Marketing Management for Services Flashcards

Vocabulary flashcards for Marketing Management for Services, covering key concepts, definitions, and marketing strategies.

Segmentation

Identify bases for segmenting the market and develop segment profiles

Targeting

Selecting which market segments to serve

Positioning

Differentiating and communicating the brand to a targeted segment

Brand Familiarity

The extent to which consumers recognize or are aware of a brand

Brand Salience

The degree to which a brand is thought of in a buying situation

Core Product

The fundamental benefit or service that consumers receive

Supplementary Services

Additional services that enhance the core product

Intangible Value

Value derived from non-physical benefits of a product

Double Jeopardy Law

The phenomenon where smaller brands have fewer customers who are less loyal

Availability Heuristic

Judging the likelihood of events based on ease of recall

Anchoring and Adjustment

The tendency to rely too heavily on the first piece of information encountered

Sunk Cost Fallacy

The tendency to continue an endeavor once an investment in money, effort, or time has been made

Compromise Effect

The tendency to choose a middle option when presented with extremes

Endowment Effect

The tendency to value things more highly simply because we own them

Maximizers

Consumers who seek the optimal outcome in decisions despite high search costs

Satisficers

Consumers who are content with a ‘good-enough’ decision

Transaction Utility

The perceived value of a product in relation to its price

Physical Evidence

The tangible aspects of services that influence consumer experiences

Market Penetration

The strategy of gaining greater market share by attracting new customers

Heuristic

Mental shortcuts or rules of thumb that simplify decision-making

Psychographic Segmentation

Segmenting consumers based on lifestyle, values, or personality traits

Behavioral Segmentation

Dividing the market based on consumer behaviors such as usage rates and brand loyalty

Demographic Segmentation

Segmenting consumers based on characteristics such as age, gender, and income

Geographic Segmentation

Dividing a market based on geographic location

Service Design

Creating services that optimize consumer satisfaction and operational efficiency

Representativeness Heuristic

People are influenced by anchor points when making decisions, from which they adjust upward or downward

Mental Accounting

Consumers have mental accounts for different kinds of activities

4 Main P's

Product, Price, Promotion & Place

Tangible

Salt, Soft Drinks, Detergents, Automobiles

Intangible

Advertising Agencies, Airlines, Investment Management, Consulting, Teaching

Internal Marketing

Marketing directed towards employees

External Marketing

Marketing directed towards customers

Interactive Marketing

Interaction between employees and customers

Intangibility

Services cannot be touched or seen before the purchase decision

Inseparability

Services are produced and consumed simultaneously

Variability

Quality of services depends on who provides them, and when, where, and how

Perishability

Services cannot be stored for later use or sale

Brand Mantra

Short phrase that captures the irrefutable essence of a brand

Emotional Modifier

Term determining how a brand provides benefits and in what ways

Descriptive Modifier

Term combined with brand functions, helps explain who the brand is for

Brand Functions

Nature of the product/service or the benefits the brand provides

Core Product

The fundamental benefit or service the customer seeks

Facilitating Products

Services or goods essential for the core product's use

Supporting Products

Additional offerings that enhance the core product

Augmented Products

Combines what is offered with how it is delivered

Components

Accessibility, Customer Participation, Interaction, Atmosphere

Service Marketing Triangle

Employees, Company, Customers

Mission Statement

Outline what the company does for its customers, employees, and owners

Brands

High respect, low love

Lovemarks

High respect, high love

Products

Low respect, low love

Fads

Low respect, high love

Light Buyers

Infrequent purchasers

Heavy Buyers

Frequent purchasers

Fanatical Buyers

Exhibit strong brand loyalty and purchase products very often

Fashion

a currently accepted popular style in a given field

Fads

temporary periods of unusually high sales driven by consumer enthusiasm

Style

a basic and distinctive mode of expression

Marketing Strategy

Segmentation, Targeting, Positioning

Integrated Marketing Communications

Advertising, PR, Sales Promotion

Three Broad Competitive Strategies

low-cost leadership, differentiation, and focus (niche)

Market Penetration

Increase market share with existing products

Market Development

Enter new markets with existing products

Product Development

Develop new products for existing markets

Diversification

New products in new markets

20:80 Rule

20% of customers typically generate 80% of revenue

Natural Monopoly Law

Larger brands have proportionately more light buyers

Duplication of Purchase Law

Brands share more customers with the market leader than with smaller brands

Cost-based pricing

Focuses on production costs as a key input in order to set selling prices of products

Value-based pricing

Pricing on how much the customer believes a product is worth

Competition-based pricing

Price points are set relative to those of competitors

Differential pricing

Charges customers different prices for the same product/service

Price fences

Prevent customers from one segment from receiving prices intended for another

Passives

Least likely to take any action

Voicers

Actively complain to service providers, but probably won’t spread negative word of mouth

Irates

More likely to engage in negative word of mouth to friends and relatives

Activists

Above average propensity to complain on all levels

Unconditional

The guarantee should make its promise unconditionally

Meaningful

The firm should guarantee elements of the service that are important to the customer

Easy to Understand

Customers need to understand what to expect

Easy to Invoke

The firm should eliminate accessibility issues on the guarantee

Service Recovery Paradox

A company can actually improve a customer's perception of their service by effectively handling a service failure and recovering from it

Market Leader

Brand with the largest market share of the product category

Market Challenger

Has less share than market leader, but enough to apply pressure

Market Follower

Company that is happy with its position rather than competing in a forceful way to gain share

Market Niche

Holds a small market share of theoretically loyal customers

5 C’s of Marketing Environment

company, competitors, collaborators, customers, context

Micro environment

Forces that are close to the organization

Macro environment

Broader forces that may affect competitors similarly

The Company’s Macroenvironement

the larger societal forces that affect the entire microenviroment