Koofers

Exam 2 CH 9 - 13 and CH 21 - Flashcards

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Class:MKT 300 - MARKETING MANAGEMENT
Subject:Marketing
University:University of Kentucky
Term:Fall 2011
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Born Globals
  •  Firms that are international; from the inception
  • small technology based firms
  • earn most of their sales outside theU.S.
Quota
  • A limit on the amount of goods an importing country will accept for certain product categories in a specific period of time
Technological Forces
  •  Technological advances made international marketing easier, faster, and more affordable
  • Technological infrastructure varies by country 
  • Many nations are leap frogging straight into high-technology
NAFTA North American Free Trade Agreement
  • Agreement that eliminates most tariffs and trade restrictions on agricultural and manufactured products to encourage trade among Canada, US, Mexico.
  • Controversial but has created new business opportunities with fewer barriers than before
Generated by Koofers.com
Importing
  • Importing the purchase of product from a foreign service
Exporting
  •  The sale of products to foreign market
Franchising
  • a form of licensing in which a franchiser, in exchange for a financial commitment, grants the franchising the right to market a product in accordance with the franchiser's standards
  • the franchisee must : - pay an initial fee and royalties to the franchiser ; - adhere to all franchise standards 
  • top ten global Franchises : Subway, McDonalds, Hampton Inn, Super cuts, H& R block, Dunkin' Donuts, etc. 
Direct ownership
  •  A company owns subsidiaries or other facilities overseas
  • Owning facilities may be too expensive for many firms
  • Multinational Enterprise ( Multinational Corporation) 
  1. A firm that has operations or subsidiaries in many countries 
  2. Subsidiaries may be semi-autonomous or part of a network led by headquarters 
Generated by Koofers.com
Chapter 10 Electronic Marketing
  • refers to the strategic process of distributing, promoting, pricing products, and discovering the desires of customers using digital media and digital marketing
  • allow marketers to communicate with consumers, reach new markets and target markets more precisely 
  • can be essential part of gaining a competitive advantage 
  • the most important benefit is the ability to share information between marketers and consumers; among employees; with suppliers 
Characteristics of E-marketing
  1.  Addressibility
  2. Interactivity
  3. Accessibility
  4. Connectivity
  5. Control

Addressibility
  • ability to obtain digital information; allows consumers to find information about competing products, prices, and reviews and become more informed about a firm and the relative value of its product 
Interactivity
  • allows customers to express their needs and wants directly to the firm in response to its communications 
  • In contrast to one-way communications of traditional marketing media
  • Many digital media allow for ongoing, real-time, conversations between marketers and consumers
Generated by Koofers.com
Accessibility
  • the ability to obtain digital information on competing products, prices, reviews and details on firms
  • Mobile marketing - allows marketers to offer promotions via customers mobile devices
Connectivity
  • keeps customers and business connected with each other
  • online social network sites help improve connectivity with large, diverse audiences
Control
  • consumers ability to regulate the information they received via the internet
  • the internet is a pull medium because users can regulate the information to which they are exposed 
E-marketing strategy
  • Basic internet Literacy is rising all over the world, making good way to reach global consumers. Most businesses now find it necessary to use digital marketing to grab and maintain market share.
  • distribution considerations : - the internet is a new distribution channel; - reduces inefficiencies, costs and redundancies and increases speed; - shipping times and cost are an important element in attracting customers; - distribution involves a push-pull dynamic; - companies push to get products to consumers and channel members pull to find one another 
Generated by Koofers.com
Product considerations
  • the connectivity of digital media creates opportunities for business to add services and to enhance product benefits
  • Some products are only available digitally
  • some companies use advertising campaigns nd contests to develop better products
  • the internet can make it easier to anticipate consumer needs
Using Digital media in marketing Research
  • Digital media can be a useful resource for marketing
  • many online research services are ceaper than traditional counterparts
  • digital media help level the playing field between large and small firms
  • Crowdsourcing- involves using communities of interested consumers to gather input and feedback for marketing purposes
  • evaluating a marketing campaigns success
Online fraud
  • any attempt to conduct fraudulent activities online
  • cyber criminals increasingly use popular social networking sites to commit fraud 
Chapter 11 What is product?
