Management of services and service based products involves benchmarking for the standards and the quality of the services provided to the customers, as well as establishing cross functional relationships between the various services provided. The main difference between the service based products and regular tangible products is that the service based products are intangible and can be simultaneously produced and generated as they are being consumed.
Moreover the experience, the ambiance and the value added services are more complementary and essential when managing service based products. Additionally the positioning of the service product is based on the service product concept and requires an illusion of tangibility to be created for the benefit of the customer. The service products are sought to be kept on the top of the mind of the customers by frequently exposing them to advertisements and other innovative marketing strategies.