Presented by:
1. Astrologo, Krishna Yvonne V.
POLYTECHNIC UNIVERSITY OF THE
PHILIPPINES
College of Business Administration
Bachelor of Science in Business Administration
Major in Marketing Management
A.Y 2022-2023
Chapter III: How does Service/s Marketing
Differ from Physical Goods Marketing
Topics:
1. Meaning of Tangible and Intangible Goods
1.1. Tangible Goods
1.2. Intangible Goods
2. Difference of Tangible and Intangible Goods
3. Physical Products Marketing and Services
Marketing
3.1. Physical Products Marketing
3.2. Services Marketing
4. Difference of Physical Products Marketing
and Services Marketing
2. Benasa. Lady Fiona T.
3. Biasca, Jeaneth
4. Cueto, Ma. Fatima P.
5. Padron, Jhian Francis V.
Presented To:
Dr. Leonardo G. Adap
I. LEARNING OUTCOMES
1. Identify the meaning of Tangible and
Intangible Goods
2. Discuss the difference between
tangible and intangible goods.
3. Recognize and compare physical
goods marketing and services
marketing.
II. DISCUSSION
TOPIC 1: MEANING OF TANGIBLE AND
INTANGIBLE GOODS
OVERVIEW
Goods- are characterized as something produced for
commercial sale, and by means of the usage of
products, customers' or consumers' demands are
satisfied. As all promotional actions center on the
product, which can be either tangible or intangible, it
counts as one of the basic aspects of advertising.
Goods and services are terms used to describe
physical and intangible items, respectively.
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1.1. TANGIBLE GOODS dairy products that might degrade or
deteriorate over time.
What are Tangible Goods?

Tangible goods or products that can be touched, felt,
and seen are referred to as tangible goods. These are
items that can be felt by our senses and have a
tangible presence. Vehicles, furniture, clothing, food,
technology devices, books, and other items are
examples of physical things. These items are
transferable from one person to another. Contrary to
intangible commodities, tangible goods are physical
objects that can be handled or physically delivered to
the customer. Moreover, they are vulnerable to
deterioration, breakage, and depreciation over time.
Businesses that sell tangible goods have a different
business strategy than businesses that provide
services. For instance, a retail company selling real
goods may need warehouse and inventory
management, whereas a travel agency may be able to
function from tiny offices in relation to their size.
• Non-perishable commodities, such as
canned foods and dry goods, have a long
shelf life and can be kept in storage for
protracted periods of time without going bad.
• Luxury goods include high-end apparel,
jewelry, and vehicles that are pricey but not
essential for survival.
• Vehicles and complementary products are
both tangible goods and a mode of
transportation. Transportation by water, they
include ships, boats, or canoes, while for
transportation by air, include aircraft and jets.
These items frequently incorporate other
smaller tangible items.

• Essential goods include things like food,

water, and shelter that are required for
What are the types of Tangible Goods? survival.

There are numerous categories in which tangible Examples of Tangible Goods

commodities might be arranged but these are just
some of the classified tangible goods of many. 1. Every item of clothing, including shirts, pants,
shoes, and accessories, is included as clothes.
• Consumer goods include items like clothing,
food, and home appliances that are bought
by individuals for their own consumption.

• Industrial goods include equipment,

supplies, and tools that are utilized in the
creation of other products or services.

• Durable Goods products that can be used

frequently and have a long lifespan include
durable things like furniture, automobiles,
and appliances. 2. Food: This comprises all forms of food
products, including packaged snacks, fruits,
• Non-durable commodities, such as food, vegetables, meats, and grains.
toiletries, and office supplies, are items that
are quickly consumed or used up and have a
short lifespan. The term "perishable goods"
refers to products like fresh vegetables and

