Key Terms You Need To Know About Business Services
Business services are a broad term that refers to work that supports a company internally but doesn’t create a tangible product. These tend to be highly specialized tasks which are therefore only suitable for larger companies and are thus quite expensive. IT is also a valuable business service that supports other business services including payroll, logistics, and procurement. In smaller organizations, most tasks are performed by non-staff members who are motivated to perform their best while still being able to get paid. For this reason, businesses must provide all relevant information and support for the employees to do their jobs properly.
- In the software services field, there are two main types of business services. One deals with intangible assets like patents, processes, and solutions that are not easily measured or controlled and cannot be sold on an individual basis. The other type of service involves intangible assets which can be measured or control like knowledge, innovation, culture, and technology. The latter kind of asset can be sold or traded however it’s usually more difficult to do so as it requires licensing or special agreements with the client. Patents, intellectual property, and proprietary information are examples of intangible assets which can’t be traded and hence require individual attention, expertise, and a level of trust from the client.
- Marketing is another aspect of business services that attracts a great deal of attention, especially among small businesses. Smaller businesses have traditionally had a poor marketing position, mainly because they didn’t have a large customer base which is imperative for successful operations. As such, many companies either had very little or no exposure to marketing practices and rely on traditional advertising channels such as newspaper advertisements, flyers, radio and television commercials, and the likes. With the advent of the internet, there has been a considerable increase in online marketing tactics that are highly effective for small businesses.
- Today, marketing strategies are heavily dependent on search engine optimization, social media marketing, and e-marketing. SEO is a technique where websites are optimized for the major search engines and used to attract more visitors. Social media sites are used to attract the attention of prospects and potential clients. And e-marketing refers to methods such as viral marketing wherein businesses offer online services through websites or blogs.
- Lastly, the service economy plays a crucial role not only for small businesses but for the entire country as a whole. It encompasses all types of services that are classified under the heading of the service sector.