Download Marketing Strategies for Service Businesses: A Comprehensive Guide with Examples and more Exams Advanced Education in PDF only on Docsity!
MKTG CSUF 351 NEW EXAM WITH COMPLETE
SOLUTIONS 100% VERIFIED
Importance of services to the economy - ANSWER - 55% of all US GDP
- 10 out of 11 service sectors increased their revenue last year
- Largest gains from Internet and Broadcasting: Google Facebook, Pandora, Spotify, SiriusM --- Interpublic Group - One of the largest
How services differs from groups - ANSWER - Intangible
- Inseparable
- Heterogeneous
- Perishable
Intangible - ANSWER --- cannot be touched, seen, tasted, heard or felt the same way as goods. Tangible cues are often used to communicate a service's quality and nature. Facilities are a critical tangible part of a service. --- More difficult to communicate benefits
Inseparable - ANSWER -Producing and Consuming simultaneously -- Services are often sold, produced and consumed at the same time. -- Consumers are involved in the production of the Services they buy. -- Consumer takes part in production
Heterogeneus - ANSWER -- Services are less standardized and uniform than goods. -- Because services tend to be labor-intensive, consistency and quality can be hard to achieve.
-- Standardization and training help increase consistency and reliability -- Depend on employees for quality --- Hard to achieve consistency
Perishable - ANSWER -- Services cannot be saved, stored, warehoused, or inventoried -- One of the most important challanges in many service industries is finding ways to synchronize supply and demand
Service Quality - ANSWER -- Researches have shown that customers evaluate service quality by five components -- Service quality is more sifficult to define and measure than is the quallity of tangible goods. -- Business executives rank the improvement of service quality as one of their most critical challanges.
Components of Service Quality - ANSWER - Reliability
- Responsiveness
- Assurance
- Empathy
- Tangibles
Reliability - ANSWER To perform right in the first time
Responsiveness - ANSWER To provide prompt service
Assurance - ANSWER Knowledge and courtesy of employees
Empathy - ANSWER Caring
Go-to-Market Strategy (Marketing Mix - Positioning) - ANSWER - Public Relations
- Direct Mail
- Networking/Referrals
- SEO
- PPC
Public Relations (Go-to-Market Strategy) - ANSWER Press release
- Overview
- Positioning
- Distribution
Press Release - Overview (Public Relations) - ANSWER Establish credibility and awareness with media, vendors and client
Press Release - Positioning (Public Relations) - ANSWER INITIAL HOOK is announcing the launch of a given campaign that INCLUDES HYPERLINKS to help rank high on search engines
Press Release - Distribution (Public Relations) - ANSWER - eReleases.com
- BusinessWire.com
- MarketWire.com
- PRNewsWire.com
- Blogs
eReleases.com (Press Release - Distribution) - ANSWER a world leader in full text news releases with emphasis on a small business eReleases.com (characteristics) - ANSWER - $400.
- 100,000 journalists
- 3 target categories (Advertising/Marketing and Medical)
- 3,000 National Newspapers
- 3,000 TV Stations & Shows
- 3,500 Radio Stations and Shows
- 4,000 News Web Data Bases (YAhoo, MSN, AOL, News Alert, Google News)
BusinessWire.com (Press Release - Distribution) - ANSWER the go-to website for companies to transmit their full text press releases
- The hot topics right now includes H1N1 Virus
Blogs (Press Release - Distribution) - ANSWER Provide value to the blog community
- Establish ourselves as experts
- Be seen as an asset
- Some blogs have readership as large as some major metropolitan newspapers
Direct Mail Go-to-Market Strategy ANSWER Hyper-targeted letters w/ PURL to selected prospects
Hyper-targeted letters w/ PURL Direct Mail ANSWER Send 200 letters Initial Contact: hand written letter w/ personalized URL available on the agency web site Follow-up with phone call w/in three days to inquire about whats needed to move forward
SEO Go-to-Market Strategy ANSWER Search Engine Optimization
Search Engine Optimization - ANSWER process of IMPROVING THE VOLUME or quality OF TRAFFIC to a website FROM SEARCH ENGINES via "natural" or un-paid (Organic or Algorithmic) as opposed to pay-per-click (PPC)
PRODUCER ==> CONSUMER/BUSINESS USER
Channel Intermediary - ANSWER A business firm operating between the producer and the consumer or business purchaser consumer ==> Business Firm ==> Consumer/Business User
Channel Intermediaries - ANSWER - Direct Channel
- Retailer Channel
- Wholesaler Channel
- Agent/Broker Channel
Direct Channel (Channel Intermediary) - ANSWER PRODUCER => CONSUMER
- Are used to sell products directly from the manufacturer/producer to consumers Direct Channel
- The shortest and simplest form of distribution channel
- Has become increasingly common since the advent of the internet
- No intermediaries are used
Benefits of Direct Channel - ANSWER - COMPLEX, CUSTOMIZED and EXPENSIVE PRODUCTS tend to benefit more
- Direct sales can do a better job of EXPLAINING THE PRODUCT and PROVIDING PROFESSIONAL DEMONSTRATIONS than an intermediary can.
