Differences Between Services Marketing and Product Marketing

Service businesses differ from tangible-goods companies in many ways. Many service companies focus their marketing efforts on the goal of instilling the proper perceived value of the service – the customer needs.The main difference between marketing products or services is that there is much more personal contact required when marketing a service as compared with marketing products. Marketing services may require meeting the customer in a face-to-face basis, or it may mean contacting prospective customers.

In addition, you would also need to know what the potential customer wants and then give them just that, which is a sure shot means of getting more business.

All products are the core output of any type of industry-deliver benefits to the customers who purchase and use them. Goods can be described as physical objects to devices, whereas service is actions or performances. Early research into services sought to differentiate them form goods, focusing particularly on four generic differences:


Heterogeneity (or variability)


Simultaneous Production and Consumption

It’s important to note that in identifying these differences, we’re still dealing with generalizations that do not apply equally to all services.

For better understanding, we can say that Services Marketing hold the flowing attributes:

Features and Attributes of Services MarketingResulting Implications
  • Services cannot be inventoried
  • Services cannot be patented
  • Services cannot be readily displayed or communicated
    • Pricing is difficult
  • Service delivery and customer satisfaction depend on employee actions
  • Service quality depends on many uncontrollable factors
  • There is no sure knowledge that the service delivered matched what was planned and promoted
Simultaneous Production and Consumption
  • Customers participate in and affect the transaction
    • Customers affect each other
    • Employees affect the service outcome
    • Decentralization may be essential
    • Mass production is difficult
  • Difficult to synchronize supply and demand with services
    • Services cannot be returned or resold

 So before you start marketing your product or service, you should learn the difference between marketing a product or service.Finally, when marketing a product, you can usually pick a set budget and stick to it. It’s usually pretty easy to calculate.

Differences Between Services Marketing and Product Marketing