Classification of ServicesThe Objective of this Lesson is to have

an insight into· Classification of services

· Development of service marketing· Examples of service sectors

· Importance of service sectors· Factors contributing to growth

· Challenges faced by service sectors· Difference between goods and services.

Classification of Services

Based on End UserServices can be classified into the following

categories:• Consumer: leisure, hairdressing, personal

finance, package holidays.• Business to business: advertising agencies,

printing, accountancy, consultancy. .• Industrial: plant maintenance and repair,

work wear and hygiene, installation, project management.

Based on Service TangibilityThe degree of tangibility of a service can be

used to classify services:• Highly tangible: car rental, vending machines, telecommunications.

• Service linked to tangible goods: domestic appliance repair, car service.

• Highly intangible: psychotherapy, consultancy, legal services

Profit OrientationThe overall business orientation is a recognized

means of classification:• Not-for-profit: The Scouts Association,

charities, public sector leisure facilities.

• Commercial: banks, airlines, tour operators, hotel and catering services.

People Based ServicesServices can be broken down into labor-

intensive (people based) & equipment-based services. This can also be represented by the degree of contact:

• People-based services - high contact: education, dental care, Restaurants, medical services.

• Equipment-based -low contact automatic car wash, Launderette, vending machine, cinema

Based on ExpertiseThe expertise and skills of the service provider

can be broken down into the following categories:

• Professional: medical services, legal services, accountancy, tutoring.

• Non-professional: babysitting, care taking, casual labor

The Development of Services Marketing

There are a number of factors affecting developments within services marketing:

• Organization size and structure• Regulatory bodies• Growth in service industries• Characteristics of services• Customer/employee interaction• Service quality• Specific service sectors

Technological Development in Services Marketing

Technological advances in home equipment has led to a demand for new services. The widespread ownership pf VCRs (video cassette recorders) has led to flourishing video film rental businesses. Cable TV network and satellite TV receivers are growing in popularity, opening up new areas of business for installation contractors. Today’s motor cars, with ‘on board computers’, need greater technical expertise for maintenance, which, in turn, leads to greater demand for training. Technological developments have also had an impact on the services market-ing management task. Information technology, electronic funds transfer and the use of databases have revolutionized services marketing management

International Services Marketing• The Developed Economies depends on invisible exports

for a substantial proportion of revenue. Invisible exports have traditionally included shipping, insurance and investment but now cover a far wider range services. Service organizations are not only involved in the business of exporting, but are increasingly becoming international. Advertising agencies are an example of a service industry becoming internationalized in response to changes in the world market situation. London is still one of the major bases for financial services including commodities brokerage and insurance. City financial services and expertise are invisible exports when the customer is from outside the Country.