Advertising - Should You Be Advertising Your Services?

You offer a reliable, quality service. You know that if more people knew what you can do, you'd increase sales. So you advertise in the most likely media for potential clients to read about you. But there's no response. Why?

If this scenario is familiar to you there's a few likely causes.

1. Maybe your ad's aren't designed well - poor layout, inappropriate offer, etc.

2. Maybe you have selected the wrong media, placement or timing.

3. Maybe you shouldn't be advertising your services.

Now I know there's a lot to consider when writing advertisements - creating "killer headlines", long copy versus short copy arguments, using white space, etc - and I could give you some tips on how to buy media. But I'm not getting into that today. I'm going to talk about the third point - maybe you shouldn't advertise.

But wait! (I hear you ask)... Why shouldn't I advertise my business?

Put simply, some services are not suitable to be advertised in the usual fashion. Most advertising is to stimulate action, usually a purchase or decision to place an order. If you're selling a 'product' this is relatively easy to achieve. Customers know what they are buying. There's usually some sort of benchmark, or product criteria, customers use to judge whether your product will do what they want.

But when it comes to services, many potential customers (or clients - I use both terms interchangeably) may not be able to make the same sort of judgement. This is particularly the case for services where the specific outcome is hard to predict, or where there is a large degree of emotional involvement or risk in the customers decision making process.

Think about it this way. Services can be broadly classified under the following headings:

* People Processing (eg hairdresser, medical)

* Possession Processing (eg computer repairs, dog obedience training)

* Knowledge Processing (eg education, entertainment)

* Information Processing (eg accounting, investment advice)

Generally speaking, possession and people processing services are more tangible than knowledge or information processing. For possession and people processing services, clients can see/touch/feel the outcomes, and they may even be personally involved in the delivery of the actual service. Additionally, tangible services usually incorporate a higher level of personal contact (intensity or frequency) between the provider and the customer.

So, for more tangible services, clients often have more reference points on which to base a future purchase decision.

If your business provides services with less tangible, and more variable, outcomes then media advertising may not be the best answer for you. For your type of services customers will be very interested to understand 'how' you deliver your service and will need to develop a suitable degree of trust in you before they will make the decision to use your services. These criteria cannot be fully met through advertising alone.

So what should you do to get more business? Here are a few ideas:

* Perform your service to an excellent standard - surpassing mere customer satisfaction.

* Provide information to educate your potential clients.

* Develop sales processes that identify real problems you can solve.

* Make sure you address the true concerns and risks of your clients.

* Understand the clues customers use to decide whether they will use you.

* Create a network of related service providers who may refer prospects to you.

* Develop mutually beneficial joint-promotional activities with well-respected businesses in complementary fields.

Please don't misunderstand my message. Advertising can be very productive. If you can clearly state specific benefits (i.e. outcomes) and overcome the initial concerns of prospective clients, then advertising may work for you. That's why possession processing services such as lawn mowing can be easily advertised. For your average lawn the customer can recognise and understand what they are buying.

However, if your business provides relatively intangible services that deliver outcomes dependent upon a variety of factors, then media advertising should not be high on your list of marketing activities.

(c) 2004 Marketing Nous Pty Ltd

Stuart Ayling runs Marketing Nous, an Australasian marketing consultancy that specialises in marketing for service businesses. He helps clients to improve their marketing tactics, attract more clients, and increase revenue. Stuart also offers telephone consultations and runs regular marketing seminars. For additional marketing resources, including Stuart's popular monthly newsletter, visit his web site at http://www.marketingnous.com.au.

In The News:


Earthtimes (press release)

Online advertising up 11 percent from last year
CNET News, CA - Nov 20, 2008
Internet advertising revenues for the third quarter were nearly $5.9 billion, representing an 11-percent increase over the same period last year, ...
Internet Advertising Revenues in Q3 '08 at Nearly $5.9 Billion MarketWatch
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Online advertising growth slows Financial Times
E-Commerce Times - Seeking Alphaall 253 news articles

Ronald Pantello, Harry Sweeney, and David Wood Voted Into Medical ...
MarketWatch - 5 hours ago
NEW YORK, Nov 21, 2008 /PRNewswire via COMTEX/ -- The general membership of the Medical Advertising Hall of Fame voted to induct three new individuals at ...

Current World News

TV Ads Contribute to Childhood Obesity, Economists Say
New York Times, United States - Nov 20, 2008
The researchers used several statistical models to link obesity rates to the amount of time spent viewing fast food advertising, finding that viewing more ...
Researchers: Ban on Fast Food TV Advertising Would Reverse ... MarketWatch
Fast-food ad ban could cut child obesity: US study Reuters
Study: Banning fast-food TV ads could dent obesity The Associated Press
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MillerCoors switches advertising firms
Chicago Tribune, United States - 7 hours ago
MillerCoors announced Friday that its advertising agency of record will be a trio of ad shops that includes Chicago-based Draftfcb. ...
Interpublic agencies win MillerCoors media account Reuters
MillerCoors awards $400M account to Interpublic Crain's Chicago Business
MC Media = Draft + Initiative + Kinetic + $400M mediabistro.com
St. Louis Post-Dispatchall 23 news articles

The Australian

Wall Street Journal Invades News York Times' Ad Turf (Update3)
Bloomberg - 51 minutes ago
21 (Bloomberg) -- The Wall Street Journal is invading the New York Times' advertising turf as competition intensifies in a souring US economy. ...
The firm believer The Australian
all 6 news articles

FROM ADVERTISING SECTION
San Jose Mercury News,  USA - 6 hours ago
By Weelbase communication Obama pledges support for electric power: Two of the most urgent challenges facing the United States climate change and the ...

New York Times

The Screens Issue Multiscreen Mad Men
New York Times, United States - 7 hours ago
BENJAMIN PALMER is the CEO of the Barbarian Group, an Internet advertising and marketing firm based in Boston. He helped create the ‘‘Subservient Chicken’’ ...

The Wall Street Journal Eats The Times' Advertising Lunch
Wired News - 5 hours ago
By Meghan Keane November 21, 2008 | 1:50:23 PMCategories: Advertising, New York Times Milton Pedrazza, chief executive officer of Luxury Institute LLC, ...
'NYT' vs. 'WSJ' in Ad Smack-down! Editor & Publisher
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New York Magazine

New York Times Co. shares tumble to new low
MarketWatch - 3 hours ago
The weakened US economy, stifled by the subprime mortgage crisis, has dealt a punishing blow to classified advertising revenues, which for decades the main ...
New York Times Slashes Dividend to Save Cash in Slump (Update2) Bloomberg
UPDATE 1-New York Times cuts dividend, 'reevaluates' assets Reuters
New York Times Co. cuts dividend by 74 percent The Associated Press
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Advertising pioneer George Beach to be honored
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