Retailer Channel (Channel Intermediary) - ANSWER PRODUCER => RETAILER => CONSUMER
- Are used to sell products directly from the manufacturer (producer) to retailers who then sell directly to the consumer
- Not always, but in many cases, PERISHABLE PRODUCTS such as certain foods (i.e. fruit/vegetables) usually require this channel because of their short shelf lives - versus using a wholesaler
- The same principle applies to FRAGILE PRODUCTS to reduce the amount of transportation and handling.
Wholesaler Channel (Channel Intermediary) - ANSWER PRODUCER => WHOLESALER => RETAILER => CONSUMER
- Is used to sell products from the manufacturer to the wholesaler than to the retailer
- PRODUCTS OF LOWER VALUE that are MANUFACTURED IN HIGH QUANTITIES may be influenced to take distribution channel involving a wholesaler
- This way, it REDUCED THE ISSUE OF STORAGE, for the producer as wholesaler will buy in bulk.
Benefits of Wholesaler Channel - ANSWER Advantageous for companies seeking to sell their products into stores that are ALL OVER THE NATION. Often times, they have strong existing relationship with retailers and they have many wholesale locations throughout the US.
Agent/Broker Channel (Channel Intermediary) - ANSWER PRODUCER => AGENT/BROKER => WHOLESALER => RETAILER => CONSUMER
- At the other end of the spectrum, may be used in markets with small manufacturers/retailers that lack the resources to find each other
- Bring the manufacturers and wholesalers together for negotiatons, but they do not take title to merchandise.
Example of Direct Channel - ANSWER HP Computers Dell Computers Diamond rings Designer Products
- COMPLEX, CUSTOMIZED and EXPENSIVE PRODUCTS
Example of Retailer Channel - ANSWER Bernard Matthews
- PERISHABLE PRODUCTS such as certain foods i.e. fruit/vegetables
Grocer Specialty Company (Market Centre 4 Separate Diverse Companies) - ANSWER largest distributor of Hispanic Products
- Market Centre Hispanic division is considered the NATIONAL LEADER IN MERCHANDISING AND MARKETING in the Hispanic category.
- Hispanic cookware and household items
- To make sure they STAY AHEAD OF CURRENT PRODUCT TRENDS and continue to BRING CONSUMERS THE ITEMS THEY NEED
- Each month they meet with 25 to 30 of their Hispanic retailers to SOLICIT THEIR INPUT.
- Their expertise extends beyond the center store to include meat, produce, frozen and prepared foods.
Rex Pacific (Market Centre 4 Separate Diverse Companies) - ANSWER distributor of Asian products
Sosnick (Market Centre 4 Separate Diverse Companies) - ANSWER distributor of Kosher products
Marketing Communications - ANSWER
Role of Promotion in the Marketing Mix - ANSWER - The marketing manager determines the goals of the promotional strategy in light of the firm's overall goals for the marketing mix
- Using the overall goals, marketers combine the elements of the promotional strategy into a coordinated plan
- This plan becomes a integral part of the marketing strategy for reaching the target market. The main function of promotional strategy is to convince target customers that the goods and services offered provide a competitive advantage over the competition.
