Page 6 - DMGT522_SERVICES MANAGEMENT

Unit 1: Service Operation Management
Ashwani Panesar, Lovely Professional University

Unit 1: Service Operation Management Notes

CONTENTS
Objectives
Introduction
1.1 Service Operation Management

1.2 A Service Operations Management Agenda
1.3 Paradigms in Service Marketing
1.4 Summary
1.5 Keywords

1.6 Review Questions
1.7 Further Readings

Objectives

After studying this unit, you will be able to:
Discuss about the concept of service operation management
Describe the concept of service encounter
Define the paradigm of service marketing
Introduction

As India moves increasingly toward a services economy, marketers need to know more about
marketing service products. On a simplistic note, one can say that services are activities or
benefits that one party can offer to another that are essentially intangible and do not result in the
ownership of anything. Thus we see how services are different from goods.

During the past decade services have increasingly assumed an important role in the Indian
economy. Ever since this trend was set in the nineties, services have gained dominance. The
competition, simultaneously, in service organisations, is becoming intense and severe. As a
result these organisations have to have a more professional approach to managing their
businesses. Perhaps it is in this context that the role of marketing is gaining importance in
service organisations. In this unit, you will be introduced to the concept of services.
Marketable products can be broadly classified as tangible goods and intangible service. All of us
use or consume tangible goods like food products, vegetables, oils, television, fan, refrigerator,
etc. day in and day out. Similarly, we consume services like transportation, health care, education,
telecommunication, entertainment, etc. Services in fact became a vital part in the lifestyles of
people around the globe and many say that services are changing the lifestyle and quality of life.
Services are integral part of every economy in the world. It stands along with agriculture and
industry as one of the major components of an economy.
Service sector has registered substantial growth in all the countries during the last three decades.
This sector overpowered agriculture and industry and occupied significantly dominant position
in the economies of all the developed countries and many developing countries. The share of
services sector in the Gross Domestic Profit (GDP) of a country is treated as a benchmark to
designate an economy as service economy. An economy is called service economy when the
contribution of the service sector to the GDP of the nation is more then 50 per cent. United States

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