• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

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

Extracts from this document...

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.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our University Degree Marketing section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related University Degree Marketing essays

  1. Chapter Notes on Marketing Management by Philip Kotler 10th Edition

    It calls for social and Ethical considerations in marketing. They must balance the conflicting criteria of Company profits, consumer want satisfaction and Public Interest. In an age of environmental deterioration, resource shortage, explosive population growth, world hunger and poverty and lack of Social Services Marketers needs to be sensitive on these issues How Businesses and Marketing are changing?

  2. United Nations Children's Fund (UNICEF) is an organisation committed to promoting for the fulfilment ...

    The basic marketing mix is often nicknamed " the 4P's" (product, place/distribution, pricing, promotion); these are elements in the marketers armoury - aspects that can be manipulated to keep ahead of competition. (Dibb & Simkin , 1994) Neil H Borden in his article "The Concept of the Marketing mix" coined the marketing mix term in 1965.

  1. Intergrated marketing communications

    Promotion methods - Cross promotion Sometimes the cross-promotions that happen between different industries work so well. One company actually buys the expertise of the other and opens an outlet incorporating both. Benetton and Motorola rolled out an elegant line of pagers as "fashion accessories."

  2. An Introduction To Services Management.

    The changes in the composition of the economy in some European nations have been dramatic over the past three decades, reflecting : * a combination of economy growth (in which most of the new value added has come from services)

  1. PROJECT ON MARKETING STRATEGIES OF BPL COLOR TELEVISION

    But BPL Mobile and simultaneous diversification?s into the power skills of it?s the BPL group?s attempt to move away from the highly competitive entertainment electronics sector, its mainstay all-long. They have entered power sector because of its high entry barriers for smaller players.

  2. Marketing Research on a Fitness Center aimed at Women

    Reasons included being too busy or exercise being troublesome (Venture Link 2006). While the secondary data clearly shows the importance of the female market to fitness centres, it also indicates that satisfaction levels in the sector are difficult to assess.

  1. Analysis of Pizza Hut's Marketing Strategy in Roumania.

    A variety of toppings are available, plus "specialty" styles, including Meat Lovers, Cheese Lovers, Supreme, Super Supreme. The pan pizza has a thicker crust than most other commercially available pizzas. So their products have help them to retain their customersand to increase them.

  2. Title: Analyse and investigate consumer responses towards Internet shopping and the

    who argued that shoppers in Florida can shop at Harold?s through their website and it is faster than walking to shop in their street. Childers et al (2001) argued in as many consumers do not visit different traditional retails shop before purchasing, interactive shopping lowers the cost of looking for

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work