Page 19 - MARKETING & PUBLIC RELATIONS EBOOK IC88

CHAPTER – 4

INTRODUCTION TO SERVICES

A. OVERVIEW OF SERVICES

(a) The service sector
 The primary sector which includes creation of outputs directly from natural assets
like land and water.
 The secondary sector, which includes conversion of outputs from the primary sector
into something else.
 The tertiary sector, which includes ancillary and support services like restaurants,
laundry and so on.
 The quaternary sector, which includes activities that facilitate the exchange of
products in the other three sectors.
 The quinary sector, which includes activities that change and improve the people,
hospital, educaton and beauty are examples of this sector.
 Economic activities in the primary and secondary sectors lead to the production of
goods that ar sold in the market.
 Services are very different from goods. They are not tangible like goods; a doctor
does not provide any tangible product.
 Inntangibility is one of the main characterstics of all services. There are other
differences also.

(b) Growth
 In India, as in all other countries, the service sector is growing faster than the other
economic sectors. The service sector contributes more than 55% of the GDP.
 Service business offer ore jobs per unit investment, than industry or agriculture.
 Every year new service business comes into being. Many of the big business in the
service sector in 2016 did not exist 20 years earlier.
 The service business is global in its scope and dimensions. National barriers have
become irrevalent when it comes to social media, communication, and information.

(c) Range and variety
 Multi crore hotel chains to the wayside dhabbas in the hospitality segment.
 Airlines and shopping companies with huge infrastructures and global operations to
the owner of auto rickshaw in the transport segment.
 Departmental store spread over several floors to the on line store occupying no
space to the kirana store next door to the vegetable vendor in the footpath.

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