  • a good, a service, or an idea received in an exchange
  • includes functional, social and psychological utilities, and benefits
  • includes supporting services such as institution, guarantees, product information...
Generated by Koofers.com
Good
  • a tangible, physical entity
Service
  • intangible, result of the application of human and mechanical efforts to people or objects
Idea
  • a concept, philosophy, image or issue
4 types of consumer products
  • Convenience products 
  • shopping products
  • specialty products
  • Unsought products
Generated by Koofers.com
Convenience product
  • inexpensive, frequently purchased  items for which buyers exert minimal purchasing effort
     ( bubble gum, cigarettes, candy )
    (requires no searching, many retail outlets, low per-unit gross margins, heavy brand promotion, limited retailer promotion, packaging important, reliance on self-service, available at many retailers, low price product)
Shopping products
  • items for which buyers are willing to expend considerable effort in planning and making purchases ( more extensive search, available substances, and less frequent purchase)
  • ( no brand loyalty, fewer retail outlets than convenience, lower inventory turnover, channel members demand higher gross margins, personal selling, producer and channel member cooperation )
Specialty products
  • items with unique characteristics that buyers are willing to expend considerable efforts to obtain ( require extensive search, are generally higher price points, and no ready substitutes) 
  • ( limited retail outlets, lower inventory turn over, high gross margins)
Unsought products
  • products purchased to solve a sudden problem; products of which customers are unaware; and products that people do not necessarily think of buying ( no search, price is not important and purchased compelled)
  • ( build trust with consumers prior need, recognizable brand, superior performance)
Generated by Koofers.com
Product Mix
  • the total group of products that an organization makes available to customers
width of product mix
  • number of product lines a company offers
depth of product mix
  • the average number of different products in each product line
Stages of product life cycle
  1. Introduction
  2. Growth
  3. Maturity
  4. decline
Generated by Koofers.com
Introduction
  • Sales start at zero and profits are negative
  • high risk of failure
  • buyers must be made aware of features, uses, advantages
  • sellers lack resources, technological knowledge, marketing know-how
Growth
  • Sales rise rapidly, profits reach a peak, and they start to decline
  • promotion- cost drop as a percentage of sales
  • (marketers must: stress brand loyalty to encourage brand loyalty, intensify segmentation, strengthen market share, analyze product position, ensure efficient attribution system
Maturity
  • sales curve peaks and starts to decline and profits continue to fall
    ( intense competition, emphasize on improvements and differences in competitor's products, weaken competitors exit the market, advertising and dealer- oriented promotions predominate, distribution sometimes expands to the global market, generate market flow, maintain market share, increase share of customer)
Decline
  • sales fall rapidly during this stage 
  • marketers will likely: eliminate, reposition items, cut promotion, eliminate margin distributions, plan to phase out product.
  • ( because most businesses have a product mix consisting of multiple products, a firm's destiny is rarely tied to one product.
Generated by Koofers.com
The product adoption process
  1. awareness
  2. interest
  3. evaluation
  4. trial
  5. adoption
Awareness
  • the buyer becomes aware of the produt
interest
  • the buyer seeks for information and is receptive to learn about the product
Evaluation
  • the buyer considers the product's benefits and decides whether to try it
Generated by Koofers.com
Trial
  • the buyer examines, tests, or tries the product to determine if it meets his or her needs
Adoption
  • the buyer purchases the product and can be expected to use it again whether the need for this general type of product arises
Why some products fail and other succeed
  • in general, consumer products fail more often than business products
  • failure to match product to needs
  • failure to send right messages
  • technical/ design problems
  • poor timing
  • overestimate market
  • ineffective promotion
  • ineffective promotion
  • insufficient distribution
Chapter 12 Line extension
  • the development of a product that is closely related to existing products in the line, but is designed specifically to meet different customer needs 
  • Many "new products" are line extensions ( Reese's core: P/B cup) ( line extension:  - prices, -big cups, -cereal )
