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Services Marketing: Managing the Service Value Chain

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zIn both business and practice, services have become the most discussed goods category. Today, many services markets are extremely dynamic, for several reasons. The banking and airlines industries are heavily affected by the movement towards globalisation, for example. A second group of service industries are being liberalised, and are facing demanding customers for the first time. This includes utilities, telecommunications, postal services, and administrative services. A third group, which includes the retail industry, is characterised by strong competition. Whereas this group was originally dominated by smaller providers, there are now huge players involved.

From an academic perspective, services are special compared to manufactured goods since services are more intangible, necessitate the participation of the consumer and are more heterogeneous. These reasons are the starting point for many publications in the area of services marketing which deal with operational issues in this field.

Services Marketing: Managing the Service Value Chain complements this literature by providing a more strategic approach to services marketing. It takes into account the current challenges in business practices. In many service industries, the competitive tendencies mentioned above result in a stronger value orientation of service firms. The shareholders and top management ask for a value contribution of each activity of a service firm. In addition, marketing is supposed to create value by making sure that the service firm delivers value by itself to the customer. Our Service Value Chain delivers a framework for a systematic, value-oriented, services marketing.
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