A-Z Popular Blog Marketing Search »
Product Development
Related Guides

Product vs Service

 , updated on
A product is an offering that can be sold to customers. It is common to think of products as having a physical presence such as a mobile device. As a business term, product has no such connotation. Particularly in marketing, it is common to call anything that can be sold a product, physical or not. For example, flights and software services may be considered products.
A service is an offering that includes intangible elements. Services might include physical things such as commodities, devices, buildings and equipment. However, they always include something intangible such as management, customer service, maintenance and experiences. For example, a hotel may offer managed properties and facilities, security, customer service, entertainment, dining, room service, cleaning, concierge services, transportation and recreation.

Everything is a Service

There is a significant shift in many industries towards wrapping all products in value added services. This is done to earn more revenue by offering more to customers. Services also allow businesses to establish closer relationships with customers and charge them according to attractive models such as subscriptions.

Product vs Service

The line between products and services is extremely blurred. It is common to refer to services as products from a marketing perspective. It is common to wrap products in services to add more value. Products are traditionally thought of as physical things and services as intangible things. This distinction is fading.
Product vs Service
An offering that can be sold to customers.
An offering that derives value from intangible elements.
Associated With
Physical Items

Product Development

This is the complete list of articles we have written about product development.
Brand Development
Competitor Analysis
Critical To Customer
Customer Analysis
Customer Needs
Design Considerations
Design Principles
Design To Value
Early Adopters
Feasibility Study
Figure Of Merit
Latent Need
Market Fit
Market Research
Moment Of Truth
Naive Design
Packaging Design
Product Analysis
Product Culture
Product Design
Product Functions
Product Marketing
Product Metrics
Product Planning
Product SWOT
Proof Of Concept
Sensory Analysis
Social Features
Target Market
Time To Market
More ...
If you enjoyed this page, please consider bookmarking Simplicable.

Business Models

A list of common business models.

Bricks And Clicks

A retailing strategy that combines physical locations with a strong ecommerce presence.

Complementary Goods

A definition of complementary goods with several examples.

Collective Business System

An organization that represents businesses or professionals that have something in common.

Business Model Examples

A few examples of common business models.

Business Model Definition

The definition of business model.

Scalable Business Model

A definition of scalable business model with several examples.

Two-sided Market

A definition of two-sided market with examples.

Product Development

A guide to product development.

Product Strategy

A checklist for developing a product strategy.

Product Differentiation

An overview of product differentiation.

Moment Of Truth

A definition of moment of truth with a few examples.

Product Value

A definition of product value with examples.

Product vs Feature

The difference between a product and a feature.


A definition of productization with examples.

Target Costing

A definition of target costing with examples.

Market Fit

A definition of market fit with examples.

Service Development

The steps to develop and launch a new service.
The most popular articles on Simplicable in the past day.

New Articles

Recent posts or updates on Simplicable.
Site Map