The Product mindset and the Services mindset

Posted by Robert Merrill on February 21, 2009 under Concepts | Be the First to Comment

Rick Freedman, writing about marketing for IT consultants on TechRepublic, put into clear, memorable terms something I’ve been trying to express for years, namely the difference between product sales and services sales.

Product selling is transaction-oriented, while services selling is relationship-oriented. Product businesses sell based on the “four Ps:” product, price, place, and promotion, while service businesses sell based on the “three Rs:” referral, reference, and reputation.