Services Chapter 1

Services Marketing 7e, Global Edition

Chapter 1: New Perspectives On
Marketing in the
Service Economy

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Services Marketing 7/e

Chapter 1 – Page 1

Overview of Chapter 1
 Why Study Services?
 What are Services?
 Marketing Challenges Posed by Services
 Extended Marketing Mix Required for Services
 Integration of Marketing with Other Management Functions
 Developing Effective Service Marketing Strategies

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Services Marketing 7/e

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Sometimes you just want to say thank you
#TDThanksYou
 http://www.youtube.com/watch?v=bUkN7g_bEAI

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Why Study Services?

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Why Study Services?
 Services dominate most economies and are growing rapidly: 

Services account for more than 60% of GDP worldwide



Almost all economies have a substantial service sector



Most new employment is provided by services



Strongest growth area for marketing

 Understanding services offers you a personal competitive advantage Slide © 2010 by Lovelock & Wirtz

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Services Dominate the Global
Economy
Contribution of Service Industries to GDP Globally
Manufacturing 32%

Services 64%
Agriculture 4%

Source: The World Factbook 2008, Central Intelligence Agency
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Estimated Size of Service Sector in Selected Countries
Jersey (97%), Cayman Islands (95%), Hong Kong (92%)
Bahamas (90%), Bermuda ( 89%), Luxembourg (86%)
USA (79%), Fiji (78%), Barbados (78%), France (77%), U.K. (76%)
Japan (72%), Taiwan (71%), Australia (71%), Italy (71%)
Canada (70%), Germany (69%), Israel (67%)
South Africa (65%), Brazil (66%), Poland (66%)
Turkey (63%), Mexico (62%)
Argentina (57%), Russia (55%)
Malaysia (46%), Chile (45%)
Indonesia (41%), China (40%)