Term
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Definition
- The result of applying human or mechanical efforts to people or objects.
- Involve a deed, a performance, or an effort that cannot be physically possessed
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Term
| Four unique characteristics that distinguish services from goods |
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Definition
- Services are intangible, inseparable, heterogeneous, and perishable
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Definition
- The inability of services to be touched, seen, tasted, heard, or felt in the same manner that goods can be sensed
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Definition
- A characteristic that can be easily assessed before purchase
- The color of an appliance or automobile, for example
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Definition
- A characteristic that can be assessed only after use
- The quality of a meal in a restaurant, for example
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Definition
- A characteristic that consumers may have difficulty assessing even after purchase because they do not have the necessary knowledge or experience
- Medical and consulting services exhibit credence qualities
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Term
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Definition
- The inability of the production and consumption of a service to be separated; consumers must be present during the production
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Term
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Definition
- The variability of the inputs and outputs of services, which causes services to tend to be less standardized and uniform than goods
- Ex. Physicians in a group practice or barbers in a barber shop differ within each group in their technical and interpersonal skills
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Term
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Definition
- The inability of services to be stored, warehoused, or inventoried
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Term
| Five components that customers evaluate service quality by |
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Definition
- Reliability
- Responsiveness
- Assurance
- Empathy
- Tangibles
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Term
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Definition
- The ability to perform a service dependably, accurately, and consistently
- Most important component to consumers
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Definition
- The ability to provide prompt service
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Term
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Definition
- The knowledge and courtesy of employees and their ability to convey trust
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Definition
- Caring, individualized attention to customers
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Term
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Definition
- The physical evidence of a service, including the physical facilities, tools, and equipment used to provide the service
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Term
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Definition
- A model identifying five gaps that can cause problems in service delivery and influence customer evaluations of service quality
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Term
| The five gaps of the gap model |
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Definition
- Gap 1
- The gap between what customers want and what management thinks customers want
- A firm that does little or no customer satisfaction research is likely to experience this gap
- Gap 2
- The gap between what management thinks customers want and the quality specifications that management develops to provide the service
- Gap 3
- The gap between the service quality specifications and the service that is actually provided
- Gap 3 is due to the inability of management and employees to do what should be done
- Gap 4
- The gap between what the company provides and what the customer is told it provides
- Clearly a communication gap
- Gap 5
- The gap between the service that customers receive and the service they want
- This gap can be positive or negative
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Term
| service processes can be placed into one of four categories |
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Definition
- People processing
- Possession processing
- Mental stimulus processing
- Information processing
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Term
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Definition
- Takes place when the service is directed at a customer
- Examples are transportation services and health care
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Term
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Definition
- Occurs when the service is directed at cutomers' physical possessions
- Examples are lawn care, dry-cleaning, and veterinary services
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Term
| mental stimulus processing |
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Definition
- Refers to services directed at people's minds
- Examples are theater performances and education
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Term
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Definition
- Describes services that use technology or brainpower directed at a customer's assets
- Examples are insurance and consulting
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Term
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Definition
- The most basic benefit the consumer is buying
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Term
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Definition
- A group of services that support or enhance the core service
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Term
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Definition
- A strategy that uses technology to deliver customized services on a mass basis
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Term
| Instant Personalization (IP) service |
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Definition
- What Facebook uses and it is automatically checked on user profiles and imports profile data onto certain Web sites upon the user's next visit
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Term
| Place (Distribution) Strategy |
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Definition
- Distribution strategies for service organizations must focus on such issues as convenience, number of outlets, direct versus indirect distribution, location, and scheduling
- A key factor influencing the selection of a service provider is convenience
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Term
| Four promotion strategies |
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Definition
- Stressing tangible cues
- A tangible cue is a concrete symbol of the service offering
- Using personal information sources
- A personal information source is someone consumers are familiar with (such as a celebrity) or someone they admire or can relate to personally
- Creating a strong organizational image
- One way to create an image is to manage the evidence, including the physical environment of the service facility, the appearance of the service employees, and the tangible items associated with a service (such as stationery, bills, and business cards)
- Engaging in postpurchase communication
- Postpurchase communication refers to the follow-up activities that a service firm might engage in after a customer transaction
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Term
| Three categories of pricing objectives |
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Definition
- Revenue-oriented pricing
- Operations-oriented pricing
