The service sector has been growing significantly for more thanfifty years to the extent that in the developed world, more peopleearn their living from producing services than makingmanufactured goods. In fact around three quarters of thepopulation in the United States and the European Union areemployed in service industries. Services therefore have a majorimpact on national economies. The subject of Services Marketinghas grown in response to this. Latterly however, manufacturingand technology industries have also recognised the need toprovide services not only as a means of adding value to thephysical products which they market but also as the basis for adifferent orientation to the management of their businesses. Thismodule will address the key issues, concepts and models whichform the core of Services Marketing theory, focusing, as far aspossible, on the service industries of relevance to students takingthe module.
What is a Service?
Services include all economic activities whose output is not aphysical product or construction, is generally consumed at thetime it is produced and provides added value in forms (such asconvenience, timeliness, comfort or health). That is essentiallyintangible concerns of its first purchaser.