UNIT – 1
Marketing of Services
Service is the action of doing something for someone or something. It is largely intangible
(i.e. not material). A product is tangible (i.e. material) since you can touch it and own it. A
service tends to be an experience that is consumed at the point where it is purchased, and
cannot be owned since it quickly perishes. A person could go to a café one day and have
excellent service, and then return the next day and have a poor experience.
Introduction
Key Economic Indicators about India
➢ GDP: $691 billion
➢ Growth: Estimated 7-8 percent or higher in 2005-06; 7 percent in 2004-05
➢ Breakdown: Services equal 50 percent of the GDP; industry and agriculture equal 50
percent
➢ Ranking: 10th largest economy in the world and one of its fastest growing; fourth
largest in purchasing-power parity terms
➢ Per capita income: $640 in 2004-05, (almost double the figure of two decades ago).
Of the 1.1 billion people, 39 percent live on less than $1 per day
➢ Purchasing power: In 2005, approximately 170-300 million people had growing
purchasing power, thus creating a growing middle-class consumer population
➢ Youth Power: Over 58 percent of the Indian population is under the age of 20. That is
over 564 million people, nearly twice the total population of the United States
India at a Glance
➢ Population: 1.1 billion (Urban population – 28.4 percent)
➢ Retail Mkt. Size: $286 billion (only 3.9 percent is organized retail). Retail trade is
booming in the country due to increasing disposable incomes of middle and upper middle
class
➢ Growth of Malls: 375 shopping malls by 2007 from 25 in 2003; Estimated space: 90
million sq.ft.
➢ Growing Middle-class: 300 million and estimated to be growing at 5 percent annually
➢ Did you know that India: is the world’s second largest small car market
• Is one of only three countries that makes its own supercomputers
Marketing of Services
Service is the action of doing something for someone or something. It is largely intangible
(i.e. not material). A product is tangible (i.e. material) since you can touch it and own it. A
service tends to be an experience that is consumed at the point where it is purchased, and
cannot be owned since it quickly perishes. A person could go to a café one day and have
excellent service, and then return the next day and have a poor experience.
Introduction
Key Economic Indicators about India
➢ GDP: $691 billion
➢ Growth: Estimated 7-8 percent or higher in 2005-06; 7 percent in 2004-05
➢ Breakdown: Services equal 50 percent of the GDP; industry and agriculture equal 50
percent
➢ Ranking: 10th largest economy in the world and one of its fastest growing; fourth
largest in purchasing-power parity terms
➢ Per capita income: $640 in 2004-05, (almost double the figure of two decades ago).
Of the 1.1 billion people, 39 percent live on less than $1 per day
➢ Purchasing power: In 2005, approximately 170-300 million people had growing
purchasing power, thus creating a growing middle-class consumer population
➢ Youth Power: Over 58 percent of the Indian population is under the age of 20. That is
over 564 million people, nearly twice the total population of the United States
India at a Glance
➢ Population: 1.1 billion (Urban population – 28.4 percent)
➢ Retail Mkt. Size: $286 billion (only 3.9 percent is organized retail). Retail trade is
booming in the country due to increasing disposable incomes of middle and upper middle
class
➢ Growth of Malls: 375 shopping malls by 2007 from 25 in 2003; Estimated space: 90
million sq.ft.
➢ Growing Middle-class: 300 million and estimated to be growing at 5 percent annually
➢ Did you know that India: is the world’s second largest small car market
• Is one of only three countries that makes its own supercomputers
