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As
per American Marketing Association “Marketing is the activity, set of
institutions, and processes for creating, communicating, delivering, and
exchanging offerings that have value for customers, clients, partners, and
society at large.”

 

PRODUCT vs SERVICE

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In terms of marketing ” A product is anything that can
be offered to a market that might be able to satisfy a want or need.”

Whereas

According to Philip Kotler ,”A
service is any activity of
benefit that one party can offer to another that is essentially intangible
& doesn’t result in the ownership of anything. Its production may or may
not be tied to a physical product. Thus, services are those activities which satisfy wants.”

 

 

DIFFERENCES BETWEEN PRODUCT AND SERVICE MARKETING

 
 
BASIS

 
 
PRODUCT

 
 
SERVICE

 
 
MEANING

Product marketing refers to
the process in which the marketing activities are designed in a way in order
to promote and sell a product.

Service marketing means the
marketing of economic activities which are offered by the business to its
clients for  an adequate consideration.

 
 
TANGIBILITY

Products are tangible, so
the customer can touch and feel them before making a buying decision.

Services are intangible,
that is, the customers cannot touch or feel the services before buying them. So,
it is difficult to promote services.

 
 
PRODUCTION

 
The core value of products
is produced in the factory.

 
Services are produced in
the buyer seller interaction.

 
 
 
SEPARABILITY

 
 
A product and its producer
are separable.

 
 
A service cannot be
separated from its provider.

 
 
 
ALTERATIONS

 
Products cannot be altered
according to the needs of the customers. They cannot be customised.

 
Services can be altered according
to the needs of the customers.

 
 
RETURN

 
 
A product can be returned.

 
A service cannot be
returned after it has been rendered.

 
 
 
INVENTORY

 
 
Products can be stored. They
may or may not perish.

 
Services cannot be stored
as they are perishable in nature. So, they have to availed within time.

 
 
 
TIME
FACTOR

In case of products, it is
not necessary that  goods produced at a
particular time should be sold at the same time, that is, there can be a time
gap between the production and the consumption of the product.

In case of service, it is
necessary that there is no delay in providing a service, that is, production
and consumption of the service is at the same time.

 
 
 
EVALUATION

Evaluation of a product is
easy as it can be compared with different other products in the same range.

Evaluating a service is
very difficult as quality of a service varies from time to time and the
customer involvement is maximum.

 
 
 
QUALITY

The quality of a product is
the same due to mass production concept. This means uniformity.

The quality of a service varies
each time it is provided to various customers as it involves a lot of manual
labour.

 
 
 
CUSTOMER INVOLVEMENT

In
case of products, the customer involvement is not much as the products manufactured
are uniform and in bulk.

In
case of services, the customer involvement is more as each service varies
with demands of each and every different customer.

 
 
 
OWNERSHIP TRANSER

In
case of a product, ownership can transfer. For example, if you bought a car,
the car becomes yours.

In
case of a service, ownership does not transfer to the end customer.

 
 
WHO COMES TO WHOM?

 
 
Products
come to customers.

 
 
Customers
come to avail services.

 
 
TRANSFER

 
It
can be owned and resold to the other party.

 
It
can neither be owned nor transferred to the other party.

 
 
MARKETABILITY

 
Products
are easier to market.

 
Services
are difficult to market.

 
 
REACH

Products
can reach customers through various channels of distribution.

Services
have to be availed at the service providing centre.

 
INTERMEDIARY INVOLVEMENT

 
Product
marketing can include intermediaries.

 
Services
are offered directly through various sales paints.

 
 
SCALABILITY

In
product marketing, it is scaled by expanding the manufacturing capacity, distribution
and sales reach and access to more customers.

In
service marketing, it needs a supply of skilled service providers and this
can involve training, induction etc to upgrade the skills.

 

So, these are some of the key differences in product marketing
and service marketing.

 

 

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