Promotional Mix - ANSWER Advertising
- Public Relations
- Sales Promotion
- Personal Selling
- Social Media ==> Promotion Plan
Product Life Cycle - ANSWER Factor in designing a Promotional Mix
- Introduction
- Growth
- Maturity
- Decline
Introduction Stage (Product Life Cycle) - ANSWER - The basic goal of promotions is to inform the target audience of the product availability.
- ADVERTISING and PUBLIC RELATIONS inform the target audience
- SALES PROMOTION encourages early trial.
- PERSONAL SELLING gets retailers to carry the product.
Advertising and Public Relations (Introduction Stage - PLC) - ANSWER Inform the target audience
Sales Promotion (Introduction Stage - PLC) - ANSWER Encourages early trial
Personal Selling (Introduction Stage - PLC) - ANSWER Get retailers to carry the product
Growth Stage (Product Life Cycle) - ANSWER - ADVERTISING AND PUBLIC RELATIONS continue to be important
- SALES PROMOTION can be reduced because customers need fewer incentives to purchase.
- The PROMOTIONAL STRATEGY is to emphasize the product's differential competitive
- PERSONAL SELLING and SALES PROMOTION efforts may be maintained, particularly at the retail level.
Product Life Cycle - Decline Stage - All Promotion, especially Advertising - ANSWER Is reduced
Product Life Cycle - Decline Stage - Personal Selling and Sales Promotion - ANSWER Efforts may be maintained, particularly at the retail level
Public Relations - ANSWER A strategic communications process where a company uses the news or business press to convey a positive story/image about that company to the public
Traditional Advertising Media - ANSWER - Television
- Radio
- Newspaper
- Magazines
- Books
- Direct Mail
- OOH
New Advertising Media - ANSWER - Digital (Hulu, Pandora, Spotify, XM)
- Social Media
- Portals
- Behavioral Targetingg
OOH - ANSWER Drive to Walk
OOH: Drive to Walk - ANSWER Strategically placed outdoor advertising around
March locations
Ads locations - ANSWER Public Transportation/Transit Billboards Grocery Store
Content Targeting Strategy - ANSWER Web Site Strategies
- Parenting
- Health
- Fitness
- Philanthropy
March for Babies - ANSWER committed to end premature birth Can help moms to have healthy, full-term pregnancies by joining our cause today!
Bobby the Bottle - ANSWER Brand Character
Sales Promotion - ANSWER - Free Samples (New products in Costco, Trader Joes)
- Contests (Gas card giveaway, Money card giveaway)
- Premiums (Branded pens, mouse pads, hats, t-shirts, etc.)
- Trade Shows (LA Convention Center)
- Vacation Giveaways (Enter for your chance to win a vacation giveaway)
- Coupons (On receipt, Sunday newspaper, in-store dispenser)
Personal Selling - ANSWER Planned Presentation to one or more prospective buyers for the purpose of making a sale Especially for new products, its critical to have a strong and experienced SALES MANAGER and a strong relationships with your distributors.
- Negatives: You reach less people than the TV for example Outdoor (Media Decisions in Advertising) - ANSWER - Positives: Broad reach, Visual Impact, 24h exposure, Geo Targeted
- Negatives: Difficult to communicate a complex message, expensive (production and media), Maintenance (graffiti, fading, ripping) Media Scheduling - ANSWER - Continuous
- Flighted
- Pulsing
- Seasonal Continuous (Media Scheduling) - ANSWER Advertising is RUN STEADILY throughout the period
Flights (Media Scheduling) - ANSWER Advertising is run heavily EVERY OTHER MONTH or every two weeks
Pulsing (Media Scheduling) - ANSWER Continuous advertising combined with HEAVIER WIGHT LEVELS DURING A BEST SALES PERIOD.
