PLACE OF MARKETING IN THE SERVICE INDUSTRIES
Chapter one
INTRODUCTION
1.1 Background of the Study
People’s understanding of marketing has typically been limited to the promotion of tangible products. Limiting marketing to distributive trade and activities related to the marketing and distribution of manufactured goods.
However, a larger strategic and conceptual framework recognises and sees marketing as applicable to service firms such as hair salons, hospitals, banking, insurance, education, legal services, entertainment, and transportation.
Individuals’ lives have changed and become more sophisticated, resulting in a greater shift in man’s demands and requirements. The desire to acquire material objects has not been the dominant factor in satisfying human desires or needs.
There is an increased need for services that serve to support human existence, such as legal services, entertainment, medical care, transportation, and so on. As a result, various businesses have emerged to meet these demands.
There has also been a strong push for businesses to incorporate not only marketing tasks into their operations, but also strategic marketing operations, in order to meet the needs of their customers while also increasing profits.
To better meet human needs and maximise profit in the service industry, these organisations must recognise that their survival is dependent on effective and efficient customer satisfaction. Their needs and desires, attitudes, and lifestyles must all be well understood in order to improve their work performance.
Service companies should also recognise that “Services account for close to on behalf of consumer expenditure” and that even firms themselves spend the majority of their working capital on services for sustenance, repair, and maintenance of legal,
insurance, banking, and credit services, among other things. As a result, service providers must recognise the importance of marketing in order to meet the needs of both businesses and individuals.
At this point, it is necessary to explain what marketing means in the services industry. Marketing is described as “the set of activities that facilitates exchange transactions involving economic goods and services”. The services must therefore comply with their request. It should also be worth the money they spent for it.
The customer receives the greatest possible bargain throughout the transaction. Their firms’ earning potential is determined by the services and patronage they receive from their clients. Although profit is important for a company’s survival, it cannot be achieved without the support of its customers.
The essential of marketing here is marketing attention, which should not be overlooked. As a result, service businesses must recognise the concept.
However, due to the nature of services, the only thing that should be understood is that, while marketing is everything, its application in the services industry will take a different path, but the goal remains the same:
customer satisfaction, profit motive, and proper coordination of marketing-related activities. The service sector is simply organisations that do not produce, exchange, or market tangible products, but instead create satisfaction by offering non-tangible items.
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