Chapter 2/3

Question 1

Service culture

Answer 1

system of values and beliefs based on the idea that providing the customer with quality service is the principal concern of a business.

Question 2

Organizational culture

Answer 2

pattern of shared values and beliefs that gives members of the organization a meaning, providing them with rules of behavior in an or organization.

Question 3

Have an organizational culture means have a service culture?

Answer 3

Having an organizational culture doesn’t necessarily means having a service culture. The traditional organizational structure is a triangular structure where everyone works for his/her boss. When a company adopts a service culture, this structure is turned upside down and everyone works to serve the customer.

Question 4

4 characteristics of service marketing

Answer 4

1. Intangibility (customers can’t experience the product beforehand. Marketers can reduce consumer’s
   anxiety by providing physical evidences)
2. Inseparability (products are produced and consumed at the same time)
3. Perishability (products can’t be stored)
4. Variability (the goal is to reduce variability and achieve consistency)

Question 5

Service profit chain

Answer 5

a model that links firm’s profits with employees and customers satisfaction

Question 6

3 types of marketing

Answer 6

1. Internal marketing
2. Traditional marketing
3. Interactive marketing

Question 7

Internal marketing

Answer 7

marketing to the firm’s internal customers, namely its employees. Marketing
must be part of the philosophy of the organization and marketing functions should be carried out by all its employees.

Question 8

moment of truth

Answer 8

consumers’ contacts with the company through employees, social media, etc.

Question 9

internal marketing process (3 steps)

Answer 9

The internal marketing process involves 3 steps:

1) Establishment of a service culture
2) Development of a marketing approach to human resource management
3) Dissemination of marketing to employees

Question 10

Traditional marketing

Answer 10

managing the marketing mix (4Ps, 7Ps or 4Cs)

Question 11

Interactive marketing

Answer 11

since perceived services’ quality depends on buyer-seller interactions,
service employees have to master interactive marketing skills = technical qualities (ex. quality of food) + functional quality (ex. service provided by waiters).

Question 12

Marketing strategic planning

Answer 12

1. corporate planning
2. marketing strategy
3. marketing mix
4. managing the marketing process

Question 13

corporate planning (3 steps)

Answer 13

process of developing and maintaining a strategic fit between
organizational goals and its changing marketing opportunities. Strategic planning at corporate level includes 3 steps:
1) Defining the corporate mission, vision and values → the mission is a guide to provide all the publics of a company with shared sense of purpose, direction and opportunity allowing all to work toward organizational goals. The vision is an almost impossible dream. Values consist in corporate priorities and institutional standards of behavior.
2) Setting company’s objectives and goals → turn mission into detailed supporting objectives.
3) Designing a business portfolio → identify the Strategic Business Units and managing them strategically.

Question 14

3 SBUs’ characteristics

Answer 14

SBUs have 3 characteristics: a) they can be planned separately from the rest of the business, b) they have their own set of competitors and c) managers control most of the factors affecting profits.

Question 15

marketing strategy (4 steps)

Answer 15

the marketing logic by which the company create customer value and achieve
profitable relationships. Design a marketing strategy involves deciding which customers the company
will serve and how to serve them. Marketing strategy involves 4 steps:
1) Market segmentation → dividing the market into groups of buyers which might require separate products or marketing programs
2) Market targeting → evaluation and selection of the segments in which the company can profitably generate customer value and sustain it overtime.
3) Market differentiation → differentiation of market offers for each target market.
4) Market positioning → positioning the product in the minds of target consumers.

Question 16

Managing the marketing process (4 functions)

Answer 16

it involves 4 marketing management functions
1) Analysis → SWOT analysis.
2) Planning → 3 general strategies to set objectives and reach goals are: cost leadership,
differentiation or focus. ← strategic thinking
3) Implementation → use company’s resources to implement the strategy.
4) Control → track results (marketing ROI)