SERVICE MARKETING / PRODUCT MARKETING AND IMPORTANCE OF CUSTOMER SERVICE

In this new business scenario we realize that whether it is product or service, marketing and customer service department need to go hand in hand for doing smart business.

Marketing department can bring new customers in service industry and product industry, but customer service is essential for both industries to retain their existing customers.

 THE DIFFERENCE BETWEEN PRODUCT MARKETING AND SERVICE MARKETING

The difference between product and services in marketing is that products are tangible and services are intangible.

PRODUCTS

Marketing is a product is usually much easier as it can be shown, demonstrated, touched and displayed. Tangible products are also much easier for audience to understand in terms of value or whether they are needed.

Regardless, the aim of our product marketing strategy should include finding the right market for our product and promoting it in a way that gets the best response from our target audience.

SERVICES

Services are intangible and showing its value to our audience can be more difficult. We can’t see or touch a service. Then the goal of marketing a service is to create good relationships with our target audience, developing and building trust.

CUSTOMISATION

While products are designed, built and delivered to a range of customers as standard, services can be customized depending on the needs and wants of the customers.

 

DELIVERY

The buyer can take away a product from seller while buyer needs to reach the seller to avail the service offered.

 

Eg: - The buyer can order a material through online store and product will reach to buyer with in a minimum working days to deliver it, In service if buyer is looking for an online movie store the buyer needs to login to the website and he can watch movie through that website only, but he can avail the service at same time no need of waiting.

EXPIRATION

It’s also important to understand that service are consumed immediately and cannot be returned once carried out. This is where the marketing goal of creating trust comes in. If provide a bad service, customers cannot return the service, but they may not return as customer.

CHARACTERISTIC OF PRODUCT AND SERVICE

There are several key characteristics that may help differentiate a product from services. Below are the key characteristics that differentiate product from service.

TANGIBILITY

Tangibility is one of the key characteristics that distinguish a product from a service. Products are generally tangible whereas services typically aren’t. there are some exceptions, such as in the case of digital products and software. Products and services often work closely together, especially from a sales and marketing perspective.

PERISHABILITY

Perishability is another characteristic that may help determine whether something is a product or a service. Perishability refers to things that can spoil or cease to be useful after a certain time. Due to their nature, products generally tend to be perishable, which isn’t the case for service. For example, food products often spoil after their expiration dates and are typically perishable. In contrast, a financial advisory service, for example, may remain functional or fit for use over time and is non- perishable.

It is important to note that there are some products that may have long shelf lives. Yet, they may still cease to work after a sufficiently long period of time and are thus perishable.

AVAILABILITY

Unless a product has patent protection, it’s likely that many versions of it exist. For example, consumers have plenty of choices when they want to buy a shirt or a pair of shoes. Physical products come in numerous different forms, whereas services usually only provide a limited range of options.

OWNERSHIP

Ownership is another defining characteristic that determines whether something is a product or a service. When a customer buys a product, the business transfers its ownership to the customer in exchange for payment. In contrast, when a customer buys a service, they only benefit from the service the company is offering. The customer doesn’t become its owner as it’s often intangible and difficult to quantify.

These controllable variables constitute the 4ps or the four pillars of marketing:-

1.     Product:  The tangible, physical good or intangible service being marketed.

2.     Price:  How much it costs to buy the product.

3.     Place:  Where and through what channels can one purchase the product.

4.     Promotion:  How the business promotes its product.

CONCLUSION

 Product marketing and service marketing can be considered as two sides of a coin, where product marketing is tangible we can touch and feel our product, while service offered cannot touch and feel it can only be assessed through its quality offered, and hence we can conclude that marketing a service is more difficult than marketing a product, the buyer and seller need to be profited simultaneously in service industry.

Marketing department can bring new customers in service industry and product industry, but customer service is essential for both industries to retain their existing customers and to build a brand image which is a core component of a business to bring new customers.