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 
