Service industries Services are “activities. benefits, or satisfactions which are offered for sale or are provided in connection with the sale of goods,”. Motels, television repair shops, medical centers, legal firms, advertising agencies, accounting service, and taxi-services are typical service firms.
The personal nature of most of these services, the low cost of entry in most areas and the small-scale efficiency encourage small firms. The limited resources of these small firms result in unsophisticated styles of marketing. Besides the classification of goods as consumer and industrial, the goods are also classified as Durable and Non -durable. Durable goods have many uses while non-durable are exhausted after one or more uses. This classification is based on the rate of consumption and product’s tangibility. The marketing executives have to adopt different marketing technologies for these goods.
Demand Variables of Different Types of Goods
The different types of goods have different buying motives hence they possess different demand variables also. An efficient marketing executive must know the nature and characteristics of his products so that he may determine them distinctly and may follows the suitable marketing strategy. The following diagram shows different demand-variables:
A. Demand-Variables of Consumer Goods
1. Population
2. Income
3. Attitude of People towards life
4. Mode of passing leisure time
5. Fashion Styles
6. Innovation possibilities
7. Confidence in future Facilities
B. Demand-Variables of Industrial Goods
1. Provision of Infrastructure facilities for new locations
2. Terms of sale
3. Distribution Policy
4. Government Policy
5. Financial and administrative facilities
