Service An intangible offering involving a deed, performance, or effort that cannot be physically possessed Service Characteristics (IHIP) Intangible, Heterogeneous, Inseparable, Perishable Intangible Cannot be seen, touched, or stored; requires cues like

Service

An intangible offering involving a deed, performance, or effort that cannot be physically possessed

Service Characteristics (IHIP)

Intangible, Heterogeneous, Inseparable, Perishable

Intangible

Cannot be seen, touched, or stored; requires cues like atmosphere or branding1 Heterogeneous Service quality varies from one experience to another

Inseparable

Production and consumption occur at the same time; customer is part of the process

Perishable

Services cannot be stored; unused capacity results in lost revenue

Reliability

Ability to perform the service correctly and dependably

Assurance

Employees inspire trust and confidence

Tangibles

Physical appearance of facilities, equipment, and personnel

Empathy

Caring, individualized attention to customers

Responsiveness

Willingness to help customers and provide prompt service

Gaps Model

Framework identifying differences between expected and delivered service

Knowledge Gap

Firm does not understand customer expectations

Standards Gap

Firm fails to set proper service standards

Delivery Gap

Employees do not meet service standards

Communication Gap

Marketing promises do not match actual service

Expanded Marketing Mix (7Ps)

Product, Price, Place, Promotion, People, Process, Physical Evidence

Servicescape

The physical environment where a service is delivered

Service Recovery

Actions taken to resolve service failures and satisfy customers

Service Application: Restaurant with empty tables due to slow demand

Perishability (lost revenue from unused capacity)

Service Application: Different haircut results each visit

Heterogeneous

Service Application: Fancy hotel decor and scent

Intangible (making service tangible through cues)

Service Application: Advertising fast service but delivering slow service

Communication Gap

Service Application: Employees rude despite good policies

Delivery Gap

Service Application: Company surveys customers to understand needs

Knowledge Gap

Service Application: Offering guarantees to reduce customer risk

Inseparability/Intangibility

Marketing Strategy

A firm's target market and marketing mix designed to achieve a sustainable competitive advantage

Sustainable Competitive Advantage

A long-term advantage over competitors that is not easily copied

Customer Excellence

Providing superior customer service and relationships

Operational Excellence

Efficient operations and cost control

Product Excellence

Offering high-quality or innovative products

Locational Excellence

Having a strong physical or geographic location

Marketing Planning Process

5-step process: Mission, SWOT, STP, Marketing Mix, Metrics

Mission Statement

Statement of the firm's purpose and goals

SWOT Analysis

Analysis of strengths, weaknesses, opportunities, and threats

Segmentation

Dividing a market into distinct groups of customers

Targeting

Selecting which segment(s) to serve

Positioning

Creating a desired perception of the product in consumers' minds

Marketing Mix (4Ps)

Product, Price, Place, Promotion

Portfolio Analysis

Method of evaluating product lines to allocate resources

BCG Growth Matrix

Classifies products based on market growth and market share

Star

High growth and high market share

Cash Cow

Low growth and high market share

Question Mark

High growth and low market share

Dog

Low growth and low market share

Market Penetration

Selling more of the same product to the same market

Market Development

Selling the same product to new markets

Product Development

Creating new products for existing markets

Diversification

New products in new markets

Harvesting

Reducing investment in a product to maximize short-term profits

Divestment

Selling or eliminating a product line or business unit

Pruning

Removing specific products within a line

Retrenchment

Reducing geographic or market scope

Strategy Application: Selling same product to a new age group

Market Development

Strategy Application: Releasing a new version of a product to current customers

Product Development

Strategy Application: High share, low growth product

Cash Cow

Strategy Application: Low share, low growth product

Dog

Strategy Application: Luxury branding strategy

Product Excellence

Strategy Application: Low price and efficiency focus

Operational Excellence

Strategy Application: Analyzing strengths and threats before planning

SWOT Analysis

Strategy Application: Choosing college students as target market

Targeting

Strategy Application: Positioning product as luxury brand

Positioning

Globalization

Process by which goods, services, capital, people, and ideas flow across national borders

GDP

Market value of all goods and services produced in a country

GNI

GDP plus income earned from foreign investments

Purchasing Power Parity (PPP)

Compares prices across countries using a common currency to assess buying power

Human Development Index (HDI)

Measures quality of life using income, education, and life expectancy

Tariff

Tax on imported goods that raises prices and protects domestic industries

Quota

Limit on the number of imported goods allowed into a country

Trade Agreement

Agreement between countries that outlines trade rules and reduces barriers (ex: :contentReference[oaicite:0]{index=0})

Exchange Control

Government limits on the amount of currency that can be exchanged

Power Distance

Degree to which a society accepts inequality and hierarchy

Uncertainty Avoidance

Degree to which a society prefers structure and avoids risk

Individualism

Culture focused on individual goals rather than group goals

Time Orientation

Culture's focus on long-term vs short-term planning

Global Standardization

Selling the same product in the same way across all countries

Product Adaptation

Adjusting a product to meet local preferences in different markets

Glocalization

Combining global strategy with local adaptation

Reverse Innovation

Product developed in one country and later introduced globally

Integrated Marketing Communications (IMC)

Coordinating all promotional tools to deliver a consistent message

AIDA Model

Awareness, Interest, Desire, Action model of consumer decision-making

Awareness

First stage where consumers become aware of a product

Interest

Stage where consumers become interested and seek more information

Desire

Stage where consumers develop a preference or want for the product

Action

Stage where consumers make a purchase or take action

Advertising

Paid, mass communication used to promote a product

Public Relations (PR)

Managing a company's image through unpaid media coverage

Sales Promotion

Short-term incentives like coupons or discounts to boost sales

Personal Selling

One-on-one interaction between salesperson and customer

Direct Marketing

Direct communication with consumers such as email or mail

Online Marketing

Use of digital platforms like social media and websites for promotion

Push Strategy

Promoting products to channel members like wholesalers and retailers

Pull Strategy

Promoting products directly to consumers to create demand

Informative Advertising

Advertising used to create awareness and inform consumers

Persuasive Advertising

Advertising used to convince consumers to purchase

Reminder Advertising

Advertising used to remind consumers to repurchase

Unique Selling Proposition (USP)

Feature that makes a product different from competitors

Reach

Number of different people exposed to an advertisement

Frequency

Number of times a person is exposed to an advertisement

Click-Through Rate (CTR)

Percentage of people who click on an online advertisement

Return on Investment (ROI)

Profit earned from marketing compared to its cost