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3. All forms of home furnishings, such as
couches, chairs, tables, and beds, fall under
the category of furniture.
4. All sorts of electronic equipment, such as
mobile phones, computers, TVs, and
household appliances, fall under the category
of electronics.
5. All forms of vehicles, such as cars, trucks,
motorcycles, and bicycles, fall under the
category of "vehicles."
1.2. INTANGIBLE GOODS
Intangible Goods
These components lack the tangible features
associated with actual goods since they are non-
material. Another way of categorizing a product is
according to its benefits, whether it is something the
consumer uses directly to meet a long-term need or a
daily need, something he is interested in owning to
reap long-term benefits from, or something that
serves as the raw material for the production of
another product. Intangible goods are categorized
using the criteria of effort and risk, where effort is
defined as the time, money, and effort expended by
the customer to receive the commodity and risk is
defined as the product's failure or inability to deliver
the
characteristics and benefits expected of it. It needed
to be convinced that it was worthwhile to pay for the
caliber of service, your knowledge, and your
personal reliability. Selling services might be more
difficult because there is no actual tangible item that
the customer can handle or see. Instead, you must
establish a rapport and project a sincere sense of self.
In addition, customers receive value from it because
their needs and wants are met. This is also the
foundation of many enterprises, and they are crucial
for promoting economic expansion. Also, consumers
who purchase intangible commodities have access to
a variety of services that fall under many categories.
Types of Intangible Goods
• Health Services: Clinics and the medical
treatments they offer patients fall under this
category of services. The characteristics,
background, and accomplishments of each
healthcare organization are presented along
with the hospital centers.
• Educational Services: Included in this
category are the courses and diplomas that
educational institutions give to their pupils.
Also, graduates have access to employment
prospects.
• Legal and Advisory Services: This area is
exclusive to legal firms, commercial and
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 customs clearing offices, and many other
businesses that advertise the services they
offer to draw in the most customers.
• Tourism Services: This category is one of the
most well-known since so many travel
agencies, hotels, and tourist destinations
market the services they offer.
• Communication Services: Included here are
communication firms that offer deals and
rebates on their own equipment and
technology.
• Entertainment Services: These
establishments sell and advertise the deals
and discounts they give, and they provide this
kind of good in venues, clubs, and
restaurants.
• Financial Services: This category includes
post offices and banks. These organizations
use the principles of service marketing to
advertise credit certificates in addition to
deals on savings, accounts, and loans.
• Transportation Services: This group of
businesses includes those who plan and direct
construction projects as well as those that
offer traffic signs and all other services
associated with traffic and transportation.
These businesses promote all of the
exceptional services they offer.
Examples of Intangible Goods
• Education: Teaching is a service that people
may use to gain knowledge and skills. It is
intangible since it cannot be felt or seen, but
it adds value to students' education by
enhancing their general quality of life and
preparing them for their future employment.
• Hotel Accommodations: Hotels and resorts
offer hotel services. The housing, food, and
entertainment provided by these services.
• Airline-provides air transportation:
Airlines offer this service. These services
include air transportation for both people and
goods.
• Software: A digital good that offers clients
value by giving them access to tools and apps
that facilitate effective job completion. While
it is intangible since it cannot be felt or seen,
it adds value to consumers' lives by
enhancing their productivity.
• Music: A non-tangible good, music offers
consumers amusement and emotional value.
It cannot be seen or felt, but it can be heard,
and it gives listeners satisfaction and value
through eliciting feelings.
• Insurance: An investment service protects
against risks and unforeseen events. While it
cannot be felt or seen, this intangible good
nonetheless adds value to clients' lives by
giving them financial stability and peace of
mind.
The economy cannot function without intangible
goods, which are essential to satiating everyone's
wants and needs. A company sells a variety of things
that fit into several distinct categories. Organizations
provide a range of options to customers, and by
meeting their demands and expectations, they are
able to add value. The illustrations of intangible
goods used in business that are covered in this article
provide readers a taste of the many offerings out
there for them to choose from.
TOPIC 2: DIFFERENCE OF TANGIBLE AND
INTANGIBLE GOODS
What is the difference between Tangible and
Intangible Goods?
Travel, freight forwarding, insurance, repairs,
consultancy, computer software, investment banking,
brokerage, education, health care, and accounting are
examples of intangible things that can rarely be pre-
tested, examined, or tried out. In order to determine
what they're going to receive; prospective buyers are
