service economy can refer to one or both of two recent economic developments

8/8/2019 Service Economy Can Refer to One or Both of Two Recent Economic Developments

1/29

Services Marketing and the

Extended Marketing Mix (7P's).What is services marketing?

A service is the action of doing something forsomeone 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 tendsto be an experience that is consumed at the pointwhere it is purchased, and cannot be owned since isquickly perishes. A person could go to a caf oneday and have excellent service, and then return thenext day and have a poor experience. So oftenmarketers talk about the nature of a service as:Inseparable - from the point where it isconsumed, and from the provider of the service. Forexample, you cannot take a live theatreperformance home to consume it (a DVD of thesame performance would be a product, not aservice).

Intangible - and cannot have a real, physicalpresence as does a product. For example, motorinsurance may have a certificate, but the financialservice itself cannot be touched i.e. it is intangible.Perishable - in that once it has occurred it cannotbe repeated in exactly the same way. For example,once a 100 metres Olympic final has been run,there will be not other for 4 more years, and eventhen it will be staged in a different place with manydifferent finalists.

Variability- since the human involvement ofservice provision means that no two services will becompletely identical. For example, returning to thesame garage time and time again for a service onyour car might see different levels of customersatisfaction, or speediness of work.Right of ownership - is not taken to the service,since you merely experience it. For example, anengineer may service your air-conditioning, but you


2/29

do not own the service, the engineer or hisequipment. You cannot sell it on once it has beenconsumed, and do not take ownership of it.

Western economies have seen deterioration in theirtraditional manufacturing industries, and a growthin their service economies. Therefore the marketingmix has seen an extension and adaptation into theextended marketing mix for services, also known asthe 7P's - physical evidence, process and people.

SWOT Analysis:Strengths, Weaknesses, Opportunities and Threats

(SWOT).

SWOT analysis is a tool for auditing an organizationand its environment. It is the first stage of planningand helps marketers to focus on key issues. SWOTstands for strengths, weaknesses,opportunities, and threats. Strengths andweaknesses are internal factors. Opportunities andthreats are external factors.

In SWOT, strengths andweaknesses are internal factors.For example:A strength could be:

y Your specialist marketing expertise.y A new, innovative product or service.y Location of your business.y Quality processes and procedures.y Any other aspect of your business that adds value to your product or

service.

A weakness could be:

y Lack of marketing expertise.y Undifferentiated products or services (i.e. in relation to your

competitors).y Location of your business.y Poor quality goods or services.y Damaged reputation.

Process and Services MarketingProcess is another element of the extended

marketing mix, or 7P's.There are a number of perceptions of the concept of process within the

business and marketing literature. Some see processes as a means to achieve an outcome,


3/29

for example - to achieve a 30% market share a company implements a marketing planning

process.

Another view is that marketing has a number ofprocesses that integrate together to create anoverall marketing process, for example -

telemarketing and Internet marketing can beintegrated. A further view is that marketingprocesses are used to control the marketing mix,i.e. processes that measure the achievementmarketing objectives. All views are understandable,but not particularly customer focused.For the purposes of the marketing mix, process isan element of service that sees the customerexperiencing an organisation's offering. It's bestviewed as something that your customerparticipates in at different points in time. Here aresome examples to help your build a picture ofmarketing process, from the customer's point ofview.Going on a cruise - from the moment that youarrive at the dockside, you are greeted; yourbaggage is taken to your room. You have twoweeks of services from restaurants and eveningentertainment, to casinos and shopping. Finally,you arrive at your destination, and your baggage isdelivered to you. This is a highly focused marketingprocess.

Booking a flight on the Internet - the processbegins with you visiting an airline's website. Youenter details of your flights and book them. Yourticket/booking reference arrive by e-mail or post.You catch your flight on time, and arrive refreshedat your destination. This is all part of the marketingprocess.

At each stage of the process,markets:

y Deliver value through all elements of the marketing mix. Process,physical evidence and people enhance services.

y Feedback can be taken and the mix can be altered.


4/29

y Customers are retained, and other serves or products are extendedand marked to them.

y The process itself can be tailored to the needs of differentindividuals, experiencing a similar service at the same time.

Processes essentially have inputs, throughputs and

outputs (or outcomes). Marketing adds value toeach of the stages.

Developed countryThe term developed country is used to describe countries that have a high

level of development according to some criteria. Which criteria, and which countries are

classified as being developed, is a contentious issue and is surrounded by fierce debate.Economic criteria have tended to dominate discussions. One such criterion is income per capita;

countries with high gross domestic product (GDP) per capita would thus be described asdeveloped countries. Another economic criterion is industrialization; countries in which the

tertiary and quaternary sectors of industry dominate would thus be described as developed. Morerecently another measure, the Human Development Index, which combines an economic

measure, national income, with other measures, indices for life expectancy and education hasbecome prominent. This criterion would define developed countries as those with a very high

(HDI) rating. However, many anomalies exist when determining "developed" status bywhichever measure is used.

Developing country Developing country is a term generally used to describe a nation with a lowlevel of material well-being (not to be confused with third world countries). Since no single

definition of the term developed country is recognized internationally, the levels of developmentmay vary widely within so-called developing countries, with some developing countries having

high average standards of living.[1][2]

Countries with more advanced economies than other developing nations, but which have not yetfully demonstrated the signs of a developed country, are categorized under the term newly

industrialized countries

Measure and concept of development

The development of a country is measured with statistical indexes such as incomeper capita (per

person) (GDP), life expectancy, the rate ofliteracy, et cetera. The UN has developed the HDI, acompound indicator of the above statistics, to gauge the level of human development for

countries where data is available.

Developing countries are in general countries which have not achieved a significant degree ofindustrialization relative to their populations, and which have, in most cases a medium to lowstandard of living. There is a strong correlation between low income and highpopulation growth.

The terms utilized when discussing developing countries refer to the intent and to the constructs

of those who utilize these terms. Other terms sometimes used are less developed countries(LDCs), least economically developed countries (LEDCs), "underdeveloped nations" orThird

World nations, and "non-industrialized nations". Conversely, the opposite end of the spectrum is


5/29

termed developed countries, most economically developed countries (MEDCs), First Worldnations and "industrialized nations".

To moderate the euphemistic aspect of the word developing, international organizations have

started to use the term Less economically developed country (LEDCs) for the poorest nations

which can in no sense be regarded as developing. That is, LEDCs are the poorest subset ofLDCs. This may moderate against a belief that the standard of living across the entire developingworld is the same.

