The US Service Sector - Essay Example

Many experts are worried about the deceleration in growth in the service sector. Carl Leakey, a Senior Economist at Senior Economist stated, “This survey shows a slow-moving service sector. That is pretty much in line with the market sense that though the economy has improved, it is still not growing very quickly” (Bond, 2011). Despite the worries of many scholars about the service sector, other signs showed major improvement in the U.S. economy such as the latest unemployment figures which showed a national unemployment rate of 8.6%. The labor market is finally growing. These are great news for all Americans as employers should be aggressively recruiting new personnel. The total exports in the U.S are also on the rise. Exporting is one of the primary expansion strategies used by marketers. The inventories of many companies are moving from contraction to expansion. The movement of merchandise from the United States to other countries is a great sign. Most companies in today’s marketplace cannot survive by using solely a domestic strategy. International expansion is one of the most effective ways marketers can achieve growth.

Despite a slight decline in the service sector, other important sectors such as the manufacturing industry showed positive signs. The ISM manufacturing report showed factory activity rising more strongly than expected in November. Some critical industries such as the auto industry showed tremendous results with a rise of 2.3% in comparison with the previous month. The Big 3 auto companies have been able to attract many customers due to their new innovative designs and fuel-efficient vehicles. People are looking for value in their car purchases more than ever before. Despite the growth in manufacturing activity, the commerce department claimed that the sales of overall manufacturing goods fell by 0.4% in November. One of the sectors that showed continued growth during the past three months is the sale of durable goods.

This article showed a lot of information regarding the economy of the United States and emphasizes the importance of the service sector. Due to the importance of service jobs, the United States as a whole has to do a better job of marketing its service industry. The U.S. has the potential to achieve a lot of growth by exporting services to other nations. There are many ways to increase the Amon umber service exports. One of the best ways is to take advantage of tools that have become available due to the rise of the broadband age. In 2010 U.S. eCommerce sales generated $152.1 billion and it is expected to rise to $223.9 billion by the year 2014 (Plunkett Research, 2011). Many services such as business consulting, technical support, and engineering services could be exported easily with the help of the internet. The U.S Chamber of Commerce has to become more proactive in its initiatives to market better the services that the United States can offer to the rest of the world. In 2010 the United States was the world’s top exporter of services with $515 billion (Latimes, 2011). Despite this fact, the U.S. still has a lot of room to grow to consider because the U.S economy is based on the service industry. It is also interesting to know that the grosses domestic product of the country exceeds $14.66 trillion (Cia, 2011).

            Despite some of the signs that indicate the service economy is slowing down the U.S government as well as the business community has to become optimistic about the potential for growth of the service sector. The key element that will enable the U.S. to achieve further penetration in international markets is the use of marketing. One of the best ways to build a reputation that can be spread across international borders is through branding. “The American Marketing Association defines the brand as a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors” (Kotler, 2003, pg. 418). Some of the benefits of a branding strategy include greater recognition, higher customer retention, and the ability to charge a premium price.

            The use of online marketing can also be used by U.S. companies to attract new service clients. Online marketing must be integrated into the communication mix of companies to increase the customer reach of companies. It is essential for companies to properly test their strategies before implementing an effective online strategy. “Decision support systems and simulations models will be used to develop and evaluate marketing communication campaigns before real-world introduction” (Valos & Ewing & Powell, 2010).

            The United States is the richest country in the world, and it has one of the most advanced business environments in the world. The human capital available in the U.S. is abundant. The main competitive advantage of the U.S. is in the service industry. Due to the importance of the service industry the U.S. has to look for ways to further expand its horizons. The best way to achieve that goal is by focusing on marketing efforts to attract more international clientele.