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Service marketing versus goods marketing

11 May, 2016 - 11:43

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 intangibility 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.




Table 6.1 Kinds of marketing


The devaluation of the yen

Emphasis of study


A pricing strategy for Wal-Mart

Perspective, receiver of consequences

Goods Marketing

Nabisco International

Tangibility, standardization, storage, production, involvement

Service marketing

Chase Manhattan Bank


For-profit marketing

Otis Elevator

Concerns for profits

Nonprofit marketing

New York Museum of Art

Tax status

Mass marketing


Nature of contact

Direct marketing

Time Magazine


Internet marketing

Process for purchasing and delivery

Local marketing

Imperial Garden Restaurant

Proximity of customers

Regional marketing

Olympia Brewery

Geographic area

National marketing

American Red Cross

Extent of distribution

International marketing

Ford Motor Company

Network, marketing

Global marketing


variation commitment to country

Consumer goods marketing

Kraft Foods

Nature of consumer

Business-to-business marketing


Product function