The concept of the developing nation is found, under one term or another, in numerous

theoretical systems having diverse orientations for example, theories ofdecolonization,liberation theology, Marxism, anti-imperialism, andpolitical economy.

[edit] Criticism of the term 'developing country'

There is criticism of the use of the term developing country. The term implies inferiority of a

'developing country' compared to a 'developed country', which many such countries dislike. Itassumes a desire to develop along the traditional 'Western' model of economic developmentwhich a few countries, such as Cuba, have chosen not to follow. Thus Cuba remains classed as

'developing' due to its low gross national income but has a lower infant mortality rate than theUSA.

[16]

The term 'developing' implies mobility and does not acknowledge that development may be indecline or static in some countries, particularly those southern African states worst affected by

HIV/AIDS. In such cases, the term developing country may be considered a euphemism. Theterm implies homogeneity between such countries, which vary widely. The term also implies

homogeneity within such countries when wealth (and health) of the most and least affluent

groups varies widely.

Service economy can refer to one or both of two recent economic developments. One is the

increased importance of the service sectorin industrialized economies. Services account for ahigher percentage of US GDP than 20 years ago. The current list ofFortune 500 companies

contains more service companies and fewer manufacturers than in previous decades.

The term is also used to refer to the relative importance of service in a product offering. The

service economy in developing countries is mostly concentrated in financial services, health, andeducation. Products today have a higher service component than in previous decades. In the

management literature this is referred to as the servitization of products. Virtually every

product today has a service component to it. The old dichotomy between product and service hasbeen replaced by a service-product continuum. Manyproducts are being transformed intoservices.

For example, IBM treats its business as a service business. Although it still manufactures

computers, it sees the physical goods as a small part of the "business solutions" industry. Theyhave found that theprice elasticity of demand for "business solutions" is much less elastic than

for hardware. There has been a corresponding shift to a subscription pricing model. Rather than


6/29

receiving a single payment for a piece of manufactured equipment, many manufacturers are nowreceiving a steady stream of revenue for ongoing contracts. James Murrdock once said "When

GDP are low...the service based economy must be also."

Full cost accounting and most accounting reform and monetary reform measures are usually

thought to be impossible to achieve without a good model of the service economy.

Role of the Service Economy in Development

Services constitute over 50% of GDP in low income countries's and as their economies continueto develop, the importance of services in the economy continue to grow

[1]. The service economy

is also key to growth, for instance it accounted for 47% of economic growth in sub-SaharanAfrica over the period 20002005 (industry contributed 37% and agriculture 16% in the same

period)[2]

. The means that recent economic growth in Africa relies as much on services as onnatural resources or textiles, despite many of those countries benefiting from trade preferences in

primary and secondary goods. As a result, employment is also adjusting to the changes and

people are leaving the agricultural sector to find work in the service economy. This job creationis particularly useful as often it provides employment for low skilled labour in the tourism andretail sectors, thus benefiting the poor in particular and representing an overall net increase in

employment[3]

. The service economy in developing countries is most often made up of thefollowing:

y Financial servicesy Tourism

y Distributiony Health, and

y Education

The export potential of many of these products is already well understood, e.g. in tourism,financial services and transport, however, new opportunities are arising in other sectors, such as

the health sector. For example:

y Indian companies who provide scanning services for US hospitalsy South Africa is developing a market for surgery and tourism packages

y India, the Philippines, South Africa and Mauritius have experienced rapid growth in ITservices, such as call centres, back-office functions and software development

Growth in the service economy also facilitates growth in the rest of the economy. Services such

as energy, telecommunications and transportation are important to all sectors of the economy;financial services facilitate transactions and investment; health and education services thatcontribute to a fit, well-trained workforce; and legal and accountancy services allow an

institutional framework required to run a successful market economy

Marketing to less developed countries.

by Leslie M. Dawson


7/29

Smaller firms that have adopted a strategic business perspective are continually searching, with aglobal outlook, for new market opportunities. Their best opportunities exist in markets(1) that are

generally shunned by larger firms, and (2) that have success requirements better matched by thesmall company's distinctive competencies.

Developing country markets uniquely meet both of these criteria.

The attractions of markets in lesser developed countries (LDCs) are multifold:* Nations of Africa, Latin America, and Asia constitute the world's premier growth market.During the decade of 1970-80, the five fastest growing economies of the world were Saudi

Arabia, South Korea, Brazil, Turkey, and Algeria.* Growth markets mean higher profit return. In 1982, LDCs accounted for 24 percent of U.S.

direct investment, but 37 percent of income.* LDCs typically abound in strategic resources, including a cheap, and increasingly skilled,

supply of labor.* LDCs, anxious to attract capital and technology, offer varying trade, investment, and tax

incentives not to be found in developed-country markets.* LDC markets are characterized by less intensive competition and lower levels of product

saturation.Despite these and other advantages, LDC markets provoke little more than lukewarm interest on

the part of large multinational corporations (MNCs), which devote less than one-quarter of theirdirect investment to these markets. A prime reason is the long list of failures by MNCs in third

world countries, often accompanied by substantial loss of property. Understandably, manysmaller enterprises conclude that if large firms have such a poor success record in LDC markets,

the risks are simply too great for the small company.Yet, in nearly every case where an MNC has come to grief in a third world country, examination

of the facts shows that the firm itself bears a strong measure of the blame. Common reasons forsuch failures are:

* Insensitivity to a host country's developmental aspirations and real needs.* Unwillingness to make product or marketing adaptations.

* Failure to provide for local enterprise participation.* Insistence upon total control and ownership.

* Failure to recognize undesirable social and economic consequences of product introductions.To a large extent, these stumbling points reflect inherent conflict between the operating

philosophies and practices of the large corporation and the requirements for success in thirdworld countries. Standardization, formalized decision-making, and rigid control are hallmarks of

large enterprise. Such characteristics do not match well with LDC desires for flexibleapproaches, personalized attention, and--above all--a significant "piece of the action."

By contrast, the distinctive competencies of small enterprise are much better fitted to therequirements for success in LDC markets. For example, small enterprise can provide:

* More personal attention to customer needs.* Quicker decision-making and response to market change.

* Focus on market niches as opposed to mass markets.* Emphasis on quality rather than standardized mass production.

* Tailoring of products and services to individual customer needs.* Capability for effective teamwork with other firms.

Such characteristics create far more favorable opportunities for the small firm to sell profitably in

third world countries. At the same time, prevailing conditions in LDC markets require special


8/29

marketing approaches if risks are to be minimized and the probabilities of success enhanced.

