Product Dominant Vs Service Dominant Marketing

Product Dominant versus Service Dominant Marketing

The product dominant approach to marketing focuses on the development of products for the mass market at a low price. Under this approach marketers consider product, service and price as three separate characteristics. This approach was common during the industrial revolution where it was believed that the only way to increase market share was to create better products at lower prices.

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The service dominant approach to marketing focuses on the fact that customers determine which products are better in a market. It focuses on the customer or service related factors that consumers want. Currently consumers compare products and their prices together with the services that come with the product. Price is not the only determining factor. Therefore, product dominant marketing only focuses on the product itself whereas service dominant marketing focuses on the product in addition to the services that go with it (Kotler, & Keller, 2009).

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Four Types of Consumer Offerings

Products and services are categorized in a variety of ways by marketers. The four types of consumer offerings include; convenience, shopping, specialty, and unsought offerings. Offerings are a function of how consumers purchase the products and will be different from consumer to consumer for the same product. Convenience offerings are those that do not require much effort from the consumer.

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Shopping offerings are those where the consumers take a lot of time and effort in comparing and deciding on which brand. If one chooses Colgate as toothpaste, they will only but Colgate and not another brand of toothpaste. Specialty offerings are very highly differentiated, and the brands marketed are very different across the companies. Unsought offerings are those that consumers purchase when they need them such as funeral services. They are normally very difficult to market.

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