Role and Scope of Service Marketing
Service providers face the
challenges of customer retention. Customers may switch over to the competitors.
Therefore, a service firm needs to undertake customer satisfaction
surveys, and make changes in marketing mix, including introduction of
new and innovative services.
The
scope of services can be interpreted from the viewpoint of various areas or
branches of the services sector. Each sub-sector has its own scope with
reference to its importance and functions.
The
following are the various areas of services sector:
1. Insurance Service: It
helps to minimize ricks. Business is subject to risks. Certain risks can be
insured such as loss by fire, loss by theft, etc. There are various types of
insurance such as life insurance, fire insurance, marine insurance, accident
insurance, and so on. Businessmen and others can insure against insurable
risks.
2. Transport Service: It
solves the problem of place difficulty. In business, there is a place gap from
the place of production to the place of consumption. Goods produced in one part
of the country or globe may be required for consumption in other parts of the
country or globe. Thus, transport services are utilized for bridging the place
gap. There are several modes of transport such as road, rail, water, and air.
3. Warehousing Service: It
creates time utility. Nowadays, production of goods is undertaken in
anticipation of demand. Goods are not consumed immediately after production.
Thus, goods need to be stored in warehouses, till they are demanded in the
market. Due to warehousing services, goods can be produced in large scale, and
seasonal goods are made available throughout the year.
4. Banking Service: Banks
play an important role in financial markets. The primary functions of the bank
include obtaining deposits, and lending money. Banks perform agency functions
on behalf of its customers, such as collection of funds on behalf of the
clients and make payment to third parties on behalf of its customers. Banks
also perform utility functions such as provision of debit cards, credit cards,
locker facility, etc.
5. Retail Trade Service:
Retail industry contributes 10% of India’s GDP. Currently, retail trade sector
occupies the second position in India’s GDP after agriculture. India is one of
the top five retail markets in the world by economic value. India’s retailing
industry mostly consists of the local mom and pop stores, owner manned shops and
street vendors. Organised retail supermarkets are growing but small.
6. Communication Service: It
facilitates transfer of exchange of information. Communication facilitates
enquiries for goods or services, negotiations of business dealings, placement
of orders, obtaining feedback from customers, etc. There are various means of
communications – written and oral.
7. Information Technology
Services: The IT services play an important role in the economic
development of a country. IT services are used in a wide variety of services
such as health care, education, industry, etc. The IT services contribute
significantly to the exports of India. Over 40% of the services exports is
contributed by IT services.
8. Hotel Services: India
is a famous holiday destination in the world, and provides ample facilities for
lodging and boarding. It has state of the art hotels to cater to its ever-booming
travel and tourism industry. Many hotels and resorts have popped up in India
over the last few years to cater the accommodation needs of everybody. India is
dotted with hotels that fit in every budget. There are hotels ranging from
Luxury Hotels to Economy Hotels.
9. Tourism Service: Tourism
sector contributes to the economic growth of India. It provides employment, contributes
to GDP, and earns valuable foreign exchange. Tourism to India has seen a steady
growth, year on year. The United States is the largest source of international
tourists to India, while European Union nations and Japan are other major
sources of international tourists.
10. Social Development
Services: The social development services improve the quality of
life of people in the country.
The
social development services include:
a)
Educational Services
b)
Health and Medical Services
c)
Family Welfare Services
d)
Recreation and Entertainment Services
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