Careful evaluation of market opportunities and entry alternatives will enable small firms to

devise the types of marketing programs that capitalize most effectively on their differential

advantages.

MARKET OPPORTUNITYEVALUATIONTypically, MNC "economies of scale thinking" requires that marketing efforts blanket entire

regions. The problem with this approach is that the third world is far from homogeneous;profound differences divide regions and countries in such respects as culture, race, political

orientation, religion, level of development, and receptivity to foreign enterprise. The small firmcan improve success odds by narrowing its search to one or more countries, or even regions

within countries, to achieve the best possible match between the firm's offerings and the needs ofthe market.

The choice of markets for detailed investigation may sometimes be prompted by simple criteria,such as the ethnic background of the entrepreneur or favorable impressions acquired during a

vacation trip. As so often is the case in small business, intuition may sometimes be the bestguide. Nevertheless, a more systematic approach can be very helpful.

One particularly useful way to differentiate opportunities in LDCs is to categorize such nations

on the basis of their approach to, rather than level of, development. Whereas traditional

economic thinking portrays development as movement along a linear path toward the...

Service economy

From Wikipedia, the free encyclopedia

Jump to: navigation, search


9/29

GDP Composition By Sector and Labour Force By Occupation

Service economy can refer to one or both of two recent economic developments. One is theincreased importance of the service sectorin industrialized economies. Services account for a

higher percentage of US GDP than 20 years ago. The current list ofFortune 500 companies

contains more service companies and fewer manufacturers than in previous decades.

The term is also used to refer to the relative importance of service in a product offering. Theservice economy in developing countries is mostly concentrated in financial services, health, and

education. Products today have a higher service component than in previous decades. In themanagement literature this is referred to as the servitization of products. Virtually every

product today has a service component to it. The old dichotomy between product and service hasbeen replaced by a service-product continuum. Manyproducts are being transformed into

services.

For example, IBM treats its business as a service business. Although it still manufactures

computers, it sees the physical goods as a small part of the "business solutions" industry. Theyhave found that theprice elasticity of demand for "business solutions" is much less elastic thanfor hardware. There has been a corresponding shift to a subscription pricing model. Rather than

receiving a single payment for a piece of manufactured equipment, many manufacturers are nowreceiving a steady stream of revenue for ongoing contracts. James Murrdock once said "When

GDP are low...the service based economy must be also."

Full cost accounting and most accounting reform and monetary reform measures are usuallythought to be impossible to achieve without a good model of the service economy.

Role of the Service Economy in Development

Services constitute over 50% of GDP in low income countries's and as their economies continue

to develop, the importance of services in the economy continue to grow[1]

. The service economyis also key to growth, for instance it accounted for 47% of economic growth in sub-Saharan

Africa over the period 20002005 (industry contributed 37% and agriculture 16% in the sameperiod)

[2]. The means that recent economic growth in Africa relies as much on services as on

natural resources or textiles, despite many of those countries benefiting from trade preferences inprimary and secondary goods. As a result, employment is also adjusting to the changes and

people are leaving the agricultural sector to find work in the service economy. This job creationis particularly useful as often it provides employment for low skilled labour in the tourism and

retail sectors, thus benefiting the poor in particular and representing an overall net increase in

employment[3]. The service economy in developing countries is most often made up of thefollowing:

y Financial servicesy Tourism

y Distributiony Health, and

y Education


10/29

The export potential of many of these products is already well understood, e.g. in tourism,financial services and transport, however, new opportunities are arising in other sectors, such as

the health sector. For example:

y Indian companies who provide scanning services for US hospitalsy

South Africa is developing a market for surgery and tourism packagesy India, the Philippines, South Africa and Mauritius have experienced rapid growth in IT

services, such as call centres, back-office functions and software development

Growth in the service economy also facilitates growth in the rest of the economy. Services such

as energy, telecommunications and transportation are important to all sectors of the economy;financial services facilitate transactions and investment; health and education services that

contribute to a fit, well-trained workforce; and legal and accountancy services allow aninstitutional framework required to run a successful market economy.

ASSESSMENT OF TRADE IN SERVICES OF DEVELOPING

COUNTRIES:SUMMARY OF FINDINGS

Role of services in the economies of developing countries5. The material prepared by the WTO secretariat has emphasized the lack of internationally

comparable statistics on services. UNCTAD has been working in close coordination with WTOand

with other members of the Inter-Agency Task Force of Statistics on International Trade inServices in

the preparation of the Manual on Statistics of International Trade in Services. In this effort,UNCTADs input addresses the conceptual and measurement problems of the statistical

treatment oftrade flow in services, related to the movement of natural persons, and is included as an annex to

themanual. The terms of reference for this work were prepared in close consultation with WTO

staff.6. Nevertheless, sectoral studies by WTO and UNCTAD indicate that in specific sectors, such as

tourism and air transport, extremely detailed sectoral statistics do exist. An overview of statisticson

services indicates the limitations of global data on trade in services, for the purposes ofcomparison; the

contribution of services to the growth and transformation of developing countries, and the

importantrole of services in employment creation. They also show that:(a) Balance-of-payments statistics relate mainly to the cross-border mode of supply;

4(b) Most developing countries have a deficit in trade in services, except in the areas of tourism

andtravel and worker remittances;


11/29

(c) For some developing countries, growth in imports of services is more important than growthin

exports, as they depend to some extent on imports of professional and technical services;(d) Since the adoption of GATS, developing countries share of world service exports has

increased by a small percentage i.e. 6 per cent, thanks to the export competitiveness of Asian

developing countries.(e) Developed countries account for three-quarters of world exports of services and most of thetop 20 exporters are from developed countries; and

(f) There is no empirical evidence to link any significant increase in FDI flows to developingcountries with the conclusion of GATS.

7. Given the paucity of desegregated data, any assessment of trade in services has to be basedprimarily on a qualitative analysis. The GATS commitments provide a substantial foundation for

futureefforts to liberalize international trade in services, providing unprecedented information on

impediments.8. Developing countries have made substantial commitments under GATS with respect to many

service industries, often binding recently adopted legislation or pre-committing future policieswithout

having had much experience in their implementation, and have undertaken a higher share of fullbindings under the cross-border and commercial-presence modes of supply. In contrast, they

have notreceived concessions of any meaningful economic value under the movement-of-natural persons

modeof supply.

