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Marketing goods and services

What distinguishes more economically developed countries from other economies is that by far the largest proportion of national income and wealth comes from the sale of services, rather than from the sale of manufactured products.

It is important to understand the difference between a product and a service and how this distinction will affect the marketing process.

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Is there really a distinction between goods and services?

RAC.pngIn fact, there are few 'pure' products or 'pure' services. Most products contain service elements. For instance, when we choose a new car, we may take into account the after sales service offered, the availability of credit terms and the image of the manufacturer. The service element may provide the 'value added' that differentiates one product from its competitors.

Most services have tangible elements. When you or your parents select a school, your choice will be influenced by the skills of the teaching staff, but also by the physical (tangible) environment and facilities, such as the classrooms, computers, sports facilities etc.