Presentation of Product and Service Marketing

7/28/2019 Presentation of Product and Service Marketing

1/19

REM KAYA

512514

MBA

COMPARE PRODUCT AND

SERVICE MARKETING

1


2/19

2


3/19

MARKETINGThe management process through which goods and services

move from concept to the customer. It includes the

coordination of four elements called the 4 P's of marketing:

identification, selection and development of a product,

determination of its price, selection of a distribution channel to reach the customer's

place, and

development and implementation of a promotional strategy.

3


4/19

4


5/19

Product Marketing

Product marketing deals with the first of the 4Ps ofmarketing, which are Product, Pricing, Place, andPromotion. Product marketing, as opposed to product

management, deals with more outbound marketing tasks.

For example, product management deals with the nuts and

bolts of product development within a firm, whereas

product marketing deals with marketing the product to

prospects, customers, and others. Product marketing, as a

job function within a firm, also differs from other marketing

jobs such as Marcom or marketing communications, onlinemarketing, advertising, marketing strategy, etc.

5


6/19

6


7/19

A Product Market is something that is referred to whenpitching a new product to the general public. The people

you are trying to make your product appeal to is your

consumer market.

For example: If you were pitching a new video game

console game to the public, your consumer market would

probably be the adult male Video Game market(depending on the type of game). Thus you would carry

out market research to find out how best to release the

game. Likewise, a massage chair would probably not

appeal to younger children, so you would market your

product to an older generation.

7


8/19

SERVICE MARKETING

Services marketing is marketing based on relationship and

value. It may be used to market a service or a product.

Marketing a service-base business is different from marketing

a goods-base business.

There are several major differences, including:

The buyer purchases are intangible.

The service may be based on the reputation of a single

person

It's more difficult to compare the quality of similar services

The buyer cannot return the service

8


9/19

The major difference in the education of services marketing versus

regular marketing is that instead of the traditional "4 P's," Product,

Price, Place, Promotion, there are three additional "P's" consisting

ofPeople, Physical evidence, and Process.

9


10/19

10


11/19


12/19

Placeoften offers a different side of value (utility) to the

customer. Services are often chosen for their place utility.Place utility is important to evaluate, for strategizing on the

other 6 Ps.

Promotionplays a role in the perception the possible target

audience may have about your service. There has to be a fit

between the promotion and the positioning. Promotion leads

to service (brand) recognition and further establishes a proxyto evaluate quality of services based by potential customers.

People is one of the elements of service marketing mix.

People define a service. If you have an IT company, your

software engineers define you. If you have a restaurant, your

chef and service staff defines you. If you are into banking,

employees in your branch and their behavior towards

customers defines you. In case of service marketing, people

can make or break an organization.

12


13/19

Process : Service process is the way in which a service is

delivered to the end customer. Lets take the example of twovery good companies Mcdonalds and Fedex. Both the

companies thrive on their quick service and the reason they

can do that is their confidence on their processes. On top of it,

the demand of these services is such that they have to deliver

optimally without a loss in quality. Thus the process of a

service company in delivering its product is of utmostimportance.

Physical Evidence : The last element in the service

marketing mix is a very important element. As said before,

services are intangible in nature. However, to create a better

customer experience tangible elements are also delivered

with the service.

13


14/19

Take an example of a restaurant which has only chairs and

tables and good food, or a restaurant which has ambientlighting, nice music along with good seating arrangement and

this also serves good food. Which one will you prefer? The

one with the nice ambience. Thats physical evidence severaltimes, physical evidence is used as a differentiator in service

marketing.

The Differences Between Product and Services

Product Services

Tangible Intangible

Standardised Heterogeneous

Production separate

from consumption

Simultaneous production

and consumption

Non-perishable Perishable

14


15/19


16/19

16

A company that specializes in the development, commercial

validation and marketing of packaging based technologies for

perishable food products.


17/19

There are obvious differences between goods and services

that are analyzed based on characteristics of each.A good isa tangible object used either once or repeatedly.A service is

intangible. The tangibility differentiator indicates the ability to

touch, smell, taste and see which is absent in services.

On the quality front, with goodsit is homogeneous, once

produced the quality is uniform across all line of products.They can be separated from the seller/ provider and not

dependant on the source for its delivery to the purchaser.

With regard to service it is inseparable from the service

provider and heterogeneous, where each time the service is

offered it may vary in quality, output, and delivery. It cannot

be controlled and is dependant on the human effort inachieving that quality hence is variable from producer,

customer and daily basis.

17


18/19

Another key distinction is perishability ofservices and the non

perishabilityofgoods. Goods will have a long storage life andare mostly non perishable. Whereas services are delivered at

that moment and do not have a long life or cannot be stored

for repeat use.

With the production and consumption taking place

simultaneously in services, it differs from goods on

simultaneity and the provisions for quality control in theprocess.

18


19/19

Both goods and services need not be driven by economic

motives. Several times goods and services are linkedclosely and cannot be detached. For example on purchase

of a car, the good is the car but the processing, the provision

of accessories, after sales activities are all services. It is

essential to note that the difference between pure goods and

pure services are in contrast but most goods and services

exist in between with a mix of both. For instance, in arestaurant, food refers to goods while the service is the

waiters offering, the ambience, the setting of tables amongst

others.

19

Presentation of Product and Service Marketing

Documents

Transcript of Presentation of Product and Service Marketing