Title: the difference between marketing services and marketing products
Submitted by; Xin Tian
Submitted to: Rita Kelly
Subject: Services Marketing
Date: 15th November, 2011
Class: B.B.S (Marketing) CW838(3)
The difference between marketing services and marketing products
The title of my assignment is the difference between marketing services and marketing products. This essay will introduce the main differences of the marketing services and marketing products, the differences are intangibility, inseparability, variability, perishability and ownership of services. Marketing services and marketing products are interdependent.
In contemporary society, people pay more attention on the quality of life so that marketing service plays a significant role, which increased the national economy in recent years. People pay more attention not only on marketing products, but also on marketing services. Being aware of the relation between marketing services and marketing products and distinguishing each other is an important way to help us to understanding the differences. There are five main differences between marketing services and marketing products. However, they are dependent on each other as well.
The most basic, and universally cited, difference between goods and services is intangible. Because services are performances or actions rather than objects, they cannot be seen, felt, tasted, or touched in the same manner that we can sense tangible goods. (Zeithaml and Bither, 2003) Firstly, service cannot be readily displayed or communicated. The products are tangible, the customers are more likely to taste them, touch them so customers are more likely to buy them. In contrast, services are intangible; it is hard for customers to know the value of the services. Because the customers cannot know how much they can benefits from the service, even though the customers are already serviced. Thus, customers only can believe the introduction of the services, and consider what advantages the services can bring to them. For example, doctors cure patients, patients need to take the medicine prescribed by doctor, even if the patient did not know about the medicine at all. Then, it needs to take long time to make sure whether the medicine is useful or not. It is a typical example that proves the services are intangible. Therefore, marketers need to use the 4P (price, place, product, promotion) to improve the satisfactions of customers. Secondly, unlike the product, services cannot be inventoried. Having unused capacity in a service business is rather like running water into a sink without a plug. The flow is wasted unless customers (or possessions requiring service) are present to receive it. On the other hand, when demand exceed capacity, customers may be kept waiting. (Lovelock, Vandermerwe, Lewis, 1999) For example, the staffs who work in McDonald’s are huge demanded for services in the mealtime, and little needed in other time. Yet staffs need to work for 24hours. Thirdly, services cannot be patented. When the new services innovate and advanced, there are a lot of competitor copies from it. It is hard to avoid other copying it, because of the characteristic of intangible. Finally, pricing is difficult. It is hard to decide how much money to invest in advertising and promote the equipment. The costs of service are also difficult to determine，and also at the beginning of your bussiness you will need to spend extra time and money to determine just how to divide up the prices of your service. (Matanovich, 2003)
Another difference is inseparability. (Zeithaml and Bither, 2003) It means that producing and consumption marketing services are simultaneous. For the marketing product, producing and consumption usually need to take a series of procedures, and there is a span of time between production and consumption, it will not be at the same time. It means that if the productions get some problems, producer has time...
Please join StudyMode to read the full document