Chapters 13-16 Flashcards
Service Product Continuum
Service dominant -> product dominant (most are somewhere in the middle)
Services
intangible product - 70% of US GDP
Characteristics of services
Intangibility Inseparability close customer contact client-based relationships heterogeneity perishability
Intangibility
major characteristic that distinguishes services from goods
Inseparability
services are produced and consumed at the same time
perishability
unused services cannot be stored for future use
heterogeneity
diversity
customer contact
level of interaction needed to deliver service
Development of services
core services: basic service experience a customer could receive
supplementary services: one of more services used to differentiate from competitors
Search qualities
tangible attributes such as color, style, size, etc
Experience qualities
attributes such as taste, satisfaction, pleasure - can be assessed only during consumption
Credence qualities
attributes that can’t be evaluated until after service ends
4 factors that affect service quality
- analysis of customer expectations
- service specifications
- employee performance
- management of service expectations
Employee performance
customer contact employees are often the least trained and lowest-paid
Supply Chain Management
set of approaches used to integrate various operations to get products distributed in the right quantities at the right times
Marketing channel
group of individuals that direct the flow of products from producers to customers
Marketing intermediaries
middlemen that link producers to other intermediaries through contractual arrangements
Selecting marketing channel
customer characteristics: consumer or business market?
product attributes: complex or standard?
Type of organization: large or small?
Competition: high or low?
Intensive distribution
uses all available outlets to distribute a product
- convenience products
- multiple channels may be used
Selective distribution
uses only some available outlets
- for shopping products
- desired when a special effort is important to customers
Exclusive distribution
uses a single outlet in a fairly geographic area
for products purchased infrequently
Channel captain
dominant leader of a marketing channel
Channel power
the ability of one channel member to influence another member’s achievements
Vertical channel
vertical channel integration: combines two or more stages of the marketing channel under one management
Vertical conflict: between manufacturers and retailers
Horizontal channel
Horizontal channel integration: combining organizations at the same level of operation under one management
Horizontal conflict: between retailers
order processing
the receipt and transmission of sales order information
order entry
begins when customer places order
order handling
product availability and customer credit-worthiness is verified
order delivery
delivery is scheduled with carrier
Electronic data interchange
a computerized means of integrating order processing with production, inventory, accounting and transportation
Stockouts
shortages of products that can result in loss of customers
reorder point
inventory level that signals the need to place a new order
order lead time
average time lapse between placing an order and receiving it
usage rate
rate at which inventory is used
safety stock
the extra inventory a firm keeps
reorder point
(order lead time x usage rate) + safety stock
retailing
all transactions which the buyer intends to consume product through personal, family or household use
retailer
organization that purchases products for the purpose of reselling them to consumers
general-merch stores
retail establishments that offer a variety of product lines stocked in depth
department store
large retail org with wide product mix
discount stores
self-service, general stores that offer brand-name and private products
specialty retailer
narrow and deep assortments
category specialist
very large specialty store that concentrates on a major product category and competes on the basis of low prices and high availability
off-price retailer
buy manufacturer’s seconds, return for resale at deep discounts
(food) convenience stores
self-service stores that are open long hours and have narrow assortments
supermarkets
large self-service, food and nonfood products
warehouse club
giant retail outlets, membership required
supercenter
supermarket + discount store
IMC promotional mix
advertising direct marketing internet marketing sales promo public relations personal selling
