tangibles, reliability, responsiveness, assurance, and empathy
what the quality of a service is judged on
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| Term | Definition |
|---|---|
| tangibles, reliability, responsiveness, assurance, and empathy | what the quality of a service is judged on |
| utility | the power to satisfy needs |
| value | relative measurement of the worth of a product in exchange for other products/what the customer feels they give up |
| price | value expressed in monetary terms/a measure of deferred opportunities |
| uneasiness, recognizing value, predicting demand, matching pricing policies, competitive pressure, and assessing cost | difficulties in determining price |
| return on investment | comparing the profit from doing something to what is being invested to do it |
| profit oriented, sales oriented, and status-quo | pricing objectives |
| profit oriented | get desired return and maximize overall profit |
| sales oriented | increase sales volume, capture more customers, and move into new markets |
| status quo | keeping something as-is stabilize prices, meet competition |
| cost-plus | method for establishing price the cost of making/acquiring goods + other variable costs to sell the goods + predetermined markup |
| target pricing | compares a price based on cost plus to a price based on market forces |
| supply and demand pricing | pricing at the point on the demand curve that maximizes profit |
| competitor based pricing | matching competitors pricing, pricing below/above competitors |
| quantity discounts | one-time purchase, pay less per unit for large amounts of units purchased |
| cumulative discounts | discount increases over a set period of time with multiple purchases |
| trade discount | selling at a discounted price to buyers in a targeted industry - mechanic/repair shops |
| cash discounts | discount if the customer pays upfront or within a set amount of time; to encourage immediate payment or encourage a customer who pays on credit to pay quickly |
| Robinson-Patman Act | a business cannot sell to one business customer for less than it sells to another business customer if it injures competition or unless the price differential = the cost differential (B -to - B only) enforces by the FTC |
| geographic pricing | impacts where the business is most competitive |
| F.O.B. destination | seller pays shipping |
| F.O.B. shipping point | buyer pays shipping |
| F.O.B. | Free on Board |
| market skimming | pricing a new product at a high initial price; maximizes the return from each sale |
| market penetration | low initial price; larger initial market share |
| leader pricing | pricing one product low to encourage customers to visit your store, so they buy other products at that time, or must continue to buy products to continue using their purchased product in the future |
| loss leader | selling at less than what it cost to produce; illegal in most states (with exceptions) |
| odd pricing | setting prices in irregular amounts; makes product seem cheaper than it is |
| promotion | the communications function of marketing |
| promotion mix | advertising, personal selling, sales promotions, publicity |
| advertising | paid-for mass communication |
| personal selling | one-to-one communication that the business pays for |
| sales promotions | any attempt to generate interest or excitement in a company's products or the business as a whole (paid-for) |
| publicity | communication about the business or its products that is not paid for by the business |
| objective of advertising, personal selling, and sales promotion | move the demand curve for the company's products to the right |
| advertising may attempt to | persuade, inform, and remind |
| direct action | intends to move customers to take action in the near future |
| product advertising | only gives information about the product |
| competitive advertising | gives information about your product and something about how it's better than your competition in general without giving any names |
| comparative advertising | names the competitor(s) and tells how your product is better than theirs |
| indirect advertising | image/brand building; trying to project a positive image of your products or business |
| advertising campaigns | all promotions need to be done in a way that is structured and fits with the business's overall strategy and goals |
| ad-hoc advertising | last-minute; rarely works |
| consumer's mental steps | attention, interest, desire, and action |
| step 1 of ad campaigns | select target market and know your objectives |
| step 2 of ad campaigns | determine your objectives; increase short/long-term sales, increase brand awareness, influence stakeholders |
| step 3 of ad campaigns | determine the budget; know your objective, know what it will take to get there, determine the cost of getting there |
| step 4 of ad campaigns | select the appeal (creative strategy); emotional appeal or other appeals |
| emotional appeals | fear, anger, humor, nostalgia, and caring |
| other appeals | celebrity endorsement, sex, subliminal, and product placement |
| step 5 of ad campaigns | choose the media |
| media class | TV, radio, magazines, newspaper, outdoors, direct mail, internet (email or website), and social media |
| media vehicle | specific site, paper, station, etc. |
| media schedule | time; sunday, evening news, etc. |
| step 6 of ad campaigns | evaluate effectiveness; pre-testing and post-testing, aided vs. unaided recall, evaluate based on objectives, difficult to measure |
| sales promotions | anything that does not fit into one of the other promotion mix strategies |
| consumer sales promotion techniques | price deals, coupons, rebates, contests, cross-promotions, sampling, and advertising specialties |
| advertising specialties | to be used in public by a consumer and continue to promote product; merch |
| forward buying | buy more when there is a sale/promotion, but not more in general |
| digital media | electronic media that functions using digital codes; available via devices that have been released in recent years |
| digital marketing | the use of all digital media, including the internet and mobile and interactive channels, to develop communication and exchange with customers |
| electronic (e-) marketing | distributing, pricing, and promoting products using digital marketing |
| social network | website where users can create a profile and interact with others |
| blogs | web-based journals |
| wiki | type of software that allows users to add to or edit the contents of some types of websites |
| omni-channel | various marketing channels- mobile, desktop, or traditional retain spaces that provide seamless customer experiences |
| distribution online | involves a push-pull dynamic |
| characteristics of digital marketing | interactivity, accessibility, connectivity, control, and addressability |
| qualitative metrics | customers feelings about the product |
| quantitative metrics | numbers-based; KPI, click-through rate, etc. |