Marketing Prelim 1

Creating customer _____ and _____ are at the heart of hospitality and travel industry marketing.
value, satisfaction
The simplest definition of marketing states: “As a manager, you want to make sure that you deliver customer satisfaction at a_____.”
profit
The _____ industry is the world’s largest and most international in nature, which is why it’s said that the world is only getting _____.
travel, smaller
Customers are attracted and _____ when their needs are met.
retained
For a successful business, hospitality managers should make customer _____ a priority over profits. Profits are best seen as the result of running a business well rather than its _____.
satisfaction, purpose
Managers should not focus on maximizing _____ term profits, because they are short-selling both the customer and the company.
short
Much of the behavior of employees toward their customers is the result of _____ philosophy.
management
The _____ department is the most visible in the hotel. Most of the non-promotional areas of the marketing function take place behind closed doors.
sales
Marketing _____ includes advertising, sales, product, price, distribution, research, information systems, and planning.
mix
Four-P framework: decide on _____ and characteristics, set the _____, decide the _____ for distribution, and choose methods for _____.
product, price, place, promotion
The only way selling and promoting will be effective is if we first define _____ customers and needs and then prepare an easily accessible and available value package.
target
Marketing has assumed an increasingly important role in the _____ sector of the hospitality industry.
restaurant
Travel agents account for ____% of all cruise line business.
95
The hospitality industry is highly _____ and marketing professionals therefore must understand the big picture.
interdependent
By creating value for customers, companies capture value from customers in the form of _____, _____, and long-term customer _____.
sales, profit, equity
Human _____: state of felt deprivation (physical, social, esteem); natural part of human makeup.
need
Human _____: form of needs shaped by culture and individual personality. It is a method of communicating needs; wants are objectives that satisfy needs.
want
Our _____ increase with the growing number and quality of wants/objectives.
expectations
Marketing _____: manufacturers and sellers focus only on customer wants and lose sight of underlying customer needs.
Myopia
Wants become _____ when backed by buying power.
demands
Market _____: a product that is the combination of tangible, services, information, or experiential components.
offering
Customer _____: difference between the benefits the customer gains from owning/using a product and the cost (monetary/non-monetary; i.e. time) of obtaining product.
value
Customer _____ are based on past experiences, research information, and the opinions of peers.
expectations
Low expectations will diminish _____ (resulting in fewer sales) and high expectations have a higher chance of _____.
demands, dissatisfaction
To combat high expectations, a company should deliver _____ than they promote.
more
A market is a set of _____ and _____ buyers of a product.
actual, potential
To design a marketing _____, the marketing manager answers two questions: what customers will we serve and how can we best serve them?
strategy
A company should serve _____ customers well rather than attempt to serve all customers.
fewer
Marketing is the art and science of finding, retaining, and _____ profitable customers.
growing
Five alternative concepts under which organizations design and carry out marketing strategies: _____, product, _____, marketing, and _____ marketing.
production, selling, societal
Production concept: consumers favor _____ and _____, so management will focus on prices, production, and distribution efficiency.
affordability, availability
Product concept: holds that customers will favor products that offer the most in _____, _____, and _____ features.
quality, performance, innovative
The production and product concepts have an _____ to _____ focus. Their primary focus is a superior product and not necessarily customer wants and/or needs.
inward, outward
Selling concept: focuses on maximizing quantity of _____ and does not worry about customer satisfaction.
sales
Under the _____ concept, companies go out of business because products no longer satisfy the market. These companies will often suffer from overcapacity.
selling
_____ concept focuses on delivering customer satisfaction by determining needs and wants of target markets.
Marketing
It is very difficult to build a relationship with price-sensitive customers; who are _____ in frequency and low in profitability.
low
Sustainability practices are an example of _____ marketing. This type of marketing delivers satisfaction to target markets while maintaining or improving a community’s well-being.
societal
Marketing Process:
a. understanding _____ and customer needs
b. designing _____ driven marketing strategy
c. preparing an _____ marketing plan
d. building _____ customer relationships
e. capturing _____ from customers
marketplace, customer, integrated, profitable, value
Customer-value building tools:
a. financial benefits
b. financial and social benefits
c. financial, social, and _____ benefits.
structural
A customer is nameless and served by anyone available. Social benefits turn customers into _____ who are served on a daily basis.
clients
A company should develop customer relations _____ and not with every customer.
selectively
Customers with _____ frequency and _____ profitability have the most potential to become best customers.
high, low
Customer _____ Management involves managing detailed information and customer touch points in order to maximize customer _____.
Relationship, loyalty
_____ points are any occasion a customer encounters the brand and/or product in actual experience, personal/mass communication or casual observation.
Touch
Benefits of CRM come from _____ marketing costs, _____ price sensitivity of loyal customers, and partnership activities of loyal customers.
reduced, decreased
Increasing _____ makes attracting new customers five times as expensive as keeping a current customer happy.
competition
Customer _____ is the discounted lifetime values of all the company’s current and potential customers.
equity
_____ value is the stream of profits a customer will create over the course of a business relationship. Average life is determined through surveys or guest history.
