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Definition
| the ability of a firm to develop and maintain distinctive competencies that enable it to capture a larger share of the market and earn higher than average profits |
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Definition
Management knowledge
Culture
Location
Access to resources
Exceptional employees
Special patents
Access to capital
Brand name |
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Definition
| the integration of all the professional disciplines required to determine the nature of consumer demand, then develop, promote and deliver the products and services that will satisfy that demand |
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| a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and value with others. |
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Definition
| operations, product/service, selling, bottom-line, marketing, societal marketing |
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| operations (manufacturing) orientation |
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Definition
Consumers favor available and highly affordable products
Managers should improve production and distribution systems
However, don’t forget the customer! |
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Term
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Definition
Consumers prefer existing products and product forms
Management’s job is to develop good versions of these products
Inward focused like the operations concept
Again, don’t forget your customers! |
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Definition
Customers will not buy enough products unless the company undertakes large selling and promotion efforts
Aim is to maximize sales without worrying about customer satisfaction
Fails to establish a long term customer relationship |
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Definition
Achieving organizational goals depends on determining the needs and wants of target markets and delivering desired satisfaction better than competitors
Creates long term customer relationships
Frequently confused with the selling orientation |
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Term
| societal marketing orientation |
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Definition
| Organization should determine the needs, wants and interests of target markets and deliver the desired satisfaction more effectively and efficiently than competitors in a way that maintains or improves the consumer’s and society’s well-being |
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| classifications of services |
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Definition
| Delivery, Nature of Demand, Attributes of service experience, customer relationship, customization |
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Definition
| Services cannot be seen, tasted, felt, heard, or smelt before purchase; services are experienced not possessed |
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Definition
| Services cannot be separated from their providers; Simultaneous Production and Consumption |
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Definition
| Services cannot be stored for later sale or use; If it is not sold, the opportunity to sell is forever lost |
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| Heterogenity/ Variability |
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Definition
| Quality of services depends on who provides them and when, where and how; Variation & lack of uniformity |
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Term
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Definition
anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need
An offering or a bundle of benefits designed to satisfy the needs and wants and solve the problems of specified target markets
Includes physical objects, services, places, organizations and ideas |
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Definition
The combination of products and services, whether free or for sale, that are aimed at satisfying the needs of the target market
The assortment of services and products that are provided to customers
It is what you see, get, and perceive when you go to a hotel, restaurant or other hospitality entity. It is the physical and intangible product |
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Term
| four components of a service |
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Definition
| physical product, service product, service delivery, service environment |
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Definition
Whatever the organization transfers to the customer that can be touched
Must be customer oriented, i.e. create value
Tangible component
Management has direct control over it
Provide solutions to basic problems |
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Definition
Includes all interactions with the customer
Core performance purchased by the customer
“Plan the Work” or set forth the defined plans for service encounters |
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Definition
Refers to what happens when your customer buys the service
Employees “Work the Plan”
Deliver on the promise |
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Definition
The physical backdrop that surrounds the service
“Servicescape”, Management has some control
Something the customer feels, tangible or intangible
3 Elements: ambient conditions; spatial layout; and signs, symbols, & artifacts |
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Definition
| The customer’s evaluation of a service purchase (e.g., their satisfaction) is determined by how well the purchase experience compares to their expectations of the purchase experience |
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Definition
| Product, Price, Place, Promotion |
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Term
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Definition
Product
Price
Place
Promotion
Process
Service product service delivery (work the plan, plan the work)
Physical attributes of the product
People |
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Definition
Incorporates the focus on customer loyalty
Customer
Categories of offerings
Capabilities of firm
Cost, profitability, and value
Control of process
Collaboration within firm
Customization
Communications
Customer measurement
Customer care
Chain of relationships
Capacity control
Competition |
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Definition
What the customer thinks he/she is purchasing
Tangible or intangible
The salient product |
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Definition
What the customer is really purchasing—the benefits
Often abstract and intangible
Examples : experience, atmosphere, relaxation, convenience |
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Definition
The sum of all product benefits received or experienced by the consumer
Total product bundle that should solve all customer’s stated and unstated needs/problems
Ex: the beach |
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Definition
Cost benefits
Standardization on lower end of scale
Lose customers who want customization |
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| standard products with modifications |
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Definition
Compromise between standardized and customized
Easy to adapt as market changes |
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Definition
Designed to the target market
Price not a factor, customers pay a premium |
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Term
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Definition
Entry into the marketplace
The thirteen Cs: Focus on customer, category of offering, control of the process, communication, and capabilities of the firm
High-cost and low-profit
Produce to meet demand
The customer must be persuaded…. |
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Term
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Definition
Customers are “early adopters”
Satisfy the customer
Can be slow or rapid growth
Refine product
Price appropriately
Relationship marketing is key
dependence on repeat business |
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Term
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Definition
Positioning established
Market is steady and loyal
The thirteen Cs: examine category of offerings, communication
Refurbish physical elements
Sales growth slows |
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Definition
Faster than the growth stage
Reduces costs
The thirteen Cs: Communicate
Failure due to loss of focus, slip in quality or unawareness of need to change
The “death spiral” |
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Term
| relationship/loyalty marketing |
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Definition
| an ongoing process of identifying and creating new value for individual customers for mutual value benefits and then sharing the benefits from this over a lifetime of association |
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Term
| life-time value of a customer |
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Definition
| The net profit you will receive from transactions with a given customer during the time this customer continues to buy from you |
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