Services and contribution to Long-term economic development9. Services reinforce economic efficiency, and the development of producer services is

particularlyimportant in this regard. Infrastructural services particularly telecommunications, financial and

transport services make an important contribution to the competitiveness of goods and servicesexports. We should not ignore the social dimension of services and the link between certain basic

service sectors (Infrastructural services as well as health and education) and sustainabledevelopment

and public welfare. Services also make a significant contribution to employment creation indeveloping

countries.10. Unfortunately, there is a lack of awareness in many developing countries about the key role

ofservices in development, and this leads to a lack of coherence in their policies. This lack of

coherencemay in turn, deter potential investors and impede trade despite the absence of impediments to

marketaccess.

511. Some developing countries have been successful in increasing their exports of services by

building on various elements of their comparative advantage. In fact, for many developingcountries,


12/29

the export of services is their only means of diversification, and the only way they can moveawayfrom excessive dependence on export of primary commodities.

Competition- related issues19. Many markets for services are dominated by relatively few large firms from developed

countriesand a number of small players. This tends to lead in most service sectors to a position where the

largeroperators face little effective competition because the size of the next tier of competitors is so

small.9

(For example, in tourism, 80 per cent of the market belongs to Thomson, Airtours, First Choiceand

Thomas Cook). Service providers from developing countries most of whom are SMEs, facecompetition from large service multinationals with massive financial strength, access to the latest

technology, worldwide networks and a sophisticated information technology infrastructure.20. This high degree of concentration is often a consequence of the enormous volume of capital

andthe complex networks of interdependent organizations needed to maintain technological

advantage, toexploit several products simultaneously and to maintain economies of scale. For example, in

advertising, auditing and management consulting, relations with customers are established on aworldwide basis, making it difficult for enterprises from developing countries to gain access to

worldmarkets.

21. The trend in mergers and acquisitions and strategic alliances has exacerbated this situation.UNCTADs studies on health, tourism, air transport and construction have highlighted the

possibleanti-competitive impact of these new business technique . For example, vertical integration

betweentour operators and travel agents creates considerable market power that puts competitors at a

disadvantage.22. Customer demand is resulting in the "bundling" of complementary services through various

forms of strategic alliance. In addition, customer demand for quality assurance and predictabilityhas

led to an increase in various forms of integrated global delivery network such as franchisechains,

multi-site management companies (e.g. in managed health care), computer reservations systems

andglobal distribution systems.23. A number of key competition issues also are raised by the manner in which distribution

channelsand information networks for several services are structured. For example, in tourism and air

transportthe strategic global alliances and global distribution systems have restricted competition and

have


13/29

served as major barriers to market entry by developing countries. There have been significantproblems

with display bias on CRS and GDS screens, the global branding of flights create consumerloyalty,

and the tying-up of hub airports. The barriers to access have been identified in the paper entitled

ways of enhancing access to and use of information networks and distribution channels,(TD/B/CN.4/42).24. Network affiliation can provide firms from developing countries with an international

reputation, the benefits of research and development, and the possibility of moving more rapidlytowards higher value-added products, training and soft technology transfer. It can also give their

professional staff the opportunity to transfer to other markets. Firms can also join with likeminded

firms from other developing countries to form global networks that compete with the establishedservice multinationals in niche markets. As the globalization of markets increases, it will become

increasingly difficult for service firms to succeed without entering into some form of strategicalliance.

However, as strategic alliances may develop into de facto industry standard-setters or price-setters -

10and thus will share the potential to erect new entry and access barriers there is a need to pay

particularattention to the design and development of national and international competition policies.

25. There is a need for measures to discipline anti-competitive behavior. This would involve thedevelopment of national competition rules as well as multilateral mechanisms to strengthen

cooperation amongst competition authorities to deal with transfer pricing, exclusive dealingarrangements, alliances and export cartels. The expert meetings on tourism and transport

recommended adoption of an annex on tourism services and a reference paper on transport toprovide

for competition safeguards along the lines of the basic telecommunications Reference Paper.

D. Electronic commerce

26. Advances in information technology have facilitated the tradeability of services and providedenterprises in certain countries with competitive advantages in the world market. The

development oftelecommunications networks and information technology and its declining costs mean there are

opportunities to develop new competitive strengths by unbundling the production andconsumption

of information-intensive activities (e.g. computing, research and development, inventorymanagement,

quality control, accounting, legal services, marketing, advertising, and distribution), and byexternalization of these activities and international out sourcing. The Internet is also changing

marketstructures and sometimes eliminates the need for intermediaries. New distribution channels or

"infomediaries", are already influencing trade.27. Presently only a few developing countries are using the Internet to access foreign markets to

supply services. For the time being, developing countries are mainly consumers of Internet-based


14/29

services. Many developing countries suffer from an inadequate infrastructure for electroniccommerce

and from a lack of access to information technology. The cost of such infrastructure is animportant

barrier to export expansion. Other reasons for not using the Internet for transactional purposes

are thelack of awareness among companies from developing countries of the relevance of the digitaleconomy, as well as the high cost of setting up a good-quality website. Attention needs to be

paid tothe impact of competition, particularly competition from the dominant brand names of developed

countries, on the market access of SMEs from developing countries. These SMEs suffer fromlow

levels of productivity, poor product quality and lack of access to credit and training, butnevertheless

have a crucial role to play in generating employment. The impact of capital outflows fromdeveloping

countries as a result of electronic commerce also requires further attention. For developingcountries

to benefit from the opportunities offered by electronic commerce, it is important that theprovisions in

GATS articles IV and XIX.2 and the provision on technical and financial cooperation in theAnnex on

Telecommunications are faithfully implemented.28. A substantial range of transactions carried out by electronic means is already covered under

GATS. The main advantage offered by electronic commerce in services is that it permits personsin

11developing countries to offer their skills in world markets without having to leave their own

countries,thus benefiting from what has been termed a low-cost/high-tech comparative advantage. The

Internetwill also permit them to advertise their services. It should be noted, however, that if supply

throughthe cross-border mode is preferred to commercial presence, this could reduce the flow of FDI,

thetransfer of technology and management techniques, and employment opportunities. It could also

leadto demands by foreign firms to seek a right of non-establishment (as provided for in the North

American free Trade Agreement).29. The Internet provides developing countries with the opportunity to obtain hitherto

inaccessibleand unaffordable information, and the resulting transfer of know-how could stimulate the

expansion oftheir exports of services. Efforts need to be made to ensure that the access of developing

countries to


15/29

transborder data flows is not constrained, as information constitutes an increasingly importantfactor of

production.30. One area of concern is the difficulty in determining exactly where a transaction has actually

taken place, which raises a number of jurisdictional issues. These issues can pose particular

problemsfor developing countries, given that they have weak regulatory frameworks and lack enforcementcapacity. There is a need to develop international mechanisms to regulate and harmonize

transborderlegal questions and provide for competitive safeguards against the creation of monopolies.

