Services produce products. Products can contain services. The two terms are different, but also closely aligned. When we buy a software package, we get the program (product) to install on our computers and receive a bundle of services such as online backup, data management, or file sharing. While services and products do share some common grounds, the two terms are in fact different.
Services:
- Are things you will do on behalf of your clients
- When clients need a service, they ask “what can you do for me?”
- Clients like services to be customized to their needs
- Are actions performed by an organization
- Examples: consulting, web design, haircut, car washing, software development, electronics repairing, house painting, etc.
Products:
- Are things your clients will use themselves
- When clients need a product, they ask “what can you make for me?”
- Clients like their products to be standardized
- Are tangible and discernible items that an organization produces
- Examples: computers, shoes, bread, courses, ebooks, apps, CD/DVDs, USB keys, digital files, etc.
Reference:
- http://www.archives.gov/preservation/products/definitions/products-services.html
- http://www.dailyblogtips.com/services-vs-products-are-focusing-on-the-wrong-side/
- http://marketing-list.blogspot.ca/2011/05/5-differences-between-products-and.html