International Business and International Marketing

Chapter 15 : International Marketing of Services

Chapter Summary

Services play a major role in the economy today. In many countries, 50% of their GDP is derived from services. Earlier, exporting of services was considered to be a very difficult, if not impossible, task, and there was little overseas expansion by service-based industries. But now, all the handicaps of services, of their being intangible, perishable, heterogeneous and inseparable in nature, are being overcome.

The use of the latest technology and innovative product development are crucial for the development of the service industry. Any service industry, whether banking, insurance, retailing or professional services, will have to identify its strengths and its weaknesses before expansion into global markets. They will also have to develop products that are easily exportable.

Most importantly, since this industry is highly dependent on efficient and skilled staff and employees, a service provider and will have to attach primary importance to the training and skill upgradation of its staff. Competition in the service industry is increasing day by day. To survive, a service based company must think of innovative ways to improve on its products and services and to reach out to more people.

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