  • Are less expensive, lower-risk and more common than new products
  • downside is that unpopular line extensions may result in negative evaluation of the core product
  • more precisely satisfy needs of current segment, capture market share
Generated by Koofers.com
reasons for line extensions
  • focus on a different segment, more precisely needs of current segment, capture market share from competitors
Quality modifications
  • Changes related  to a product's dependability & durability
  • reducing a product's quality may allow for a lower price and appeal to a new target market
  • higher quality may allow a company to charge a higher price through building loyalty and lowering sensitivity to price
  • many firms look for ways increase quality while also cutting cost 
Phases of the new product development process
  1. idea generation
  2. screening
  3. concept testing
  4. business testing
  5. product development
  6. test marketing
  7. commercialization
Product differentiation
  • the process of creating & designing products so costumers perceive them as different from competing products  
  • Customer perception is critical in differentiating products
  • perceived differences include quality, features, styling, price, image, and product quality
Generated by Koofers.com
Product quality
  • characteristics  of a product allowing it to perform as expected in satisfying customer needs
  • most business organizations place less emphasis on price than on product quality than do consumers 
Level of quality
  • the amount of quality a product possesses
Consistency of quality
  • the degree to which a product has the same level of quality over time 
Product design
  • how a product is conceived, planned & produced ( the total sum of a product's physical characteristics) 
  • one component of design is styling
Generated by Koofers.com
Styling
  • physical appearance of a product ( involves functioning and usefulness)
Product features
  • specific design characteristics that allow a product to perform certain tasks ( helps a company differentiate its products)
Support features
  • can help a company differentiate itself from competitors
Customer serving
  • human or mechanical efforts or activities that add value to a product
Generated by Koofers.com
Venture teams
  • a cross-functional group that creates entirely new products that may be aimed at new markets
Chapter 13 Characteristics of services
  1. intangibility
  2. inseparability of production & consumption
  3. perishability
  4. heterogeneity 
  5. client-based relationship
  6. customer contact
intangibility
  • a service is not physical and cannot be perceived by the senses
inseparability of production & consumption
  • production of a service cannot be separated from its consumption by customers
  • customers must be present  at the consumption of the service and cannot take the service home
  • implies a shared responsibility between the customer and service provider in giving and receiving the service 
Generated by Koofers.com
perishability
  • unused service capacity from one time period cannot be stored for future use
  • service marketers have to balance supply and demand
heterogeneity
  • service has variations in quality
  • manufactured goods are easier to standardize : - human behavior leads to inconsistent quality ; - there can be wide variations in service consistency
  • increases as labor intensiveness increases 
client-based relationship
  • interactions resulting in satisfied customers who use a service repeatedly
  • important for service providers to maintain customers/ clients over long-term
  • word-of-mouth communication has a key role in client-based relationship-building.
customer contact
  • a level of interaction between provider and customer needed to deliver the service
  • the look of facilities plays an important role in high-contact industries
  • well-trained , satisfied employees are essential
Generated by Koofers.com
Development of services "Bundle "
  • services generally come in a bundle
  1. coreservice : the basic service experience a customer expects to receive
  2. supplementary services : one or more supportive services used to differentiate the service bundle from competitors
  • heterogeneity allows for customization, which creates a competitive advantage
Service quality
  • Customers perception of how well a service meets or exceeds expectations
Two levels of expectations
  • Desired: what the customer really wants
  • Acceptable: the level of service that is adequate
Non-profit marketing
  • marketing activities to conducted to achieve some goal other than ordinary business goals such as profit, market share, or return on investment 
  • Divided into two categories: nonprofit organization marketing; social marketing.
