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Service Marketing Versus Goods Marketing

27 January, 2016 - 09:43

The distinction between services and goods products is not always clear-cut. In general, service products tend to be intangible, are often consumed as they are produced, are difficult to standardize because they require human labor, and may require the customer to participate in the creation of the service product.

Goods products tend to be just the opposite in terms of these criteria. Consequently, marketers of service products usually employ a marketing strategy quite different from that of goods marketers. For example, a local family physician creates tangibility by providing an environment: waiting room, examination rooms, diplomas on the walls, that convinces patients that they are receiving good health care. Conversely, coffee producers create iiltangibility in order to appear different from competitors. This is done through colorful packaging and advertisements showing people who are successful because they start each day with a cup or two or ten of Starbuck's coffee.

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Figure 1.4 Hot dogs are goods products and, as such, are marketed differently.