Service marketing is one of the branch of the marketing were service marketing refers of service against product. We’re marketing of services is a relatively new phenomenon in the domain of marketing. Were the service marketing is totally depend upon the two relationship & value. It may be used to market a service or a product. Which is to increase the service prominence in the global market or we can say in global economy. Service marketing is become a subject which is need to understand/ study differently were people should have knowledge about services.
Were service marketing is totally different from marketing of good because in service marketing were we use to get the service from the facilities we are been using for example like in “Education” the services they provide instruction and training in a wide variety of subjects, etc. & many more such example are there in Telecom, consultancy, Insurance, Advertisement. Were in marketing of good mean to market the product at a mass scale this is because of the unique characteristics of services namely, intangibility, heterogeneity, perishability and inseparability.
As we all know that in most countries, services add more economic value than agriculture, raw materials & manufacturing combined. Were as in developed economies, employment is dominated by service jobs & most new job growth comes from services. Were in job range come from minimum-wages technicians to high-paid professionals. Were service organization cannot be measure in a scale it can be either in a large scale or either in a small scale or local scale business
“While a product is an object, devise or physical thing, a service is a deed, performance, or an effort” Berry states
As service marketing is very important in 3 terms as first “a key differentiators” because of similar product with different services creating or emerging a key differentiators in the mind of the consumer for an example we can take Domino’s & Pizza hut were they have a same product but the service quality that distinguishes the two brands from each other from competition & to attract customer. Were in “relationship” were in relationship plays an important factor when it comes to the service of marketing if the product is intangible, a large part/group of customers’ buying decision will depend on the trusts of the seller. So we have to fulfill the needs of the customer & fulfill them with appropriate service offering & build a long lasting relationship which would lead to sales & positive word of mouth.
So in Service Marketing there are two dominant which decides the type of services tangible dominant are those were we can see touch & feel the services as for example car went to garage for service/repair were we pay for it & can feel/see the person/labor is giving service to car this is called tangible dominant. Were in intangible dominant we can feel the service but we can’t see the services for example like in education were we pay for our education were teachers giving us services by teaching us this is called intangible dominant.
“Activities, benefits or satisfaction which are offered for sale, are provided in connection with the sale of goods” American Marketing Associations (AMA)
The service marketing evolution has been done time to time were service concept has come & develop by economist were Adam Smith, a well-known economist has defined that,
Production → Tangible Output → Value generation (customer)
Proposed that the production of goods leads to tangible output. This output or finished product is consumed by the users. Consumption leads to value generation, as the customer’s needs to be satisfied. So were Smith doesn’t discussed about the contribution of services to the process of value generation. He stated that the generation of services is unproductive & there is no services is required were the concept of value generation. When the no tangible ownership of a product seems to be transferred. As Alfred Marshall, another famous economist, said that he corrected the notion of the role of services about the ability of the services sector to contribute significantly to the economic development and well-being of societies. However, he continued to exist till the twentieth century. So today we are aware that both goods & services satisfy different needs of customers & hence, both are value contributors.
Today, the services sector is recognized as a crucial field for economic well-being. Consumption of services is deemed essential today. For example, the consumption of services such as education, health care, civic services, transport and communication, tourism, entertainment, and sports are considered vital.
The world over, due to gains in productivity, the working hours of both employers and employees have been reduced significantly. This has led to more spare time, a large bulk of which is being used for pursuing various hobbies and recreational activities. Today, developed and advanced societies are those that have higher per capita consumption of services than goods. Even in India, we can see that the trend is been followed that the country has undergone a tremendous change in the last few decades, with services gains a greater importance in regards to national economy and employment scenario.