Definition of service
A type of economic activity that is intangible, is not stored and does
not result in ownership. A service is consumed at the point of sale.
Services are one of the two key components of economics, the
other being goods.
Providing the right market performance is the foundation, but by no
means a guarantee for success. Service selling requires a powerful
organization to establish a successful market output with the
Examples of services include the transfer of goods, such as the
postal service delivering mail, and the use of expertise or
experience, such as a person visiting a doctor.
Services are intangible and insubstantial: they
cannot be touched, gripped, handled, looked at,
smelled, tasted. Thus, there is neither potential
nor need for transport, storage or stocking of
Furthermore, a service cannot be (re)sold or
owned by somebody, but it cannot be turned over
from the service provider to the service consumer.
Solely, the service delivery can be commissioned
to a service provider who must generate and
render the service at the distinct request of an
authorized service consumer.
The service relevant resources, processes and
systems are assigned for service delivery during a
definite period in time. Example: An empty seat
on a plane never can be utilized and charged after
When the service has been completely rendered
to the requesting service consumer, this particular
service irreversibly vanishes as it has been
consumed by the service consumer. Example:
The passenger has been transported to the
destination and cannot be transported again to
this location at this point in time.
The service provider is indispensable for service
delivery as he must promptly generate and render
the service to the requesting service consumer.
Additionally, the service consumer is inseparable
from service delivery because he is involved in it
from requesting it up to consuming the rendered
Examples: The service consumer must sit in the
hair dresser's shop & chair or in the plane & seat;
correspondingly, the hair dresser or the pilot must
be in the same shop or plane, respectively, for
delivering the service.
Services are some kind of horse and consumed
during the same period of time. As soon as the
service consumer has requested the service
(delivery), the particular service must be
generated from scratch without any delay and
friction and the service consumer instantaneously
consumes the rendered benefits for executing his
upcoming activity or task.
Each service is unique. It is one-time generated,
rendered and consumed and can never be exactly
repeated as the point in time, location,
circumstances, conditions. Many services are
regarded as heterogeneous or lacking
homogeneity and are typically modified for each
service consumer or each new situation
Example: The taxi service which transports the
service consumer from his home to the opera is
different from the taxi service which transports the
same service consumer from the opera to his
Distribution of services
Place or distribution of services includes
activities that make firm’s products/services
available to the customer i.e availability
Important element of marketing mix
Distribution is Key marketing decisions in any
Production of goods followed by distribution
whereas services through service providers
Types of Service sectors
Health , education, Govt ,
Whole seller and retailer,
Business services, finance ,
Utility /construction –
Electricity, water, gas
Restaurants, recreational , hair
4 Different Techniques of Selling
Turn your service into a product.
Examples might include "Writing a Business
Plan," "Creating a PR Program" and
"Developing a Marketing Plan.“
Package your different service levels.
Examples of service packages include
customer support services for software or
hardware products and consulting services for
a large business vs. a small one.
Combine services to create a new offering.
Examples include offering a complete turnkey
newsletter package if you're a freelance writer
or editor, providing an upgrade service for your
software company clients that helps them take
advantage of new releases.
Package a process
Advantages of selling a service
When you sell a service, you sell an intangible.
You do not have to limit your pitch to pre-existing
features, because you can adjust the features of
a service to meet the needs of each client or
You can emphasize aspects of your service that
will solve your prospect’s problems or satisfy
their needs and you can offer a trial period for
using your services. If the customer does not
keep the service, you do not have used goods on
your hands to dispose of.
Disadvantages of selling a
You can find it difficult to describe your service
to prospects. In fact, people you pitch to may
not be able to visualize what you do.
You can counter this somewhat by focusing on
how your service benefits customers, but even
then you may have to repeatedly articulate why
your service has value.
Customers may express more reluctance when
buying a service, because unlike a product, they
can’t evaluate it before they use it.