RM & S (Module 1)

Ms. Anushree Banerjee

Introduction

Economic Activities Classified into -

1. Primary
2. Secondary
3. Tertiary
Meaning of Services
A service is any 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 physical product.

Examples

- Education service

- Insurance service

- Banking service

- Film Theater

- Medical service

- Telecommunication service

- Legal service
Characteristics of services

1. Intangibility

2. Inseparability

3. Heterogeneity

4. Perishability

5. Ownership
Service Marketing Triangle
Classification of services

1. Services in consumer markets

a).Food services b). Boarding and lodging services. c). Personal care services d).Entertainment service
e).Transport services f).Automobile services g). Communication services h). Education service i).
Insurance service j). Financial services

2. Services in industrial market

a). Transport services b). Advertising services c). Insurance service d). Warehousing service e). Financial
services f). Advertising services g). Consultancy services h). Engineering services i).HR services
Advantages of Service Sector

1. No Inventory
2. Easy to start up
3. Flexible hours
4. Greater adaptability to changes
5. Provides job even during economic crisis
Significance of the Service Sector

1. Holds the highest share in the country’s Net National Product (GVA - 2020-21 - 53.89%)
2. Promotes industrialization
3. According to World Bank data in the year 2017, India has become the 6th largest economy.
4. Increase in the productivity of the goods
5. Provides Good Quality Life
6. Growth of Market
7. Increase in international trade
8. Removes regional disparities