Generated by Koofers.com
Developing non-profit marketing strategies ( target markets)
  • Target public : a collective of individual who have an interest in or about an organization, product, or social cause
  • client public: direct consumers of a product of a nonprofit organization
  • general public: indirect consumers of a product of a nonprofit organization
Chapter 14 Brand
  • A name, term,
Exporting intermediares
  • can perform most marketing functions for minimal effort and cost 
Export agents
  • unite buyers and sellers and collect a commission for arranging sales 
Generated by Koofers.com
Export houses and export merchants purchase products from different companies and then sell them abroad 
Digital media
  • electronic media that function using digital codes ( rather than film, or magnetic media) 
Digital Marketing
  • uses digital media to develop communications and exchanges with customers 
Chapter 21 Pricing Objectives
  • survival : adjust price levels so the firm can increase sales volume to match organizational expenses 
  • profit
  • return on investment 
  • market share 
  • cash flow
  • status Quo 
  • Product quality 
Generated by Koofers.com
The 3 major dimensions on which prices can be based :
  1. cost based pricing: adding a dollar amount or percentage to the cost of the product 
  • cost- pluspricing: Determine the seller's cost and add a specific dollar to it 
  • Markup pricing : adding a predetermined percentage of the cost to the price of the product 
  • Markup can be stated as a percentage of cost making the product or a percentage of selling price 
The 3 major dimensions on which prices can be based : 2. Demand based pricing : - customers pay a higher price when demand for the product is strong and a lower price when demand is weak 
  • marketers must be able to calculate how much customers will buy at different price points 
The 3 major dimensions on which prices can be based : 3. competition based pricing :
-pricing influenced by competitors prices 
  • competing products are homogenous 
  • organization is serving markets in which price is a key consideration 
  • may necessitate frequent price adjustment 
Differential Pricing Charging different prices to different buyers for the same quality and quantity of product 
  • Negotiated pricing : Final price established through buyer/ seller bargaining 
  • Secondary Market pricing : one price for primary target market and a different price for another market 
  • periodic discounting pricing: systematic or patterns temporary price reduction 
  • random discounting pricing : unsystematic temporary price reduction 
Generated by Koofers.com
Psychological pricing techniques
attempts to influence a customer's perception of price to make the product's price more attractive 

Reference
  • Positioning a moderately priced item next to a more expensive to make it seem lower in price 
Bundle pricing
  • packaging complementary products to be sold at a single price 
Multiple Unit pricing
  • Packaging together two or more identical products to be sold at a single price 
Generated by Koofers.com
Everyday low prices ( EDLP)
  • setting a low price on products on a consistent basis 
Old- even pricing
  • ending the price with certain numbers that influence buyers' perceptions of the price 
Customary Pricing
  • pricing certain goods on the basis of tradition 
Prestige Pricing
  • setting prices at an  artificially high level to convey prestige or high quality 
Generated by Koofers.com
Promotion pricing
  • price id often coordinated with promotion 
Price leader
  • products priced below the usual makeup, near cost, or below cost 
Special event pricing
  • advertised sales or price-cutting is used to increase sales volume and is linked to a holiday, a season, or other event 
Comparison Discounting
  • the price of a product at a specific level and simultaneously comparing it to a higher price 
Generated by Koofers.com
The final stage in the price setting process Pricing strategy
  • yields a certain price, which may need refining 
  • helps in setting final price 
  • in absence of government controls, pricing remains flexible and a convenient way to adjust the marketing mix 
Generated by Koofers.com

List View: Terms & Definitions

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 Born Globals
  •  Firms that are international; from the inception
  • small technology based firms
  • earn most of their sales outside theU.S.
 Quota
  • A limit on the amount of goods an importing country will accept for certain product categories in a specific period of time
 Technological Forces
  •  Technological advances made international marketing easier, faster, and more affordable
  • Technological infrastructure varies by country 
  • Many nations are leap frogging straight into high-technology
 NAFTA North American Free Trade Agreement
  • Agreement that eliminates most tariffs and trade restrictions on agricultural and manufactured products to encourage trade among Canada, US, Mexico.
  • Controversial but has created new business opportunities with fewer barriers than before
 Importing
  • Importing the purchase of product from a foreign service
 Exporting
  •  The sale of products to foreign market
 Franchising
  • a form of licensing in which a franchiser, in exchange for a financial commitment, grants the franchising the right to market a product in accordance with the franchiser's standards
  • the franchisee must : - pay an initial fee and royalties to the franchiser ; - adhere to all franchise standards 
  • top ten global Franchises : Subway, McDonalds, Hampton Inn, Super cuts, H& R block, Dunkin' Donuts, etc. 
