When you "Create New Product/Service", you're making a listing. This is where you'll tell us, generally, what your company offers - not which specific deals/discounts you're advertising.

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Changes to products/services will apply to all deals within that listing, so exercise caution when making updates or publishing/unpublishing. If your product/service is unpublished, so are the deals inside of it.
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Deals are where you'll add details about the specific deal/discount you want to advertise, designate who can use it (this is called deal segmentation), and provide instructions on how to get it.

Every deal can have different details and segmentation. You're not limited based on what product/service each deal is in, so create deals based on whatever works best for your organization.