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typically obliged to rely on surrogates. Contrarily,
tangible goods are things that you can actually see,
touch, and feel. Books, food, groceries, medicines,
and skincare goods are just a few examples of these
products. They are distinct from immaterial goods
like insurance, consulting, health care, accountancy,
and financial services. These products have
comparable qualities in common, like labeling and
appearance.
The distinctions between tangible and intangible
goods based on:
Physicality: In comparison to intangible goods,
which lack a physical form and can't be seen or
handled, tangible goods may be physically touched,
or otherwise handled. For instance, a concert is an
experience that cannot be literally held or felt, yet a
car is a tangible product since it can be seen, handled,
and driven.
Perishability: While intangible goods are not
susceptible to physical deterioration or expiration,
tangible goods may deteriorate or lose their value
over time. Food products and electronics are
examples of tangible goods that can deteriorate over
time and have a shelf life. In contrast, intangible
goods are available forever and don't have an
expiration date.
Production and distribution: In contrast to
intangible goods, which are frequently developed
and distributed through service processes, tangible
goods are usually made or produced in a physical
environment. Physical production procedures, such
as manufacturing, assembly, and packing, as well as
a possible physical distribution system, are needed to
create tangible items. A number of delivery methods,
including online or in-person, can be used to
distribute intangible items, which need service
operations like consultation, training, or
entertainment.
Ownership: While intangible goods are usually
shared or experienced collectively and cannot be
owned in the same manner as tangible goods, they
can be owned and acquired by people. People can sell,
buy, and have such tangible goods, but groups or
communities quite often use intangible products like
entertainment or education.
These variations have important implications for the
firms that manufacture and promote these goods,
including distribution, price, and marketing plans.
Businesses may better serve their consumers'
requirements and develop more successful business
strategies by recognizing the distinctive qualities of
physical and intangible items.
TOPIC 3: PHYSICAL PRODUCTS
MARKETING AND SERVICES MARKETING
3.1. PHYSICAL PRODUCTS MARKETING
Physical Products Marketing
It is the promotion of physical goods to the market.
Building the brand and growing the bond that you
have with your consumers. This marketing should be
able to recreate the experience of engaging the actual
goods to the customer. However, presenting the
product is not only an easy task, since you need to
have an in-depth knowledge about it to be able to sell
it. Consumers are enamored to buy items that they
could use that last long enough and the aesthetic
appearance of it. This also ranges to products that
they couldn’t use but bring satisfaction to the buyers.
How does Physical Products marketing work?
People working under the marketing field and
entrepreneurs should have a creative mind to make
their product presentable. According to the American
Marketing Association, promotional materials
should be high quality, sustainable and affect the
consumers’ buying behavior. It should create an
impact and stimulate a positive emotion to the
customer to be attracted to the physical goods. A sign
of good marketing is when the product is established
to the mind of the consumer. Physical goods
marketing doesn’t stop at presenting the product, but
together with the brand. The products could be
marketed using the digital space and tangible
marketing materials. With the non-stop
advancements of innovation, the market can be
reminded of the product through scrolling on their
devices, watching TVs, listening to radios, and other
platforms. We also have physical advertisements
such as banners, flyers, billboards, brochures etc.
Advertisements leave a message to communicate
with the target audience. The message should be
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clear, memorable and have its own charm.
Additionally, the key to successful marketing is good
planning and strategy.
Strategies of Marketing Physical Products
• Know your target market
Introducing a product wouldn’t be hard if the
business has a targeted market. Entrepreneurs should
conduct a target market research on their location to
understand what their customers wants and desires.
• Authenticity
Be authentic in the market. When selling similar
physical goods, your product should be able to appeal
different from competitors.
• Reach your customers
Don’t stay stagnant on one marketing channel. The
more marketing channel, the better. With moderation
of the budget in hand.
• Perfect Pricing
Determine the right pricing for your product. Pricing
attracts customers, most likely to new entrants of
products to the market.
• Good storytelling
In marketing, you have advertisements that tells a
story to the audiences. These stories should entertain
and help buyers to buy the product repeatedly. A
good storytelling results to a good message and a
good message influences change to the consumer
behavior.
• Gifts and Freebies as promotional items
In an article of Better Marketing by Lewis (2020), it
stated that these promotions increases the willingness
of buyers to buy the product and even repurchase the
item. Consumers tend to think that products that
comes in bundles costs less than the actual price of it
