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08. Products and Services marketing together

 The service-dominant logic suggests that the separation between products and services is not a clear one. The ‘servicisation’ of products refers to the relative importance of the service dimension in a given product offering. Thinking in marketing has moved from a strategy that conceives of either a product or a service to one which sees both product and service dimensions in any market offering.

 Many products have a service component and many services have product components. Take for example a physical product such as a car. We purchase a car, which provides the service of getting from one place to another. But the car comes with its own need for services such as insurance, finance, repairs and even a petrol station. 

The Swedish car manufacturer Volvo has built a service into its cars that alerts the driver if they are falling asleep. 


 Volvo introduces V2V warning systems on new models across Europe | Traffic Technology Today 

What a great service! Another example is a mobile phone provider such as Nokia. The company provides a product (mobile phone handsets) but also a service (networks). Nokia sees itself as a service or solutions provider – ‘connecting people’.

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