Physical Good Difference from Pure Service Free Essay Example

Product in marketing term has 2 combination tangible and intangible products. Product maybe a physical goods or service or combined of both. Product can be 100 percent emphasis on physical goods- cars, golf club, soft drink- to 100 percent emphasis on service- internet service provider, postal service. But we will call all of this as product.

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Good is physical thing, it can be seen and touched. You can try on fur coat or eat pat thai in street shop. A good is tangible. When you buy it, you own it.

And it’s usually pretty easy to see exactly what you will get. On the other hand, a service is experienced, used or consumed, when you provide a customer with a service, the customer cannot keep it. Services are not physical – they are intangible and it’s may be hard to know exactly what you will get when you buy it.

Goods are usually produced in a factory than sold. In the other hand services are often sold first than produce and they are produced and consumed in the same time frame.

Thus, goods producer may far away from the customer, but service provider often work in the customer presence.

You can see the difference between physical good and pure service by its characteristic. For service it has actually characteristic that separate from physical good- Service has four characteristic: * Intangibility the service cannot be touched or viewed, so it is difficult for clients to tell what they will be getting from the service. * Inseparability of production and consumption the service is being produced at the same time that the client is receiving it (e.

g. during an online search, or a legal consultation).

* Perishability unused capacity cannot be stored for future use. For example, spare seats on airplane cannot be transferred to the next flight, and query-free times at the reference desk cannot be saved up until there is a busy period. * Heterogeneity (or variability): services involve people, and people are all different. There is a strong possibility that the same enquiry would be answered slightly differently by different people (or even by the same person at different times). It is important to minimize the differences in performance (through training, standard-setting and quality assurance). But for product you cannot separate service from it, you can see in the classification of product: * Convenience product is a product and service that consumer purchase frequently with a little though and buying effort (e.g. fruit, cigarette, water…)

* Shopping product is a good and services that consumer typically compares for suitability, quality, price, feature, etc. before selection and purchase (e.g. computer, mobile phone, cars…) * Specialty product is a good and service for which the consumer has strong preference and is prepared to search for extensively to select and purchase the most suitable with unique characteristic or brand identification (e.g. Louis vuiton bag, Bentley car, Dior cosmetic…) * Unsought product consumer good and service to which consumers are unaware, product that people do not necessary think of purchasing (e.g. health insurance, cemetery plot…) The other thing that you can separate physical product and pure service is by the use of marketing mix– combination of marketing elements used in the sale of a particular product, its elements is simple, basic and tactical components of a marketing plan- in marketing strategy- the broad marketing thinking that will enable an organization to develop its product and marketing mix in the right direction, consistent with overall corporate objective.

The traditional 4Ps marketing mix which represents Product, Process, Pricing and Promotion, have been most widely employed as a model for product marketing. * Product the development of the correct product attributes to meet a need of the target market. * Pricing refer to a firm’s strategy for setting price. * Promotion communication between a sellers and members of its target market.

* Place/distribution the placement is the right quantity of products in the right place at the right time. For example: before product can be release out to the market, product must be development by doing research on people need and want, when you got actual product it comes to stage that need to considered in which price to charge from the customer. Then it is time to release product out to the market what shall be the promotion plan to pursued customer got interested in you. Next the other element that is also important is place/distribution a channel of distribution comprises a set of institutions which perform all of the activities utilized to move a product and its title from production to consumption. The additional 3Ps has gained widespread acceptance in the services marketing literature. The 3Ps together represent the service and provide the evidence that makes services more tangible.

* People refer to all people directly or indirectly involved in the consumption of service, example employees or other consumers E.g. people are all people directly or indirectly involved in the service encounter, namely the firm’s contact employees, personnel and other customers. Due to the inseparability of production and consumption for services which involves the simultaneous production and consumption of services, service firms depend heavily on the ability of contact employees to deliver the service. Contact employees contribute to service quality by creating a favorable image for the firm, and by providing better service than the competitions. Service providers (such as hairstylists, personal trainers, nurses)

* Process is the delivery and operating systems of procedures, mechanisms and flow of activities which services are consumed. E.g. Process is referred to the procedures, mechanisms and flow of activities by which the service is delivered. * Physical evidence that related to the environment in which the service is delivered, and the tangibles that help to communicate and perform the service

E.g. Physical evidence refers to the environment in which the service is assembled and in which the seller and customer interact, combined with tangible commodities that facilitate performance or communication of the service.