A Paper on Services Marketing By Prof. Sunil D. Doke
1. INTRODUCTION
The phenomenal expansion of the Services Sector worldwide has led to services being regarded as the engine for economic Growth. As per the theories of Development Economics, The economic development is three-stage process. The dominance of the services sector in the growth process is usually associated with the third stage of the growth.
Today we are experiencing enough evidences showing us the fact that India has entered into third stage of growth. The share of Services Sector in the GDP has been steadily increasing from about 38-40% in the 1970’s to about 54% in Dec. 2002. It has grown very rapidly in 1990. Trade, Hotel, Transport, and communication account for about 46%, Finance, Insurance, Real estate and Business Services about 26%, and the Social and personal services the rest 28%.
A notable feature of the structural transformation of services sector in India has been the growth of skill intensive and high value added sectors like Education, software, Communication and Financial Services. The rapid growth of services is attributed to the advent of Information Technology & Knowledge Economy.
Besides its direct contribution to GDP, the services sector can be a source of productivity for other sectors and can therefore facilitate expansion in other sectors of the economy. In India it is the services sector, which has kept the GDP growth to around 6% in 1990 when Industry and Agriculture could not keep pace1.
This rapid growth in the service sector in India is attracting the Multi National Corporations from all over world. Indian Government is also giving green signal to globalization. This situation is posing a new challenge in front of the domesti ...