Understanding Services and Their Impact

Study Notes

Services are intangible deeds, processes, and performances provided or co-produced by one entity or person for another.
Services cannot be touched, seen, or felt.
Example of service provided by IBM: repairs and maintenance services, consulting services, training services, web design, and hosting services.

Service as a product represents a wide range of intangible product offerings that customers value and pay for.
Customer Service is the service provided in support of a company’s core products.
Derived Service: all products and physical goods are valued for the services they provide.

It is a system that organizes the production and distribution of goods and services.
Service economy includes restaurants, hotels, and other places where customers pay for consumption or experience rather than physical objects.
Shift from manufacturing to service-based economies occurs with economic development.

Entertainment: films, music, video games, theater, and live shows
Safety and Security: security detail, door supervision, and emergency services
Healthcare: medical, surgical, and cosmetic practices
Education: teaching or lecturing, private tuition and coaching
Consumer to consumer: marketplaces and babysitting
Convenience: product and grocery delivery, taxis, and ride shares
Professional services: hairdressing and beauty, garden maintenance, cleaning, plumbing, and electrical
Property management: management for rental property, or third-party fashion rentals
Financial services: investment advisory and international currency exchange
Waste management: rubbish collection and recycling services
Insurance: services that take on another's risks for a fee
Memberships and clubs: gym memberships and entertainment access, including theme parks
Design and engineering: initial conceptualization and planning of products before manufacturing
Tourism: tour operations and booking (travel agents)

Need for effective service management and marketing strategies for companies focused on goods has increased due to competition.
Companies are choosing to focus on services to gain competitive advantage.

Services are deeds, processes, and performances provided or co-produced by one entity or person for another entity or person.
Services are intangible and cannot be touched, seen, or felt.
Service Industries, Service as a product, Customer Service and Derived Service are all examples of services.
Service as a product represents a wide range of intangible product offerings that customers value and pay for in the marketplace.
Customer service is the service provided in support of a company's core products.
Derived Service is a new logic for marketing that suggests that all products and physical goods are valued for the services they provide.

A service-based economy is a system that organizes the production and distribution of goods and services.
It's a system that involves paying for what is consumed or experienced rather than buying physical objects.
Many advanced economies are increasingly dependent on services and are shifting away from manufacturing.

Entertainment: films, music, video games, theatre, and live shows
Safety and Security: security detail, door supervision, and emergency services
Healthcare: medical, surgical and cosmetic practices
Education: teaching or lecturing, private tuition and coaching
Consumer to consumer: marketplaces and babysitting
Convenience: product and grocery delivery, taxis and ride shares
Professional services: hairdressing and beauty, garden maintenance, cleaning, plumbing, and electrical.
Property management: management for rental property or third-party fashion rentals
Financial services: investment advisory and international currency exchange
Waste management: rubbish collection and recycling services
Insurance: services that take on another's risks for a fee
Memberships and clubs: gym memberships and entertainment access, including theme parks
Design and engineering: the initial conceptualization and planning of products before manufacturing
Tourism: tour operations and booking (travel agents)

Effective service management and marketing strategies are needed in today's competitive business environment.
Companies are choosing to focus on services because of the following key factors:
- The increasing importance of customer service
- The rise of e-commerce and the need for digital services
- The need to differentiate from competitors
- The growing demand for personalized and customized services
- The increasing complexity of products and services