E. Access to information and transfer of technology.31. As mentioned above, Information constitutes an increasingly important factor of production.

The information asymmetry between developed- and developing-country suppliers is particularlymarked in services, and ways need to be found to improve the access of suppliers from

developingcountries to information. Internet-based electronic commerce is an important feature of a

technologybasedeconomy driven by the dynamic gains of technological leadership. While developing countries

face major barriers in accessing technology, the technological leadership of the developedcountries

could result in consolidating the dominant market position of the present market leaders. Forexample,

the wider diffusion of information technology in the construction and engineering designindustry

would be particularly important in increasing developing countries capacity to export. Theweakness

of developing countries in engineering design stems from knowledge-intensive nature of theservice

and the importance of information technology in its production and delivery. This technology hasmade savings in time and labour possible, mainly in developed countries, and allows users to

adjustquickly to changing market conditions. As a result, engineering design has become far cheaper,

fasterand more accurate. However, investing in information technology is a costly and risky

undertaking,owing in part to its capital requirements, the proliferation of standards and the rapid

obsolescence ofsystems.

122 Item 2(b) of the Work Programme of the Standing Committee on Developing

Services Sectors: Fostering Competitive Service Sectors in Developing Countries called upon theCommittee to collect and disseminate information on measures, including laws and regulations

affecting the access of services and service suppliers to world markets.

F. Impact of liberalization

32. The liberalization of trade in services, notably through the commercial-presence mode ofsupply, can make a major contribution to the achievement of developmental and social goals.


16/29

However, certain conditions must usually be met if liberalization is to have a positive impact.Liberalization commitments need to take fully into account the particularities of the service

sector inthe country concerned and the relationships between sectors. An adequate regulatory structure

has to

be in place for prudential purposes, to ensure respect for technical standards, professionalqualifications, and so on. It has been clearly shown that the liberalization of the financial servicessector should be preceded by the implementation of sound prudential legislation and

macroeconomicpolicies. In the health sector, the presence of foreign suppliers can strengthen or weaken the

healthcaresystem depending on the structure of the domestic health system and related insurance sector. In

the environmental services sector, foreign suppliers can make a positive contribution to theprotection

of the environment if technically adequate, enforceable legislation is in place, and obviously ifthe

developing country concerned can afford to pay for such imported services. The development oftourism may not have a positive impact on a countrys economy if it is not integrated into the

localeconomy and if leakage is significant. The process under article VI of GATS of developing

disciplinesto ensure qualification requirements and procedures, technical standards and licensing

requirements donot constitute unnecessary barriers to trade in services, is of considerable importance in ensuring

thatthe benefits of liberalization commitments on the national economy are maximized. Decisions as

towhere to make such commitments should take into account the possible social developmental orenvironmental dividends of liberalization.

10 Facts about Mobile Markets

in Developing CountriesTodays mobile industry business managers are increasingly turning todeveloping countries for new business growth opportunities. But what makesthese markets different? And what are the new opportunities these differencespresent?To help answer these questions, Vital Wave Consulting provides ten factsabout mobile markets in developing countries, and their implications for

business growth.

1. Emerging markets are the growth opportunity:Since 2002, mobile penetration inemergingmarkets has grown 321% compared to 46% in developed countries. Additionally, out of the top 10countries for subscriber net additions in the fourth quarter of 2007, nine are emerging markets.

Implications: In the past,


17/29

industry watchersbelieved there was littleopportunity for mobiletechnology in marketswhere the majority of

people live at or belowsubsistence-levelincome. It is clear nowthat emerging marketsare the primary growthopportunity for themobile industry and,with the right businessmodels, mobile phonesare accessible to someof the worlds poorest.

2. The greatest opportunity for mobile business is concentrated in a few places:73% ofthenear-term market for mobile growth (i.e., potential first-time mobile phone buyers) is representedby 10 emerging-market countries: China, India, Indonesia, Bangladesh, Iran, Egypt, Vietnam, Brazil,Pakistan, and Mexico. The largest opportunities are in China and India, which together account for747 million near-term market candidates, or 58% of the total near-term market.

Implications: By concentrating on a few key emerging-market countries, handset manufactures havethe opportunity to capture a large share of the global near-term growth market. With targetedcampaigns in India and China and other carefully selected target markets, companies can gainmarket share with minimal investment. In an effort to regain their number two position, Motorola

is focusing on low-cost handsets for the Indian market by addressing a high perceived demand formultimedia-capable phones in rural areas.

FACTSCumulative Penetration Growth Beginning 1997

10 Facts about Mobile Markets in Developing Countries 2Copyright 2008

3. Low-cost does not equal affordable:The average price of a handset in emerging marketsis $58still a significant burden for billions of individuals living on just a few dollars per day. Yet, these

low-income, first-timebuyers are demonstratingtheir willingness to purchaseand use mobile phones.

Implications: Handsetmanufacturers and mobileoperators could acceleratepenetration of developingcountry


18/29

markets byfacilitating alternativepayment programs andfinancing options to helplow-income buyers

overcome the barrier of theinitial capital outlay forhandsets.

4. Mobile phones have unprecedented reach in every market:One out of every 2 peoplein theworld owns a mobile phone and subscribes to mobile service. If one subtracts children under tenand adults over 69 years of age (i.e., those who are unlikely to own a mobile phone), 67% of theremaining worlds population owns a mobile phone.

Implications: Mobile phones are one of the most efficient and accessible devices for reaching theworlds masses. With access to many rural and low-income populations, mobile technology has the

capability of providing information and services to individuals who would otherwise be excluded.These individuals are often eager for services such as banking and health education that cannot beprovided profitably through traditional business models. With appropriately-designed applications,under-served populations will spend a greater portion of their family income to gain access to theseservices. Safaricom, a mobile network operator that allows users with special SIM cards to transfermoney, is the most profitable company in Kenya and a leader in Sub-Saharan Africa.

5. Alternative business models prove successful:Prepaid subscribers make up over 50% ofsubscribers in many populous emerging-market countries, including Bangladesh, Brazil, China,Egypt, India, Indonesia, Mexico, Pakistan, Russia, South Africa, and Vietnam.

