Business 102: Principles of Marketing Ch 9. Services Marketing, Marketing Channels & Supply Chain Management

Service

• the result of applying human or mechanical efforts to people or objects

• services posses a few unique characteristics that differ from marketing a good

Intangibility

when the service can’t be heard, felt, touched, seen, or tasted

Search Qualities

• the characteristics that are easily reviewed before a purchase occurs

• many service oriented companies create a tangible representation to help their consumers understand what they are all about

Inseparability

• the inability of the production and consumption of a service to be separated

• service companies must have very will trained employees, who are adept at providing excellent services, so the quality remains consistent

Heterogeneity

• also known as “variability,” it is one challenge facing service oriented companies. It is when services have problems being standardized

• the most factor important factor in maintaining no variability is through excellent training and set procedures

Perishability

services cannot be stored, warehoused, or inventoried

Marketing Mix

a service company has different characteristics to its overall marketing plan, so there also has to be adjustments in the marketing mix

Location

• an issue very important to service companies such as hotels and banks

• they spend enormous amounts of time researching the best location to offer their services to the largest amount of their target market

Scheduling

an important issue customers are concerned about. Consumers want their services at the best time that works for them

Convenience

• a huge driver of service location

• consumers want to easily access services

Tangible Cue

Allows consumers to visualize why their service is superior

Pricing

• the biggest challenge is developing a pricing strategy for a service is to determine what the price is dependent upon

• service companies also need to determine whether the price should be for a bundled offering or priced separately

Marketing a Service vs. a Product

• the main characteristic differences are intangibility, inseparability, heterogeneity, and perishability

• the marketing mix must also be adjusted for a service

• a marketer must make sure the service is offered to the consumer at the correct time, place, price, and promotion

• the most important aspects of service marketing are convenience, location, and the ability to create a tangible cue to the service

The characteristics of marketing a service include all of the following, EXCEPT:

1. Intangibility

2. Heterogeneity

3. Invariability

4. Perishability

Invariability

Which of the following is a way for a company to overcome the intangibility issue?

1. They can provide samples of their service.

2. They can create a tangible cue to physically represent their service.

3. They can offer excellent training and standardized procedures.

4. They can offer initial promotions to get consumers to try their service.

They can create a tangible cue to physically represent their service.

Why is a medical exam considered a perishable service?

1. Because it cannot be stored, warehoused, or inventoried.

2. Because the company needs to invest in a corporate training program.

3. Because you get a different doctor every time to have a medical exam.

4. Because the consumer has a lot of input in how the service is conducted.

Because it cannot be stored, warehoused, or inventoried.

Which of the following is an example of heterogeneity?

1. Ninja tells the hoagie chef that he wants more tomatoes on his sandwich.

2. Ninja decides to try the special every day at this favorite restaurant.

3. Ninja goes to a burger joint everyday and remarks how his fries taste exactly the same everyday.

4. Ninja buys a pizza, and it does not taste as good as the last time he bought one for his family.

Ninja buys a pizza, and it does not taste as good as the last time he bought one for his family.

Laura is developing a place strategy for her new dog grooming service in Beverly Hills. She wants her grooming service to be exclusive, and to provide her customers with unique and highly fashionable dog hair styles. How many numbers of outlets would you recommend to Laura?

1. One outlet

2. 5 or more outlets.

3. As many outlets as possible.

4. Three or more outlets.

One outlet

Four Ps of Marketing

• price

• place

• product

• promotion

Marketing Mix

the different tools and methods they will use to get their message out

Target Markets

the specific markets and market segments they believe they need to market to

Positioning

using words, symbols and ideas, this is how the company positions itself against competitors in the marketplace

Public Relations

working in the community and getting individuals to talk positively about the company or product, without having to pay for it as an advertisement

PRICE

the price charged for the product

PLACE

where the product can be purchased

PRODUCT

what the product actually is

PROMOTION

how customers will learn about or want to purchase the product

Using words, symbols and ideas, the way a company positions itself against competitors is called

1. Place

2. Positioning

3. Price

4. Segmentation

5. Marketing

Positioning

The specific markets and market segments you believe you need to aim marketing towards is called

1. The target market

2. The best market

3. Marketing

4. Market potential

5. Segmentation

The target market

What are the four P's of marketing?

1. Promotion, Program, Price and Penetration

2. Price, Potential, Presence and Promotion

3. Place, Product, Presences and Positioning

4. Product, Price, Place and Promotion

5. Place, Presence, Promotion and Price

Product, Price, Place and Promotion

Letting customers (or potential customers) know about your product, with a focus on purchasing it, is the goal of:

1. Non-profit marketing

2. For-profit marketing

3. Public relations

4. Positioning

For-profit marketing

The different tools and methods used to get your message out is

1. Networking

2. The telephone

3. Market segmentation

4. The marketing mix

5. The Web

The marketing mix

Channel

• refers to a way of making a product available to distribute to the end consumers

• physical distribution

Specialization and Division of Labor

• breaking down complex tasks into simpler ones and training specialists to accomplish the tasks

• greater production, efficiency and profits

Overcome Discrepancies

of quantity, assortment, time and space

Discrepancy of Assortment

a lack of all of the items a customer needs to receive full satisfaction from a product or products

Temporal Discrepancies

a product is produced but a customer is not ready to purchase the item

Spatial Discrepancies

the location of a producer is too far away from the location of the markets for the product

What is breaking down complex tasks into simpler ones and training specialists to accomplish the tasks?

1. Physical Distribution

2. Marketing Channel Development

3. Economies of Scale

4. Overcoming Discrepancies

5. Division of Labor/Product Specialization

Division of Labor/Product Specialization

Temporal discrepancy is described by which of the following?

1. A product is produced and spoils due to the delivery not being fast enough.

2. A product is produced and it is the wrong flavor.

3. A product is produced but not in the correct quantity.

4. A product is produced but a consumer is not ready to purchase the item.

A product is produced but a consumer is not ready to purchase the item.

When a channel eliminates the difference between the amount of product produced and the amount an end user wants to buy, they are helping overcome what type of discrepancy?

1. Assortment

2. Place

3. Quantity

4. Location

5. Freshness

Quantity

What is a channel in marketing?

1. A channel is when postal delivery is used.

2. A channel refers to the movement of goods and services.

3. A channel refers to a way of making a product available to distribute to the end consumers.

4. A channel is how marketers communicate with their target market.

5. A channel refers to location of the product.

A channel refers to a way of making a product available to distribute to the end consumers.

When a channel member helps overcome a lack of all of the items a customer needs to receive full satisfaction from a product or products, they are solving what type of discrepancy?

1. Economies of Scale

2. Place

3. Quantity

4. Assortment

5. Location

Assortment