A marketing strategy will have to focus its priorities differently depending on what the company is trying to promote. The approach will not be the same whether it is a service or a product.
What is the difference between product marketing and service marketing? This article shows the main differences and gives practical advice for both domains.
Service marketing
Service marketing is the promotion and sale of services or intangible activities provided by a company or a professional. Unlike physical products, services cannot be seen, touched or owned. Examples of services include health care, education, financial consulting and hospitality. In general, service providers can rely on the following points to guide their business.
- Build trusting relationships. Service marketing often requires building and maintaining long-term relationships with customers. Services are provided over time and may require ongoing interactions. As a result, companies must focus on customer satisfaction and loyalty. Given the intangible nature of services, building a trusting relationship with clients is crucial. Companies must highlight their expertise, experience and customer testimonials to reassure future potential buyers. Offering guarantees, clear communication and excellent customer service can also build trust.
- Stress the benefits. Since customers cannot physically review services before purchasing them, it is important to communicate the benefits they will reap clearly. Use case studies, opinions, and detailed descriptions to show how the service can meet their needs and solve their problems.
- Manage expectations. Defining the ins and outs of a service is essential to avoid misunderstandings and ensure customer satisfaction. Providing detailed information on what the service includes, the process, and expected outcomes helps clients know what to expect and reduces the risk of disappointment.
- Customise the experience. Customisation is a powerful tool in service marketing. By adapting the service to each customer’s specific needs, the company can improve its customer experience and increase satisfaction. Customer data and feedback can be used to personalise offers and create a customised experience.
Product marketing
Unlike services, products can be acquired and owned by customers. Items such as electronics, clothing, food, and furniture are considered products. Product marketing focuses on tangible goods, which undergo a manufacturing, storage, and distribution process. It encompasses the different strategies and techniques used to promote them to potential buyers.
- Promote quality. In product marketing, the emphasis should be on product quality, features, and benefits. Visuals, descriptions, and demonstrations should show what makes the product unique and valuable. Customers must have a clear understanding of what they are buying and why it is worth the investment.
- Use visual marketing. Since products are tangible, visual marketing is particularly effective. High-quality images, videos, and infographics can help customers better understand a product's specifics. Visual marketing can also make the product more attractive and memorable.
- Offer promotions and discounts. Promotions and discounts are common product marketing strategies to drive sales and attract new customers. Time-limited offers, bundled deals and loyalty programs may encourage customers to purchase. These tactics can also help sell inventory and increase brand visibility.
- Focus on distribution channels. The choice of distribution channels is crucial in product marketing. Ensure that the product is available where the target audience goes shopping, whether online or in physical stores. Effective distribution can improve customer convenience and increase the likelihood of sales.
Knowing the differences between product and service marketing allows you to implement appropriate strategies and increase a brand or company's perception and turnover sustainably.
Sources: Livre blanc cerfrance: le marketing digital pour les tpe & pme, 2021; Hiam, A., Heilbrunn B. "Le Marketing pour les Nuls", John Wiley & Sons, Inc, 2021; Marrone, R., Gallic, C., Le grand livre du marketing digital, 2018.
