Whereproductsare tangible in nature and easily differentiated on the basis of features, form,performanceand quality, servicedifferentiationis quite challenging andneedsout of the box thinking.

Services may be offered individually to the customer or they may be bundled with aproduct. For example, tours and travels are independent services offered to customers. But the service which accompanies theVolkswagencar you bought, is dependent on the product - Volkswagen.

Nonetheless, there are some commonservice characteristicswhich makes each service unique. Service differentiation can be achieved on the basis of these characteristics.

Activity Steps:

1. Research a company that only provides a service. No inventory, no warehouse and no storefront.

1. Provide a brief profile of the company? i.e., Name, Size, Location etc.

1. What service are they offering?

1. Are they using social media to sell or market their products?

1. What are the advantages and disadvantages of using social media as an advertising tool?