Business Marketing Final Ch 12

Front 1

What is the Marketing Mix?

Back 1

The blending of the four strategy elements:

product

price

promotion

place

to fit the needs and preferences of a specific target market

Front 2

What is a product?

Back 2

A bundle of physical, service, and symbolic attributes designed to satisfy a customer's wants and needs

Front 3

What is a service?

Back 3

Intangible tasks that satisfy the needs of consumers and business users

Front 4

What are goods?

Back 4

Tangible products that customers can see, hear, smell, taste, or touch

Front 5

Goods services continuum

Back 5

Spectrum along which goods and services fall according to their attributes, from pure good to pure service

Front 6

What are some characteristics of services?

Back 6

-intangible

-inseparable from the service providers

-perishable

-cannot be standardized

-buyers play important roles in the creation and distribution of services

-wide variations in service standards

Front 7

Importanceof the Service Sector

Back 7

Mostservice firms emphasize marketing as a significant activity for two reasons:

•Growth potential of service transactionsrepresents a vast marketing opportunity

•Environment for services is changing

Front 8

Consumer (B2C) products

Back 8

Productdestined for use by ultimate consumers

Front 9

Business (B2B) products

Back 9

Productthat contributes directly or indirectly to the output of other products forresale; also called industrial or organizational product

Front 10

Classificationof Consumer Products

Back 10

Front 11

ClassifyingConsumer Services: Marketersrely on five questions to classify services

Back 11

What is the nature of the service?

What type of relationship does theservice organization have with its customers?

How much flexibility is there forcustomization and judgment on the part of the service provider?

Do demand and supply for the servicefluctuate?

How is the service delivered?

Front 12

Applyingthe Consumer Products Classification System: Classificationsystem poses a few problems name a few of them

Back 12

•Obstacle to implementing this systemresults from the suggestion that all goods and services must fit within one ofthe three categories: •Convenience goods

•Shopping goods

•Specialty goods

•Problem emerges because consumers differin their buying patterns

Front 13

MarketingImpact of the Consumer Products Classification System

Back 13

Front 14

Classificationof Business Products

Back 14

Front 15

MarketingImpact of the Business Products Classification System

Back 15

Front 16

Define Quality

Back 16

A keycomponent to a firm’s success in a competitive marketplace

Front 17

Total qualitymanagement (TQM)

Back 17

Continuouseffort to improve products and work processes with the goal of achievingcustomer satisfaction and world-class performance

Front 18

Benchmarking

Back 18

Measuringquality by comparing performance against industry leaders

Involvesthree main activities

•Identifying manufacturing or businessprocesses that need improvement

•Comparing internal processes to those ofindustry leaders

•Implementing changes for qualityimprovement

Requirestwo types of analyses: internal and external

•Company must first analyze its ownactivities to determine strengths and weaknesses•External analysis involves gatheringinformation about the benchmark partner, to find out why the partner isperceived as the industry’s best

Front 19

Service encounter

Back 19

Pointat which the customer and service providerinteract

Front 20

Service quality

Back 20

Expectedand perceived quality of a service offering

Front 21

Qualityof Services. Determinedby five variables:

Back 21

•Tangibles•Reliability•Responsiveness•Assurances•Empathy

Front 22

Product line

Back 22

Seriesof related products

Desireto grow

•Growth potential is limited if a companyfocuses on a single product

Front 23

TheProduct Mix

Back 23

Assortment of product lines and individual product offerings

Front 24

Product mix width

Back 24

Number of product lines a firm offers

Front 25

Product mix length

Back 25

Number of different products a firm sells

Front 26

Product mix depth

Back 26

Variations in each product that the firm markets

Front 27

Product Mix Decisions

Back 27

To evaluate a firm’s product mix, marketers look at the effectiveness of its depth, length, and width

Firms may decide to add to their mixes by purchasing product lines from other companies

Front 28

Line extension

Back 28

Development of individual offerings that appeal to different market segments while remaining closely related to the existing product line

Front 29

Stages in the Product Lifecycle

Back 29

Front 30

Introductory stage

Back 30

•Products in this stage might bring newtechnology to a product category

•Technical problems and financial lossesare common

Front 31

Growth stage

Back 31

•Sales volume rises rapidly as newcustomers make initial purchases and early buyers repurchase the product

Front 32

Maturity stage

Back 32

•Sales of a product category continue togrow during the early part of this stage but eventually reach a plateau as thebacklog of potential customers dwindles

Front 33

Decline stage

Back 33

•Innovations or shifts in consumerpreferences bring about an absolute decline in industry sales

Front 34

Extending the Product Lifecycle

Back 34

-Increasing frequency of use

-Increasing the number of users

-Finding new uses

-Changing package sizes, labels, or product quality

Front 35

Increasing frequency of use

Back 35

•Convincingcurrent customers to buy a product more frequently boosts total sales even ifno new buyers enter the market

Front 36

Increasing the number of users

Back 36

•Attracting new customers who have notpreviously used the product

Front 37

Finding new uses

Back 37

•New applications extend a product’slifecycle

Front 38

Changing package sizes, labels, orproduct quality

Back 38

•New packaging and labels with updatedimages and slogans can help revitalize a product