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Service Marketing On Tourism Essay

9132 words - 37 pages

Meaning of Service MarketingA Service is an economic activity that is intangible or not be touched, not be stored, and not be owned. Postal service delivering mail is a Service, and the use of expertise like person visiting a doctor is also a service. A service is consumed at the point of sale and does not result ownership. A product is material or tangible in nature, can be touched, can be stored, and a product can also be owned, but it is not so in case of a service.Defining ServiceServices include all economic activities whose output is not a physical product or construction, is generally consumed at the time it is produced, and added value in forms (such as convenience, amusement, ...view middle of the document...

There has been a long academic debate on what makes services different from goods.Adam Smith's famous book, The Wealth of Nations, published in Great Britain in 1776, distinguished between the outputs of what he termed "productive" and "unproductive" labor. The former, he stated, produced goods that could be stored after production and subsequently exchanged for money or other items of value. But unproductive labor, however" honorable,..useful, or... necessary" created services that perished at the time of production and therefore didn't contribute to wealth.Size of Service SectorServices sector contributes the most to the Indian GDP. The Sector of Services in India has the biggest share in the country' GDP, it accounts for more than 50% contribution.The various sectors under the Services Sector in India are construction, trade , hotels ,transport ,restaurant ,communication and storage ,social and personal services, community ,insurance, financing business services, and real estate.Services marketing concepts and strategies have developed in response to the tremendous growth of service Industries. Most new employment is provided by services. Strongest growth area for marketing.Deregulation and Services MarketingSpecific demand for services marketing has come from deregulated industries and professional services.Deregulatory moves from government have affected service industries such as airlines, banking and telecommunications.As a result, marketing decision that used to be tightly controlled by government are now partially, and sometimes totally, within the control of individual firm.Nature of Service1. Lack of OwnershipOne cannot own or store a service as it can be done in case of a product. Service is consumed at the point of sale and does not result ownership. Services are used or hired for a period of time. For example buying a movie ticket the service lasts for two or three hours, but customer want and expect complete entertainment and excellent service for that time period.2. IntangibleServices are intangible in nature, you cannot touch it, cannot see it, cannot taste it. You cannot touch or hold a service as you can do with a product. For example one cannot touch or hold the services provided by his financial adviser. This makes it difficult to evaluate the quality of service prior to consuming it since there are fewer attributes of quality in comparison to a product.3. InseparableService is inseparable in nature means to say that it cannot be separated from the service provider. A product when produced can be taken away from its producer whereas a service is produced at or near the point of purchase. For example visiting a restaurant, you order your meal, wait for the meal, meal delivered to you and services provided by waiter/waitress are all part of service production process and is inseparable.4. PerishableService last for specific time period, it cannot be stored as like a product for future use. Service production and utilization...

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