Product vs. Service: Difference Between Product and Service

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Difference Between Product and Service

The difference between product and service that is, Products are an item produced by a company to market and exchange for money. And the company provides customer service upon request.

If we want to survive or succeed in the business world, it is essential to offer the best quality products and services. The products and services are closely related to the business point of view.

Providing good products and services to the customer is a good marketing strategy and approach to succeed in any business in the current market conditions. The main challenge for the marketer is to provide a service that cannot be experienced before. A marketer must sell the product before the customer can experience the service.

The current market scenario is that, before buying any product, the customer inquires about the services available to him in that product. For example, if a Client wants to buy a car while making the reservation, the first question will be “What are the services available?” or “What can you expect as after-sales service?”

The product is an item; it is tangible that the organization produces to market and sell to a customer in exchange for money. The product has physical presence, touch, smell and taste. The products can be used once or repeatedly.

Services are intangible, and it is the service provided by one person to another on-demand. People are generally attracted to the services they receive from the organization. Quality of service is one of the best strategies and approaches to attract customers.

What is the product?

The product is a substance; it has an object space; we can touch it, taste it, feel it and smell it. It is something the customer needs or wants. Customers can measure the quality of the product, and it can be returned to a vendor for replacement or refund in case of damage.

The value of the product is created by the users when they buy. Another aspect of the product is ownership, and it is transferable. Once the product is purchased from the buyer, ownership passes from the supplier or seller to the customer or buyer as they bring the products to their personal use.

Products are not always physical, or an object, all that can be sold is the product. For example, software services, online bus tickets, onboard band service, etc.

A product to be relevant to the customer, the user must have immediate use and must function with good quality. A product must communicate with customers. The uses of the products, how to use them and other factors about their benefits will be established. Branding and marketing are essential to the product.

A product must have a name; the customer only remembers the product with the name, which becomes a brand and helps the business. The product must be adaptable to changes in trends and time.

The marketer must understand the product at all levels adding more value. The main product meets the basic needs of the customer. If Lakme sells lipstick, it is not a product, and it shows the beauty of women to the world. The product should be based on the wishes or wishes of the customer.

The main product becomes a real product by name, benefits, packaging, style, brand, and marketing.

Products can be classified as consumer products or business-to-business products, which may also be referred to as industrial, commercial, or service products. The customer can buy consumer products such as shopping products, essential and convenience products, and others.

The organization purchases business-to-business products to make another product or provide a service. Includes capital products and expensive items.

What is the service?

The service is intangible, provided by the seller to the buyer. The organization provides services to its customers, especially after-sales. Offering service can help build a relationship with the customer or client.

The services provided by the organization mostly attract people. The quality of service is the best strategy and approaches in the market to attract the client to a company.

The consumer always evaluates the quality of the service received over the product. Since the services provided cannot be taken or returned, it must be specific and well qualified when the organization provides the service.

The service is one of the key components of the economy and the product. It cannot be stored or does not result in ownership.

Sometimes it is difficult to identify the quality of the service that accompanies the products. Medicines with diagnosis, Banking, consulting, education, insurance or transportation are some of the intangible products that depend on the services.

Each service provided by the organization will be charged. Sometimes the organization will charge differently for the same service. When services are sold to customers, there is no transfer of ownership.

The services cannot be stored or transported to third parties, must be used immediately and are valued only at the time of the services.

Many industries provide services along with value-added products as a service to earn more revenue and attract customers.

Main Differences Between Product and Service 

  • The main difference between product and service: Products are physical items sold by the company for the use of its customers. In contrast, services are additional values ​​offered by the company to keep the product in working order.
  • Products satisfy customer needs, while services help excel in product sales.
  • The products are of different types, but the services must be customized for the existing product.
  • The quality of the product is easily experienced by appearance and use, while the quality of the service cannot be judged unless the product works for a longer time without any problem.
  • Products are interchangeable, while Services are a unique approach to the existing product.

