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Black Sheep

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Submitted By allanthomas07
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UNIT – I
SIGNIFICANCE OF SERVICES MARKETING
Proper marketing of services contributes substantially to the process of development. If innovative marketing principles are followed in services marketing, the socio-economic transformation will take place at a much faster rate. In future, the service sector would operate in a conducive environment offering great potential. If the opportunities are properly utilised by the service sector, it will lead to an all round development of the economy. The significance of the service economy may be discussed under the following headings:
1. Generation of employment opportunities
2. Optimum utilisation of resources
3. Capital formation
4. Increased standard of living
5. Use of environment-friendly technology.
1. Generation of employment Opportunities
The components of the service sector are wide and varied. For example, the service sector includes personal care services, education services, medicare services, communication services, tourism services, hospitality services, banking services, insurance services, transportation services, consultancy services, etc The organised and systematic development of the service sector would create enormous employment opportunities. Application of marketing principles in the I service sector is instrumental to the development of the economy. However, it is appropriate to mention that
India has not been successful in utilising the potential of the service sector. As seen in Table 1.1, in
USA about 80 per cent of job opportunities are offered by the service sector compared to India's
60%. So, the significance of the service sector lies in its capacity to create job opportunities. If the service sector is properly developed, it will solve the problem of unemployment in India to a great extent. After liberalisation policy, the service sector in India has been emerging as a dominant component in the

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