Service Marketing in the UK

Service Marketing in the UK

Service Marketing in the UK

Introduction

The marketing of products and services are essentially the same. In each case, the marketing staff to select and analyse your target markets and continue to create a marketing program around their variables of the marketing mix, the product (or services), pricing structure, distribution system and promotional program. The tactics and strategies used in conventional product marketing are often inadequate for marketing services.

Definition and scope of services marketing

Services are separately identifiable intangible activities that meet the needs and are not necessarily linked to the sale of a service (Veliyath, 2000, 82).

Size of Retail Sector

n 2009, UK retail sales were over £285billion and are growing, despite the economic downturn in 2007. During 2010, the commerce created an additional 12,750 full-time jobs, a 2.1% boost on the preceding year.

In 2010, there were over 286,000 retail flats and more than third of retail expending is finished through shops. It is evolving progressively well liked for UK customers to buy their goods online and this area of the commerce has glimpsed proceeded development since before the 2007 recession. The UK now has 150,000 online retail business and more than 600,000 British jobs are either exactly in or support e-retail. However, e-retailing currently only accounts for less than 7% of total retail sales whereas this is forecast to rise.

Competition/Competitors in Retail Sector

Two key factors drive the nature of competition between supermarkets: Because they are closest to consumers, and have sophisticated sales information, distribution and stock control systems, large retailers are well placed to manage the supply chain, in both own-label and private-label goods. In effect, they are the 'gatekeepers' of a sophisticated consumer base, rewarding firms who can best meet consumer demands. Fierce price competition has in turn put pressure on suppliers to be proactive in supporting the cost efficiencies required to maintain low prices. This is expected to continue.

Assesment of possibilities and Threats

Strengths

Increasing market share: The retail food or grocery sector holds a handsome 79% share of the UK retail market. Its multi-format capability means that it will continue to grow share in nourishment, while expanding space contribution from hypermarkets will permit it to drive a higher share in non-food.

Brand value

Profits for retail service industry based in UK have increased by 78% during the last fiscal year. The companies (Tesco, Sainsbury, Asda, Morrisons' and the Cooperative Group) have a strong brand image, and are associated with good quality, trustworthy goods that represent excellent value. Tesco's innovative ways of improving the customer shopping experience, as well as its efforts to branch out into finance and insurance have also capitalised on this (Clarke, 2006, 20).

UK market leadership reinforced:

Since acquiring number one ranking in 1996, Tesco has developed a successful multi-format strategy that has accelerated its advantage. Its UK sales are now 71% larger than Sainsbury's. Also the affray Commission's report makes it very tough for a competitor to challenge its scale and has competently scuppered Wal-Mart's possibilities of stealing UK ...