UTA Marketing Brewer Exam 4 Review

Services have four unique characteristics that distinguish them from goods; what are they?
1) Intangibility: services are intangible performances, making them more difficult for marketers to communicate the benefit of service than a good.
2) Heterogeneity: services are usually less standardized and uniform than goods can be
3) Inseparability: while goods are typically sold, produced & consumed; with services all of these things happen at the same time
4) Perishability: an empty hotel room or airplane seat = no revenue > “Some revenue is better than none,” leading to discounts to fill rooms and such; one of the most important challenges in many service industries is finding ways to synchronize supply and demand
What is Service Quality?
service quality is more difficult to define and measure than is the quality of a tangible good
What are the components in evaluating service quality?
1) Reliability = Consistency
2) Responsiveness = Promptness
3) Assurance = Convey trust
4) Empathy = Caring
5) Tangibles = Evidence of service
What are the processes involved in Service as a Process?
1) People processing: service directed at the customer (ex. transportation)
2) Possession processing: directed at the customers physical possessions (ex. lawn care)
3) Mental Stimulus processing: directed at peoples minds (ex. education)
4) Information processing: use technology, directed at peoples assets (ex. insurance, consulting)
Product (Service) Strategy
in the case of a service organization, the product offering is intangible and consists in large part of a process or series of processes
Place (Distribution) Strategy
must focus on such issues as convenience, number of outlets, direct versus indirect distribution, location & scheduling.
Promotion Strategies marketers use for services
1) Stressing Tangibles Cues – concrete symbol of service offering (ex. hotels putting mint on pillows)
2) Using Personal Information Sources – using someone consumers are familiar with (celebrity) or someone they admire/can relate to. Word of mouth communication.
3) Creating a Strong Organizational Image: physical environment, appearance of employees
4) Engaging in Post Purchase Communication: follow-up activities
Price Strategy
1st) define unit of service consumption
2nd) should pricing be based on a “bundle” of elements or whether each element should be priced separately (to bundle or not to bundle)
Nonprofit Organization Marketing
the effort by nonprofit organizations to bring about mutually satisfying exchanges with target markets
Approximately two-thirds of the United State’s gross domestic product comes from retail activity, and retail sales account for nearly ________ percent of all consumer spending.
30%
Retail Establishments Classified in Four Ways
1) Ownership Arrangement
2) Product Assortment
3) Level of Service
4) Price
Forms of Ownership
1) Independent Retailer: owned by a person or group and not operated as part of a larger network
2) Chain Store: group of retailers owned and operated by a single organization
3) Franchise
Types of Product Assortment
1) Width: assortment of product offered
2) Depth: # of different brands offered within each assortment
Seven Types of In-Store Retailers
1. Department Stores
2. Specialty Store
3. Supermarkets
4. Drugstore
5. Convenient Stores
6. Discount Stores
7. Restaurants
Department Stores
wide variety of goods and each department (men, womens, cosmetics, etc) operates as its own profit center (ex. Macy’s)
Specialty Store
carry a deer but narrower selection of products; more specialized sales representatives (ex. Office Depot, Best Buy, etc.)
Supermarkets
large department retailers that sell food and some nonfood related products (ex. Kroger)
Drugstore
primarily focus on pharmacy related items buy they also sell cosmetics, greeting cards, etc. (ex. Walgreens)
Convenient Stores
mini-supermarkets sell high turnover convenient goods and have a limited assortment; sell products people want to buy quick (ex. QT, 7/11)
Discount Stores
low prices and high turnover. High volume stores.
Restaurant
provides tangible foods and intangible services (ex. food prep)
Types of Non Store Retailing
1. Automatic Vending
2. Direct Retailing
3. Direct Marketing
4. Online Retailing
Automatic Vending
using a machine to purchase a good, no retail associate (ex. Sprinkles Cupcake Vending Machine)
Direct Retailing
representatives selling products in person (ex. Mary Kay)
Direct Marketing
get you to buy products in convenient location without a sales representative (ex. books/magazines mailed)
Online Retailing
shop on the internet and have items delivered to you (ex. Amazon)
Retail Strategy, Goals from Organizations Level
1. increase total sales
2. reduce cost of goods sold
3. improving financial rations
Retail Strategy, Goals from Store
1. increase store traffic
2. higher sale of a specific item
3. developing a more upscale image
4. creating heightened public awareness
What you’re going to do in the actual ____________________ when then feeds into overall _____________________.
retail store; strategic goals
P’s
1. Product
2. Promotion
3. Place
4. Price
5. Presentation
6. Personnel
Product
What kind of width/depth do you want? Merchandise selection is the most important to a retailer.
Promotion
advertising, public relations, sales promotions, retailers are trying to create a positive image through sales promotion by using coupons, sales & discounts
Place
location is very important because with retailing, you’re choosing a semi-permanent location
Price
have to pay money
Presentation
displays the stores image in the customers mind; main element = “the atmosphere”
The Atmosphere is influenced by…
– employees: how they act and how many of them there are
– merchandise: what you actually sell
– fixtures: how the merch is displayed
– sound
– smell
– visual: sinage
Personnel
sales associates of the store, suggested selling, bundling
Implications Social Media has for Marketers
1. Marketers need to understand that they cannot control social media
2. Ability to share – word of mouth, occurs very fast
3. Social Media forces marketers to listen
4. Provides measures for how marketers interact with customers
5. Social Media allows marketers to have more direct and meaningful conversations
Social Commerce
using social media sites and shopping to created social commerce; online buying is being used to create a relationship (ex. Yelp, Amazon Reviews)
$_______ billion will be spent online by US consumers in 2016
327
_________% of customers rely on social media to guide their purchase.
74
Blogs:
interactive journals
Microblogs
shorter than traditional blogs
Social Networks
Facebook: largest social networking site; founded 02/04/2004. Facebook has 1.5 billion monthly active users, individuals have profiles, companies have pages
Linked In: primarily used for professionals who want to build a personal brand online; instead of friends, you have “connections” centered around info rather than multi-media
– Instagram and Snapchat are more favored by younger people now
Media Sharing Sites
allows users to upload and distribute multi-media content such as videos, photos, etc
Social News Sites
users decide which content is promoted by ranking it up or down (ex. Reddit)
Location-Based
combines social networking with utility of a location (ex. FourSquare)
The Social Media Plan
Process in order:
> Listen to customers
> Set social media objectives
> Define strategies
> Identify the target audience
> Select the tools & platforms
> Implement & monitor strategy
Ways Social Media is Changing Your Brain (video)
– 5-10% can’t control how much time is spent on Social Media
– multi tasking and it slows us down
– phantom syndrom: feeling phone vibrate when it didn’t actually
– trigger of dopamine
– meeting people online
_______% of adults have some sort of social media
73%
Myspace was founded on _______________________ date
08/01/2003
The original form of social media is the ___________________________.
postal service (letters)
Real Social Media began in _____________.
1960s
First spam e-mail was sent in ________________.
1978
Facebook was founded on __________________________ date
02/04/2004
Facebook surpassed Myspace users in what year?
2008
Ellen’s selfie surpassed __________ million retweets in an hour in what year?
1.3; 2014
___________% of people cannot control how much time is spent on social media
5-10
_________________________, slows us down
multi-tasking
What’s it called when you feel your phone vibrate when it didn’t?
Phantom syndrome