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141 Cards in this Set
- Front
- Back
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the result of applying human or mechanical efforts to people or objects
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service
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text: intangible tasks
any deed, act, or performance |
service
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services as a percentage of GDP = ____ %
services as a percentage of employment = ____ % |
81
81 |
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4 characteristics that distinguish services from goods
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intangible
inseparable heterogeneous perishable |
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the inability of services to be touched, seen, tasted, heard, or felt in the same manner that goods can be sensed
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intangibility
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__________ makes evaluation of quality difficult
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intangability
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a characteristic that can be easily assessed before purchase
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search quality
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a characteristic that an be assessed only after use
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experience quality
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a characteristic that consumers may have difficulty assessing even after purchase because they do not have the necessary knowledge or experience
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credence quality
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the inability of the production and consumption of a service to be separated; consumers must be present during the production
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inseparability
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the variability of the inputs and outputs of services, which causes services to tend to be less standardized and uniform than goods
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heterogeneity
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the inability of services to be stored, warehoused, or inventoried
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perishability
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5 key dimensions of service quality
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reliability
responsiveness assurance empathy tangibles |
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the ability to performa a service dependably, accurately, and consistently
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reliability
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most important service quality dimension to consumers is ____________; performing the service right the first time
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reliability
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the ability to provide prompt service
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responsiveness
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the ultimate in __________ is offering service 24 hours a day, 7 days a week
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responsiveness
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the knowledge and courtesy of employees and their ability to convey trust
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assurance
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caring, individualized attention to customers
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empathy
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the physical evidence of a service, including the physical facilities, tools, and equipment used to provide the service
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tangibles
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a model identifying 5 gaps that can cause problems in service delivery and influence customer evaluations of service quality
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gap model
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expanded 4 P's of services
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PEOPLE
PHYSICAL EVIDENCE PROCESSES product price place promotion |
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activities which lead up to and are a part of the service
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processes
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employees, the customer, and other customers all influence quality of the experience
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people
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the tangible part of the service; the "servicescape"
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physical evidence
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the most basic benefit the customer is buying
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core service
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a group of services that support or enhance the core service
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supplementary services
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a strategy that uses technology to deliver customized services on a mass basis
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mass customization
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emphasize the service process and build brand image
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product
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a key factor in the selection of a service provider is ____________
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convenience
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generally no intermediaries and convenience is important
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place
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4 promotion strategies
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stress tangible cues
use personal information sources create a strong organizational image engaging in post purchase communication |
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4 categories of service processes
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people processing
possession processing mental stimulus processing information processing |
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focus on making services seem tangible; share good performance ratings
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promotion
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prices are harder to set and justify to customers for many services; use price to adjust demand to supply
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price
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3 categories of pricing objectives
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revenue oriented pricing
operations oriented pricing patronage oriented pricing |
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the goal is to build a core of loyal customers who will continually repeat buy
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relationship marketing in services
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_____________ are key to profitability, bring in more revenue, and cost less to serve
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loyal customers
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to get loyal customers, you must have 3 things:
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financial bonds
social bonds structural bonds |
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to identify customers and customers' needs and to build loyalty, you need to use _____________________
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customer relationship management
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a strategy of tracking information about customers and using that information to better serve target groups of customers
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customer relationship management
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treating employees as customers and developing systems and benefits that satisfy their needs
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internal marketing
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5 steps of customer relationship management process
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1. understand current customer base
2. capture customer data 3. store, analyze, and integrate customer data 4. use info to identify best customers 5. set strategies to retain/reward most loyal customers |
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marketing that targets markets throughout the world
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global marketing
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moves resources and goods across national boundaries without regard to the country in which the headquarters is located
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multinational firm
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recognizing and reacting to international marketing opportunities, using effective global marketing strategies, and being aware of threats from foreign competitors in all markets
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global vision
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US exports ______ of industrial production and about $____ billion in goods
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1/5th
800 |
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1 out of every ___ jobs in US is supported by exports
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10
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exports account for ____% of US economic growth
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25
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US is world's leading exporter of _____ products
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farm
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4 environmental challenges facing global markets
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culture
economic and technological development political structure demographic makeup |
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sending US jobs abroad
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job outsourcing
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a company that is heavily engaged in international trade, beyond exporting and importing
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multinational corporation
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using more capital than labor in the production process
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capital intensive
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production of uniform products that can be sold the same way all over the world
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global marketing standardization
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5 external environmental factors
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culture
economic and technological development political structure and actions demographic makeup natural resources |
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the common set of values shared by its citizens that determine what is socially acceptable
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culture
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significant differences in values, behaviors across countries and regions
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culture
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factors within economic and technological development
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nations size
per capita income stage of economic development exchange rate level of technological sophistication |
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a tax levied on the goods entering a country
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tariff
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a limit on the amount of a specific product that can enter a country
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quota
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the exclusion of all products from certain countries or companies
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boycott
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a law compelling a company earning foreign exchange from its exports to sell it to a control agency, usually a central bank
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exchange control
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occurs when several countries agree to work together to form a common trade area that enhances trade opportunities
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market grouping
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also known as common trade alliance
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marketing grouping
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an agreement to stimulate international trade
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trade agreement
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trade organization that replaced the old General Agreement on Tariffs and Trade (GATT)
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World Trade Organization (WTO)
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a trade agreement that contained loopholes that enables countries to avoid trade barrier reduction agreements
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General Agreement on Tariffs and Trade (GATT)
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an agreement between Canada, the US and Mexico that created the worlds largest free trade zone
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North American Free Trade Agreement (NAFTA)
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a trade agreement, instituted in 2005, that includes Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the US
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Central American Free Trade Agreement (CAFTA)
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a free trade zone encompassing 27 European countries
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European Union (EU)
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demographic make up (3)
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population density
age education level |
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5 methods of entering the global marketplace (in order of risk)
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exporting
licensing contract manufacturing joint venture direct investment |
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selling domestically produced products to buyers in another country
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exporting
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an intermediary in the global market that assumes all ownership risks and sells globally for its own account
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buyer for export
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an intermediary that played the traditional broker's role by bringing the buyer and seller together
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export broker
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an intermediary that acts like a manufacturer's agent for the exporter, the export agent lives in the foreign market
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export agent
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the legal process whereby a licensor allows another firm to use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge
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licensing
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private label manufacturing by a foreign company
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contract manufacturing
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when a domestic firm buys part of a foreign company or joins with a foreign company to create a new entity
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joint venture
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active ownership of a foreign company or of overseas manufacturing or marketing facilities
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direct foreign investment
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same product, same message = ________________
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global market standardization
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same message, change product = ______________
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product adaptation
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same product, change message = _____________
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message adaptation
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change product, change message = ___________
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product invention
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Adequate distribution is required but often a problem due to:
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poor infrastructure
complicated systems extended channel arrangements |
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when trying to set a price, must consider:
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transportation costs
insurance costs taxes tariffs |
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prices of different currencies move up and down based on the demand for and the supply of each currency
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floating exchange rates
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the sale of an exported product at a price lower than that charged for the same or a like product in the "home" market of the exporter
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dumping
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a form of trade in which all or part of the payment for goods or services is in the form of other goods or services
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countertrade
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why do companies "dump"?