 Direct ownership
  •  A company owns subsidiaries or other facilities overseas
  • Owning facilities may be too expensive for many firms
  • Multinational Enterprise ( Multinational Corporation) 
  1. A firm that has operations or subsidiaries in many countries 
  2. Subsidiaries may be semi-autonomous or part of a network led by headquarters 
 Chapter 10 Electronic Marketing
  • refers to the strategic process of distributing, promoting, pricing products, and discovering the desires of customers using digital media and digital marketing
  • allow marketers to communicate with consumers, reach new markets and target markets more precisely 
  • can be essential part of gaining a competitive advantage 
  • the most important benefit is the ability to share information between marketers and consumers; among employees; with suppliers 
 Characteristics of E-marketing
  1.  Addressibility
  2. Interactivity
  3. Accessibility
  4. Connectivity
  5. Control

 Addressibility
  • ability to obtain digital information; allows consumers to find information about competing products, prices, and reviews and become more informed about a firm and the relative value of its product 
 Interactivity
  • allows customers to express their needs and wants directly to the firm in response to its communications 
  • In contrast to one-way communications of traditional marketing media
  • Many digital media allow for ongoing, real-time, conversations between marketers and consumers
 Accessibility
  • the ability to obtain digital information on competing products, prices, reviews and details on firms
  • Mobile marketing - allows marketers to offer promotions via customers mobile devices
 Connectivity
  • keeps customers and business connected with each other
  • online social network sites help improve connectivity with large, diverse audiences
 Control
  • consumers ability to regulate the information they received via the internet
  • the internet is a pull medium because users can regulate the information to which they are exposed 
 E-marketing strategy
  • Basic internet Literacy is rising all over the world, making good way to reach global consumers. Most businesses now find it necessary to use digital marketing to grab and maintain market share.
  • distribution considerations : - the internet is a new distribution channel; - reduces inefficiencies, costs and redundancies and increases speed; - shipping times and cost are an important element in attracting customers; - distribution involves a push-pull dynamic; - companies push to get products to consumers and channel members pull to find one another 
 Product considerations
  • the connectivity of digital media creates opportunities for business to add services and to enhance product benefits
  • Some products are only available digitally
  • some companies use advertising campaigns nd contests to develop better products
  • the internet can make it easier to anticipate consumer needs
 Using Digital media in marketing Research
  • Digital media can be a useful resource for marketing
  • many online research services are ceaper than traditional counterparts
  • digital media help level the playing field between large and small firms
  • Crowdsourcing- involves using communities of interested consumers to gather input and feedback for marketing purposes
  • evaluating a marketing campaigns success
 Online fraud
  • any attempt to conduct fraudulent activities online
  • cyber criminals increasingly use popular social networking sites to commit fraud 
 Chapter 11 What is product?
  • a good, a service, or an idea received in an exchange
  • includes functional, social and psychological utilities, and benefits
  • includes supporting services such as institution, guarantees, product information...
 Good
  • a tangible, physical entity
 Service
  • intangible, result of the application of human and mechanical efforts to people or objects
 Idea
  • a concept, philosophy, image or issue
 4 types of consumer products
  • Convenience products 
  • shopping products
  • specialty products
  • Unsought products
 Convenience product
  • inexpensive, frequently purchased  items for which buyers exert minimal purchasing effort
     ( bubble gum, cigarettes, candy )
    (requires no searching, many retail outlets, low per-unit gross margins, heavy brand promotion, limited retailer promotion, packaging important, reliance on self-service, available at many retailers, low price product)
 Shopping products
  • items for which buyers are willing to expend considerable effort in planning and making purchases ( more extensive search, available substances, and less frequent purchase)
  • ( no brand loyalty, fewer retail outlets than convenience, lower inventory turnover, channel members demand higher gross margins, personal selling, producer and channel member cooperation )
 Specialty products
  • items with unique characteristics that buyers are willing to expend considerable efforts to obtain ( require extensive search, are generally higher price points, and no ready substitutes) 
  • ( limited retail outlets, lower inventory turn over, high gross margins)
 Unsought products
  • products purchased to solve a sudden problem; products of which customers are unaware; and products that people do not necessarily think of buying ( no search, price is not important and purchased compelled)
  • ( build trust with consumers prior need, recognizable brand, superior performance)
 Product Mix
  • the total group of products that an organization makes available to customers
 width of product mix
  • number of product lines a company offers
 depth of product mix
  • the average number of different products in each product line
 Stages of product life cycle
  1. Introduction
  2. Growth
  3. Maturity
  4. decline
 Introduction
  • Sales start at zero and profits are negative
  • high risk of failure
  • buyers must be made aware of features, uses, advantages
  • sellers lack resources, technological knowledge, marketing know-how
 Growth
  • Sales rise rapidly, profits reach a peak, and they start to decline
  • promotion- cost drop as a percentage of sales
  • (marketers must: stress brand loyalty to encourage brand loyalty, intensify segmentation, strengthen market share, analyze product position, ensure efficient attribution system
 Maturity
  • sales curve peaks and starts to decline and profits continue to fall
    ( intense competition, emphasize on improvements and differences in competitor's products, weaken competitors exit the market, advertising and dealer- oriented promotions predominate, distribution sometimes expands to the global market, generate market flow, maintain market share, increase share of customer)
 Decline
  • sales fall rapidly during this stage 
  • marketers will likely: eliminate, reposition items, cut promotion, eliminate margin distributions, plan to phase out product.
