Service Product Marketing - Essay Example

To assist with process of analysing this statement, definitions of experience, services and goods are set out below. There are of course variations of the definitions available to describe experiences, services and goods. Another consideration is the relationship between experiences, services and goods plus whether each is clearly distinctive from the other especially if one considers how closely related they are to each other. Where it has been considered relevant political or economic backgrounds have been included to give this work greater depth.

Experiences are what people have felt or feel when they use goods and services providing the basis for future purchases and behaviour. Providing good experiences can be the key to commercial success. People can buy goods and services because they want to do so or because they have to. The portrayal that some goods and services can provide certain kinds of experiences can make people think need rather than just want goods and services (Ison, 2000, p.48). Economists used to concentrate almost exclusively on the economic experiences of companies and manufacturers rather than the experiences of the consumers of services and goods.

It was generally believed that the experiences of companies were distinct from any services and goods that they offered. However the economic experiences of firms should be analysed to make the delivery of services and goods more effective and cheaper to provide. The link between using experiences to lower costs and pass on the savings to customers in the form of lower prices was appreciated by aircraft and car makers during the 1920s, and if Henry Ford’s adoption of mass production method is taken into account earlier than that.

In other words it is a different slant on the theories relating to economies of scale (Schnaars, 1998, p. 45). More recently economists, market researchers and