MKTG 201 (FINAL)

Question 1

Marketing Services

Answer 1

A broad set of strategies focused on economic activities offered to the client. Intangible and not an ownership. Key driver of long-term revenue.

Question 2

Services

Answer 2

Activities, benefits, and satisfactions which are offered for sale or provided in connection with the sale of goods

Question 3

The Nature of Services

Answer 3

Intangibility - experiences are intangible and subjective

Inseparability - The provider and the service are inseparable

Variability - Services can be inconsistent

Perishability - services cannot be “saved” like products

Question 4

7 P’s of Services Marketing

Answer 4

Product
Price
Promotion
Place

People - deliver the service;
Process - Need consistent processes for the service to be delivered
Physical Environment - Physical environment can give some tangibility to the service… make it nice!

Question 5

Service Marketing Triangle

Answer 5

Highlights the importance of actors and the customer (what relationships are there?)

Question 6

Internal Marketing Activities

Answer 6

Activities that occur between the company and its employees

If you focus on your employees, they will more likely have a positive impact on consumers

Question 7

External Marketing Activities

Answer 7

Activities that occur between the company and its customers

Question 8

Interactive Marketing Activities

Answer 8

Activities between employees and the customer during the service encounter.

“Moment of truth”

Question 9

Reliability

Answer 9

The ability of the service provider to perform the promised service dependably and accurately

Question 10

Responsiveness

Answer 10

A dimension of service quality - providing timely and prompt responses to customers, and delivering the service on time

Question 11

Assurance

Answer 11

Service quality - treating customers with respect, providing knowledge/assistance, and creating trust

Question 12

Empathy

Answer 12

service quality - facilitating access and communication with customers to UNDERSTAND their needs

Question 13

Tangibles

Answer 13

Appearance of physical facilities, professional dress, clearly displayed certifications, etc.

Question 14

Pricing

Answer 14

The amount of money exchanged for a product or a service

Question 15

Perceived Value

Answer 15

The customer’s perception of the relationship between the benefits and costs of a product

Question 16

Possible Price Range

Answer 16

The possible prices above COGS and below Perceived Value

Question 17

External Reference Price

Answer 17

What everyone else is paying for the product

Question 18

Internal Reference Price

Answer 18

The price consumers think they should pay, given past experience and the buying situation

Question 19

Fixed Costs

Answer 19

Costs that do NOT vary with production/output quantity

Question 20

Variable Costs

Answer 20

Vary with output quantity

Question 21

Unit Contribution

Answer 21

Unit price - unit variable cost

Question 22

Total Contribution

Answer 22

Unit contribution x total units sold

Question 23

Total Cost

Answer 23

Fixed Cost + Variable Cost

Question 24

Total Revenue

Answer 24

Price per unit x products sold

Question 25

Break-even analysis

Answer 25

Break even point revenue = total cost

Question 26

Price Skimming vs Penetration

Answer 26

Skimming = Selling at a high price before reducing to capture higher margins at first Penetration = Set a low entry price to capture market share quickly

Question 27

Consumer Surplus

Answer 27

The difference between the maximum price consumers are willing to pay and the lower amount they actually pay

Question 28

Cost-Plus Pricing

Answer 28

Cost of the product plus a predetermined margin Bad, ignores customers and competitors

Question 29

Competitive Pricing

Answer 29

Pricing below, at, or above competitors' prices Understanding buying situations is key

Question 30

Value Pricing

Answer 30

Considers the customer's perceived value of the product Understanding of competitors and customers

Question 31

Golden Goose Pricing

Answer 31

Charging the highest price a buyer is willing to pay Lose customers

Question 32

Market Segmentation

Answer 32

The process of grouping customers into sets or groups. Customers within a segment are similar to one another in the way they respond to marketing efforts.

Question 33

Geographic Segmentation

Answer 33

Segmentation is determined on geographic regions, population density, population size, etc.

Question 34

Demographic Segmentation

Answer 34

Segmentation based on differences in age, gender, income, level of education, social class, etc.

Question 35

Psychographic segmentation

Answer 35

Segmentation is determined based on differences in personality, motives, or lifestyle

Question 36

Behavioral Segmentation

Answer 36

Segmentation based on core benefits that customers seek, usage situations, brand loyalty, usage rates, and price sensitivity

Question 37

Brand-loyal shoppers

Answer 37

High brand sensitivity and low price sensitivity (toothpaste, cigarettes, coffee, soda)

Question 38

Deal shoppers

Answer 38

High brand sensitivity and high price sensitivity. Like to purchase leading brands at a discount (diapers, soap, pet food)

Question 39

Price shoppers

Answer 39

Low brand sensitivity and low price sensitivity. (Plastic food bags, frozen pizza, detergents)

Question 40

Convenience shoppers

Answer 40

Low brand sensitivity and low price sensitivity (energy drinks, junk food, eggs, dairy)

Question 41

Segmentation Plan

Answer 41

Measurable Accessible Durable Substantial Unique Needs

Question 42

Business Meal Situation

Answer 42

Question 42

Segmentation Basis

Answer 42

Used to assign potential customers to different segments

Question 43

Segmentation profile

Answer 43

Describes demographic characteristics, geographic factors, attitudinal scores, and behavioral tendencies of the segment members. The profile shows similarities among potential customers within the segment

Question 44

Selecting Segments

Answer 44

Market Size Expected Growth Competitive Position Cost to Reach Maximize Company Profit

Question 45

Value Positioning Strategy

Answer 45

Customer Benefits by Product Price

Question 46

"Me too" marketing

Answer 46

Marketing that offers the same price for the same benefits (gives no reason for consumers to change)

Question 47

Unique Selling Proposition

Answer 47

1. Each advertisement must make a proposition to the customer 2. The proposition must be one that the competition either cannot or does not offer 3. The proposition must be so strong that it can moves the masses and pull new customers over to the product [Product name] competes in [product category] and provides [biggest benefits] to [customer identity] when they are [buying situation]. [Product name] unlike [main competitors] is unique because it provides [element of differentness].

Question 48

Perceptual Mapping

Answer 48

Allow researchers to view consumers' perceptions of brands on spatial maps to differentiate

Question 49

Gap Analysis

Answer 49

Compares brands based on the importance and performance of their differentiating features and benefits.

Question 50

Hierarchical Values Analysis

Answer 50

Interviewing customers to discover their core motivations or beliefs behind purchasing decisions: 1. Eliciting Distinctions 2. Pyramiding Down 3. Laddering Up

Question 51

Eliciting Distinctions

Answer 51

Getting an ordered list of brands from the consumer and understanding which product distinctions led them to order them that way.

Question 53

Pyramiding Down

Answer 53

Taking the most important distinction and asking further questions to get as much detail as possible. Helps us uncover the distinctively good attributes about a product

Question 54

Laddering Up

Answer 54

Taking the most important distinction and reminding about the situation/supporting attributes. Helps us uncover mood, personal evaluation, emotions

Question 55

Mapping

Answer 55