Latina businesswoman working in her office. She is sitting by the desk using laptop and talking on the phone with client.
Product and service sales differ substantially. Product sales focus on the left-hand value chain, while services focus on the right. Companies that try to do both are in the middle and face increased complexity, costs, and margin pressure. To be successful in both, companies must align all of their marketing efforts.
Products have a shelf life
When it comes to shelf life, a product’s lifespan is determined by how long it can be stored in its original condition without becoming unfit for use, consumption, or sale. This value is determined by internal testing and is not only determined by chemistry, but also by factors such as product size, packaging, and other factors.
The term “shelf life” is an important one in the food industry. Its importance relates to marketing and logistics. During transportation, it may travel several miles before its expiration date. In addition, it may be stored in grocery stores where the temperature is warmer and brighter. In both cases, it is important to ensure the appropriate storage conditions for a product.
Services are non-material actions
A service is a non-material action that a buyer performs in exchange for the sale of a product. These services can be paid for once, for a certain period, or through a subscription. The marketing of a service should be geared toward building a relationship with the buyer. An example of a service would be a butcher cutting meat for you. This act is a service, but the meat itself is a product. Similarly, a business may offer services to other businesses. These services allow another business to operate and serve its customers better.
Services are also classified into two broad categories: business services and personal services. A business service is a service performed by a company for a customer. This service is not a product but does not require payment in exchange. A service can benefit society in many ways. Most business-to-customer services fall into the category of personal services. These services are intangible, non-material actions that the customer receives in return for paying for them. Examples of services include doctor visits, lawyer services, and other professional services.
They can be returned
One reason customers may return a product or service is because it did not meet expectations. While the customer might not immediately disclose this information, it is important for store staff to understand the situation and make the best possible recommendation. The staff should probe deeper to understand the customer’s motivation, such as asking the customer about the expectations she had for the product. This will allow the staff to determine what the customer truly expected from the product and how the product failed to meet those expectations.
They require vastly different marketing approaches
Marketing for a product is very different than marketing for a service. The key difference is that a product can be seen, touched, felt, and even smelled. A service, on the other hand, can only be perceived, experienced, and used. In addition, marketing a service cannot be done in the same way as a product.
As a business owner, it is important to understand how the difference between a product and a service can impact your business’ profitability. Marketing for a product will focus on the left-side of the value chain while marketing a service will focus on the right-side. A service will often be consumed immediately after purchase. While some service providers may offer a satisfaction guarantee, this may not be enough for some consumers.