Lifetime
The service culture focuses on _____ and _____ customers.
serving, satisfying
Creating of a service culture has to start with top _____ and flow down.
management
Unlike physical products, services cannot be seen, tasted, felt, heard or smelled before they are purchased. In the hospitality and travel industry, many of the products sold are _____ experiences.
intangible
In most hospitality services, both the service _____ and the _____ must be present for the transaction to occur.
provider, customer
Managers must manage _____ so they do not create dissatisfaction for others.
customers
Another implication of inseparability is that customers and employees must understand the service delivery system because they are _____ the service.
coproducing
Customer coproduction means organizations must _____, _____, and _____ customers.
select, hire, train
The benefits of a guest becoming an “employee” because of coproduction include increased _____, _____, and reduced _____ time.
value, customization, waiting
Services are highly _____. Their quality depends on who provides them and when they are provided.
variable
Several causes of service variability include simultaneous production and _____, fluctuating _____, and the _____ of the service provider.
consumption, demand, skill
_____, or lack of consistency in the product, is a major cause of customer disappointment in the hospitality industry.
Variability
Three steps hospitality firms can take to reduce variability and create consistency:
a. Invest in good _____ and _____ procedures.
b. _____ the service performance process throughout the organization.
c. Monitor customer _____.
hiring, training, Standardize, satisfaction
Revenue lost from not selling hotel rooms or filling a restaurant seats is gone forever. Therefore, it can be said that services are _____.
perishable
The service-profit chain connects service firm profits with employee and customer satisfaction. It consists of five links:
a. Healthy service _____ and _____
b. Satisfied and loyal _____
c. Greater service _____
d. Satisfied and productive service _____
e. Internal service _____
profits, growth, customers, value, employees, quality
_____ marketing means that the service firm must effectively train and motivate its customer-contact employees and all the supporting service people to work as a team to provide customer satisfaction.
Internal
_____ marketing means that perceived service quality depends heavily on the quality of the buyer-seller interaction during the service encounter.
Interactive
Service companies face the task of increasing three major marketing areas: their competitive _____, _____ quality, and _____.
differentiation, service, productivity
Service companies can differentiate their service deliver in three ways: through _____, physical _____ , and _____.
people, environment, process
Customer _____ is perhaps the best measure of quality, as it is dependent on how consistently a service firm delivers value.
retention
Good service _____ can win more customer purchasing and loyalty than if things had gone well in their first place.
recovery
Customer _____ are one of the most available yet underutilized sources of customer and market information.
complaints
Service markets should take steps to provide their prospective customers with evidence that will help tangibilize the service. Promotional _____, employees’ _____, and the service firms’ physical _____ all help tangibilize service.
material, appearance, environment
A service organization should review every piece of tangible evidence to make sure that each delivers the desired organization _____– the way a person or group views on organization — to target customers.
image
In a well-run hospitality organization, there are two customers: _____ customers and _____.
paying, employees
Customers who buy hospitality products experience some anxiety because they cannot experience the product beforehand. One way of combating concern is to offer _____ trips, which allow meeting planners and travel agents to experience the service in a low-risk situation.
familiarization
Managers can use the following techniques to manage capacity:
a. Involve the _____ in the service delivery system
b. _____-train employees
c. Use _____-time employees
d. _____ or _____ extra facilities and equipment
e. Schedule downtime during periods of _____ demand
f. Change the _____-delivery system
customer, Cross, part, Rent,share, low, service
Managers can use the following techniques to manage demand:
a. Use _____ to create or reduce demand.
b. Use _____ — allow guests to request a specific time or room type
c. _____ –take more requests than you have space available
d. Revenue _____ — establish different rate “fences”
e. Use _____ — customers are helped on a first-come, first- served basis
f. Shift _____
e. Create _____ events — “By one, get one free” or “Children eat free” are examples
price, reservations, Overbook, management, queuing, demand, promotional
The major challenge facing today’s hospitality companies is knowing how to build and maintain healthy business in the face of a rapidly changing _____ and _____.
marketplace, environment
Today business increasingly recognize that they must nurture other stakeholders, including _____, _____, _____, and the _____ where their businesses are located.
customers, employees, suppliers, communities
There is always _____ loop between satisfied customers and satisfied employees.
synergetic
They [Companies] are now building _____ teams that manage core business processes.
cross-functional
The result was a radically different approach to hotel accounting called _____ segment accounting. This new approach incorporated marketing and strategic planning into accounting rather than viewing them as separate stand-alone areas and philosophies
market
To carry out resources, a company needs such resources as _____, _____, _____, and _____.
personnel, materials, machines, information
More companies today have decided to _____ less critical sources.
outsource
The organization side of a company consists of its _____, _____, and _____, all of which tend to become dysfunctional in a rapidly changing company.
structure, policies, culture
Although structure and policies can be changed, the _____ is the hardest to change.
company
At the corporate level, the company starts the strategic planning process by defining its overall _____ and _____.
purpose, mission
This is the focus of _____ planning, the process of developing and maintaining a strategic fit between the organization’s goals and capabilities and its changing marketing opportunities.
strategic
The hospitality industry faces the need for great _____ of employees, particularly at middle-management levels.
empowerment
The hospitality and tourism industries are international and multicultural. _____ and _____ sometimes create sharp differences in management style and in the perceived importance of strategic planning, empowerment, and other concepts discussed in this chapter.