Implications: In emerging markets, low-income users have preferences, usage patterns, and cash-flowrestrictions that require innovative business models. Additionally, the dominance of pre-paidsubscriptions makes it more challenging to maintain brand loyalty. Operators must offer additionalincentives or benefits to maintain customers. For example, some operators are packaging prepaidminutes in lower denominations to accommodate users limited cash flow.% Monthly Income

Average Cost of an Entry-level Handset as a Percentage of MonthlyIncome of near-term market candidates in Select Emerging Markets10 Facts about Mobile Markets in Developing Countries 3

Copyright 2008Actual versus Estimated Cost of a Handset, and the PriceBuyers are Willing to PayS

ource: Vital Wave Consulting primary research, 2007

6. Would-be mobile phone buyersoverestimate the costs:Individuals living in emergingmarkets commonly overestimatethe cost of a low-end handset in


19/29

the local market, and some evenexpress a willingness to buy ahandset at a higher price than theactual market rate. Vital WaveConsulting has found this to be a

common occurrence withtechnology products in emergingmarkets.

Implications: Appropriate andtargeted marketing campaignswould expand the addressablemarket by educating potentialbuyers about the true costs associated with mobile phone ownership.

7. Low-income customers in emerging markets require technology solutions that meetbasic

human needs:Developing countries have enormous challenges in the areas of education, healthand social services. 1.2 billion people still live on less than $1 a day. In the developing world, therisk of dying in childbirth is one in 48, and 113 million children do not attend school.Implications: Governments are committed to achieving broad development goals through strategicinvestment and reform. Tying mobile solutions into basic human needs will help gain thecooperation and support of governments and the development community.

8. Market saturation presents service opportunities:Mobile penetration rates exceed100% of acountrys entire population in nearly 40 countries, including several emerging markets in Asia and

Eastern Europe. Other countries that are not saturated, such as India and China, already had arobust population of mobile phone subscribers232 million and 547 million respectivelyat theend of 2007, with those numbers increasing rapidly every year.

Implications: In emerging markets, there is an opportunity to realize incremental revenues bydelivering services that capitalize on expanding mobile phone penetration. In many cases, basicservices (e.g., banking and Internet) are as underdeveloped as landline telephone services. Mobilephone owners in the developing world have already demonstrated a willingness to utilize theirmobile phones to access value-added services. Providing more robust and varied services to addressbasic needs among new subscribers is a compelling growth opportunity.10 Facts about Mobile Markets in Developing Countries 4

Copyright 2008

9. The last mile of cellular coverage is the toughest:Despite high rates of rural-to-urbanmigration across emerging markets, 56% of emerging-market populations still live in rural areas.However, cellular coverage in developing countries is predominantly in urban and peri-urban

geographies. In Latin America, area coverage is limited to less than 50% in all but four relativelysmallcountries, and ten Latin American countries have less than 20 percent coverage. The Philippineslargely urban population is almost entirely covered by cellular service, but geographically only 50%


20/29

of the country is covered. In India, 40% of the country has area coverage that reaches only 60% ofthe population.

Implications: Strategies for tapping into growth markets depend on a countrys level of areacoverageand the urbanization of its population. Highly rural countries require different services such as

access to market information and other travel-saving offerings.

10. Developing-country operators are competing on a global scale:With a potentialbuy-out ofSouth African MTN Group, four of the worlds top seven mobile operators will be based inemerging markets.

Implications: Emerging-market companies have certain advantages over their developed-countrycompetitors. Companies based in developing countries may have lower cost structures and a betterunderstanding of developing-world needs. In addition, they know the importance of working withlocally-trained experts and innovating for new markets. Developed-world mobile industry leadersoffer the advantages of brand awareness and the ability to scalepowerful assets that could attractlocal partners with a shared ambition for rapid growth in these new markets.

The Secret ofService MarketingJames L. HortonIt was years ago, but I havent forgotten whata managing partner of an accounting firm saidto me. We had been asked to audit themarketing PR of the firms New York officeand to recommend a plan. The office had twoPR people who answered press queries when

they came in, arranged events and wrotereleases. Its marketing head was anaccountant who didnt know what to do, andthere was no plan. Professionals spenthundreds of thousands of dollars annuallyprinting brochures to market their practicesthen left them in closets. Inefficiency waseverywhere: Treatment of marketing and PRstaff was a step above sub-human.When I told the managing partner that hisoffice could fund a proper marketing PRprogram just by managing expenditures onbrochures, the partner dismissed me with thewords, As long as they keep revenuesgrowing 15 percent a year, I dont care whatthey do. That ended the job. It alsoillustrates why service marketing inprofessional firms is hard. Service firmmarketing departments are often productionunits with little regard to strategy. PR is hitand-miss depending on the interest of


21/29

individual partners. Some practices do well:others sputter. Fiefdoms are everywhere andcooperation absent.The secret of service firm marketing is nomystery. Successful service marketing takescommitment and consistency, but they are

hard to achieve. Firms such as accountants,lawyers, consultants and executive recruitersfail to commit to consistent marketing. Someare structural and some annoyances, but theresult is that service marketing fails moreoften than it succeeds.Barriers

Partnerships are inimical to marketing andPR. There are many chiefs, each with anopinion, and no one to forge agreement.Indians who do the work are left confused andlaboring at cross-purposes. When a partner

refuses to subscribe to a strategic marketingprogram or unilaterally changes direction,activities stall and/or lose effectiveness.Consistency of application and persistencedisappear. A successful professional with athriving practice can dominate an office andovershadow other disciplines.Partners dont know marketing and PR, evenif they work with clients on marketing issues.

A lawyer may advise on licensing, but notknow how to run a licensing program. Aconsultant may know the market demand for a

product or service but not know how to buildand fill the need. An accountant auditingbooks of a marketing firm understandsnumbers but not the activities that producedthem. An executive recruiter may knowmarketing executives in an industry but notwhat they do. Marketing is not a primary jobfor partners even though they bring in newbusiness. Some partners sell and discover atalent for it: Others will not try. There is areason that professionals who are good atbringing in new business are called

rainmakers.The structure of a service firm also affectsmarketing and PR programs. Frequently,service firms are in many businesses, andthere is little cohesion among them. This isespecially true in consulting, where disciplinesoften have no relation to one another and nocommon customer set. While consultingprofessionals might nod toward an


22/29

overarching theme or message, they cannotrelate it to business they generate in thispractice with these clients. Moreover,because there are many businesses, overarchingthemes are often vague and have littlemeaning. (These are paeans such as We

hire the best and brightest, or Our solutions2work, or We are a global firm.) Marketingand PR programs trumpeting such themes areoften noise and not orchestration.