  • ( because most businesses have a product mix consisting of multiple products, a firm's destiny is rarely tied to one product.
 The product adoption process
  1. awareness
  2. interest
  3. evaluation
  4. trial
  5. adoption
 Awareness
  • the buyer becomes aware of the produt
 interest
  • the buyer seeks for information and is receptive to learn about the product
 Evaluation
  • the buyer considers the product's benefits and decides whether to try it
 Trial
  • the buyer examines, tests, or tries the product to determine if it meets his or her needs
 Adoption
  • the buyer purchases the product and can be expected to use it again whether the need for this general type of product arises
 Why some products fail and other succeed
  • in general, consumer products fail more often than business products
  • failure to match product to needs
  • failure to send right messages
  • technical/ design problems
  • poor timing
  • overestimate market
  • ineffective promotion
  • ineffective promotion
  • insufficient distribution
 Chapter 12 Line extension
  • the development of a product that is closely related to existing products in the line, but is designed specifically to meet different customer needs 
  • Many "new products" are line extensions ( Reese's core: P/B cup) ( line extension:  - prices, -big cups, -cereal )
  • Are less expensive, lower-risk and more common than new products
  • downside is that unpopular line extensions may result in negative evaluation of the core product
  • more precisely satisfy needs of current segment, capture market share
 reasons for line extensions
  • focus on a different segment, more precisely needs of current segment, capture market share from competitors
 Quality modifications
  • Changes related  to a product's dependability & durability
  • reducing a product's quality may allow for a lower price and appeal to a new target market
  • higher quality may allow a company to charge a higher price through building loyalty and lowering sensitivity to price
  • many firms look for ways increase quality while also cutting cost 
 Phases of the new product development process
  1. idea generation
  2. screening
  3. concept testing
  4. business testing
  5. product development
  6. test marketing
  7. commercialization
 Product differentiation
  • the process of creating & designing products so costumers perceive them as different from competing products  
  • Customer perception is critical in differentiating products
  • perceived differences include quality, features, styling, price, image, and product quality
 Product quality
  • characteristics  of a product allowing it to perform as expected in satisfying customer needs
  • most business organizations place less emphasis on price than on product quality than do consumers 
 Level of quality
  • the amount of quality a product possesses
 Consistency of quality
  • the degree to which a product has the same level of quality over time 
 Product design
  • how a product is conceived, planned & produced ( the total sum of a product's physical characteristics) 
  • one component of design is styling
 Styling
  • physical appearance of a product ( involves functioning and usefulness)
 Product features
  • specific design characteristics that allow a product to perform certain tasks ( helps a company differentiate its products)
 Support features
  • can help a company differentiate itself from competitors
 Customer serving
  • human or mechanical efforts or activities that add value to a product
 Venture teams
  • a cross-functional group that creates entirely new products that may be aimed at new markets
 Chapter 13 Characteristics of services
  1. intangibility
  2. inseparability of production & consumption
  3. perishability
  4. heterogeneity 
  5. client-based relationship
  6. customer contact
 intangibility
  • a service is not physical and cannot be perceived by the senses
 inseparability of production & consumption
  • production of a service cannot be separated from its consumption by customers
  • customers must be present  at the consumption of the service and cannot take the service home
  • implies a shared responsibility between the customer and service provider in giving and receiving the service 
 perishability
  • unused service capacity from one time period cannot be stored for future use
  • service marketers have to balance supply and demand
 heterogeneity
  • service has variations in quality
  • manufactured goods are easier to standardize : - human behavior leads to inconsistent quality ; - there can be wide variations in service consistency
  • increases as labor intensiveness increases 
 client-based relationship
  • interactions resulting in satisfied customers who use a service repeatedly
  • important for service providers to maintain customers/ clients over long-term
  • word-of-mouth communication has a key role in client-based relationship-building.
