The service industry forms a backbone of social and economic development of a region. It has emerged as the largest and fastest-growing sectors in the world economy, making higher contributions to the global output and employment. Its growth rate has been higher than that of agriculture and manufacturing sectors. It is a large and most dynamic part of the Indian economy both in terms of employment potential and contribution to national income. It covers a wide range of activities, such as trading, transportation and communication, financial, real estate and business services, as well as community, social and personal services. This paper attempts to define the service sector, particularly on marketing strategies in service sector

1. MARKETING STRATEGIES FOR SERVICES SECTOR
G.REKA
M.Phil Research scholar,
Department of Commerce,
Jamal Mohamed College, Tiruchirappalli-620 020, India
Email: reka.g90@gmail.com
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ABSTRACT
The service industry forms a backbone of social and economic development of a
region. It has emerged as the largest and fastest-growing sectors in the world economy, making
higher contributions to the global output and employment. Its growth rate has been higher than
that of agriculture and manufacturing sectors. It is a large and most dynamic part of the Indian
economy both in terms of employment potential and contribution to national income. It covers a
wide range of activities, such as trading, transportation and communication, financial, real estate
and business services, as well as community, social and personal services. This paper attempts to
define the service sector, particularly on marketing strategies in service sector
Keywords: Services, Employment, strategies
INTRODUCTION
India has the second fastest growing services sector with its compound annual growth rate
at nine per cent, just below China’s 10.9 per cent, during the last 11-year period from 2001 to
2012, the Economic Survey for 2013-14 said. Russia at 5.4 per cent is a distant third. Among the
world's top 15 countries in terms of GDP, India ranked 10th in terms of overall GDP and 12th in
terms of services GDP in 2012, it said, adding that services share in world GDP was 65.9 per
cent but its share in employment was only 44 per cent in 2012.
As per the survey, in India, the growth of services-sector GDP has been higher than that of
overall GDP between the periods FY2001- FY2014. Services constitute a major portion of
India’s GDP with a 57 per cent share in GDP at factor cost (at current prices) in 2013-14, an
increase of 6 percentage points over.

2. DEFINING THE SERVICE SECTOR
Commonly for economic planning and analysis purposes, government agencies group
industries into four industry sectors, agriculture (including forestry and fishing), mining,
manufacturing and services. Another grouping has three sectors, the primary sector (agriculture,
forestry, fishing and mining), the secondary sector (manufacturing) and a tertiary sector
(services).
The service sector consists of the "soft" parts of the economy, i.e. activities where people
offer their knowledge and time to improve productivity, performance, potential, and
sustainability, what is termed affective labor. The basic characteristic of this sector is the
production of services instead of end products. Services (also known as "intangible goods")
include attention, advice, access, experience, and discussion. The production of information is
generally also regarded as a service, but some economists now attribute it to a fourth sector,
the quaternary sector.
The tertiary sector of industry involves the provision of services to other businesses as
well as final consumers. Services may involve the transport, distribution and sale of goods from
producer to a consumer, as may happen in wholesaling and retailing, or may involve the
provision of a service, such as in pest control or entertainment. The goods may be transformed in
the process of providing the service, as happens in the restaurant industry. However, the focus is
on people interacting with people and serving the customer rather than transforming physical
goods.
THE SERVICE SECTORS OF INDIAN ECONOMY
Services Sectors included in the National Industrial Classification 2008
 Wholesale and retail trade; repair of motor vehicles and motorcycles
 Transportation and storage
 Accommodation and food service activities
 Information and communication
 Financial and insurance activities
 Real estate activities
 Professional, scientific and technical activities
 Administrative and support service activities

