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Evolution and Growth of Service Sector _ for Service Marketing

Evolution and Growth of Service Sector _ for Service Marketing

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Published by Santosh Singh

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Published by: Santosh Singh on Aug 06, 2013
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8/6/13Evolution and growth of Service Sector : for Service Marketingwww.scribd.com/doc/63481755/5/Evolution-and-growth-of-Service-Sector1/55
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ServiceMarketing–571073
Unit–IIntroduction:Introduction:
Theturnofthecenturyhasseenprofoundchangesintheglobaleconomy.Serviceshadplayedacrucialpartinthesechanges,becausetheservicesarebecomethewayorganizationsmetwiththeirmarket.Alreadyorganizationsdiscoveredthattheirsurvivalnolongerexclusivelydependsontheirproductstheyoffer,butalsoontheadditionalofferingstheymaketotheircustomersthatdifferentiatefromtheircompetitorsinnovativeorganizations,offeringnewservicesaswellasuniquecustomerservices,arenowsucceedinginmarketswhere
 
8/6/13Evolution and growth of Service Sector : for Service Marketingwww.scribd.com/doc/63481755/5/Evolution-and-growth-of-Service-Sector2/55
,.Servicesmarketingisnotaself-enclosedtaskbutisintegraltoserviceorganizationsasawholeandtheobjectoftheactivityispeople,whoarereactive,notpassiveascomparedwithaproduct(Irons,1997:18).Servicesmarketingconcepts,frameworksandstrategiesweredevelopedastheresultofinterlinkedtheforcesofmanyindustries,organizations,andindividualswhohaverealizedtheincreasinglyimportantroleservicesareplayinginthecurrentworldeconomy.Initiallythedevelopmentofservicesmarketingfocusedonserviceindustries.However,manufacturingandtechnologyindustriesrecognizedservicesasaprerequisitetocomplimenttheirproducts,inordertocompetesuccessfullyinthemarketplace.Thereforeitcanbearguedthat,inmostindustries,providingaserviceisnolongeranoptionbutanecessity.
 
Servicedefinition
Kotler(1996)definesserviceasanactivitythatonepartyoffersanotherthatisessentialintangibleanddoesnotresultintheownershipoanything.Itsproductionmayormaynotbetiedtoaphysicalproduct.Grönroos(1990)identifiesaserviceasanactivityorseriesofactivitiesofamoreorlessintangiblenaturethatnormally,butnotnecessarily,takes
 
8/6/13Evolution and growth of Service Sector : for Service Marketingwww.scribd.com/doc/63481755/5/Evolution-and-growth-of-Service-Sector3/55
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placeininteractionbetweenthecustomerandserviceemployeesand/orphysicalresourcesorgoodsand/orsystemsoftheserviceprovider,whichareprovidedassolutionstocustomerproblems.Theterm“services”coversaheterogeneousrangeofintangibleproductsandactivitiesthataredifficulttoencapsulatewithinasimpledefinition.Servicesarealsooftendifficulttoseparatefromgoodswithwhichtheymaybeassociatedinvaryingdegrees.
"Marketingisnotanevent,butaprocess...Ithasabeginning,amiddle,butneveranend,foritisaprocess.Youimproveit,perfectit,changeit,evenpauseit.Butyouneverstopitcompletely."
-JayConradLevinson.
DifferencebetweenGoodsandServices:
1.HigherIntangibility2.LackofAbilitytostorethemforfutureSale3.GreaterInteractionbetweenthecustomerandtheserviceFactory4.GreaterVariabilityinServiceDelivery5.GreaterVariabilityamongservicecustomer’sExpectations
ServiceEconomy:
 
Serviceeconomy
canrefertooneorbothoftworecenteconomicdevelopments.Oneistheincreasedimportanceoftheserviceinindustrializedeconomies.ServicesaccountforahigherpercentageofUSGDPthan20yearsago.ThecurrentlistofFortune500companiescontainsmoreservicecompaniesandfewermanufacturersthaninpreviousdecades.

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