What Is Service Sector Management?


Services include encompass all economic activities. The output derived from such services is not a physical product or construction. The output is generally delivered at the time it is produced. And, the service provides added value. The value may come in different forms (such as convenience, timeliness, comfort, or health).

That is basically vague concerns of its first purchaser.


Companies like IBM offers, consultancy, training services, etc, carry out repair and maintenance service of equipment. These services may entail a physical product like a report or train manual. 

A company may have various products. Now, customer services need to be provided in support of such products. Customer Services may include services like answering the question, taking orders, dealing with a billing issue, handling complaints, etc.

Typically, customer service does not require special services, such as building a customer relationship. Customer services are thus somewhat different from services generally provided for sale by a company. Federal Express markets and delivers services, for example.

It also delivers a high level of customer services. Its services entail overnight package delivery and logistics services. Its customer services comprise well-trained staff who can respond to all questions on telephone, online tracking of parcels, etc.


Now every product has customers and uses one type or another. Now, the perception of service marketing deals with selling the services. Customer services should ensure that the services are in the best interest of users/customers. 

Marketing a service involves marketing something elusive. However, marketing makes a promise. Marketing is more like selling yourself. 

In the marketing of services, a number of problems directly or indirectly are involved in influencing the business index. Marketing information system, Market segmentation, and behavioral management are the problems.

These problems are dealt with minutely. And, these issues abridge the task of generating an effective mix for marketing. The mix could include key components of marketing such as Product mix, Promotion mix, Price mix, and the Place mix. 

It is important to mention that we find “People”. People are an important mix that makes marketing services feasible. Business owners need to market services in the right direction. This will make sure the available opportunities are capitalized on effectively. And, the marketing tactics contribute significantly to the process of development. In view of the above, we can conclude the following key points in terms of the concept or perception of services marketing:

  • It is a managerial process that allows businesses to manage the services.
  • It is an organized effort that provides a sound foundation, on which the development of an organization can be based.
  • It is a social process that can benefit an organization immensely. An organization allows businesses to understand the emerging social problem. And, this helps business organizations to take part in the social change process. The process allows business owners to justify their organization’s existence in society.


Service Management is:

To understand the function the customers receive. The customers may understand this value by consuming or using the service offering of the organization

To understand how the organization interacts with personnel, physical resources, systems, technology, and customers, so businesses are able to generate and deliver this utility

To propose how the organization should be developed and managed so that the intended quality can be achieved

To make the organization function so that the businesses can deliver on a continuous basis


As projected by Theodore Levitt,

“There is no such thing as service industries. There are some service industries whose service component are greater (or less) than those of other industries”. 

Everybody thrives in service. The point that Leavitt was trying to get across is that with almost every concrete physical product has an intangible service component is connected.

Therefore, everybody is linked in service. He has further put that goods can be divided into two categories:

  1. Search goods – Goods that the customer can see, touch, appraise and try them before making a purchase (soap, shampoo, etc.)
  2. Experienced goods – Goods which one can see, touch, or evaluate only after the purchase, while being enjoyed (Holiday, travel, etc). Search goods Experienced goods: goods, which one can see or appraise after the purchase like (holidays, travel, etc.) 


Service Management is discussed in the manufacturing context. The branch of management is integrated into supply chain management. Service management works as the intersection between the customer point of view and the actual sales. 

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