A third reason for a failure to commit tomarketing and PR programs is the nature ofservice firm selling. Service marketing isrelationship driven. It is individuals you knowand who know you and respect your skills.One need never market in the sense ofbuying ads or doing PR as long as one is

known by key customers and prospects.Many firms have avoided making a publicname for themselves and successfully builtbusiness in the shadows. Their professionalsare closely connected to business and politicalleaders: They get access that others envy.Marketing is reserved for firms without accessbut with a need to sell services. But even inthis case, marketing and PR supplementrelationship selling: They do not supplant it.Marketing programs raise awareness of thework a firm does and the expertise of its

practitioners, but that is all. Sales come frompartners working with prospects or clients.Sales to prospects and clients are most oftenthrough response to Requests for Proposals(RFPs) sent by clients and prospects. RFPsoften require a great deal of time to prepare.RFP submissions can be thick binders filledwith relevant, and sometimes irrelevantmaterials to convince a prospect that a firmcan do the job. One RFP can take dozens ofhours to assemble even if most of the materialexists in template form. Time spent preparing

RFPs often comes straight out of marketingand PR programs. The problem with this isthat time spent on developing an RFP for oneprospect is time taken from raising theawareness of the firm among many prospects.Marketing and PR help sustain the flow ofRFPs.Yet another reason for a failure to commit tomarketing and PR programs is inconsistency.


23/29

It is not unusual in service firms to have alevel of marketing activity that is the inverse ofbillable hours. When a firm is busy, marketingslack offs and even, disappears. When a firmis in a slump, time devoted to marketingsoars. Unfortunately, service marketing is

most effective when continuous rather thansporadic. When a firm has a continuous andconsistent message in the marketplace,sooner or later, it becomes identified with themessage, which makes relationship sellingeasier. Clients and prospects know what toexpect and can winnow candidates for a jobbefore contacting firms.

A final reason service firms fail to commit tomarketing and PR programs is time. Time ismoney: One sells personal time to clients.Time spent in marketing is time taken from

producing revenue. If there is choice betweenspending time in marketing and spending timeearning revenue, service professionalschoose revenue. Especially in law firms,professionals are evaluated on the hours theybill and slippage is a cause for discussion.

Associates and partners often put in 12 hoursa day six days a week and do marketing andPR on top of that. It is little wonder marketingand PR are slighted.The Secret

Commitment and consistency to service

marketing do not require swinging for homeruns with a high strikeout average. It ispunching singles, occasional doubles andtriples and perhaps, once a season, a homerun. Presence over a prolonged periodestablishes one as an expert more thanbrilliant insight or salesmanship. Few peopleever have earth-shaking insights and thosewho do usually cannot sustain deep thinkingfor prolonged periods. Star players whobring home giant projects are rare, and theyburn out quickly. Committed and consistent

service, counsel and marketing establish onefor the long term.Service businesses are often shortsightedabout consistency, and there is a reason formyopia. One big account can sop a firmsbillable hours quickly, and one big account isusually easier to administer than many smallones. But, the percentage of big-account winsis low. And, big accounts can extract steep


24/29

rate cuts as a condition of staying put, or theygo away before a service firm can recover the

3investment in winning the business. In theworst-case scenario, they do both. Theyextract deep rate cuts and go away quickly

anyway.The question is how to establish consistencyin an inconsistent environment. One answeris to accept the environment as it is. Learn toadapt. There have been many attempts tochange how service businesses and serviceprofessionals market. Few are successful.Nattering at professionals to pay attention tomarketing, endless marketing meetings,numerous marketing plans all go down in timeas useless expense producing little revenue orearnings. Advertising and promotion

programs that avoid input from serviceprofessionals increase awareness but just asoften add to noise. (Professionals view themwith suspicion as well.) But, it isunderstandable why marketers resort toadvertising and promotion. They give uptrying to herd professionals into marketing.Giving up doesnt solve the marketingproblem: It papers it over with largelyunproductive media.The secret of consistency is to developprograms that fit a service professionals work,

schedules and culture and gain theprofessionals commitment. This requiresanalyzing an individuals business andbehavior to find things the professional canimplement regularly with minimal impact onbillable hours.Simple programs are best. Simplicity is thetime it takes to complete a marketing cycleand the amount of work required from aprofessional. Ideally, both are close to zero.Simple programs place nearly all productioninto staff supporting the professional. The

professional audits what is being done andprovides approval. This is especially true ofwriting. Professionals rarely have time towrite articles that position themselves andtheir practices at the leading edge of theirindustries. It takes individuals below theprofessional to turn the professionals insightsinto copy. The downside to this approach isthat skilled support staff are often not


25/29

available in service-marketing departments.Professionals, not wanting to spend themoney, use marketers who are good intactics, such as sales brochure and videodevelopment, but not in the service businessitself. Writers who understand a business

discipline and can write about it in depth arerare, expensive and often in consultingthemselves. Hence, marketing ends in astalemate. Marketers want to help but dontknow how, and professionals want help butare not convinced they can get it.One way to avoid the stalemate and toachieve consistency is to ration the use ofexpensive talent. Start by developing oneevent/study that defines a firm and/or practice.Use this event/study to gain recognition thatcan be solidified throughout the year in little

events, articles and interviews. The key to anevent/study is to find something that themarketplace needs to know but doesnt orwould like to do, but isnt. This requiresresearch into what competitors have done orare doing. With the Internet, it is easier totrack what is being said in an industry and togenerate ideas that can advance industryknowledge. Expensive talent performs initialresearch, generates useful ideas andimplements one or a few over a period ofyears until the study/event are established. A

study/event turns into a positioning vehiclewhen prospects and clients start asking for itregularly.The downside to this approach is that in anycompetitive marketplace, high-profile studies,such as compensation surveys, have beentaken and often are the subject of copycatsurveys. It requires adroit use of a firmsintellectual capital to find a different approach.The greatest value is usually found in what afirm does day-in and day-out. (Use existingintellectual capital first before creating new

intellectual capital.) If clients pay the firm toperform studies, what is the information thatclients are most interested in and why? Howcan the firm exploit the information it produceswithout giving away proprietary data?Intellectual capital is an integral part of servicemarketing and should be an annually

4renewable product targeted sharply to


26/29

practices. Avoid one-off essays and studiesthat waste time. Concentrate on longitudinalstudies and build a franchise with the media,prospects and clients.

