MARKETING OF SERVICES Unit 1
Service & Service Marketing - Definition
”service is an activity or benefit that one party can offer to another that is
essentially intangible and does not result in the ownership of anything. Its
production may or may not be tied to a physical product”
- Philip Kotler
Services provide benefits without ownership. Services are economic
activities performed by one party to another. Often time-based, these
performances bring about desired results to recipients.
Christopher Lovelock
Overview of a service economy
An economy is a system that organises the production and distribution of goods and
services. A service economy refers to an economic system where the main activity
is the provision of services rather than the production of goods. These services
include building roads or providing medical care, catering, accommodation and
other professional services. An economy can shift over time, such as the change that
many nations experienced in the 19th century when industrialisation caused a shift
from agriculture to manufacturing. Many advanced economies are increasingly
dependent on services and are shifting away from manufacturing.
,Every economy consists of three sectors. They are primary sector (extraction such
as mining, agriculture and fishing), secondary sector (manufacturing) and the
tertiary sector (service sector). Economies tend to follow a developmental
progression that takes them from a heavy reliance on primary, toward the
development of manufacturing and finally toward a more service based structure.
, The service economy is one of the most important global economies. As a whole, it
contributes over 20 trillion dollars to the world's gross domestic product (GDP) and
employs more than two billion people. As technology advances, this number
continues to grow.
The service economy is important because it accounts for the majority of economic
activity in advanced global economies. It provides jobs, income and services that
people need and want. It makes up a large proportion of what keeps an economy
going, with more advanced economies dependent on services rather than goods
production. In fact, in some cases, the service sector drives economic growth.
The service economy is one of the most important global economies. As a whole, it
contributes over 20 trillion dollars to the world's gross domestic product (GDP) and
employs more than two billion people. As technology advances, this number
continues to grow and services become easier to find and distribute globally through
a growing range of apps.
There are several ways to assess what kind of economic role services play, including
looking at what percentage of people work in the sector and how much it contributes
to national income or GDP. You can also consider the types of services provided,
what kind of jobs they create and income relative to the country's GDP.
Service & Service Marketing - Definition
”service is an activity or benefit that one party can offer to another that is
essentially intangible and does not result in the ownership of anything. Its
production may or may not be tied to a physical product”
- Philip Kotler
Services provide benefits without ownership. Services are economic
activities performed by one party to another. Often time-based, these
performances bring about desired results to recipients.
Christopher Lovelock
Overview of a service economy
An economy is a system that organises the production and distribution of goods and
services. A service economy refers to an economic system where the main activity
is the provision of services rather than the production of goods. These services
include building roads or providing medical care, catering, accommodation and
other professional services. An economy can shift over time, such as the change that
many nations experienced in the 19th century when industrialisation caused a shift
from agriculture to manufacturing. Many advanced economies are increasingly
dependent on services and are shifting away from manufacturing.
,Every economy consists of three sectors. They are primary sector (extraction such
as mining, agriculture and fishing), secondary sector (manufacturing) and the
tertiary sector (service sector). Economies tend to follow a developmental
progression that takes them from a heavy reliance on primary, toward the
development of manufacturing and finally toward a more service based structure.
, The service economy is one of the most important global economies. As a whole, it
contributes over 20 trillion dollars to the world's gross domestic product (GDP) and
employs more than two billion people. As technology advances, this number
continues to grow.
The service economy is important because it accounts for the majority of economic
activity in advanced global economies. It provides jobs, income and services that
people need and want. It makes up a large proportion of what keeps an economy
going, with more advanced economies dependent on services rather than goods
production. In fact, in some cases, the service sector drives economic growth.
The service economy is one of the most important global economies. As a whole, it
contributes over 20 trillion dollars to the world's gross domestic product (GDP) and
employs more than two billion people. As technology advances, this number
continues to grow and services become easier to find and distribute globally through
a growing range of apps.
There are several ways to assess what kind of economic role services play, including
looking at what percentage of people work in the sector and how much it contributes
to national income or GDP. You can also consider the types of services provided,
what kind of jobs they create and income relative to the country's GDP.
