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 ServiceThere 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 ServiceThe 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.
An offering that can be sold to customers.
An offering that derives value from intangible elements.
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