Products and Services : Modelling the Difference

Lot of companies especially in startup mode create a lot of confusion between developing and selling products versus defining and providing services. Product strategies always follow the 4P model representing product, promotion, price and place. In case of services it follows the 4R model representing reputation, relationships, references and referrals. Wrong application can be an expensive proposition as you build your business. Another myth is that innovation can only happen in product development.

2 thoughts on “Products and Services : Modelling the Difference”

  1. How true…and there is this constant debate about “Products are Greater than Services” that one battles with….Especially in the India context. I think the key is to deliver something of “value” as perceived by your customers. And the “value” often is a combination of “products and services”, or the “whole product”. Especially in these times, when a lot of “technologies or products” have been generated over the last few years and its time to make them “more useful” through a set of “services” that “deliver” on those products.

    This is what I have experienced, after creating a wireless product company and having worked in and having created software services companies over the last few years.

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