Marketing Fight Club: The truth about Service vs Product Marketing
Marketing is a vital pillar in the business landscape that bridges the gap between a product or service and its potential customers. As of writing this in mid-2023, there are two primary actors occupying this landscape: product marketers and service marketers. While they share common objectives, their roles, challenges, strategies, and customer interactions can differ significantly. This in-depth analysis examines the distinctive roles of product and service marketers and highlights their similarities, differences, and interactions, providing a comprehensive perspective on their functions in the business ecosystem. One area of note - while there are defined distinctions between both, successful marketers are actually capable of doing either (or both in some cases). It's all about customer-centricity and your ability to solve problems. More below
Definition of Terms
To understand the roles that product and service marketers play, it's crucial first to clarify what these terms mean. Product marketing concerns itself with the promotion of tangible goods. It involves determining the product's positioning, messaging, and launch strategy to maximize its appeal to potential customers. The primary goal of product marketing is to articulate how a product can solve a customer's problem or enhance their lifestyle.
Service marketing, on the other hand, revolves around promoting services rather than physical products. This can include anything from a consultation service to hospitality, from maintenance services to experiences like concerts or holidays. The focus of service marketing is to articulate the benefits of the service, often intangible, to persuade potential customers of its value.
My personal view on these definitions is that a good rule of thumb is to be fluid when defining your positioning in your space. It does not matter - whether Service or Product, consumer (B2C) or business (B2B) - the tenants of customer-centric strategy transcend the need for distinction. At the risk of oversimplifying this concept, think about your perfect customer - you know their needs, their challenges, their wants, their interests, etc. Your buyer persona is solid. Now think about the most successful interactions with your customers - did you land and expand your customer because of how great your product was? How about your service - did you do it the best in the industry? Chances are probably not. So why did they land? When you peel back the layers to that question you should see characteristics of that deal repeat on paper - you had a firm grasp on their immediate need and helped them solve for it. The customer had a problem, and you had the solution for them. Whether it was a cork to plug the hole in their boat that kept them from sinking, or the knowledge and tactical expertise to advise them or actually plug their boat before venturing out to sea, your customer found immediate value in what you did or gave to them because you addressed and fixed their problem. (trust me, when your customer needs to put out a fire, they're not overly concerned with where the water came from or who bottled it, as they are with whether it'll be enough to extinguish the flames).
The key to Product, Service, Brand, Growth, etc. Marketing is keeping your audience at the center of everything you do.
Comparing Marketing Strategies
Alright, so marketing philosophy aside, let's jump into some of the specifics each marketing focus requires. Product marketers and service marketers employ a range of strategies to capture their target audience's interest and convince them of their offering's value. The strategies used often reflect the nature of the product or service being marketed.
Product marketers, for example, focus on tangible attributes such as the look, feel, and functionality of the product. They utilize strategies like branding, packaging, and product placement to grab attention. Product demonstrations, whether in-person or through digital platforms, are also a common strategy. This tactile, experiential strategy enables customers to appreciate the product's practical value. The successful ones align their product's messaging and positions of feature set as a compliment to the challenge or job it was built to solve - the challenge or job that the end user can directly relate to experiencing. As soon as you take your eye off of your customer and begin prioritizing the value of the product over the value the product can bring to the customer, is the time your campaigns lose steam, and you start to lose your audience.
Service marketers, conversely, often rely on more abstract, narrative-based strategies. They strive to convey the quality, convenience, or unique benefits their service provides. Customer testimonials, professional accreditations, and satisfaction guarantees are commonly used in service marketing to establish trust and credibility. There's definitely a certain level of immeasurable value that comes with buying services vs tangible products, but when coupled with extensive education and thought leadership, service marketing is extremely powerful.
A prime example of successful service marketing is Airbnb, the popular home-sharing platform. Airbnb offers a platform for individuals to rent out their homes or rooms to guests as an alternative to traditional hotels. This is a service, not a product, and Airbnb's marketing has been remarkably successful in promoting it.
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Experiential Marketing: Airbnb focuses on selling experiences, not just accommodations. Their marketing emphasizes the unique experiences that customers can have by choosing Airbnb over traditional lodging options. The platform enables guests to live like locals, often in unique or personalized spaces, and this is a key part of their marketing appeal.
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Storytelling: Airbnb has mastered the art of storytelling in its marketing. From sharing the unique stories of hosts and their homes to encouraging guests to share their experiences, Airbnb creates a narrative around its service that resonates with customers.
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User-Generated Content: Airbnb heavily relies on user-generated content in its marketing. Reviews and ratings from previous guests are prominently featured, giving potential customers an idea of what to expect. Additionally, user photos and stories are shared across Airbnb’s website and social media platforms, providing authentic marketing material that promotes the service.
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Community Building: Airbnb has also worked to build a sense of community among its hosts and guests, fostering a sense of belonging that is a key part of its brand image. This is reflected in their slogan, "Belong Anywhere."