together bought without promotion.
• Credibility
The information provided to the product should be
credible since your product is part of the
visualization of your brand. Suspicious content and
misinformation stain the trust the consumers have for
the brand.
3.2. SERVICES MARKETING
Services Marketing
In simple terms, Services marketing is the act of
marketing and selling services, which is an
experience or an act that is largely intangible. A
service is the action of delivering or providing
something for someone. It is an experience that
consumers can only consume when purchased. Some
services can be tied to a physical product, however,
in those cases, the consumer is paying for the
performance or labor done by the provider, which is
essentially intangible and doesn’t normally result in
ownership of any of the factors of production.
The American Marketing Association defines
services marketing as an organizational function and
a set of processes for identifying or creating,
communicating, and delivering value to customers
and for managing customer relationships in a way
that benefits the organization and stakeholders.
How does Services Marketing work?
Services marketing refers to the application of
marketing principles and strategies to the promotion
and provision of services. It involves creating,
promoting, and delivering value to customers
through intangible offerings, such as hospitality,
healthcare, financial, transportation, and professional
services. In services marketing, emphasis is placed
on building and maintaining relationships with
clients and delivering quality experiences that meet
or exceed customers' expectations. This involves
understanding the unique characteristics of services,
such as intangibility, inseparability, heterogeneity,
and perishability, and adapting marketing strategies
to address these distinctions.
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Unique Characteristics of Services
1. Intangibility is one of the main
distinguishing characteristics of services that
make them unable to be felt, tasted, touched,
or sensed, as how others would with physical
goods.
2. Inseparability refers to the interconnection
among the service provider, the customer
consuming or receiving the service, and other
customers sharing the same service
experience.
3. Heterogeneity is the variation in consistency
from one service transaction to the next.
4. Perishability means that services cannot be
saved, their unused capacity cannot be
reserved, and they cannot be inventoried.
Strategies in Services Marketing
• Performing a Market Research
Conducting market research provides you with a
solid foundation for service marketing and gives
you a strong starting point for measuring your
results. It allows you to know your target market,
understand their behaviors and design a strategy
around their behavior, expand your knowledge in
business procedures, which business sectors you
thrive in, and allows you to see which strategies
you need to employ to improve your marketing.
• Make Use of Positioned Marketing
It’s necessary for a firm to identify a particular
industry niche where they can lead and be an
expert. Narrowing focus helps clearly identify
what you do and differentiates you from your
competitors.
• Build a Successful Website
Websites are the main component of a service
organization’s social presence, as well as a
companies’ information projection of their
knowledge and expertise in the market. It serves
as a valuable resource for the creation of brand
awareness and boosts the potential of clients
finding your company by searching online. A
good website should be easy to navigate while
still having all the information consumers need to
enhance your marketability.
• Utilize Search Engine Optimization
The majority of consumers and businesses now
rely heavily on technological devices designed to
be responsive to a user’s needs, such as mobile
phones and computers. A tailored keyword
strategy like an Onsite SEO can be effective for
marketing your service to your targeted
demographic by using keyword phrases to aid
search engines to direct your website on their
search results.
• Use Social Media Networks
Social Media is an easy way to increase a brand’s
visibility and knowledge base, make your
information accessible to your target audience,
connect with your clients, significant influencers,
and contacts, track your brand, and organize your
contacts.
• Build Trust by Highlighting Real Social
Proof
When it comes to promoting a service, you’re
limited to words because you don’t have a
tangible product to present. Social Media
Networks can be utilized to establish your trust
by building consumer’s opinion of you. Some
information you can present are your customer
testimonials, awards and merit badges, and
excellent ratings.
• Employ the Service Marketing Referral
Referral marketing is a process where existing
customers refer other people to your services.
This helps your business create a positive image
and build a great reputation, resulting in a gain in
customers through word-of-mouth testimonials.
• Performance Marketing
Performance marketing is a combination of brand
marketing and paid advertising which involves
an affiliate and a retailer. This strategy helps you
to market your service to many people within
your target market.
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 TOPIC 4: DIFFERENCE OF PHYSICAL
PRODUCTS MARKETING AND SERVICES
MARKETING
Differentiation of Product Marketing and
Services Marketing
Product Marketing
Product marketing is the practice of promoting
tangible items, or anything that consumers can
physically see, touch, or feel. In other words, the