3.  Public administration and defense; compulsory social security
 Education
 Human health and social work activities
 Arts, entertainment and recreation
 Other service activities
 Activities of households as employers; undifferentiated goods and services producing
activities of households for own use
 Activities of extraterritorial organizations and bodies
(Source: Extracted from National Industrial Classification, Central Statistical Organization,
Ministry of Statistics and Programme Implementation (MOSPI), Government of India, 2008 )
SERVICES SECTOR UNDER DIFFERENT JURISDICTIONS ACCORDING TO THE
CONSTITUTION OF INDIA
 UNION LIST : Telecommunications, postal, broadcasting, financial services (including
insurance and banking), national highways, mining services
 STATE LIST : Health and related services, real estate services, retail, services incidental
to agriculture, hunting and forestry
 CONCURRENT LIST :Professional services (legal, accounting, auditing and book-
keeping, taxation, architectural, engineering, integrated engineering, urban planning and
landscape architectural, medical and dental services and service provided by midwives,
nurses, etc.), education, printing and publishing, electricity
(Source: Author’s compilation from the Constitution of India, 1950. )
MARKETING STRATEGIES & INNOVATIONS IN THE SERVICES SECTOR
Steve Jobs got it just right when he said, “You can’t just ask customers what they want and
then try to give that to them. By the time you will get it built, they’ll want something new.” This
statement, coming from the CEO of perhaps one of the world’s most respected companies is a
direct reflection of the changing dynamics of how organizations perceive their customers today.

4. In the context of this article, what is important to realize at the very outset is what Theodore
Levitt once famously said, “There are no such things as services industries. There are only
service industries whose service components are greater than or less than those of other
industries. Everybody is in service.” This basically means that everything under the sun, from
salt and soft drinks to consultancy and teaching falls under the purview of the services industry,
albeit the extent to which the services are provided in each of them may vary.
Adding further to the idea shared above, with changing dynamics in the current market
scenario, one of the promising ways to support market success is innovations originating from
the needs of the customers. The established division between product-oriented and service-
oriented business is blurring as traditional products are equipped with service elements that bring
additional value to customers. Today, the customer has to be kept satisfied always; selling the
product once is not enough.
1. Competition Breeds Convenience: Moreover, there is stiff competition which is omnipresent
in every industry falling under this category and the end result is service providers vying for
every last penny in the customer’s wallet. There is competition today from across the segments
in the same industry as well.
A perfect example of an innovative services marketing initiative in the context of
convenience is the Cash on Delivery service introduced by E-Commerce portals like Flipkart and
Myntra.
2. Technology Rules the Roost: Today with the technological advances in place, a growing
population with access to the internet, fresh avenues in services marketing have opened up. A
change in the needs of the customers has compelled financial institutions to provide more
transactional convenience. Customers today want to do banking anytime, anyplace. Although
automated tellers provide part of the function, internet banking and mobile banking have taken it
all a step further bringing the banks right to our doorsteps.
The drive for “Going Green” has prompted many banks to go paper-less. And banks have
been leaving no stone unturned to market this in a big way. In fact, even the Government
agencies like the Indian Postal Services, BSNL and Passport Portal falling under the Ministry of
External Affairs all have a huge online presence, catering to the needs of customers.

5. 3. Keeping it Simple and Stupid: As customers are being exposed to more and varied services,
their expectations have increased manifold. The demand for better quality at a lower price is
pushing service providers to streamline their operations and maintain their profit margins by
tapping other resources. In the context of Indian aviation, perhaps the only airline which has
been able to register consistent growth is Indigo.
They did this by positioning themselves as a no – frills airline whose sole purpose was to
help passengers reach their desired destinations on time. They took a conscious decision not to
provide any unnecessary add on service and focus only on punctuality. Their campaign “On time
is a great thing” clearly captures the vision and mission of the organization. They have stuck to
their core competence and that is exactly what they market.
4. When in Rome, Do as the Romans Do: Marketing is often wrongly perceived as a business
function limited to advertising and selling. Service providers run the same risk as well if they
limit their marketing to advertising and selling only. They must continually challenge themselves
to improve their products and innovate as an active part of the marketing program.
For example, when McDonald’s made its foray into the Indian Fast Food market, it was
known globally for serving hamburgers, beef and pork. But they quickly adjusted to Indian
sensibilities and introduced a tailored menu for India, adding chicken, lamb and fish
5. Fast Delivery of Services
Services must be delivered as per the time framed. Late executions of services are not always
the exporter’s fault. But such difficulties can invariably be overcome, and anyone contemplating
entering export for the first time must be determined to let nothing stand in the way of-fast and
efficient execution of services . In most of the cases person rendering the service is himself
responsible for timely delivery unlike physical export and hence this must be ensured.
6. Proper Communication
Communication internal and external must be far-reaching and speedy. Good communication is
vital in export of services. Failure to reply promptly to letters, using sea mail to answer airmail
letters are everyday errors and speed and timely action is essence of export communication.

