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Promotions Final Exam
Do well!
60
Marketing
Undergraduate 1
12/13/2012

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Term
What is customer service?
Definition
customer-provider interactions that facilitate the organization's relationship with customers
Term
what are the customer service components
Definition
B- Before
--> get customer to notice service (promotion)
D- During
--> employee effectiveness (SERVQUAL)
A- After
--> feedback (surveys)
Term
Identify a way in which a PRT agency might acknowledge a customer’s patronage.
Definition
REI- lifetime guarantee
Term
What is service recovery?
Definition
the effort an organization expends to win back customer goodwill once it has been lost due to a service failure
Term
Why are services prone to needing recovery?
Definition
Services are prone because of heterogeneity, can’t ensure consistency and reliability
Term
How can you encourage service recovery opportunities?
Definition
Encourage with a top-down approach - treat employees like you would want them to treat the customers, respond to customer suggestions

-customer comment cards, as manager go around and ask how things are
Term
What are the advantages to having loyal customers?
Definition
Generate significant revenues
Spend more than first-time users
Are often willing to pay a premium price
Require lower transaction/communication costs
Don’t need costly assistance
Require fewer ‘startup costs’ such as credit checks
Frequently generate new customers
Term
How are recovery needs identified?
Definition
Observation, tracking, evaluations
Term
What is the ULTIMATE goal of service recovery?
Definition
Customer retention, make them happy.
Term
Why should you evaluate your customers (3)?
Definition
To ensure you’re meeting customers’ needs
To convey the message that ‘you care’
To determine success/failure
Term
Why not just let the customer come to you?
Definition
Most people don’t praise/bother to complain
Term
What are the specific advantages (3) to knowing if you’ve succeeded or failed?
Definition
To prevent customer loss
To help prioritize process improvement options
To enable recognition of top performers
Term
Why would you want to recognize your top employees?
Definition
Recognizing top employees improves moral
Helps in performance/training
Term
What are the 5 methods for evaluating customer service?
Definition
Observational
-mode of operation: human/mechanical
-point of data collection: during/after
-observations: concealed/revealed
Employee Reports
-advantage: employees are more knowledgeable about the process
-disadvantage: biases
Surveys and Focus Groups
Experimental Field Testing
Critical Incident Technique/Moment of Truth Impact Analysis
-evaluate when you have an issue seeing how they react to something
Term
What is the main advantage to evaluating employees?
Definition
Gives employees knowledge of where they stand performance wise
-offers room to improvement
Term
What are the 5 components of SERVQUAL? Provide examples of questions or observational methods for determining the presence of each component.
Definition
R-reliability (keeping service promise → survey)
A- assurance (knowledge and courtesy to convey trust and confidence → certifications, sanitation scores presented on wall)
T- tangibility (are the facilities adequate for service provided → follow up cleanings of equipment by employees)
E- empathy (mystery shoppers → see how employees respond)
R- responsiveness (willingness to help → “help or service” button response rate)
Term
What does it mean to develop a marketing strategy?
Definition
Process of developing a product (and related P’s) to meet needs
Term
Identify each of the controllable and uncontrollable forces. How would you use each of these in the development of a marketing strategy?
Definition
Uncontrollable
Economic and Competitive
Social and Cultural
example: nature deficit disorder
Ethical and Legal
example: ADA
Technological
example: interactive map on a cruise ship
Controllable
7 P’s
Term
What is the communication model? Be able to draw it, identify its components and describe it.
Be able to define/explain and give examples for each component of model.
Definition
Source → Message → Medium → Receiver → Feedback


(Encoding) (transmission) (decoding) (noise)
Term
source
Definition
business
Term
message
Definition
whatever you are trying to send
Term
medium
Definition
paper, radio, etc
Term
receiver
Definition
customer, who you are trying to reach
Term
feedback
Definition
getting customers to buy product/come to events, etc ( want you to be actively engaged)
Term
noise
Definition
distractions that interrupt your message --> competition, things going on during message

-reducing noise by showing message when they have people's full attention: live shows/ sporting events, popular shows
Term
encoding
Definition
creating meaning
Term
semiotics
Definition
the study of how symbols communicate meaning

-logos need to be simplistic
Term
medium
Definition
communications vehicle used to reach members of a target audience

