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For example in a restaurant, a dish is made only after you order it. But the production does not begin unless and until there is a customer to consume the service. In a restaurant, the dish can be measured, but the efforts gone in making the same dish by two different chefs cannot be measured from the customer end. Same goes for large service corporates like Accenture and Infosys.

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A potential car buyer usually checks the car’s body lines, feels the leather used on the seats, and takes the car for a test drive before deciding whether to buy the car or not. Since it’s a product, the buyer is aware of the specific production line the vehicle hails from, and there are many more like it. In fact, there are other cars identical to the one being bought.

Different Marketing Behaviors

Once services are rendered to the final consumer, they cannot be stored, resold, returned, or delivered to another end user. To illustrate this attribute, assume the example of airline tickets. If a tourist books a flight, they are charged for the services regardless of whether they travel or miss the flight. The flight ticket is perishable and cannot be returned or resold. In this case, the ticket’s value is unfortunately foregone if the traveler is unable to travel. Goods can be owned by the consumer while services are inseparable from providers.

Goods implies the tangible commodity or product, which can be delivered to the customer. It involves the transfer of ownership and possession from seller to the buyer. On the other hand, services alludes to the intangible activities which are separately identifiable and provides satisfaction of wants. A service is work done by another person for another individual. For instance, a person will visit a restaurant to have the desired services performed by other people while they relax on their tables. Legal advice is another good example of a service rendered to another person by professional lawyers.

Definition of Goods

For example, a potential car buyer usually checks the exterior and interior parts of the car, the car engine, and takes the car for a test drive before deciding on purchasing the car or not. For example, with the purchase of a new appliance, customers may receive a free service cleaning or a discount on accessories. If you believe there is a difference between selling a tangible product or an intangible service, you have a bigger problem than you realize. When we’re selling like this, there is no cookie-cutter approach.

  • Thus the difference between goods and services is based on many different factors.
  • A car buyer may be lucky enough to find a salesperson that is knowledgeable, friendly, and willingly negotiates.
  • The two types of customers are trade customers, who don’t use what they purchase, and final customers, who do use what they purchase.

They purchase these products to meet their needs and desire. Examples of consumer products are brushes, foods, mobile phones, etc. But what about the service a car buyer receives at the dealership? A car salesperson may interact differently with one buyer than he does with another.

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This customer is the one who can benefit from buying a product and not the service provider. Even though you might not have considered it, there are some key differences. Additionally, it’s possible to combine services and products.


It is much easier to enrolled agent salary a product than a service, because a service is consumed as it is offered. It can be done, but it is usually much harder for the consumer. Industrial products are mostly used as input for manufacturing other products. In comparison with consumer goods, these products are not used for direct consumption. Some examples of industrial products are raw materials, machines, tools, etc. these products are used in businesses and factories. Unsought products refer to this kind of product about which consumers either do not know much about it or usually don’t buy until a certain need arises.

Even, before you think of building a home, you need money which is provided by a bank through its loan services. The construction of the house is not possible without hiring the services of architects, engineers and builders all of whom charge for their expertise. So, whether you are buying your groceries or wine or car, you are buying products that you can use and consume or resell afterwards.

Services are transactions where no physical goods are transferred from the seller to the buyer. Unlike products, services can’t be manufactured or stored and must happen in real time, like a haircut service for example. Marketing a product like shampoo or dog food is very different to marketing a service such as legal advice or phone communications.

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Product-based businesses generally require higher upfront costs. A particular product will remain same regarding physical characteristics and specifications, but services can never remain same. When the buyer purchases the goods by paying the consideration, the ownership of goods moves from the seller to the buyer. Goods are tangible items i.e. they can be seen or touched whereas services are intangible items. The major key feature of a product is that it is physical and it is also tangible.

For example, think about funeral products, fire extinguishers etc. Companies need to do more advertising and publicity for these products to be known among the customers. We already know the difference between product and services. Is it possible to distinguish between imperishable from perishable services? You can describe services as perishable, but not imperishable. It is best to consume such a service as soon as possible after its production.

It doesn’t matter if you have a tangible, tactile, visual product or an intangible, nontactile service. When we start with the customer and their problems, there is no difference whether the solution is a product or service. The impact of a solution, product, or service is still a vision, an intangible. It’s not something you can touch or feel, and it’s unique to EVERY customer. These specialists provide services to us for which they charge money from us. Once the home has been built, you require the services of not just an insurance agent but also the services of security equipment providers.

For example, eating food at a restaurant.InventoryOne can keep goods in stock as inventory. For example, a warehouse full of watches.One cannot keep services in stock as inventory. Place strategy is an element of a business’s marketing mix that focuses on the best location for selling products or services. The objective of place strategy is to guarantee accessibility of the target market to the product or service. For services, the location is concurrent with the production because intangible items, benefits, and activities cannot be stored, transported, or separated from the provider.

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Selling a product requires careful consideration of what will meet the need of the average customer who faces a particular pain point. Entrepreneurs interested in developing product-based businesses need to consider the types of products on the market and their shortcomings to target the appropriate customers. Conversely, the service-based business will only bring in income so long as you actively work. However, selling a product online allows you to keep your business running 24/7 without having to actively man a physical location the entire time.

Product marketing are tangible which means that a customer can see and touch the product before deciding to buy it. On the other hand, services in marketing are intangible cannot be touched. This simply makes it more difficult to promote services to potential customers. In product marketing, only 4 P’s of the marketing mix which are product, price, place, and promotion are applicable.

It is important to understand the differences and to consider them in the development of strategies, tactics, and objectives. Selling products and services requires some differences in the mindset of entrepreneurs. Creating products requires detailed knowledge of the gaps in products on the market and what customers want to satisfy their pain points.