Conclusion 

The main reason for marketing is to reach people. Both types of marketing have their meaning. The type of business you are doing decides the type of marketing that a person should choose.

So one must be smart in choosing the type of marketing they want to carry out. Create a marketing strategy. When trying influencer marketing, make sure you know that the Influencer is in your niche.

So you don’t have much time to get started with the marketing process.

Word cloud to differentiate between product and service 

The following is a compilation of the most commonly used terms in this Product and Service article. This should help you remember related terms as used in this article at a later stage. The product is a substance; it has an object space; we can touch it, taste it, feel it and smell it. It is something the customer needs or wants.

Customers can measure the quality of the product, and it can be returned to a vendor for replacement or refund in case of damage.

The value of the product is created by the users when they buy. Another aspect of the product is ownership, and it is transferable. Once the product is purchased from the buyer, ownership passes from the supplier or seller to the customer or buyer as they bring the products to their personal use.

Products are not always physical, or an object, all that can be sold is the product. For example, software services, online bus tickets, onboard band service, etc.

A product to be relevant to the customer, the user must have immediate use and must function with good quality. A product must communicate with customers. The uses of the products, how to use them and other factors about their benefits will be established. Branding and marketing are essential to the product.

A product must have a name; the customer only remembers the product with the name, which becomes a brand and helps the business. The product must be adaptable to changes in trends and time.

The marketer must understand the product at all levels adding more value. The main product meets the basic needs of the customer. If Lakme sells lipstick, it is not a product; it shows the beauty of women to the world. The product should be based on the wishes or wishes of the customer.

The main product becomes a real product by name, benefits, packaging, style, brand, and marketing.

Products can be classified as consumer products or business-to-business products, which may also be referred to as industrial, commercial, or service products. The customer can buy consumer products such as shopping products, essential and convenience products, and others.

The organization purchases business-to-business products to make another product or provide a service. Includes capital products and expensive items.

What is the service? 

The service is intangible, provided by the seller to the buyer. The organization provides services to its customers, especially after-sales. Offering service can help build a relationship with the customer or client.

The services provided by the organization mostly attract people. The quality of service is the best strategy and approaches in the market to attract the client to a company.

The consumer always evaluates the quality of the service received over the product. Since the services provided cannot be taken or returned, it must be specific and well qualified when the organisation provides the service.

The service is one of the key components of the economy and the product. It cannot be stored or does not result in ownership.

Sometimes it is difficult to identify the quality of the service that accompanies the products. Medicines with diagnosis, Banking, consulting, education, insurance or transportation are some of the intangible products that depend on the services.

Each service provided by the organization will be charged. Sometimes the organization will charge differently for the same service. When services are sold to customers, there is no transfer of ownership.

The services cannot be stored or transported to third parties, must be used immediately and are valued only at the time of the services.

Many industries provide services along with value-added products as a service to earn more revenue and attract customers.

Main differences between product and service 

  • The main difference between product and service: Products are physical items sold by the company for the use of its customers. In contrast, services are additional values ​​offered by the company to keep the product in working order.
  • Products satisfy customer needs, while services help excel in product sales.
  • The products are of different types, but the services must be customized for the existing product.
  • The quality of the product is easily experienced by appearance and use, while the quality of the service cannot be judged unless the product works for a longer time without any problem.
  • Products are interchangeable, while Services are a unique approach to the existing product.

Conclusion

The main reason for marketing is to reach people. Both types of marketing have their meaning. The type of business you are doing decides the type of marketing that a person should choose.

So one must be smart in choosing the type of marketing they want to carry out. Create a marketing strategy. When trying influencer marketing, make sure you know that the Influencer is in your niche. So you don’t have much time to get started with the marketing process

The following is a compilation of the most commonly used terms in this Product and Service article. This should help you remember related terms as used in this article at a later stage.

Courtesy: Queens College of Vocational Education

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