Despite the fact that in most countries today the service sector has become important little attention has been paid to the marketing of services by marketing authorities. Marketing courses and even the marketing discipline itself are heavily biased towards the marketing of physical goods. Literature on marketing has invariably always stressed that marketing applies to both goods and services but have tended to focus primarily on marketing of goods alone. This article begins with a review of the various definitions of services and examines their characteristics from a general and from a marketing point of view. It also highlights the differences in the marketing of goods and services and suggests some new and modified concepts for service marketing.