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Product vs Service

 , updated on January 14, 2023
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
Product
Service
Definition
An offering that can be sold to customers.
An offering that derives value from intangible elements.
Associated With
Physical Items
Management
Service
Experiences

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
Go-To-Market
Latent Need
Market Fit
Market Research
Marketability
Moment Of Truth
Naive Design
Niches
Over-Positioning
Positioning
Premiumisation
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 ...
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