Product and service marketing require different strategies. [1] With products, marketers need only consider perceived value, price, location, and advertising. [2] With services, marketers must also consider process, people providing the service, and proof of quality like testimonials. [3] While products are tangible, services require demonstrating consistency through evidence to build trust.

1. Marketing
Product Marketing VS Service Marketing
Abstract
The marketing of products and services reveal two different
situations which require two very different strategies With
products you need only consider the perceived value, price,
location, and advertising
By James Wiley
United States
October 23, 2009
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Copyright © 2012 James Wiley - All Rights Reserved. Hyperlinked material remains the property of
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2. | Product Marketing VS Service Marketing
The marketing of products and services
reveal two different situations which require
two very different strategies. With products
you need only consider the perceived value,
price, location, and advertising. With
services you need to consider the perceived
value, price, location, advertising, process,
people, and proof.
When advertising a service it's important to
demonstrate your process and proof through
testimonials or other sources to build
reasonable expectations with your
customer. These expectations will build
perceived value in your product or serice.
When advertising a product proof is not as critical because the product is tangible
and returnable.
Perceived value is the amount a consumer would expect to pay for your product
before they see the actual price. To build perceived value in a product you
demonstrate and explain it's benefits in relation to the customers needs. To build
perceived value in a service you must
prove that you are consistent and can provide quality service to meet the
customers' needs.
Pricing for products will include the cost of materials, manufacturing, and
distribution. Service pricing may include a small amount for some offsite
manufacturing or travel but in general the pricing for a service is mostly profit. This
low cost for providing the service will allow you to spend more money advertising
and demonstrating the service.
The location of your product or service may not be important depending on the type
of item you're selling. If you run a retail location with many items, a stable location
with plenty of walk-by or drive-by traffic is important. Niche items and services may
not require a stable location as consumers do not need to know where your service
is located
unless they're specifically requesting the service you provide.
The process or operation of your business is a variable that consumers can
compare with your competitors. Use your advertising and presentation wisely to
explain why your process is better than the competition.
People are the ones that "deliver" your service. People are the most difficult part of
maintaining consistency in marketing. With a service you're dependent on people to
offer the best customer service to each and every customer. If a consumer buys a
product then tells a friend. The friend can rest assured that if they buy the same
product they will have the same
result. Services do not operate this way. The trust consumers have in a humans'
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3. ability to execute the same level of customer service day in and day out is
nonexistent and for good reason. People are inconsistent creatures and that's why
service marketers are burdened with
showing proof not once, but several times over.
Proof is the evidence that your service or product is worthy of purchase. Products
seldom need proof because they are tangible and returnable. Proof for services
may include testimonials, photos, audio, video, sales data, or other. In order to gain
new customers your proof must be backed by facts and directly related to the
customers' needs.
For a consumer, choosing a product is a matter of comparing the facts, choosing a
service is like a trial. You have two sides: you and your competitor, or even more.
Each side must backup their statements with evidence in order to prove their case.
The consumer will judge
the case and decide who is telling the truth, who has the most evidence that is
relevant to their needs, and ultimately who is the best business for hire.
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4. About The Author
James Wiley - CEO - http://www.theclientsafe.com
CEO - www.theclientsafe.com
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