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Problem

Name the major differences in marketing services versus products.

Step-by-step solution

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Step 1/2

Every successful business to business firm operation comprises of combination of services and products. Services are more profitable than products. The skills and abilities of service providers requires to be improved for better services to meet customer’s satisfaction.

Step 2/2

Services are intangible processes, activities or performances that are exchanged from producer to user. Products or goods are tangible and they can be transported or exchanged via different medium in between the producers and users. Only perishable products need to be exchanged between producers and users within a specific time length. Marketing of services and products have major differences due to the differences in their characteristics. The major differences between marketing of products and services are as follows:

1. Marketing of services products are difficult to identify as they come into existence at similar time they are purchased and consumed. Marketing of products or goods are easy as they can be identified and separated easily from one another.

2. Services are inseparable and involves customers participation and cannot be sold by ownership transfer as they have no title. Products have specific title and can be separated and transferred during marketing.

3. Services cannot be inventoried. Products can be inventoried.

4. Services are labor-intensive in nature, so there is difference in the quality of services provided. Products of similar nature and characteristics provides similar service quality.

5. User participate in the production and providing of services, so it is critical to understand the expectation of customers for a service. Products can be produced and provided accordingly to meet the customers’ need.

6. Managers use prices and promotion to move demand from peak periods to non-peak periods as services are perishable and cannot be inventoried. Products can be moved from peak to non-peak periods without changing price or promotion.

Hence, the above differences are there between marketing of products and services.