Distinguishing Product Marketing from Marketing of Services:
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- Nature of Offering:
- Product Marketing: Involves tangible, physical goods that customers can touch and possess, such as smartphones or clothing.
- Marketing of Services: Focuses on intangible offerings, which are non-physical and involve experiences, expertise, or performances, like consulting or healthcare services.
- Ownership and Transfer:
- Product Marketing: Ownership is transferred to the customer upon purchase, and products can be resold or transferred to others.
- Marketing of Services: Customers gain access to a service but don’t own anything tangible. Services are consumed at the time of provision and are often non-transferable.
- Production and Consumption:
- Product Marketing: Goods are produced, stored, and then sold, allowing for separation of production and consumption.
- Marketing of Services: Production and consumption often occur simultaneously, making it challenging to separate the two. Services are often produced and consumed in real-time.
- Perishability:
- Product Marketing: Tangible goods are generally not perishable and can be stored for extended periods without loss of quality.
- Marketing of Services: Services are perishable; they cannot be stored for future use. If not consumed when offered, the opportunity is lost.
- Heterogeneity (Variability):
- Product Marketing: Tangible products are typically uniform and consistent in quality.
- Marketing of Services: Services often exhibit variability due to human involvement, making it challenging to maintain consistent quality in every interaction.
- Inseparability of Production and Consumption:
- Product Marketing: Production and consumption are separate stages in the value chain.
- Marketing of Services: Production and consumption are often inseparable; the customer is involved in the production process or experiences the service as it’s being provided.
- Intangibility:
- Product Marketing: Tangible products have physical attributes that customers can see, touch, and evaluate.
- Marketing of Services: Services lack physical form, making it challenging for customers to evaluate them before consumption. The quality of services is often assessed during or after the delivery.
Examples:
- Product Marketing: Selling smartphones with tangible features like design, camera specifications, and storage capacity.
- Marketing of Services: Offering consulting services where expertise and advice are the primary value, and the output is intangible.
Understanding these distinctions is crucial for developing effective marketing strategies tailored to the unique characteristics of either tangible goods or intangible services.