Here are potential answers to the questions: 1. Two differences between a physical product and service are: - A product can be seen, held, and stored while a service is intangible. - Quality of a product can be inspected before purchase but quality of a service is experienced during/after consumption. 2. Three examples of international service industries are: - Tourism and hospitality - Financial services like banking and insurance - Transportation like airlines and shipping 3. Three challenges in international marketing of services are: - Ensuring consistent quality and control of service delivery across cultures - Addressing cultural sensitivities as services are often experienced personally - Overcoming barriers to trade like restrictions on

1. International Marketing

2. Chapter 8
Global
Marketing of
Services

3. At the end of the chapter, students will be able
to:
understand the differences between goods and
services.
appreciate the growing role of services in the
global economy.
understand corporate involvement in
international services marketing.
Learning Outcomes

4. Discussion
1. What is a service?
2. What are the various elements of a service?

5. ELEMENTS OF A SERVICE

6. ELEMENTS OF A SERVICE
https://www.mbaskool.com/business-concepts/marketing-and-
strategy-terms/11201-service-marketing.html

7. LINKAGE BETWEEN GOODS AND SERVICES
• Services may complement goods; at other times, goods may
complement services.
• Offering goods that are in need of substantial technological
support and maintenance may be useless if no proper assurance
for service can be provided.
• For this reason, the initial contract of sale often includes
important service dimensions. This practice is common in aircraft
sales.

8. LINKAGE BETWEEN GOODS AND SERVICES
• When an aircraft is purchased, the buyer often contracts not only
for the physical good—namely the plane—but also for training of
personnel, maintenance service, and the promise of continuous
technological updates.
• Similarly, the sale of computer hardware is critically linked to the
availability of proper servicing and software.

9. LINKAGE BETWEEN GOODS AND SERVICES
• Linkage between goods and services can make international marketing efforts
quite difficult.
• A foreign buyer, for example, may wish to purchase helicopters and contract for
service support over a period of 10 years. If the sale involves a U.S. firm, both the
helicopter and the service sale will require an export license.
• Such licenses, however, are issued only for an immediate sale.
• Therefore, over the 10 years, the seller will have to apply for an export license
each time service is to be provided. Because the issuance of a license is often
dependent on the political climate, the buyer and seller are haunted by
uncertainty.
• As a result, sales may be lost to firms in countries that can unconditionally

10. LINKAGE BETWEEN GOODS AND SERVICES

11. LINKAGE BETWEEN GOODS AND SERVICES

12. STAND-ALONE SERVICES
• Services do not always come in unison with goods.
• Increasingly, they compete against goods and become an alternative offering. Eg,
rather than buying a car (a good), the product can be converted into the purchase
of a service by leasing the car from an agency.
• Services may also compete against each other. As an example, a store may have
the option of offering full service to consumers who purchase there or of
converting to the self-service format.
• With automated checkout services, consumers may self-serve all activities such
as selection, transportation, packaging, and pricing.

13. Discussion
1. List FOUR (4) types of service industries.

14. TYPES OF SERVICE INDUSTRIES

15. Discussion
1. What are the challenges a company faces when
delivering services?

16. CHALLENGES IN DELIVERY OF GLOBAL SERVICES
• Inconsistency in delivering the service - the issue of quality control affects the
provider as well as the recipient of services. Efforts to increase such control
through uniformity may sometimes be seen by customers as a reduction in
service choices.
• The quality perception of service customers is largely determined by the
behavior of the employees they contact. Customer-contact workers are therefore
a key internal group whose skills must be addressed systematically through
internal marketing.
• Because services are delivered directly to the user, they are frequently much
more sensitive to cultural factors than are products. Sometimes their influence
on the individual may even be considered with hostility abroad. Eg, the showing

17. CHALLENGES IN DELIVERY OF GLOBAL SERVICES

18. CHALLENGES IN DELIVERY OF GLOBAL SERVICES

19. ROLE OF SERVICES IN THE GLOBAL ECONOMY

20. ROLE OF SERVICES IN THE GLOBAL ECONOMY

21. ROLE OF SERVICES IN THE GLOBAL ECONOMY

22. ROLE OF SERVICES IN THE GLOBAL ECONOMY

23. ROLE OF SERVICES IN THE GLOBAL ECONOMY

24. ROLE OF SERVICES IN THE GLOBAL ECONOMY

25. Discussion
1. What was the cause of the downfall of Iceland?
2. How could the problem be avoided?

26. GLOBAL TRANSFORMATION OF SERVICES
• Shifts in the business environment and innovations in technology.
• Deregulation, which reduced government interference in the
marketplace (airline industry).

27. INTERNATIONAL TRADE PROBLEMS IN SERVICES
• Data collection problems
• Barriers to entry (impact of banking on domestic economic activity is given as a
reason why banking should be carried out only by nationals or indeed be
operated entirely under government control)
• Problems in performing services.

28. INTERNATIONAL TRADE PROBLEMS IN SERVICES

29. CORPORATE INVOLVEMENT IN INTERNATIONAL SERVICES
MARKETING
• SERVICES AND E-COMMERCE

30. CORPORATE INVOLVEMENT IN INTERNATIONAL SERVICES
MARKETING
• SERVICES AND E-COMMERCE

31. CORPORATE INVOLVEMENT IN INTERNATIONAL SERVICES
MARKETING
• SERVICES AND ACADEMIA
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offering-free-online-courses

32. CORPORATE INVOLVEMENT IN INTERNATIONAL SERVICES
MARKETING
• TYPICAL INTERNATIONAL SERVICES
• Financial services
• Legal and accounting
• Construction, design and engineering
• Management consultancy
• Computer and data services
• Online teaching services

33. STRATEGIC IMPLICATIONS OF INTERNATIONAL SERVICES
MARKETING
• IMPLICATIONS
• Employees skills
• Flexibility
• Technology
• Distribution of services

34. Question and Answer Session
1. List TWO (2) differences between a physical product and
service?
2. List THREE (3) examples of international service industries?
3. What are the challenges in international marketing of
services?