The product based business model is fairly straight forward. A product has a set life-cycle within the market, so to continue that product’s existence, a new version of that product is created and launched. In the technology industry, that is about every 12 to 18 months. For the auto industry, that is about every 7 or 8 months it seems.
The service based industry has a less obvious business model as far as life cycles and launches. When a company provides a service, they are performing that service’s life cycle until there is no more business. But does that make the most sense? If a service based business only provides services and is dependent on clients returning in order to keep the service going, the company is being set up to hit a wall. A wall such as the economic crash starting in 2007. It was the service based business models that suffered when the companies who were paying for specific services decided to wait until later for said services. Being dependent on a client for the company to survive is not the best way to operate.
Creativity + Marketing
What if a service based business imitated that of their product based counterparts? What if, instead of providing an on-going hourly service, the company created service “products” and launched those products towards a specific targeted niche in which that product would fill a gap?
A great example of this is Progressive Insurance. Everyone will agree that insurance is a service that can be rendered extremely valuable to have in the event of a tragedy. Progressive turns their insurance options into “products” which are then personified through commercials as though they can be found on the shelf of a brick and mortar store. What does this do? It takes a service that is made up of many components and simplifies it and creates a connection with people. People understand products. They are physical, they can touch them, hold them, etc. By personifying the service as a product, the company, in this case, Progressive, connects with potential and existing customers on another level.
Creating Products As Marketing Campaigns
Another way to think about differentiating a services based company from the crowd is to develop marketing campaigns that fit the message of the company, connect with people, and can be sold and distributed. A service company is dependent on leads and sales to thrive and provide its services. When a service company has no clients or backlog, the company stalls. This is a major downfall of service based companies using a model that only concentrates on providing services.
An example of a marketing campaign could be a series of T-shirts that spread the message of the company and also to help a charity or cause that the company contributes. The key is not to mass market these campaigns, but to focus on the niche or industry that you are in. This does many things. It helps to create brand recognition for the company and also associates the brand with the specific cause. The cause may cause an emotional attachment to people, which will in turn, create a connection with the brand. The idea with these campaigns is to invoke and create buzz. You want people at a targeted event to notice the shirts, or to make them come up to you and ask what it means.
Another idea is to use different forms of media outside the norm of what is done within your industry. Again, standing out helps set your brand apart. It can also lead to other opportunities, business ventures or a new revenue source.
As these campaigns are formulated and rolled out, they can become events that the company does each year. There may be one per quarter. In any event, all of these different product ideas build the brand, its essence, what it is all about, and helps to connect with people emotionally.
What are some unique marketing strategies that service based companies can use to create awareness?
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