Products and Services | Meaning, Definition, Differences

What are Products and Services?

A product is tangible (visible). It has physical existence. By acquiring a product a person may acquire an asset, e.g., a television set. A product may be capable of being reused for a certain time. Examples are soap, toothbrush, etc. On the other hand, a person while availing a certain service. Example — Transport, medical, legal, etc., incur expenditure. Service is intangible in nature.

Products and Services - Meaning, Definition, Differences

Products and Services – Meaning, Definition, Differences

Definition of Service

The American Marketing Association defines services as

activities, benefits or satisfactions which are offered for sale or are provided in connection with the sale of goods.

From the definition it is clear that provision of service may be in connection with the sale of products, e.g., after-sale or repair service or it may not be in connection with the sale of goods, e.g., banking, insurance, legal, catering and other services. The provision of medical service may involve sale of certain goods by a doctor to his client, e.g., false teeth, contact lens, artificial limbs, etc.

ProductService
1. It is tangible.It is intangible
2. Quality standards can be attained.It is very difficult to attain quality standards.
3. It may be an asset sometimes,. e.g., fridge, television set, etc.It involves expenditure without any tangible return benefit.
4. Physical possession is possible.Physical possession is not possible.
5. It can be stored.It cannot be stored.
6. It can be transported.It cannot be transported.
7. The producer and the seller may be different persons.The producer of service is the seller too, e.g., medical and legal services.
8. Assembling is very important.Assembling has no relevance at all.
9. Skill of the seller alone cannot determine sale.Skill of the service provider is the deciding factor in most cases, e.g., legal, catering and medical services.
10. Production and distribution need not take place simultaneously.Production and distribution of service will have to be done simultaneously, e.g., provision of electricity.
11. Packing plays a crucial role in the marketing of any product.It has no relevance in the marketing of service.
12. Both Brand name and Trade name are important in the marketing of any product.Brand mark and Trade name are important in the marketing of services.
13. Labelling is an integral part of marketing. It is required as per law.It has no relevance.

Leave a Reply




Recent Posts


Related pages


advantages and disadvantages of acceptance samplingobstacles of delegationadvantages and disadvantages of planned economyconvenience sampling meaninghow to calculate budgeted cash receiptsquota sampling techniqueexample of amalgamation in indiamerits of personal sellingdoctrine of privity of contract exceptionsemptor caveathow to prepare sales budgetbudgetoryconcept of ultra viresmoa definitionadvantages and disadvantages of oligopolyessential elements of valid offercaste society in indiaadvantages of promotional pricingnon redeemable debentureselements of a valid contractvoid contract meaning in hindiirrevocable revolving letter of creditessential elements of valid offerprobability and nonprobabilitywhat is prime cost in cost accountinginterfirmprobability and non probability sampling techniquescrisil india ltdfactoring small businesshow to calculate operating ratiofire insurance clausesdefine overhead ratedefine accord and satisfactionmeaning of objective in tamilstandard costing in cost accountingmeaning of intermittent in urdufunction of rbiinternationalization meaningmonopolistic competition advertisingdifference between articles of association and memorandum of incorporationcreditor turnover ratiofunctions of the rbifob vs cifstationery supplierwhat is meant by sundry creditorsprecis practicedifference between valuation and verificationadvantages and disadvantages of postal servicesadvantages of ecommercecalculate average collection periodinsurance companies as financial intermediariesdefine debtor and creditordisadvantages of electronic commercepure capitalist systemlimitation of consumer sovereigntycapitalism ownership of propertydischarge of negotiable instrumentrole of exim bankoperational audit programdefinition of buying behaviorwhat is the meaning of precishow to prepare a cash budget exampledisadvantages of capitalist economic systemexample of conglomerate integrationadvantages and disadvantages of traditional bankingmeaning of exim bankdischarge by accord and satisfactionforeign exchange rate quotationsaudit tickmarkspurchase price variance definitionjob costing sheetwhat is numeric filing systemfree enterprise capitalism definition