-word of mouth
-product placement
-internet
-social media
-billboards
-sandwich boards
Term
receiver
Definition
org/individual that intercepts and interprets the message
Term
decoding
Definition
the receiver's assigning of meaning to a message
Term
noise
Definition
anything that interferes with effective communication
Term
feedback
Definition
reactions of receiver to message, which are communicated back to the source
Term
Which types of products should each type of source/spokesperson (expert, good looking, typical consumer, famous) promote?
Definition
Expert → sell technical/high quality
Good looking → products that deal with appearance, high on status
Famous → similar to good looking in that they use celebrities to sell products
“typical” consumer → household cleaners, everyday products (Facebook works here → everyone uses them)
Term
What are the 4 objectives (Get Attn:) of a message?
Definition
Get attention
Hold interest
Create desire
Produce action
Term
What are the 4 functions (inform…)?
Definition
Inform
Persuade
Remind
Add Value
Term
What are the 3 types of appeals messages can make? Provide examples of each.
Definition
Rational appeal (advertising that makes a person think "this is the only logical choice"
Emotional appeal (goal → bonding) (Jareds)
Fear appeal (Security Systems)
Term
What are the 2 basic structures an appeal can have? Provide examples.
Definition
Lecture → medical products
Drama → corona ads
Term
What are the 3 main ways you can shift opinion using a message? Explain each.
Definition
One vs two sides arguments
-one sided ignores counter evidence
Drawing conclusions
-making assumptions
Comparative advertising
-political ads → election
- why one is better than the other
Term
How does involvement play a role in advertising?
Definition
Involvement increases participation/use
Term
What can you do to increase involvement?
Definition
Demonstrations
Contests
Chick-fil-a (indoor playground → have family nights)
Term
How can you measure feedback?
Definition
Changes in brand’s sales volume (participation)
People’s awareness/ knowledge
Term
How can you encourage feedback?
Definition
Placing comment cards
Email surveys
Term
What are some drawbacks to measuring feedback?
Definition
Difficult to measure
Customer’s reactions are not sufficiently integrated into ongoing promotions
Term
How does the Promotions Mix relate to/fit with the Marketing Mix?
Definition
Promotions Mix falls under the Promotion aspect of the Marketing Mix- it is the medium in which you pay for to get your product/service out to the market.
Term
What is the goal of the Promotions Mix?
Definition
Communicate with the customers
Term
How do the other components of the Marketing Mix support this same goal?
Definition
Place- setting, location, online setting
Price- communicates quality
Physical Evidence- can tell when you are going to pay more for the same service ( difference between $8 and $100 for a haircut)
Product- what you actually get
Term
What specific characteristic of services creates a challenge when promoting them? Why?
Definition
Intangibility- can’t evaluate the product before hand
Perishability- not too bad, just to promote way in advance
Simultaneity- not a problem, happens at the same time, promotion doesn’t matter
Heterogeneity- food, make it look good in commercials/ads, not what you really get
Term
Intangibility- can’t evaluate the product before hand
Perishability- not too bad, just to promote way in advance
Simultaneity- not a problem, happens at the same time, promotion doesn’t matter
Heterogeneity- food, make it look good in commercials/ads, not what you really get
Definition
Advertising (pay)
Publicity (free)
Personal Contact (selling, providing information)
Public Relations- your relationship with the public
Sales Promotions- special, discount for second child, early registration, coupons, BOGO
Disadvantage → sales promotions → when the gimmick is gone will they stay?
Advantages of using sales promotion:
-can attract customers
-accommodates cyclical demand
-enhance customers’ perception of the service
-add tangibility
Direct Contact → reaching out and making a direct touch → lecture, info sessions
Advantages: get really involved, high interest
Disadvantages: super slow, not reaching a lot of people at once, advertising does more
Term
Why is fluctuating demand a problem for services?
Definition
Unpredictable, fluctuating demand=fluctuating needs
Ex. December 7 not that many skiers, January 1 a lot of skiers – hire based on medium need for employees | Schedule best workers for 12/7, employees work a double on 1/1
Term
Explain the two main types of fluctuation and be able to provide examples how these might be evident in a recreation business.
Definition
Random
Predictable
Term
What are the management implications of fluctuating demand?
Definition
-Need to track demand patterns,
-Look for explanations -Consider options

Shifting demand can be a problem – How?
Scheduling employees
Training staff to handle crowds and wait situations, encourage people to come at other times, 8am jet ski tour is half price

Examples:hotel requiring a 2 night minimum stay in off season weekend of a 5k
Have a festival in off season
Decorate cities for holidays
Have special activities such as horse riding on the beach one weekend of the year in November, motorcycle spring and fall events
Grove Park Inn has gingerbread houses to compete with Biltmore Christmas decorations
Chase demand!!
Term
how might you use pricing
Definition
to adjust demand
Demand can generate price - ex. scalping for concert tickets, Drop prices to increase demand, raise prices to decrease demand - ex. ski slopes, High demand can extend hours rather than decrease prices.

-as part of a marketing strategy
-to target market
-creates target market
Term
Why do prices for the same service vary? Varying prices is an attempt to do what?
Definition
perishability
Term
What is yield?
Definition
Yield - revenue produced by the service capacity of an organization
Term
Yield management?
Definition
Yield management - strategy of shifting demand to create greater efficiency and profitability by adjusting prices
Term
Compare and contrast the 3 approaches to pricing?
Definition
-Chase demand - use 7 Ps - early bird specials, drink prices
-Smooth demand - level demand by increasing low and decreasing high - using price, incentives and time - create specials at times in between high and low
-Control demand - strategy for dealing with excess demand - ex. restaurant that pulls out extra chairs, reservations can shift demand to other nights
Term
Why would a non-profit agency want to charge at least nominal fees for services they provide?
Definition
Creates value for the service, covers costs, etc.
Term
Explain the terms elastic and inelastic demand. What types of products tend to be inelastic?
Definition
Elastic - price fluctuates, easily changed (ski slopes, hotel rooms, airline seats)
Inelastic - rigid, no matter the supply/demand (permit fees, etc.)
Term
What is price bundling?
Definition
Linking several features into one package (may include previously undesired features) Purpose? By more than originally wanted - ex. TV/Cable/Internet bundling
Food packages at Disney, think it’s a good deal so you buy it, but wouldn’t ordinarily buy all of it
Generate business by adding it to a popular package - have mini golf in your package, so you feel you have to go
Term
Explain (I will identify them for you) the 6 considerations you would make when setting a price.
Positioning, demand and timing, capacity maximization, membership, customization, participation
Definition
-Positioning → price-quality relationship among the range of competing products (if something is cheap you do not expect it to have high quality → competitors use this to evaluate pricing)
-Demand and timing → segments differ in price sensitivity with differences in time of purchase or use
-Capacity maximization → ?
-Membership → memberships and take money up front
-Customization → road bikes, mountain bikes, couch surfers.com
-Participation → season pass to ski resort
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