Midterm 2 Flashcards
Gap Analysis
Sven received very negative feedback from his manager, at the Blue Line Deli, in front of co-workers and customers for his low productivity and low quality of service. Though the experience was hurtful, he felt he deserved the critical feedback. Sven needed a job to help him get through school and decided he should continue working at the Blue Line Deli instead of quitting. Sven is an example of which type of frontline service employees?
Kitten
Value Positioning Strategy
Target
•selecting a segment – WHO SHOULD WE EXCHANGE WITH
Different Brands
If a company is in survival mode, at the very least they should cover _____ costs.
Variable
Promotion Mix
- Advertising - Paid placement of announcements and persuasive messages to inform, gain liking/interest, and/or stimulate action
- Sales Promotion - Short-term incentives to encourage trial or increase purchase (coupons, rebates, samples, contests, premiums)
- Personal Selling - Two-way communication between a buyer and seller designed to influence a purchase decision
- Public Relations - Placement of news or media presentations with the deliberate attempt to manage the public’s perception
- Direct Marketing - direct communication with consumers to encourage a direct response for a purchase, request for information, or visit to a website (direct mail, catalog, online retailing, mobile marketing, television home shopping, and telemarketing)
Perceptual Map
Pillsbury has developed a new toaster strudel. It is far superior to Pop Tarts but the retailers don’t know that. As a result Pillsbury sends sales people out to the retailers to convince them to sell the toaster strudels. By promoting to the retailers to ultimately reach the consumers Pillsbury is utilizing which strategy?
Push Strategy
Product Item, Line and Mix
Product item is specific version of product
Product line is group of closely related products
Product mix is all the products an organization sells
Product Life Cycle
5 Demensions of an Angle
Need to believe
Reason to believe
Bllows away expectations
Quantifiable support
Unique product claim
Which of the following sets a service business apart from its competitors?
The service provider’s personal behavior
It is impossible to seperate the service from the service provider
Which of the following is not a common metric relevant to Paid Search?
A.Clicks-per-email (CPE)
7Ps of Service Marketing:
The Marketing Mix (Product, Price, Place, Promotion), People, Process, Physical Environment
Dave loves apple products. He is loyal to apple and has bought the iPhone 3, iPhone 4s, iPhone 5, and iPhone 6. Dave recently decided that he would by the new Gold MacBook instead of an HP. Dave’s new MacBook purchase is an example of ________.
Brand Equity
Until two years ago, Walt believed that cell phones were just a fad and insisted on using payphones. Walt is an example of a(an) _________ in the diffusion process (Adoption Life Cycle).
The chasm is a space between early adopters and early majority: jumping the chasm is getting to mass production
The five determinants of service quality are
Reliability: the ability to perform the promised service dependably and accurately. Delivering and performing the right service the first time demonstrates reliability.
Assurance: includes competence, courtesy, credibility, and security. Treating customers with respect, providing knowledgeable information and assistance, and creating a relationship of trust with customers demonstrate assurance.
Tangibles: include appearance of physical facilities, equipment, and personnel. Cleanliness, design, and decor of the premises, appearance of the staff, and appropriate equipment demonstrate tangibles.
Empathy: includes access, communication, and understanding. Listening to customers and seeking to understand customer needs demonstrate empathy.
Responsiveness: helping customers promptly. Returning phone calls quickly, replying to emails promptly, keeping customers informed, and delivering the service on time demonstrate responsiveness.
Four Pricing Approaches
Segment
•Market segmentation is the process of grouping customers into relatively homogeneous sets or groups such that customers within a segment are similar to one another in the way they respond to the marketing effort directed toward them. - WHO COULD WE EXCHANGE WITH
Convenience products, such as orbit gum, are best sold using which type of target market coverage?
Intensive Distribution
Deborah is the brand manager for a new product that is priced for the whole market. Deborah is using a _____ pricing method.
Penetration
Image brands like Range Rover, Ralph Lauren, Louis Vuitton, and Mercedez-Benz connect with customers through emotional images, symbols, and associations. Which marketing mix element is emphasized the most with image brands?
Promotion
When there is a luxury brand promotion is the way you get people to spend more money. They focus on the image through promotion.
Position
• It is the act of designing the company’s product offering so that it occupies a distinct and valued place in the target customers’ minds.
Which of the following is a method internet marketers use to reach customers?
A.Affiliates
B.Email
C.Paid Search
D.Both B and C
E.All of the above
Affiliates are blogs, people that write about your product.
Paid search: ad words etc.
Nike launched Legend Tights. These tights are marketed to active women ages 18-35 who value performance and style. In deciding whom they should exchange with, Nike is:
Selecting the Target Market
If they were segmenting there would be men, women and children in there
Positioning the product would be how it is in the consumer’s mind
New Product Development Process
Megan recently visited Bumble and Bumble to get her hair cut. The person who cut Megan’s hair did and excellent job. In fact, Megan was so pleased that she recommended Bumble and Bumble to her friend Rebecca. The person who cut Rebecca’s hair was a different employee. Rebecca was disappointed in the outcome. What characteristic of services helps explain this situation?
A.Variability
Perishability: airline – you can’t transfer unused seats
Intangibility: stuff surrounding the service – smell of the air, etc.
Don Hale has a burger restaurant, Hires, his fixed costs are $85,000, variable unit costs are $4, and he is selling his burger combos (burger, fries, and drink) for $9.00. How many units does Don have to sell to breakeven?
A.17,000
HP sells its brand new laptop to Costco for $550 and Costco resells the laptop at $1,000. What is the percent margin on the laptop for Costco?
45%
Steps in Setting Price
Business Products
Materials and Parts
Capital Items
Supplies and services
Professor Swenson just published a new book, “Guest Speaker Etiquette.” He plans to sell this book through Barnes and Noble. This is an example of
A.Indirect Intermediary Strategy
USP
[Product name] competes in the [product category] and provides [biggest benefit] to [customer identity] when they are [buying situation]. [Product name] unlike [main competitors] is unique because it provides [element of differentness].