Attitudes, culture
A _____ statement is a statement of the organization’s purpose — what it wants to accomplish in the larger environment.
mission
Missions are best when they are guided by a _____, an almost impossible dream.
vision
The corporate mission statement should stress major _____ that the company wants to honor.
policies
Each _____ should have objectives and be responsible for teaching them.
manager
Companies in the “hotel business” or the “cruise line business.” However, market definitions of a business are _____ to product definitions.
superior definition
Marketing must _____, _____, and _____ opportunities and lay down strategies for capturing them.
identify, evaluate, select
First, the company could seek new products that have _____ or _____ synergies with existing product lines, even though the products may appeal to a new class of customers (concentric diversification strategy).
technological, marketing
Diversification opportunities sometimes arise as a result of new _____.
technology
Companies that diversify too broadly into unfamiliar products or industries can lose their market _____.
focus
Opportunities in diversification, market development, and product development can be seized through _____ backward, forward, or horizontally within that business’s industry.
integrating
A hotel company could select _____ integration by acquiring one of its suppliers, such as a food distributor, or it could acquire tour wholesalers or travel agents (_____ integration).
backward, forward
Finally, the hotel company might acquire one or more competitors, provided that the government does not bar the move (_____ integration).
horizontal
Integrative growth offers opportunities in related businesses, but a company must have or acquire the _____ to succeed in the new business.
expertise
The goal is to create _____ for customers and build profitable customer relationships.
value
Guided by marketing strategy, the company designs an integrated marketing mix made up of factors under its control—_____, _____, _____, and _____ (the four Ps).
product, price, place, promotion
They must win customers from competitors and then keep and grow them by delivering greater value. But before it can satisfy consumers, a company must first understand their _____ and _____.
needs, wants
The process of dividing a market into distinct groups of _____ who have different needs, characteristics, or behavior who might require separate products or marketing programs is called market _____.
buyers, segmentation
Market _____ involves evaluating each market segment’s attractiveness and selecting one or more segments to enter.
targeting
A product’s _____ is the place the product occupies, relative to competitors’ products, in consumers’ minds.
position
Thus effective positioning begins with differentiation, actually differentiating the company’s market _____ so that it gives consumers more value.
offering
_____ means the goods-and-services combination the company offers to the target market.
Product
_____ is the amount of money customers must pay to obtain the product.
Price
_____ includes company activities that make the product available to target customers.
Place
_____ means activities that communicate the merits of the product and persuade target customers to buy it.
Promotion
It holds that the four Ps concept takes the _____ view of the market, not the _____.
seller’s buyer’s
We define a marketing _____ as follows: an area of need that a company can perform profitably.
opportunity
We define an environmental _____ as follows: A challenge posed by unfavorable trends or developments that would lead, in the absence of defensive marketing action, to sales or profit deterioration.
threat
The business unit should strive to arrange its objectives from _____ to _____ important.
most, least
Goals indicate what a business unit wants to achieve; _____ answers how to get there.
strategy
The _____-environment consists of factors close to the company that affect its ability to serve its customers, the company itself, marketing channel firms, customer markets, and a broad range of publics.
micro
Marketers must do more than adapt to the needs of _____ customers. They must also adapt to the strategies of other companies serving the same target markets.
target
Companies can gain strategic advantage by strongly ______ their product in the minds of consumers.
positioning
Each firm must consider its size and industry position in relation to that of its competitors in order to implement a competitive marketing _____.
strategy
Large firms with _____ positions in an industry can use strategies that smaller companies cannot afford.
dominant
Small and individually owned companies do not have to worry about _____ their products. This allows them to _____ quickly to local trends and offer more variety.
standardizing, adapt
In general a company has three variables to monitor when analyzing each of its competitors: share of _____, share of _____, and share of _____.
market, mind, heart
In addition to having behavioral loyalty, a “truly loyal” customer exhibits ______ loyalty and is more likely to make favorable recommendations.
attitudinal
“_____ loyal” customers are frequent visitors but are not emotionally attached.
Spurious
The four levels of competition: _____, _____, Product _____, and Product _____.
Budget, General, Category, Form
Suppliers are firms and individuals that provide the _____ needed by the company to _____ its goods and services
resources, produce
When outsourcing food and beverage operations, a partnering deal creates more commitment on the chef’s part because they share directly in the profits of the company.