Compared to products, service marketing is more challenging because

It is more challenging for an organization to build something that offers services rather than products because of the satisfaction of customers being different when services are got instead of products. In other cases, customers most often preferred to do task themselves rather than allowing other organization do it for them. With this, it is more challenging for the organization to locate a strategic position for the business.

Service marketing is more challenging because the organization must appeal to customers by offering something intangible. Though it is never a good idea to underestimate or oversimplify the customer, it is my experience that customers are far more driven to exchange money for something tangible. In addition, services are traditionally seen as expensive, inconvenient, and often ill-timed. Some good examples are car repairs, extermination, etc.