 customer contact
  • a level of interaction between provider and customer needed to deliver the service
  • the look of facilities plays an important role in high-contact industries
  • well-trained , satisfied employees are essential
 Development of services "Bundle "
  • services generally come in a bundle
  1. coreservice : the basic service experience a customer expects to receive
  2. supplementary services : one or more supportive services used to differentiate the service bundle from competitors
  • heterogeneity allows for customization, which creates a competitive advantage
 Service quality
  • Customers perception of how well a service meets or exceeds expectations
 Two levels of expectations
  • Desired: what the customer really wants
  • Acceptable: the level of service that is adequate
 Non-profit marketing
  • marketing activities to conducted to achieve some goal other than ordinary business goals such as profit, market share, or return on investment 
  • Divided into two categories: nonprofit organization marketing; social marketing.
 Developing non-profit marketing strategies ( target markets)
  • Target public : a collective of individual who have an interest in or about an organization, product, or social cause
  • client public: direct consumers of a product of a nonprofit organization
  • general public: indirect consumers of a product of a nonprofit organization
 Chapter 14 Brand
  • A name, term,
 Exporting intermediares
  • can perform most marketing functions for minimal effort and cost 
 Export agents
  • unite buyers and sellers and collect a commission for arranging sales 
 Export houses and export merchantspurchase products from different companies and then sell them abroad 
 Digital media
  • electronic media that function using digital codes ( rather than film, or magnetic media) 
 Digital Marketing
  • uses digital media to develop communications and exchanges with customers 
 Chapter 21 Pricing Objectives
  • survival : adjust price levels so the firm can increase sales volume to match organizational expenses 
  • profit
  • return on investment 
  • market share 
  • cash flow
  • status Quo 
  • Product quality 
 The 3 major dimensions on which prices can be based :
  1. cost based pricing: adding a dollar amount or percentage to the cost of the product 
  • cost- pluspricing: Determine the seller's cost and add a specific dollar to it 
  • Markup pricing : adding a predetermined percentage of the cost to the price of the product 
  • Markup can be stated as a percentage of cost making the product or a percentage of selling price 
 The 3 major dimensions on which prices can be based :2. Demand based pricing : - customers pay a higher price when demand for the product is strong and a lower price when demand is weak 
  • marketers must be able to calculate how much customers will buy at different price points 
 The 3 major dimensions on which prices can be based :3. competition based pricing :
-pricing influenced by competitors prices 
  • competing products are homogenous 
  • organization is serving markets in which price is a key consideration 
  • may necessitate frequent price adjustment 
 Differential PricingCharging different prices to different buyers for the same quality and quantity of product 
  • Negotiated pricing : Final price established through buyer/ seller bargaining 
  • Secondary Market pricing : one price for primary target market and a different price for another market 
  • periodic discounting pricing: systematic or patterns temporary price reduction 
  • random discounting pricing : unsystematic temporary price reduction 
 Psychological pricing techniques
attempts to influence a customer's perception of price to make the product's price more attractive 

 Reference
  • Positioning a moderately priced item next to a more expensive to make it seem lower in price 
 Bundle pricing
  • packaging complementary products to be sold at a single price 
 Multiple Unit pricing
  • Packaging together two or more identical products to be sold at a single price 
 Everyday low prices ( EDLP)
  • setting a low price on products on a consistent basis 
 Old- even pricing
  • ending the price with certain numbers that influence buyers' perceptions of the price 
 Customary Pricing
  • pricing certain goods on the basis of tradition 
 Prestige Pricing
  • setting prices at an  artificially high level to convey prestige or high quality 
 Promotion pricing
  • price id often coordinated with promotion 
 Price leader
  • products priced below the usual makeup, near cost, or below cost 
 Special event pricing
  • advertised sales or price-cutting is used to increase sales volume and is linked to a holiday, a season, or other event 
 Comparison Discounting
  • the price of a product at a specific level and simultaneously comparing it to a higher price 
 The final stage in the price setting process Pricing strategy
  • yields a certain price, which may need refining 
  • helps in setting final price 
  • in absence of government controls, pricing remains flexible and a convenient way to adjust the marketing mix 
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