Seasonal (Media Scheduling) - ANSWER Advertising is run only when the product is likely to be used
Advertising (compared to Sales Promotion) - ANSWER Reason to Buy
Sales Promotion Compared to Advertising - ANSWER An incentive to buy
Consumer Sales Promotion - ANSWER Sales promotion activity directed at the ultimate consumer
Trade Sales Promotion - ANSWER Sales promotion activity directed at a marketing channel member, such as a wholesaler or retailer
Types of Sales Promotion - ANSWER - Trade Allowances
- Push Money
- Training
- Free Merchandise
- Store Demonstration
- Conventions & Trade Shows
Trade Allowances (Types of Sales Promotion) - ANSWER A PRICE REDUCTION offered by manufacturers to intermediaries, such as wholesalers and retailers
Push Money (Types of Sales Promotion) - ANSWER MONEY OFFERED to channel intermediaries to encourage them to push products -- that is, to encourage other member of the channel to sell the products (i.e. kickbacks or royalties)
Benefits of Trade Promotion - ANSWER - helps manufacturers TO GAIN NEW DISTRIBUTORS
- Obtain WHOLESALE and RETAILER SUPPORT to promote consumer sale
Tools for Consumer Sales Production - ANSWER - Coupons and Rebates
- Premiums
- Loyalty Marketing programs
- Contests & Sweepstakes
- Sampling
- Point-of-Purchase Promotion
- Online Sales Promotion
Loyalty Marketing (Tools for Consumer Sales Production) - ANSWER A promotional program aimed to build a long-term, mutually beneficial relationships between a
good approach when you need to sell of inventory that you dont need
Status Quo (Pricing Objectives) - ANSWER Maintain existing prices to meet the competitions' prices This category requires little planning, and is essentially a passive police
Strategic Pricing Factors - ANSWER - Qualitative/Quantitative Research
- Market Segmentation/Positioning
- Price Skimming vs Price Penetration
- Contribution Profit
- Other Factors
Qualitative Consumer Research (Strategic Pricing Factors) - ANSWER Measuring Intent-To-Purchase
- Homogeneous Groups Analyse Results based on different prices of different groups
Quantitative Consumer Research (Strategic Pricing Factors) - ANSWER Measuring Intent-to-Purchase - Pre-BASES e-Panel
- Qualified respondents identified within the e-Panel sample -- Respondents exposed to stimulus --- Gather Consumer Response ---- Analyze your results
ACNielsen BASES - ANSWER A Full Service Market Research Company
- One of their objectives is to help clients (businesses) to maximize the potential for new product success
- One common practice in particular is their ability to measure consumer interest and pricing in new products
- Basically, you would hire them to help you plan and execute your research initiatives.
Stimulus - Sinus Health Nasal Spray - ANSWER They wrote on at the end of their promotional letter their price and where to find them inside grocery stores
BASES Consumer Key Measures - ANSWER Purchase intent, liking, price/value, new&different, Claimed units, Claimed frequency
Audience/Market segmentation/Positioning (Strategic Pricing Factors) - ANSWER NICHE TARGET GROUP
- Sex, age, lifestyle, hobbies HIGHLY DIFFERENTIATED POSITIONING
- i.e. FTP is the only online poker site where you learn, chat and play with the pros
Price Skimming (Strategic Pricing Factors) - ANSWER - The new product is aimed at the market segment for which the product has the most value, so they will PAY A PREMIUM FOR IT
- Profits per units are high, but volumes are lower
- Although, the product may never dominate the entire market, it may dominate the one segment and prove to be very profitable
Differentiated Product Situation - ANSWER Your target audience is still served by dozens of other competitors with similar offerings. Thus a competitive pricing policy is appropriate or in other words, use a PRICE PENETRATION STRATEGY
Price Penetration (Strategic Pricing Factors) - ANSWER - A pricing policy that yields lower selling prices, high volumes, and low production costs
- The profit per unit is low, but bigger profits come from volume
- The idea is to dominate the market through penetration pricing and to reap the long-term rewards of a leading marketing share
