Service Marketing the Service Sector
Lecture Topic 1 : The Service Sector
Reading : Chapter 1, Services Marketing : People, Technology, Strategy by Kotler & Wirtz, 7th Edition.
The Service Sector- some facts :
• In the West, business conditions generally remain difficult for service sector firms with falling prices hitting profitability.
- The service sector typically accounts for between 66% and 75% of GDP in most of the more highly developed economies. (Central Intelligence Agency, 2011)
- The service sector is the strongest growth area for marketing.
• The majority of workers are employed in the service sector
USA 75% Canada 75% Australia 74% UK 73% Ireland 53% Mexico 30% Ethiopia 9% (International Labour Organisation, 2011)
• Most new jobs are generated by services
– Fastest growth expected in knowledge-based industries. – Significant training and educational qualifications required, but employees will be more highly compensated. – Service jobs will continue to be lost to lower-cost countries.
• Service earnings from abroad (‘invisibles’) are increasingly making a significant contribution to international transactions.
- Some service industries have a long history of international operations, e.g. US hotel and airline companies began expanding into Europe and the Far East after WW2.
The service sector is large and varied :
- It includes non-profit organisations such as colleges, charities and healthcare providers. - The government is a major provider of services, e.g. health, education, transportation, employment. - Some service firms are very large (e.g. Deutsche Bank employing over 100,000 employees in over 70 countries) and other service firms are very small employing only a handful of people, e.g. beauty salons, restaurants.
• The growth in services has paralleled a decline in
Reading : Chapter 1, Services Marketing : People, Technology, Strategy by Kotler & Wirtz, 7th Edition.
The Service Sector- some facts :
• In the West, business conditions generally remain difficult for service sector firms with falling prices hitting profitability.
- The service sector typically accounts for between 66% and 75% of GDP in most of the more highly developed economies. (Central Intelligence Agency, 2011)
- The service sector is the strongest growth area for marketing.
• The majority of workers are employed in the service sector
USA 75% Canada 75% Australia 74% UK 73% Ireland 53% Mexico 30% Ethiopia 9% (International Labour Organisation, 2011)
• Most new jobs are generated by services
– Fastest growth expected in knowledge-based industries. – Significant training and educational qualifications required, but employees will be more highly compensated. – Service jobs will continue to be lost to lower-cost countries.
• Service earnings from abroad (‘invisibles’) are increasingly making a significant contribution to international transactions.
- Some service industries have a long history of international operations, e.g. US hotel and airline companies began expanding into Europe and the Far East after WW2.
The service sector is large and varied :
- It includes non-profit organisations such as colleges, charities and healthcare providers. - The government is a major provider of services, e.g. health, education, transportation, employment. - Some service firms are very large (e.g. Deutsche Bank employing over 100,000 employees in over 70 countries) and other service firms are very small employing only a handful of people, e.g. beauty salons, restaurants.
• The growth in services has paralleled a decline in