“Difference between Product and Service Market” Product: In marketing mix, product is very important elements. Product means the need satisfying offering of a firm. Service: A service is an intangible product that provides benefits to consumers and often involves human or mechanical effort. Service is also a deed performed by one party for another.
Differences between Product and Service marketing: I think, there is nothing like a “pure product” or a “pure service” in actual life. Most of the time they come bundled together. When we visit a restaurant, we look forward to the food (product) as well as atmosphere and experience (service). I found many differences between PM & SM.
Given it bellow:
Products come to customers whereas customers come to services. Product benefits are embedded inside the product and can be transported to their customers through distribution channels. Services are location-based and the customers need to travel to theses service. Customers like many of their products to be standardized but they want most of their services to be customized. The quality expected from a product is mostly depends on its manufactured time, which materials are used etc. On the other hand, quality expected from a service is very different. It depends on how the service providers are selected, trained and motivated. The products are tangible and can be sampled before buying. On the other hand, service is experiential and sometimes based on a belief.
The product market is scaled up by expanding the manufacturing capacity, distribution and sales and access to more customers. On the other hand, the service market is not easy to scale up. A product (flat, car, machine ) can be owned and can go into the balance sheet as an asset. But a service cannot be owned and as is shown as an expense. The customers buy products essentially for the value they find inside. On the other hand, the customers buy services for the value of they find in the encounter with the service provider In product market, the managers are the heroes. On the other hand, in service market, the front line employees are the real heroes. Word-of-mouth is much more influential in a service purchase than it is to a product purchase.
4p’s of marketing:
Product: Offering the right product, service or experience. An actual product is depends on product variety, quality, features, design, brand name, packaging, sizes, services, warranties, return.
Price: Controls the perceived value and satisfaction. Actual price is created by list price, discounts, payment periods, allowances and credit value.
Place: Allows customers easy access to product and supports. Before choose a place to think about distribution channel, coverage, suitable location, easy transport system etc.
Promotion: Communicates the offer and value pro-position. Like sales promotion, advertising, sales force, public relation, direct marketing etc.
There are also 3p’s of service marketing. Given it bellow: People: It refer to all people directly or indirectly involved in the consumption of a service. For example: employees and other customers.
Physical evidence: It is related to the environment in which the service is delivered and tangible that helps to communicate and perform the service.
Process: It is the delivery and operating system of procedures and flow to activities which services are consumed.