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to increase market share
to exploit large scale production to offset low domestic demand to maintain prices during exchange rate instability |
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the managerial process of creating and maintaining a fit between the organization's objectives and resources and the evolving market opportunities
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strategic planning
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the process of anticipating future events and determining strategies to achieve organizational objectives in the future
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planning
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designing activities relating to marketing objectives and the changing environment
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marketing planning
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a written document that acts as a guidebook of marketing activities for the marketing firm
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marketing plan
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developing strategies to determine the organization's future and specific marketing activities; cannot be done until firm wide strategic planning has taken place
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market planning
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5 steps in market planning
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define business mission
set plan objectives conduct SWOT analysis set strategic direction implemet (TM and 4Ps) |
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________ must balance staying within core competency with marketing myopia; answers question "what business are we in?"
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mission statement
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a statement of the firm's business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmental conditions
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mission statement
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defining a business in terms of goods and services rather than in terms of the benefits customers seek
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marketing myopia
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narrow, short term thinking
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myopia
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a subgroup of a single business or collection of related businesses within the larger organization
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strategic business unit (SBU)
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identifying internal Strengths, Weaknesses, and also examining external Opportunities and Threats
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SWOT analysis
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collection and interpretation of information about fores, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan
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environmental scanning
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a statement of what is to be accomplished through marketing activities
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marketing objective
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criteria of marketing objectives
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realistic
measurable time specific compared to a benchmark |
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core competencies
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strengths
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lack of skilled employees, market knowledge, resources, experience, or flexibility
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weaknesses
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positive environmental changes
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opportunities
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negative environmental changes
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threats
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the set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition
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competitive advantage
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3 types of competitive advantage
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cost
product/service differentiation niche strategies |
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being the low cost competitor in an industry while maintaining satisfactory profit margins
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cost competitive advantage
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curves that show costs declining at a predictable rate as experience with a product increases
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experience curves
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the provision of something that is unique and valuable to buyers beyond simply offering a lower price than the competitor's
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product/service differentiation competitive advantage
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the advantage achieved when a firm seeks to target and effectively serve a small segment of the market
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niche competitive advantage
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an advantage that cannot be copied by the competition
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sustainable competitive advantage
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4 ways to grow
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market penetration
market development product development diversification |
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a marketing strategy that tries to increase market share among existing customers; existing product, existing customers
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market penetrations
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a marketing strategy that entails attracting new customers to existing products; new customers, existing products
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market development
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a market strategy that entails the creation of new products for existing markets; new product, existing customers
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product development
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a strategy of increasing sales by introducing new products into new markets; new customers, new product
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diversification
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a tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate
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portfolio matrix
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in the portfolio matrix, a business unit that is a fast growing market leader; high growth, high share
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star
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in the portfolio matrix, a business unit that generates more cash than it needs to maintain its market share; low growth, high share
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cash cow
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in the portfolio matrix, a business unit that shows rapid growth but poor profit margins; high growth low share
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problem child (question mark)
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in the portfolio matrix, a business unit that has low growth potential and a small market share; low growth, low share
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dog
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4 ways to consolidate
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harvesting
divestment pruning retrenchment |
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cut back on resources devoted to product/market
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harvesting
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eliminate entire product line or division
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divestment
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eliminate specific product (specific variety)
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pruning
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cut back geographically
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retrenchment
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BCG matrix examples
cell phone cameras = ____ digital cameras = _____ mini digital cameras = ____ 35mm cameras = ____ |
star
cash cow question mark dog |
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the activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets
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marketing strategy
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the description and estimation of the size and sales potential of market segments that are of interest to the firm and the assessment of key competitors in these market segments
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market opportunity analysis (MOA)
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a unique blend of product, place, promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market
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marketing mix
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product, place, price, promotion, which together make up the marketing mix
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4 Ps
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the process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plan's objectives
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implementation
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guaging the extent to which the marketing objectives have been achieved during the specified time
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evaluation
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provides the mechanisms for evaluating marketing results in light of the plan's objectives and for correcting actions that do not help the organization reach those objectives within budget guidelines
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control
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a thorough, systematic, periodic evaluation of the objectives, strategies, structure, and performance of the marketing organization
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marketing audit
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