PROFESSIONAL SERVICES MARKETING-JUST HOW DOES IT DIFFER?

Challenges and Perceptions

Although the importance and value of marketing has gained significant recognition again in recent years, there is little doubt that the marketing of professional services, particularly in Asia , is still in its infancy. In fact, many in the industry consider it to be an unnecessary expense, in addition, many believe it to be an activity that degrades the ethical standards of the professions. There are two key issues here, one is a fundamental misunderstanding of what marketing is, the other, perhaps much harder to address is the history and tradition of the industry.

For example, research done by Oliver Yau (now a professor at City University in HK) and Thomas Wong examined how CPA firms in Hong Kong perceive advertising. Fifty percent of respondents stated that advertising would ruin a company's good will and ninety five percent said that service quality is the best promotional tool. Additionally, only twenty eight percent believed that the HKSA should relax its rules against advertising and promotion. Compare this with research that shows clients have a healthier attitude towards advertising than do practicing accountants.

Certainly, the use of advertising is much more widespread in the western world when considering professional services. Yet even so, as we at SRC have mentioned numerous times, marketing is not advertising or selling. It is much more than that. However, if attitudes are one of the major obstacles to overcome in professional services marketing, how exactly does this type of marketing differ?

There are several key dimensions:

Services are inseparable from the person supplying them and hence a marketing mind set and skills beyond pure content knowledge become important, such as interpersonal skills.

Services are intangible and hence cannot be evaluated prior to consumption and maybe for years afterwards (are you sure what you learned at university was good?). Reputation is clearly important and clients may look at tangibles such as people and office environment.

Services are variable and even the best people are fallible. Hence, well thought out processes can minimize mistakes and ensure the client receives a clear and consistent service.

Services are perishable and cannot be stored for later use. It is important to be able to estimate demand fluctuations and avoid seat of the pants type decision making.

All these issues are magnified in the professional services sector due to the asymmetry of information between client and practitioner and the need to uphold a professional image that inspires trust and confidence.

Challenging the perspective of professional services marketing in Asia is undoubtedly a major challenge. However, as the industry continues to increase in competitiveness and as more and more senior levels in professional service organizations understand the importance of marketing, its level of acceptance will near that in the western world. It is inevitable.

Research has frequently stated that it costs five times as much to gain a new customer as it does to keep an existing one and that even highly satisfied customers defect. One can never assume anything, you must make sure that your offering is clearly understood by your target market and that they are aware of the services that you offer. Your people must also understand the role they play in marketing and building customer satisfaction. Whether you do or not, be assured that other organizations are beginning to embrace the marketing concept.