The differences between the marketing of goods and the marketing of services.

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  • Created by: sian
  • Created on: 13-11-17 15:00

The differences between the marketing of goods and the marketing of services.

Similarities

  • The marketing of good and services will use the marketing mix or the 4 Ps
  • Product - refers to what the business is selling.
  • Price - refers to how much the business is selling its products for.
  • Place - refers to the methods of distributing products to customers eg using wholesalers, retailers, e commerce, mail order and vending machines.
  • Promotion - refers to the methods used to ensure that customers know about a firm's products.

Differences

  • Services are unique from products in that they are:
  • Intangible - you cannot touch them;
  • Inseparable - the service received is attached to the people who deliver the service;
  • Perishable - services do not last, but are normally consumed at the time of the purchase; and
  • Variable - services are heterogeneous ie each consumer experience is unique.
  • Hence, the marketing of services has a greater emphasis on product differentiation, due to the unique experiences that customers have.
  • In addition the marketing of services includes three additional elements (the EXTENDED MARKETING MIX - 7 Ps). These are:
  • People - refers to the customer service element of a service;
  • Process - refers to the way a service is provided eg waiting times, payment methods, after sales care and delivery methods; and
  • Physical Evidence - refers to visible and tangible aspects of a service eg staff uniform, lighting and ambiance and the cleanliness of the place where the service is provided.

Overall comparison

Be sure you know the difference between a product and a service eg the product is a moisturizer, the service is a facial at a spa.Due to the difficulties of ensuing a consistent standard of output, the marketing of a service is generally more challenging that the marketing of a tangible product. Hence the need for aspects of the extended marketing mix (7 Ps).

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