Marketing Chapter 13

homesourcing

A practice whereby customer contact jobs are outsourced into workers' homes ex) Office Depot, 1-800-FLOWERS

Nonprofit target public

a collective of individuals who have an interest in or a concern about an organization, a product, or a social cause (ex- donors for a fund for developing nations)

intangibility

a service is not physical and therefore cannot be touched ex) the benefit students get from classes, cannot be possessed so customer relies more on the brand to fuel their decisions, hard to evaluate before you consume so they have visual cues that help display the service (airline pilots uniform)

customer service

any human, mechanical, or electronic activity that adds value to the product

credence qualities

attributes that customers may be unable to evaluate even after the purchase and consumption of the service

experience qualities

attributes, such as taste, satisfaction, or pleasure, that can be assessed only during the purchase and consumption of a service

Inventory Management

balancing supply and demand for services

core service

basic service experience or commodity that a customer expects to receive

Employee Performance

contact employees have the most interface with the customer, must train them well so they can make it an enjoyable experience, evaluation and compensation help to encourage better performance

service quality

customers' perceptions of how well a service meets or exceeds their expectations

analysis of customer expectations

desired is what they really want but acceptable is the lowest level they will accept, the difference between these is the zone of tolerance, social business tools help with this

client publics

direct consumers of the product ex) student body at university

Nonprofits

have greater ability to be creative, harder to evaluate employee performance, can be controversial (NRA), more likely to survive and achieve goals because they arent focused on a product, trying to get a desired response from the target market,

Promotion for services

helps the customer understand the intangible attributes that come with a service, don't want to promise too much, but also want to convey the service with concrete and direct language, can use trials of services, word of mouth invaluable (groupon)

general publics

indirect consumers ex) parents and alumni at university

client-based relationship

interactions that result in satisfied customers who use a service repeatedly over time, need a group of repeat clients who are loyal to you ex) accounting firms, word of mouth is key

Growth of customer services

long-term economic growth, more health and fitness focused, want easy on demand services, older population (increases health care services), increasing demand of high tech goods

Nonprofit marketing

marketing activities that are conducted by individuals and organizations to achieve some goal other than ordinary business goals like profit, market share, or return on investment

Nonprofit pricing

may be fixed or variable, stress client welfare over equaling cost and revenues, if they need to make money they can get donation raise the prices of current services or charge for services that used to be free

Service Expectations

must be reasonable, set through advertising or internal communication, need to give exceptional service quality

Quality Specifications

needs goals to ensure consistent and good service quality, employee or machine performance, starts with the manager being commited to the goals and acing on that

Personal Selling

personal influence helps customers visualize service benefits, training helps to provide trust

peak demand

significant number of customers desire the service around the same time, brings in the most revenue during this period

Pricing

some based on performance, others based on time spent on the task, demand-based (helps to balance supply and demand), bundles priced all together or each item seperately, prices can also sometimes reflect the quality of the service, may be limited by competition prices or state and local gov reguations

Non profit Marketing Mix

sometimes hard to define what service they provide (ex Peace Corps), distribution is how ideas will be made available to the target market, usually a short channel of distribution, easier now through online forums, personal selling done to send volunteers that will get donations,

supplementary service

supports the core service and is used to differentiate the service bundle from those of competitors

search qualities

tangible attributes like color, style, size, feel, or fit that can be evaluated prior to purchase

inseparability

the fact that the production of a service cannot be separated from its consumption by customers, service provider and customer must work together to provide and recieve the full services value

customer contact

the level of interaction between the service provider and the customer necessary to deliver the service ex) health care, real estate, technology has helped to reduce this

perishability

the unused service capacity of one time period cannot be stored for future use ex) unused airline seat

opportunity cost

the value of the benefit given up by selecting one alternative over another. According to this traditional economic view of price, if a nonprofit organization persuades

Some intermediaries

travel agents sell airline tickets, insurance is sold through agents

Marketing channels

usually short and direct, either you go to their facility (dry cleaning), they come to you (air conditioning), or at arms length (cable TV)

heterogeneity

variation in quality, either from one organization to another or one individual to another (human factor causes unpredictability), training can help reduce this variation, allows for customization to meet individual customer needs but keeps a basic package that they follow with only a little variation