- Patronage-oriented pricing
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Term
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Definition
- Focuses on maximizing the surplus of income over costs
- A limitation of this approach is that determining costs can be difficult for many services
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Term
| operations-oriented pricing |
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Definition
- Seeks to match supply and demand by varying prices
- Ex. Matching hotel demand to the number of available rooms can be achieved by raising prices at peak times and decreasing them during slow times
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Term
| patronage-oriented pricing |
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Definition
- Tries to maximize the number of customers using the service
- Thus, prices vary with different market segments' ability to pay, and methods of payment (such as credit) are offered that increase the likelihood of a purchase
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Term
| Relationship marketing can be practiced at three levels |
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Definition
- Level 1
- The firm uses pricing incentives to encourage customers to continue doing business with it
- Level 2
- This level of relationship marketing also uses pricing incentives but seeks to build social bonds with customers
- Level 2 relationship marketing is often more effective than level 1 relationship marketing
- Level 3
- At this level, the firm again uses financial and social bonds but adds structural bonds to the formula
- Structural bonds are developed by offering value-added services that are not readily available from other firms
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Term
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Definition
- A boundless mobility and competition in social, business, and intellectual arenas
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Term
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Definition
- Marketing that targets markets throughout the world- has become an imperative for business
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Term
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Definition
- Recognizing and reacting to international marketing opportunities, using effective global marketing strategies, and being aware of threats from foreign competitors in all markets
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Term
| The negatives of world trade |
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Definition
- Millions of Americans have lost jobs due to imports, production shifts abroad, or outsourcing of tech jobs. Some find new jobs, but they often pay less
- Millions of others fear losing their jobs, especially at those companies operating under competitive pressure
- Employers often threaten to outsource jobs if workers do not accept pay cuts
- Service and white-collar jobs are increasingly vulnerable to operations moving offshore
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Term
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Definition
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Term
| multinational corporation |
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Definition
- A company that is heavily engaged in international trade, beyond exporting and importing
- Moves resources, goods, services, and skills across national boundaries without regard to the country in which its headquarters is located
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Term
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Definition
- Using more capital than labor in the production process
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Term
| global marketing standardization |
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Definition
- Production of uniform products that can be sold the same way all over the world
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Term
| Environmental factors that exist internationally |
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Definition
- Culture
- Economic and technological development
- Political structure and actions
- Demographic makeup
- Natural resources
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Term
| Many legal structures are designed to either encourage or limit trade |
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Definition
- Tariff
- Quota
- Boycott
- Exchange control
- Market grouping
- Trade agreement
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Term
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Definition
- A tax levied on the goods entering a country
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Term
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Definition
- A limit on the amount of a specific product that can enter a country
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Term
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Definition
- The exclusion of all products from certain countries or companies
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Term
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Definition
- A law compelling a company earning foreign exchange from its exports to sell it to a control agency, usually a central bank
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Term
| Market grouping (common trade alliance) |
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Definition
- Occurs when several countries agree to work together to form a common trade area that enhances trade opportunities
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Term
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Definition
- An agreement to stimulate international trade
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Term
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Definition
- The largest Latin American trade agreement; includes Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, and Uruguay
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Term
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Definition
- An agreement to dramatically lower trade barriers worldwide; created the World Trade Organization
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Term
| The Uruguay Round made several major changes in world trading practices |
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Definition
- Entertainment, pharmaceuticals, integrated circuits, and software
- Financial, legal, and accounting services
- Agriculture
- Textiles and apparel
- A new trade organization
- the World Trade Organization (WTO) replaced the old General Agreement on Tariffs and Trade (GATT)
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Term
| World Trade Organization (WTO) |
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Definition
- Trade organization that replaced the old General Agreement on Tariffs and Trade (GATT)
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Term
| General Agreement on Tariffs and Trade (GATT) |
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Definition
- A trade agreement that contained loopholes enabling countries to avoid trade-barrier reduction agreements
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Term
| North American Free Trade Agreement (NAFTA) |
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Definition
- An agreement between Canada, the United States, and Mexico that created the world's largest free trade zone
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Term
| Central America Free Trade Agreement (CAFTA) |
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Definition
- A trade agreement, instituted in 2005, that includes Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and the United States
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Term
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Definition
- A free trade zone encompassing 27 European countries
