CSUF MKTG 351 Final Exam

CSUF MKTG 351 Final Exam Importance of services to the economy - 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 - Intangible - Inseparable - Heterogeneous - Perishable Intangible --- Services cannot be touched, seen, tasted, heard, or felt in 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. --- Makes it harder to communicate benefits Inseparable -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 -- 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 -- 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 -- 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 - Reliability - Responsiveness - Assurance - Empathy - Tangibles Reliability To perform right in the first time Responsiveness To provide prompt service Assurance Knowledge and courtesy of employees Empathy Caring --- Individual attention to customers Tangibles Physical evidence of the service Services Marketing Mix - Service Strategy - Distribution - Promotion Strategy - Pricing Strategy Marketing Mix - Agency Positioning as a center - Target Audience - Pricing - Go-to-Market Strategy - Services Mix Target Audience (Marketing Mix - Positioning) What we know about them - Goals, Revenue, Values Pricing Architecture (Marketing Mix - Positioning) - Project-based - Hourly - Retainer - Pro-Bono Steps of Pricing Architecture (Marketing Mix - Positioning) - Build Brand (46%) - Generate Leads (86%) - Convert Sales (85%) - Increase Loyalty (51%) Go-to-Market Strategy (Marketing Mix - Positioning) - Public Relations - Direct Mail - Networking/Referrals - SEO - PPC Public Relations (Go-to-Market Strategy) Press release - Overview - Positioning - Distribution Press Release - Overview (Public Relations) Build credibility and awareness with media, vendors and client Press Release - Positioning (Public Relations) 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) - eR - BusinessW - MarketW - PRNewsW - Blogs eR (Press Release - Distribution) a world leader in full text news releases with emphasis on a small business eR (characteristics) - $400.00 - 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) BusinessW (Press Release - Distribution) 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) 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) Hyper-targeted letters with PURL to selected prospects Hyper-targeted letters with PURL (Direct Mail) - Send 200 letters - Initial Contact: hand written letter with personalized URL available on the agency web site - Follow-up with phone call within three days to inquire about whats needed to move forward SEO (Go-to-Market Strategy) Search Engine Optimization Search Engine Optimization 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) - TYPICALLY, THE EARLIER (or higher) a site appears in the results, the more visitors it will receive. SEO Strategy Making agency site attractive to search engines, as well as encouraging other sites to link back to us. - Keywords - Incoming Links Keywords (SEO strategy) - Look for words on competitive web site that have high density - Look on community forums or applications like Twitter and Facebook - Plural terms are more popular than singular search terms - Keywords should include the basics (Brand terms, services offered, general industry Terms) Website basic keywords Brand terms, services offered, and general industry Terms Incoming Links (SEO strategy) - Translate to credibility. The more we have pointing to our website, the greater our overall site ranking will be - Links from a high-ranking website will improve the search rankings for the agency Link Bait (Incoming Links) Create a content that is interesting, grabs people's attention and encourages visitors to post our link in their blogs, email it to friends or share it on a social network. Marketing Channels Distribution Channel THE PATH through which products - and legal ownership of them - FLOW from producer to consumers or business user PRODUCER ==> CONSUMER/BUSINESS USER Channel Intermediary A business firm operating between the producer and the consumer or business purchaser consumer ==> Business Firm ==> Consumer/Business User Channel Intermediaries - Direct Channel - Retailer Channel - Wholesaler Channel - Agent/Broker Channel Direct Channel (Channel Intermediary) PRODUCER => CONSUMER - Are used to sell products directly from the manufacturer/producer to consumers - 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 - 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) 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) 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 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) 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 HP Computers Dell Computers Diamond rings Designer Products - COMPLEX, CUSTOMIZED and EXPENSIVE PRODUCTS Example of Retailer Channel Bernard Matthews - PERISHABLE PRODUCTS such as certain foods (i.e. fruit/vegetables) - FRAGILE PRODUCTS Example of Wholesaler Channel Kimberly Clark/P&G - PRODUCTS OF LOWER VALUE that are MANUFACTURED IN HIGH QUANTITIES - CANNED FOODS, BOTTLED BEVERAGES, BREAD and other NON-PERISHABLE GROCERIES Example of Agent/Broker Channel ADX/Riva Blue mics/Mo-Fi Headphones Market Centre A full line distributor providing SPECIALTY, NATURAL, AND ETHNIC foods to major chains and independent grocery retailers throughout the WESTERN US