The marketing of products and services reveal two different situations which require two very different strategies. With products you need only consider the perceived value, price, location, and advertising. With services you need to consider the perceived value, price, location, advertising, process, people, and proof.
When advertising a service it’s important to demonstrate your process and proof through testimonials or other sources to build reasonable expectations with your customer. These expectations will build perceived value in your product or service. When advertising a product proof is not as critical because the product is tangible and returnable.
Perceived value is the amount a consumer would expect to pay for your product before they see the actual price. To build perceived value in a product you demonstrate and explain it’s benefits in relation to the customers needs. To build perceived value in a service you must
prove that you are consistent and can provide quality service to meet the customers’ needs.
Pricing for products will include the cost of materials, manufacturing, and distribution. Service pricing may include a small amount for some offsite manufacturing or travel but in general the pricing for a service is mostly profit. This low cost for providing the service will allow you to spend more money advertising and demonstrating the service.
The location of your product or service may not be important depending on the type of item you’re selling. If you run a retail location with many items, a stable location with plenty of walk-by or drive-by traffic is important. Niche items and services may not require a stable location as consumers do not need to know where your service is located
unless they’re specifically requesting the service you provide.
The process or operation of your business is a variable that consumers can compare with your competitors. Use your advertising and presentation wisely to explain why your process is better than the competition.
People are the ones that "deliver" your service. People are the most difficult part of maintaining consistency in marketing. With aservice you’re dependent on people to offer the best customer service to each and every customer. If a consumer buys a product then tells a friend. The friend can rest assured that if they buy the same product they will have the same
result. Services do not operate this way. The trust consumers have in a humans’ ability to execute the same level of customer serviceday in and day out is nonexistent and for good reason. People are inconsistent creatures and that’s why service marketers are burdened with
showing proof not once, but several times over.
Proof is the evidence that your service or product is worthy of purchase. Products seldom need proof because they are tangible and returnable. Proof for services may include testimonials, photos, audio, video, sales data, or other. In order to gain new customers your proof must be backed by facts and directly related to the customers’ needs.
For a consumer, choosing a product is a matter of comparing the facts, choosing a service is like a trial. You have two sides: you and your competitor, or even more. Each side must backup their statements with evidence in order to prove their case. The consumer will judge
the case and decide who is telling the truth, who has the most evidence that is relevant to their needs, and ultimately who is the best business for hire.