- It is also a political and economic community
- It guarantees the freedom of movement of people, goods, services, and capital between member states
- The 27 member states include:
- Austria, Belgium, Bulgaria, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lituania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, and the United Kingdom
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Term
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Definition
- An international bank that offers low-interest loans, advice, and information to developing nations
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Term
| International Monetary Fund (IMF) |
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Definition
- An international organization that acts as a lender of last resort, providing loans to troubled nations, and also works to promote trade through financial cooperation
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Term
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Definition
- A forum for international economic development that promotes discussion between industrial and emerging-market countries on key issues related to global economic stability
- Members include
- Argentina, Australia, Brazil, Canada, China, European Union, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, Republic of Korea, Turkey, United Kingdom, United States
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Term
| Framework for Strong, Sustainable, and Balanced Growth |
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Definition
- This document outlined a process to help avoid other financial crises such as those started in the financial markets in the United States in 2007
- It also provided recommendations for long-term global growth
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Term
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Definition
- Selling domestically produced products to buyers in other countries
- The US is the world's largest exporter
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Term
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Definition
- An intermediary in the global market who assumes all ownership risks and sells globally for its own account
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Term
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Definition
- An intermediary who plays the traditional broker's role by bringing buyer and seller together
- The manufacturer still retains title and assumes all the risks
- Export brokers operate primarily in agricultural products and raw materials
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Term
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Definition
- An intermediary who acts like a manufacturer's agent for the exporter; the export agent lives in the foreign market
- Helps with international financing, shipping, and so on
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Term
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Definition
- The legal process whereby a licensor allows another firm to use its manufacturing process, trademarks, patents, trade secrets, or other proprietary knowledge
- The licensee, in turn, pays the licensor a royalty or fee agreed on by both parties
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Term
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Definition
- Private-label manufacturing by a foreign company
- The foreign company produces a certain volume of products to specification, with the domestic firm's brand name on the goods
- The domestic company usually handles the marketing
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Term
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Definition
- When a domestic firm buys a part of a foreign company or joins with a foreign company to create a new entity
- Is a quick and relatively inexpensive way to go global and to gain needed expertise
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Term
| direct foreign investment |
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Definition
- Active ownership of a foreign company or of overseas manufacturing or marketing facilities
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Term
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Definition
- If a country's currency appreciates, less of that country's currency is needed to buy another country's currency
- If a country's currency depreciates, more of that currency will be needed to buy another country's currency
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Term
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Definition
- A system in which prices of different currencies move up and down based on the demand for and the supply of each currency
- Global currency traders create the supply of and demand for a particular country's currency based on that country's investment, trade potential, and economic strength
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Term
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Definition
- The sale of an exported product at a price lower than that charged for the same or a like product in the "home" market of the exporter
- Dumping may occur as a result of exporter business strategies that include:
- trying to increase an overseas market share
- temporarily distributing products in overseas markets to offset slack demand in the home market
- lowering unit costs by exploiting large-scale production
- attempting to maintain stable prices during periods of exchange rate fluctuations
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Term
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Definition
- A form of trade in which all or part of the payment for goods or services is in the form of other goods or services
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Term
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Definition
- the managerial process of creating and maintaining a fit between the organization's objectives and resources and the evolving market opportunities
- goal is long-run profitability and growth
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Term
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Definition
- The process of anticipating future events and determining strategies to achieve organizational objectives in the future
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Term
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Definition
- Designing activities relating to marketing objectives and the changing marketing environment
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Term
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Definition
- a written document that acts as a guidebook of marketing activities for the marketing manager
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Term
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Definition
- A statement of the firm's business based on a careful analysis of benefits sought by present and potential customers and an analysis of existing and anticipated environmentaal conditions
- establishes boundaries for all subsequent decisions, objectives, and strategies
- should focus on the market or markets the organization is attemting to serve rather than on the good or service offered
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Term
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Definition
- Defining a business in terms of goods and services rather than in terms of the benefits customers seek
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Term
| strategic business unit (SBU) |
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Definition
- A subgroup of a single business or collection of related businesses within the larger organization
- A properly defined SBU should have a distinct mission and specific target market, control over its resources, its own competitors, and plans independent of the other SBUs in the organization
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Term
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Definition
