Marketing & PR Firms - Differences Between Marketing a Product & a Service
Sunday, November 24, 2013
Though similar principles apply, marketing a product and marketing a service require two very distinct strategies. The marketing mix is the blend of key interrelated marketing elements that companies and firms consider in building an effective marketing plan. Conventionally, the marketing mix is referred to as the four P's of marketing (product, place, price and promotion). However, growth in the service sector has led to development of an expanded 7 P's of service marketing.
Positioning
Positioning is a necessary marketing strategy aimed at helping the company establish a disctinct position for its brand in the mind of targeted customers, according to Business Dictionary. Companies establish positions as low-cost, value-oriented, and premium or luxury providers. They also use specific features and benefits to create a unique selling proposition for customers. Establishing a position is one purpose of utilizing the marketing mix. Companies design their offering to best match customer needs and then deliver messages to persuade them that their brand's benefits are the best fit.
Product Marketing Mix
The marketing mix concept originated in the business mainstream with Neil H. Boren's 1964 publication "The Concept of the Marketing Mix," according to Net MBA. Boren discussed the concept as early as the 1940s during his own teaching. The conventional view of the marketing mix includes four basic elements. Product addresses the specific tangible good you are selling. Place, or distribution, relates to the delivery mechanism to customers. Price is a component that relates to your intention of selling a low-cost, value, or high-end product. Promotion is the specific communication to consumers about your offering.
Service Industry Growth
Tremendous growth in the service sector of the United States economy prompted growing interest in an expanded services marketing mix model in the 21st century. The Encyclopedia of Business (2nd Ed.) notes that the Bureau of Labor Statistics says 97 percent of jobs added to the U.S. economy from 1990 to 2002 were service jobs. Service-oriented jobs were added at the expense of manfucturing jobs in many situations. Because of growing sales of intangible service solutions, the expanded 7 P's of marketing has become popular.
7 P's of Marketing
The fifth, sixth and seventh additions to the services marketing mix are people, process, and physical evidence, according to the Learn Marketing website. These are additional service marketing factors that affect marketing efforts of service solutions. The people element is important because people deliver services and are part of the solution. Processes are vital to timely, accurate and consistent service delivery. Physical evidence is tangible proof for customers that validates delivery of the promised service offering.
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Marketing, Marketing amp; PR Firms
Positioning
Positioning is a necessary marketing strategy aimed at helping the company establish a disctinct position for its brand in the mind of targeted customers, according to Business Dictionary. Companies establish positions as low-cost, value-oriented, and premium or luxury providers. They also use specific features and benefits to create a unique selling proposition for customers. Establishing a position is one purpose of utilizing the marketing mix. Companies design their offering to best match customer needs and then deliver messages to persuade them that their brand's benefits are the best fit.
Product Marketing Mix
The marketing mix concept originated in the business mainstream with Neil H. Boren's 1964 publication "The Concept of the Marketing Mix," according to Net MBA. Boren discussed the concept as early as the 1940s during his own teaching. The conventional view of the marketing mix includes four basic elements. Product addresses the specific tangible good you are selling. Place, or distribution, relates to the delivery mechanism to customers. Price is a component that relates to your intention of selling a low-cost, value, or high-end product. Promotion is the specific communication to consumers about your offering.
Service Industry Growth
Tremendous growth in the service sector of the United States economy prompted growing interest in an expanded services marketing mix model in the 21st century. The Encyclopedia of Business (2nd Ed.) notes that the Bureau of Labor Statistics says 97 percent of jobs added to the U.S. economy from 1990 to 2002 were service jobs. Service-oriented jobs were added at the expense of manfucturing jobs in many situations. Because of growing sales of intangible service solutions, the expanded 7 P's of marketing has become popular.
7 P's of Marketing
The fifth, sixth and seventh additions to the services marketing mix are people, process, and physical evidence, according to the Learn Marketing website. These are additional service marketing factors that affect marketing efforts of service solutions. The people element is important because people deliver services and are part of the solution. Processes are vital to timely, accurate and consistent service delivery. Physical evidence is tangible proof for customers that validates delivery of the promised service offering.
