Due to the variety of goods and services, the markets themselves are very numerous. The services market is characterized by the fact that services are mainly consumed at the place of their sale, therefore there is little space for mediation between consumers and producers. In addition, some of these markets provide free services, such as primary or secondary education. Such services are socially significant and are paid by state and municipal budgets.
The service market is an economic relationship between buyers and sellers. It is divided into tangible and intangible services.
Material services are aimed at satisfying consumer and material needs of the consumer. They include the preservation, restoration or change of consumer properties of the product or the manufacture of new goods by order of the buyer. Also included is the transport of goods.
Intangible services do not imply a “material” shell. These are services in the field of education, healthcare, consulting and banking services, the legal services market, etc.
Markets act as a system linking supply and demand, as well as helping to develop the market for material assets, ensuring a balanced reproduction process, improving the quality of life of the population by satisfying their needs.
At present, the country is competitive with a high degree of development of the services market (the medical services market, for example) and its structure.
Studying the practice of the functioning of the services market, you can identify its specificity, knowing which, you can achieve success in service activities.
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High dynamics of processes in the market. Since the service cannot be "stored", there is a need for its next provision.
- A more pronounced segmentation of demand depending on consumer income, price, subjective characteristics of the significance of the service, lifestyle of the buyer, etc.
- The service is differentiated both in terms of quality and consumer characteristics. This can be explained by the fact that the demand for it is usually individualized, personalized in nature, which is a great incentive in order to create more and more new services.
- The service market is determined by localized nature or local segmentation. Usually a certain type of service is observed in one "geographical" area. This was due to certain climatic conditions, traditions that exist in this area, remoteness from large centers, etc.
- Non-price barriers to entry. This is due to the fact that potential consumers pay attention not only to the price, but also to the quality of service, service, etc.
- The predominance of small enterprises in the market, which ensures its flexibility, as they respond more quickly to changing consumer preferences, and can also function more efficiently in local markets.
Also, the service market is not marked by clear boundaries. And the main participants are the state, households, private enterprises and non-profit organizations.
