Defining the Essence of a

Service :

An act or performance offered by one party to another

An economic activity that does not result in ownership
A process that creates benefits by facilitating a desired
change in: customers themselves physical
possessions intangible assets
Examples of Service Industries

1. Health Care

Hospital Dentistry Eye Care

 Financial Services

Banking $ Investment Advising Insurance

Hospitality

Restaurant, Hotel/Motel, Bed $ Breakfast

Ski Resort, Rafting Travel Airlines, Travel Agencies,

Theme Park
 Others
• Hair Styling
• Pest Control
• Plumbing
• Lawn Maintenance
• Counseling Services
• Health Club
 Factors Influencing Growth Of
Service Industry
• Demographic Changes
• Social Changes
• Economic Changes
• Technology Changes
• Political Changes
• Legal Policy C
• hanges
 CHARACTERISTICS OF
SERVICE
• 1. Intangible :
Intangible means
1.Difficult to measure
2.Demonstrate
3.Standardise
4.Difficult to convince
5.Depends on perception, Needs and
Physical evidence
• 2. INCONSISTENCY :
Mood, Bad experience, over worked, skill
sets, knowledge may have an impact
Variance– branch, person, time , place,
occasion , situation Eg: call center, bank,
college
3. Perishability
Opportunity lost is not recoverable
Demand – supply shall balance
4. Inseparable
Operations Delivery Same time, same
spot , no stock, no transport
 Classification of Services
• It is required to design & apply marketing
techniques to completely satisfy the
customer & increase profits & identify new
emerging services. Classifications can be
done on following basis
1.Classification By Industry
1. Entertainment industry
2. Education
3. Telecommunications
4. Finance & Insurance
Transportation Public utilities
Government services Health
Hospitability Industry
Telecommunications
Trading