company offers added value services including style advisors who will suggests a range of styles to the consumers and as a result promote a range of the company's products. Another area of the companies marketing strategy to move the company into the leisure sector has been the concept of lock ins. Through offering late night shopping and obtaining a license for drinking on the premises, the company can promote other its added value service and sell their goods at promotional prices. As a result, the inseparability characteristic of the leisure service, results in marketing strategies aimed to stimulate word of mouth. The concept of perishability is a significant contrast between leisure goods and services, and is a key factor in the decision making as to the marketing of both. Leisure goods marketers will consequently take into account the factors that the 'item' is easily available in retail stores or shops when needed therefore the 'item' can be stored. This has had significant impact on the marketing of leisure goods, as this highlights the competitive edge which organisation need to take into consideration when designing a marketing strategy. Due to fact, that leisure goods have the potential side by side, therefore increasing the consumer choice, thus leisure good marketer will focus on creating a differential advantage in their marketing activities. This can be seen in the marketing strategy of 3G Mobile Phones8 who have catch on to the expansion of the mobile phone market into leisure good sector. ...read more.

Conclusion

In terms of Hefzallah and Maloney13's classification scheme, as goods are more tangible it was deliberate that the structure of leisure goods marketing would be predominantly informative and demonstrative. Through incorporating this in to the marketing strategy makes it easier for the consumer to assess attributes pre-purchase, thereby reducing perceived risk. It can be suggested that is more beneficial for leisure services to market themselves through staged and testimonial structures, due to the fact that these structures provide a tangible image around an otherwise intangible product. Predominantly in the marketing of leisure services goods and services, the associative and demonstrative structure of advertising is relevant to the marketing of goods, to inform the consumers of the benefits of using the product. Conclusion As a general rule, it can be argued that due to differences in the characteristics of goods and services has a significant impact on the marketing decisions within the leisure sector. The characteristics of intangibility, heterogeneity, perishability and inseparability of production and consumption have a significant impact on consumer perception of the good or service being provided. Subsequently the characteristic of tangibility/intangibility has the most significant impact from both the consumer and marketer's perceptive within the leisure industry. The marketing for both leisure goods & services aims to encourage active participation in the associated leisure activity. Leisure services are from homogeneous. As a result it can be argued that the different service types within the leisure sector have applied advertising strategies better suited to their characteristics. To summarize advertising strategies within the leisure service sector will vary, depending on the tangibility of the service and the target market. This essay would support the notion that goods and services marketers in the leisure sector do adopt different marketing strategies, interpretable to some extent by the specific characteristics of services. However it should be taken into consideration, that although the differences between goods and services have a significant impact on the marketing decisions of individual organisations, the target market would predominantly affect the marketing objectives and thus the strategy. ...read more.

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