- Identifying internal strengths (S) and weaknesses (W) and also examining external opportunities (O) and threats (T)
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Term
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Definition
- The collection and interpretation of information about forces, events, and relationships in the external environment that may affect the future of the organization or the implementation of the marketing plan
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Term
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Definition
- A statement of what is to be accomplished through marketing activities
- Stated objectives should be:
- Realistic
- Measurable
- Time specific
- Compared to a benchmark
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Term
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Definition
- A set of unique features of a company and its products that are perceived by the target market as significant and superior to the competition
- Three types of competitive advantage
- Cost
- Product/service differentiation
- Niche
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Term
| Cost competitive advantage |
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Definition
- Being the low-cost competitor in an industry while maintaining satisfactory profit margins
- Enables a firm to deliver superior customer value
- Costs can be reduced in a variety of ways
- Experience curves
- Efficient labor
- No-frills goods and services
- Government subsidies
- Product design
- Reengineering
- Production innovations
- New methods of service delivery
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Term
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Definition
- Curves that show costs declining at a predictable rate as experience with a product increases
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Term
| product/service differentiation competitive advantage |
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Definition
- The provision of something that is unique and valuable to buyers beyond simply offering a lower price than that of the competition
- Examples include brand names, a strong dealer network, product reliability, image, or service
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Term
| niche competitive advantage |
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Definition
- The advantage achieved when a firm seeks to target and effectively serve a small segment of the market
- For a small company with limited resources that potentially face giant competitors, niche targeting may be the only viable option
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Term
| sustainable competitive advantage |
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Definition
- An advantage that cannot be copied by the competition
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Term
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Definition
- A marketing strategy that tries to increase market share among existing customers
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Term
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Definition
- A marketing strategy that entails attracting new customers to existing products
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Term
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Definition
- a marketing strategy that entails the creation of new products for present markets
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Term
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Definition
- A strategy of increasing sales by introducing new products into new markets
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Term
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Definition
- A tool for allocating resources among products or strategic business units on the basis of relative market share and market growth rate
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Term
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Definition
- Is the ratio between the company's share and the share of the largest competitor
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Term
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Definition
- In the portfolio matrix, a business unit that is a fast-growing market leader
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Term
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Definition
- In the portfolio matrix, a business unit that generates more cash than it needs to maintain its market share
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Term
| problem child (question mark) |
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Definition
- In the portfolio matrix, a business unit that shows rapid growth but poor profit margins
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Term
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Definition
- In the portfolio matrix, a business unit that has low growth potential and a small market share
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Term
| The four basic strategies to allocate future resources for each SBU |
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Definition
- Build
- If an organization has an SBU that it believes has the potential to be a star (probably a problem child at present), building would be an appropriate goal
- Hold
- If an SBU is a very successful cash cow, a key goal would surely be to hold or preserve market share so that the organization can take advantage of the very positive cash flow
- Harvest
- The basic goal is to increase the short-term cash return without too much concern for the long-run impact
- Divest
- Getting rid of SBUs with low shares of low-growth markets is often appropriate
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Term
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Definition
- The activities of selecting and describing one or more target markets and developing and maintaining a marketing mix that will produce mutually satisfying exchanges with target markets
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Term
| market opportunity analysis (MOA) |
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Definition
- The description and estimation of the size and sales potential of market segments that are of interest to the firm and the assessment of key competitors in these market segments
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Term
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Definition
- A unique blend of product, place (distribution), promotion, and pricing strategies designed to produce mutually satisfying exchanges with a target market
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Term
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Definition
- Product, place, promotion, and price, which together make up the marketing mix
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Term
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Definition
- The process that turns a marketing plan into action assignments and ensures that these assignments are executed in a way that accomplishes the plan's objectives
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Term
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Definition
- Gauging the extent to which the marketing objectives have been achieved during the specified time period
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Term
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Definition
- Provides the mechanisms for evaluating marketing results in light of the plan's objectives and for correcting actions that do not help the organization reach those objectives within budget guidelines
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Term
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Definition
- A thorough, systematic, periodic evaluation of the objectives, strategies, structure, and performance of the marketing organization
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