Through these tactics, Airbnb has successfully marketed its service, appealing to customers' desire for unique, personalized experiences and building a strong, recognizable brand. In contrast to product marketing, Airbnb's service marketing focuses less on tangible attributes and more on abstract, experiential benefits. However, at first glance, it can be difficult to differentiate the experience and service it offers from a tangible product. After all you "get an airbnb" in a physical sense too. Airbnb is a prime example of how these staunch lines of product vs service marketing can blur, specifically at the benefit of its audiences.
They've mastered the customer-centric approach through:
Intangibility and Experiences: Airbnb is technically marketing an intangible service. There is no physical product to touch, feel, or try before buying. Instead, Airbnb sells experiences and possibilities. They emphasize the unique adventures and local experiences users can have, creating a sense of anticipation and excitement that's more emotionally driven than product-based.
Storytelling and Personalization: While product marketing often relies on product specifications and features, Airbnb's marketing success hinges on its ability to tell compelling stories. They highlight personal experiences and narratives from real hosts and guests, which resonates on a human level far more than product specs could. This sense of authenticity and personal connection is critical in service marketing.
Reliance on Trust and Reviews: Airbnb has a marketing engine that relies heavily on trust, as users can't inspect the service before they purchase it. They must believe that the service will meet their expectations. Airbnb fosters this trust through user-generated content, such as reviews and ratings from past guests, which provides social proof of the quality and value of their service.
Community Building: While product marketers do aim to build a brand community, it's often centered around the product itself. In contrast, Airbnb’s community building efforts are centered around shared experiences, stories, and a sense of belonging. It's about the emotional connection between hosts and guests, which fosters loyalty and engagement on a deeper level.
Shared Marketing Challenges
Every marketing role comes with its unique set of challenges, and product and service marketers are no exception. Product marketers often grapple with issues such as intense competition, especially in saturated markets. They also need to stay ahead of rapidly changing consumer trends and preferences, necessitating a deep and continuously updated understanding of the market.
Another significant challenge for product marketers is differentiating their product from competitors'. This requires a keen eye for detail and a deep understanding of what makes their product unique, whether it's an innovative feature, superior quality, or a brand story that resonates with consumers.
Service marketers, on the other hand, deal with the intangibility of their offerings. Unlike products, services cannot be seen, touched, or tried before purchase, making them more challenging to sell. Service marketers need to communicate their service's value convincingly, highlighting the benefits and assuring customers of satisfactory outcomes.
Customer interaction plays a crucial role in both product and service marketing. Product marketers often engage customers by focusing on the product's features and benefits. They might offer product demonstrations or trials to help customers understand how the product fits their needs or enhances their lifestyle.
Service marketers, on the other hand, focus more on relationship building. They engage customers through personalized communication, demonstrating empathy and understanding. They strive to foster trust and reassure customers that they will receive a high-quality service tailored to their specific needs.
Both sides benefit from deep emotional connections. Don't let the products or services distract you from the successful ways marketers convince you to buy their "stuff" - it's about the trust and quality of interaction customers receive along their path to purchase. The best brands do this so seamlessly that it does not even feel like you're making a tough decision - you're simply on a journey to a happy ending (with either a product in hand, or an experience/service to benefit from).
Similarities between Product and Service Marketing
Despite their distinctive roles, product and service marketers share common objectives. Both aim to understand their customers deeply, create messages that resonate with their target audience, and convince customers that their offering is the best solution for their needs. They both employ market research, customer segmentation, and competitive analysis in their strategies. They also both aim to develop a strong brand reputation and foster customer loyalty.
Companies like Apple offer excellent examples of effective product marketing. They sell not just a product, but a lifestyle, emphasizing sleek design, innovative features, and superior performance in their marketing.
In contrast, Airbnb illustrates effective service marketing. They highlight unique experiences, comfortable accommodations, and personal connections that customers can enjoy through their platform.
Both are powerhouses in their respective spaces, and have gotten there not by having the best, or most unique, or [insert superlative here]. Instead, they've taken the time to deeply evaluate and understand their audiences. They know what truly makes them do the things they do, say the things they say, and make decisions in their lives. Creep factor aside, it's a great example of peeling back the layers of your audience to get to the heart of their need or challenge, and then solving for that. It's a tough exercise to get right the first time - hell Apple almost went broke their first pass through! But, they had leadership that understood the power of customer-led marketing. Time and time again we see this in the winning equation: when you solve for your customers and make it the prioritized center of what you do as a company, you're setting yourself up for strong customer relationships and trust, and prime product/service alignment.
Conclusion / TL;DR
While product and service marketing have distinctive characteristics, the customer is paramount in both. Brands that prioritize a customer-centric journey - focusing on the customers' needs and experiences - are the ones that achieve lasting success. Remember, customers may not recall every detail of your product or service, but they will always remember how they felt going through the buyer's journey with you. So the next time you're looking for a "product" or "service" marketer, look at what they've accomplished for the audiences they've worked with in the past. Find someone like JMC who can help you master your connection to your audience. Once you do that, the rest of the specifics (product or service offerings) will fall neatly into rhythm with the larger customer journey.
Need help with your audience alignment? Just find some time on my calendar below and let's get to work building a smoother, more enriching experience for your customers at every step in their buyer's journey!
