The Significance of Service Marketing In Today's Economy

Abstract

Service marketing plays a crucial role in today's economy, with the service sector expanding
rapidly in developed and developing countries. Unlike product marketing, service marketing is focused on
building relationships and providing value to customers. This paper delves into the importance of service
marketing, its marketing mix, new service development, service failure and recovery, and the significance of
the service sector in contributing to economic growth, employment, and exports.
The marketing mix for services includes seven elements: product, price, place, promotion, people, process,
and physical evidence. Each element is essential in the process of service marketing, from creating new
services to testing and evaluating them, and launching them to customers. The role of promotion, in
particular, is significant as it adds value to services, and subjective impressions play a greater role than
concrete evidence in building consumer trust.
New service development is a vital process for the survival of organizations, but it can also be expensive
and time-consuming, with the possibility of service failures even after considerable effort. However, the
attraction of new services to customers can be exciting and increase revenue.
Service failure and recovery can be frustrating for consumers and result in negative word of mouth. As
such, companies should define service goals, hire the right people for the job, provide proper training and
offer consistent service to gain customer confidence and maintain a clear vision for the company.
In conclusion, the service sector is becoming the primary revenue-generating sector worldwide, and service
marketing is essential to maintain the sector's growth. Understanding customers' needs and fulfilling them by
providing appropriate services is vital, and human resource management plays a significant role in service
marketing. The references provided in this paper offer insight into various aspects of service marketing,
providing valuable information for companies seeking to improve their services.