Chapter 13
Four things you're going to have to acknowledge when marketing a service is that services are_________?
1. inseparable
2. heterogeneous
3. perishable
4. intangible
Technique used to examine the relationships among cost, price, revenue, and profit over different levels of production and sales to determine the break-even point. This is the definition of what?
Break-even Analysis
What are the three different considerations for setting prices?
Cost‐Based Methods
Competition‐Based Methods
Value‐Based Methods
the firm gets the merchandise “just in time” for it to be used in the manufacture of another product, in the case of parts or components, or for sale when the customer wants it, in the case of consumer goods. This is an example of what?
Just-in-time (JIT) Inventory System
A methods that base the IMC budget on either the firm’s share of the market in relation to competition, a fixed percentage of forecasted sales, or what is left after other operating costs and forecasted sales have been budgeted.
Rule-of-thumb methods
What are the four service gaps?
Knowledge Gap
standard Gap
delivery Gap
communication gap
Refers to a market for a product or service that is price sensitive; that is, relatively small changes in price will generate fairly large changes in the quantity demanded.
Elastic
How can you use value-based methods for setting prices?
value pricing model
This refers to a set of approaches and techniques firms employ to efficiently and effectively integrate their suppliers.
Marketing Channel Management
What are the different steps in the communication process?
Receivers Decode Messages Differently
Senders Adjust Messages According to the Medium and Receivers’ Traits
What are the five service quality dimensions ?
Tangibles
empathy
assurance
reliability
The Five Cs of Pricing
1. Company Objectives
2. Customers
3. Costs
4. Competition
5. Channel Members
In terms of a pricing strategy, adds value by reducing consumers’ search costs, while consumers can spend less of their valuable time comparing prices, including sale prices, at different stores.
a. cost-based pricing b. high/low pricing c. predatory pricing d. everyday low pricing e. competitor-based pricing
everyday low pricing
A wireless network and a mobile device that receives demand notification and enables a speedy response.
Mobile Task Management
Explain the four steps in the AIDA model.
Awareness, Interest, Desire, and Action
Now when a company is performing the best they possibly can in service sometimes it doesn't meet the customer's expectations so you will have to deal with service failure. The next course of action is a service recovery strategy.What are the 3 next course of action to take?
Listen to customers and involving them in the service recovery
Provide a fair solution
Resolve the problem as quickly as possible
Price is best defined as ______.
the overall sacrifice a consumer will make to obtain one of the five Cs
The objective of is to build sales, market share, and profits quickly by providing an incentive to purchase the product immediately.
a. price lining b. price skimming c. market penetration pricing d. price fixing e. experience curve effects
market penetration pricing
Retailer that offers only one or two brands or sizes of most products (usually including a store brand) and attempts to achieve great efficiency to lower costs and prices.
Limited-assortment supermarket
A paid form of communication delivered through media from an identifiable source about an organization, product, service, or idea designed to persuade the receiver to take some action now or in the future.
Advertising
the area between customers' expectations regarding their desired service and the minimum level of acceptable service - that is, the difference between what the customer really wants and what he or she will accept before going elsewhere.
Zone of Tolerance
True or false: A firm with a primary objective of very high sales growth will have the same pricing strategy as a firm with a primary objective of being a quality leader.
False
Settings differ significantly from those used in consumer markets. Among the most prominent are seasonal and cash discounts, allowances, quantity discounts, and uniform delivered versus zone pricing.
B2B-oriented pricing tactics
The percentage of the customer’s purchases made from a particular retailer.
Share of wallet
Describe the steps in designing and executing an advertising campaign.
STEP 1: IDENTIFY TARGET AUDIENCE
STEP 2: SET ADVERTISING OBJECTIVES
STEP 3: DETERMINE THE ADVERTISING BUDGET
STEP 5: EVALUATE AND SELECT MEDIA