target markets you want to reach can see and
understand how the real things operate. The 4Ps of
marketing—product, pricing, place, and
promotion—can be used to explain product
marketing. Therefore, the term "product marketing"
refers to the entire process, which begins with a
market study and ends with the delivery of the
product to the client and the gathering of their
comments. Finding the right market for the items and
positioning them such that they receive positive
client feedback are the goals of this approach.
Services Marketing
The act of performing a task for someone in
exchange for just recompense is referred to as
providing service. Since services cannot be felt,
touched, tasted, or smelled, they cannot be defined in
the same manner as products since they are
intangible. The biggest distinction between a product
and a service is this. Services are also consumed at
the time of production and cannot be saved or sold
again. The term "services marketing" describes the
actions taken by a person, a group, or a company to
advertise the services it offers to its clients. The goal
of services marketing is to provide customers with
answers to their problems or difficulties.
Product Marketing
Advantages:
• Quality over Quantity - The main benefit of
this marketing strategy is that businesses that
use it prioritize product quality over quantity.
• Curiosity Factor - Since the company adds
a distinctive feature with each new launch,
customers and competitors are aware that the
company will introduce something new.
Disadvantages:
• Majority of Consumers are Price
Conscious - It is incorrect to assume that if a
product's quality is high, people will be
prepared to pay any price because the bulk of
consumers are price aware and will choose
rivals' items even if they are of inferior
quality.
• Consumer Interests are Ignore -
Customers' interests are ignored because they
do not get the product they want, but rather
the product that the company has
conceptualized, as a result of companies
adding features to the product based on
internal research rather than asking for
customer feedback.
Services Marketing
Advantages:
• No Inventory - Most of the time, services are
sold without any inventory. Instead of
purchasing and selling things, you persuade
clients to benefit from your capacity to
simplify their lives.
• You're an Expert - You are an authority in
your field if you built your service around a
skill you possess. By improving that talent,
you can expand the scope of your company.
You eventually have to replicate yourself,
which is a drawback.
Disadvantages
• Difficult Valuation - It's more difficult to
value your service firm than a manufacturer
or retailer. These companies have valuable
inventory, equipment, and other tangible
assets. A phone and very little other
equipment are all you need to launch a
service business.
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 • Demand Cutback - Consumers typically cut
back on services during lean economic times.
Services are sometimes viewed as extras
while they concentrate on the things they
need to exist and develop.
Product Marketing Challenges and Solutions
1. Product Positioning and Messaging
Better research and understanding how people use
your product will help you fix this. Use beta testing
feedback, for instance, to identify the main
advantages customers receive from your product.
2. Scaling Product Marketing Campaigns
Depending on your product and whether it's a new or
established market, you'll want to specify what goes
in each objective category. Your non-negotiable
objectives are those that you must reach regardless of
the circumstances.
Services Marketing Challenges and Solutions
1. Lack of physical character.
Get the public involved. Positive word of mouth is
the best sales tool. A solid service marketing strategy
puts plans into action with the goal of generating
positive experiences that will increase customer trust
and revenue.
2. Variability
To limit the variances in service delivery to a bare
minimum, deliberate efforts must be made to train all
service staff. This typically entails strenuous training
sessions, promotional materials, and comprehensive
operational procedures that staff members are
required to follow at all times.
III. CONCLUSION
To sum up, tangible and intangible products are two
separate kinds of things that vary in terms of their
physical nature. In contrast to intangible products,
which are non-physical commodities that cannot be
felt or seen, tangible products are tangible things that
can be handled, seen, and moved. The differences
between the two categories of items are significant
because they have an impact on their production,
distribution, and consumption processes. While
intangible goods frequently need specialized
equipment or technology for storage and delivery,
tangible goods are typically simpler to store and
move. While creating their product offerings and
marketing plans, businesses must take these
distinctions into account.
On the other hand, both marketing of services and
goods have different qualities and characteristics that
are distinct from each other. Both have challenges to
promote the product, but Services marketing has
services’ characteristics that tangible goods doesn’t
have intangibility, inseparability, heterogeneity, and
perishability. Physical goods marketing can be about
attracting your customers with the message of the
company through advertisements. While Services
marketing, it needs to build trust, maintain
relationships and prove there is value from the
intangible goods since it’s hard to communicate and
display.
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