A downside to one event is that in acompetitive marketplace, high-profile events

have been taken. Industry trade shows,conferences, golf and tennis outings, boxseats for football and baseball, awardsdinners are common and often viewed byclients and prospects as little more thangiveaways. Finding or developing an eventwith the right mix of positioning and cachettakes hard work. The AT&T Pebble BeachOpen is an event, which consistently drawsclients year after year, as well as The RyderCup matches every two years. Both existedbefore corporate sponsors associated

themselves with them. Unfortunately, they areexpensive. Only the largest firms can investthe millions required. Smaller firms needcreative solutions that seize opportunitieslikely to grow in recognition.

As a rule of thumb, it is better to fund one bigevent than many smaller ones, each of whichwastes resources in planning and execution.However, some clients dont like sports ortheater or waterside parties. Choosing whatto do begins with f inding things that clientsand prospects are eager to attend. It is not

easy and it may take the help of a consultant.It is also important to remember that eventsare for clients and not professionals who tendto pick events they want to attend.Events are opportunities to deepenrelationships with clients and prospects. Theyshould not be giveaways or perquisites, norshould clients or others attend an eventunaccompanied by a professional. It is in aninformal environment that one often gainsinsights into a client or prospect that facilitatesthe sale of new business or deepening of

existing business. Insights are often chanceor off-hand remarks that shine light on anissue about which the service professional isunaware. This is why it is important to workthe room at events.Working a room is hard work: Some are goodat it and some not. Professionals who can doit should be assigned to meet specific guestsnot otherwise covered by professional staff.


27/29

This means breaking down a guest list inadvance with assignments to eachprofessional. Some will rebel against this, andthey should be asked to learn more aboutclients they serve. But, one should not besurprised that some professionals cannot, or

will not, even do that.The challenge of learning about clients is whatto do with the marketing data to maintainconsistent communications. Professionalsoften carry vital details about clients in theirheads or in their Personal Digital Assistants.The details never reach a central sourcewhere it can be put to use. While servicefirms have improved in discovering andcentralizing information about clients andprospects, database systems need care andmaintenance. That is not a job for

professionals. Theyre too busy. Someservice firms leave this task to professionalsanyway and suffer the consequences ofinconsistent and incomplete lists of clients andprospects, sporadic and dated information andduplication of names from one professional tothe next. Customer relationship managementsystems are available for service firms andeven if they are used for the lowest commondenominator, list management, they are betterthan misdirected communications andmailings that waste marketing budgets.

Also for consistency sake, it is better to takematerials distribution duties away fromprofessionals. They dont know how to do itand they often do a bad job. Marketing shouldprepare mailings: Professionals should signletters and/or scribble notes and no more. Inthe best of all cases, the professionals preapprovea letter that is sent for them withnotice to the professional that it was done.Marketing also should handle response tocommunications unless there is a request fora visit or presentation that involves a

professional. Routing this kind ofcommunication through a central source can

5be risky when marketing is bureaucratic andout of touch with professionals on a day-todaybasis. It requires vigilance to maintainclose contact with professionals.Keeping professionals out of customer andprospect marketing contact is not the best way


28/29

to operate but it is better than sufferingmarketing inconsistencies that plague servicefirms. Ideally, professionals should beinterested and involved in marketing andsupportive of marketers, but this is not alwaysthe case. And, it is not uncommon that when

a professional is interested, the individual isunskilled and nave. (In fact, these individualscan prove more troublesome to marketersthan professionals who discount marketing.)Web sites are a particular instance wherenave professionals can do great damage tomarketing consistency. Some service firmsknow what to do with the Web, but most dont.Many web sites are for recruiting only and notfor marketing. They are exercises in fancydesign, but empty of content and if they havecontent, it is poorly structured and hard to find.

In fairness to service firms like the law,consulting, accounting and tax, there may belittle one can offer on a Web site that is of useto clients and prospects. On the other hand,newsletters that firms publish with updatedcourt decisions and tax advice could betransferred easily to the Web with greatertimeliness and updating. Some firms havedone this, and ultimately, all firms will probablygo that way because it is better client serviceand less expensive.What Web sites need most of all is a

marketing strategy that balances the needs ofthe service firm in content, structure andpresentations. One part of the site could beoriented to recruiting and a second part toclients and prospects with hyperlinks tocommon data such as the firms history andprofessionals bios. Strategy should beconsistent with the overall marketing thrust ofthe firm, and it should allow for interactivitywith clients and prospects that is mutuallybeneficial. Site updating should be the duty ofa Web editor whose sole job it is to develop

and refresh content because web sites agequickly. A service firm, even of modest size,should have a Web editor who builds andmaintains a library of content that isaggressively merchandised to clients andmedia. A service firm should have questionsand answers about its areas of expertise thatare simple and clear explanations useful tothe media and others with contact information


29/29

for finding out more.Another good way for service firms to produceconsistent marketing is to maintainrelationships with professionals who leave thefirm for corporate positions. Some firms arebrilliant in building alumni networks: Other

firms cant get started. Depending on serviceprofessionals to get this job done rarely works.Marketers should develop and send regularcommunications to alumni, to keep themupdated on the firms activities and to opendoors for them to contact the firm forassistance. In fact, it is probably better ifmarketers do not depend on professionals toinform them when someone has left. It shouldbe reported directly from the HR department,and it should be the marketers task to contactprofessionals to determine how an individual

should be handled as an alumnus or alumna.Advertising and PR have roles in maintainingconsistent marketing. Advertising raisesawareness of a firms name and can bepowerful if a firm has a compellingdifferentiation. PR can raises awareness andestablishes a firms expertise. Bothadvertising and PR require access to a f irmsintellectual property in order to fashion it intoeffective communications vehicles.Most firms develop in-house experts asresources for media, but it is not enough. The

experts must be willing to talk to the mediaand have something to say. Further, theymust say it well. Media training is an essentialelement in establishing a PR program.Service marketers should not be surprisedwhen their most knowledgeable professionalsare the least articulate in media interviews.Some cannot express themselves simply andclearly: Others are adept. Here too,

6marketers work with the talent they have.They may have little choice, especially when

politics intrude. For example, an associateprofessional is excellent in interviews, but asenior professional wont let the person speak.

service economy can refer to one or both of two recent economic developments

Documents