6. 7. Promotions
Customers will be shopping around for the best deals. Service providers do not necessarily have
to cut list prices but you may need to offer more temporary price promotions. Targeted and
personalized promotions are more cost efficient than just sending out one generic campaign.
Customers are naturally skeptical of promotions so make sure service providers frame them
appropriately, for example, ‘New Years Detox Offer’.
8. Rewarding loyalty
Start a loyalty programme. The customer gets a good deal, service providers get a keen customer.
A simple approach is to give clients a free treatment after they purchase a set number of
treatments. Invite the regulars to trial new products and treatments at a reduced cost, service
providers could target this promotion based on client’s purchase history. TIP: Customers are
naturally dubious of sales offers so frame the offer as a “thank you” for their loyalty.
9. Social Media
Social media is not only a great way to engage with guests and potential guests, offer deals, and
promote website content, but it also affects your performance on search engines. Google
takes social signals as a sign of a healthy website, and it appears that social media will continue
to play a role in how your page ranks online.
10. Follow Ups and Feed Backs
Follow up and feedback should be well taken care in the service exports and with the growing
competition, customer satisfaction should be given upmost priority. After execution of services
also, the exporter should attain the feedback of the services he has rendered so that in case of any
improvement is required in further orders can be attended.
SUGGESTIONS:
 Be innovative;
 Develop new ideas and technology;
 Research and commercially develop new technologies, processes and services;

7.  Promote and market India’s services industries’ capabilities to the global marketplace,
particularly in our region;
 Develop business and commercial networks worldwide and maintain the knowledge base
of companies and people;
 Develop human skills through lifetime education and training;
 Remain globally competitive and maximize India ’s services industries’ comparative
advantage.
CONCLUSION
The paper had highlighted the marketing strategies in service sector. Service sector is
growing and gaining importance day by day. Newer services are entering into market place.
Customer is becoming more and more dependent on services. Service organizations are looking
for some innovative ways to improve their services.
As mentioned in the earlier lines of this article, if organizations wait for customers to
drive innovation, it may become a case of too little too late. On the contrary, organizations
should pursue innovation and market it as a way of life to the consumers. From just an idea, to
implementing, to marketing and finally to sustaining the relationship, services have to keep
innovating
REFERENCES
1. Arpita Mukherjee -‘’ Services Sector in India: Trends, Issues and Way Forward’’
2. http://www.thehindu.com/business/budget/india-has-second-fastest-growing-services-
sector/article6193500.ece
3. http://articles.economictimes.indiatimes.com/2014-07-09/news/51248263_1_services-
exports-services-sector-world-gdp
4. www.mospi.nic.in
5. http://www.lifehealthpro.com
6 .http://business.mapsofindia.com/sectors/service.html
7. http://business.gov.in/Industry_services/services_sector.php

8. 8. http://en.wikipedia.org/wiki/Services_marketing
9. http://www.mbaskool.com/business-articles/marketing/4567-marketing-strategies-a-
innovations-in-the-services-sector.html
10. http://timesofindia.indiatimes.com/budget-2014/economic-survey-2014/Economic-Survey-India-
has-second-fastest-growing-services-sector/articleshow/38086352.cms