Service Goods

Posted in Marketing and Strategy Terms, Total Reads: 265

Definition: Service Goods

Service goods are basically those goods that are same or very similar from the viewpoint of the customers. These good have more or less same standard features and specifications with little or no differentiation between them. The only point where they compete in the marketplace is through their price and the brand value associated with the company that manufactures them. Examples of service goods are air conditioners, radios, batteries, etc.


The advertising of these products can’t be done on the basis of differences in the product. Advertisers and marketers have to come up with new and innovative ways to attract customers towards their products and capture the market share. If we take the example of deodorants, they are more or less similar in their value proposition. Their success in market basically depends on the way they are positioned in the market and how effective is their positioning. While axe positions itself as a deodorant for young adults, Zatak positioned itself as a deodorant for late teenagers. These products have to be extensively advertised to make a mark in the market place and it also very difficult for them to retain their customers.



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