Service marketing versus product marketing: key differences

Product vs. Service Marketing

Marketing a product is not fundamentally different than marketing a service. Even those who would disagree with this statement would agree that there are many similarities between the two. However, the differences typically cited are not nearly as different as they are made out to be. This paper will outline the differences typically cited between service and product marketing and explain why they are fundamentally the same.

Good marketing is good marketing, no matter whether a product or service. In both cases, marketing begins with identification of target markets and the development of approaches to reach those markets. The selling job involves building relationships with members of the target market and developing confidence between them and the company. This occurs whether you are selling face-to-face or through advertisements. The basic principles of marketing are determining the price, place, promotion, product and people (Nimetz, 2006). These do not change no matter what you are marketing. Indeed, even if there are subtle differences between sales tactics for different products and/or services, the most important work comes in the development of marketing strategy. This task is fundamentally the same no matter what is being marketed or to whom.

Those who believe that there are fundamental differences between services marketing and product marketing cite five key differences. These are that services marketing is about relationships; the intangibility of a service; the customer views a service as about a single person; a perceived lack of comparability between services; and that products are returnable (BusinessKnowledgeSource.com, 2009). The point about relationships is a fallacy. A company selling products is also developing relationships with its customers. The relationship may or may not involve a specific individual but there are few companies that are looking for one-time customers; most want to cultivate loyal, repeat customers. Thus, they want to cultivate a relationship. The product can speak for the company as easily as a service.

That a service is intangible is irrelevant. The service affects changes on tangible items: a car wash affects your car, a haircut affects your hair, an investment advisor affects your money. The lack of tangibility is a difference, but that difference is irrelevant for the marketer. Value is something that is ascribed by the customer, whether it comes from a single product, a portfolio of products or a single person providing a service. Ultimately, these differences are superficial because the customer will always look for the same things -- quality and value.

The notion that services are not comparable is absurd. For this to be true, a service would need to be in a monopoly. It is easy to compare your current haircut with your last, your current lawyer with your friend's lawyer. Customers constantly compare services, just as much as they compare television sets at the store. That products are returnable is true, but marketers should not operate on the assumption that defects are acceptable. Indeed, the likelihood of a problem occurring and the ease of replacement of that product or service should be only a minor factor in a marketing program. Customers, after all, expect things to work the first time, whether a paper plate or a tax preparation.

Those who argue that marketing services is fundamentally different than marketing products tend to focus on superficial points around which they build their argument. This belies the fact that there are always superficial differences, even between types of products or types of services. The fundamentals of marketing remain the same in all situations. You must know what you are selling, to whom you are selling and you must convince them that your product or service is going to meet their needs and then you must get the product into their hands. Consumers are buying the satisfaction of a need; whether that need is fulfilled with a product, a service or both is irrelevant (Garcia, 2009). These are the fundamentals of marketing, not the specific details of selling.