How the marketing of services differs from the marketing of products?
When conducting the marketing of services, it is vital to depict the processes and proof of the service so that customers can have a positive image about the reliability of the services. Positive images and expectations allow the element of perceived value to be built in the consumer’s mind. In marketing products, there is no proof required as the product is something tangible that can be analyzed before buying and has the option of being returned if customers are not satisfied with it.
For products, customers may be willing to pay a price before even viewing the actual price and this is based on the value perceived by the customer for the product. In products marketing, the price and benefits of the product is stated in the advertisement. In services marketing, it should be ensured to the customer that the service would be consistent and is going to meet the needs of the customer. Then the customer develops the perceived value for the service. Product pricing includes the material cost, the cost of distribution and the cost of manufacturing. The pricing of services include cost of offsite manufacturing and the traveling cost can be included if implied. The low cost in service pricing allows the firms to invest more in the service advertisements.
In marketing the products and services, the place element of the marketing mix depends upon the type of products and services being offered. The products sold in retail outlets need to be in convenient location for the customers. For services, the place may not matter to the consumers. ...