Exam 1 Study Guide

marketing manager

aim to find, attract, keep, and grow customers; create, deliver, communicate superior customer value

Red Ocean

are all the industries in existence today. (As the market space gets crowded, profits and growth are reduced. Products become commodities or niche, and cutthroat competition turns the red ocean bloody.)

Macro environment

competitive, demographic, economic, natural, technological, political, and cultural factors

Good Customer Relationship Management creates...

delighted customers, who remain loyal and spread good word of mouth

The Changing Marketing Landscape

digital age, sustainable marketing, rapid globalization, co-creation, sharing economy

How to resolve customer complaints

empower employees, critical to customer retentetion

customer expectations

expectations based on past buying experiences, the opinions of friends, and market information

Needs

states of felt deprivation (physical, social, esteem)

What is the most significant impact that has affected hospitality and tourism? ******* will be asked

technological environment - the most dramatic forces shaping hospitality and tourism (transpo, internet, computerized systems, key cards, etc.)

Marketing Environment

the actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers

Marketing Management

the art and science of choosing target markets and building profitable relationships with them

service profit chain

the chain that links service firm profits with employee and customer satisfaction

Customer Value

the difference between the benefits a customer sees from a market offering and the costs of obtaining those benefits

Micro environment

the forces close to the company that affect its ability to serve its customers - the company, suppliers, marketing intermediaries, customer markets, competitors, and publics

Wants

the form human needs take as they are shaped by culture and individual personality

Life time value (LTV)

the stream of profits a customer will create in the life of a business relationship.

Societal Marketing Concept

Finds means to maintain or improve society's well-being.; Long-term solutions that benefit both customer and society.

service culture

Focus on serving and satisfying the customer Top-down flow from management Reflected in the business mission, vision, and values

Demands

Human wants that are backed by buying power

Managing Service Productivity

Increase service productivity through: Train current employees better. Give up quality Add equipment and standardize production. Harness the power of technology.

Characteristics of Service Marketing

Intangibility, Inseparability, Variability, and Perishability

Managing Capacity and Demand

Managers have two major options for matching capacity with demand: change capacity or demand. Customer complaints increase when service firms operate above 80% capacity.

Integrated Marketing plan

Marketing Mix (4 Ps) + Program builds customer relationships by transforming the marketing strategy into action.

Marketing

Marketing is the process by which companies create value for customers and society, resulting in strong customer relationships that capture value from the customers in return, while creating value for society.

Managing Service Quality

Measured by how well customer expectations are met. Customer retention. Know the customer. Communicate proper expectations. Create proper service-delivery processes and mechanisms. Examine actual service performance.

Selling Concept

Orientation in which organization pushes volume and promotion; increasing sales takes priority over satisfaction or revenue

Blue Ocean Strategy

- create uncontested market space - make the competition irrelevant - create and capture new demand - break the value-cost trade off

Marketing Management Orientations

1. Production Concept 2. Product Concept 3. Selling Concept (sales volume) 4. Marketing Concept (Satisfaction) 5. Societal Marketing Concept (Sustainability, giving back to society)

Selling Concept function

1. Starting point (Factory), then existing products, selling and promotion, then profits through sales volume

The Company's Micro Environment

1. The company 2. Existing competitors 3. Suppliers 4. Marketing Intermediaries 5. Customers 6. Publics

Model of the Marketing Process

1. Understand the marketplace and customer needs and wants 2. Design a customer-driven marketing strategy 3. Construct an integrated marketing program that delivers superior value 4. Build profitable relationships and create customer delight 5. Capture value from customers to create profits and customer equity

capacity management

1.Involve the Customer in the Service Delivery 2.Cross-Train Employees 3.Use Part-Time Employees 4.Rent or Share Extra Facilities and Equipment 5.Schedule Downtime During Periods of Low Demand 6.Change the Service Delivery System

Demand Management

1.Use price to create or reduce demand 2.Use reservations 3.Overbook 4.Revenue management 5.Use queuing 6.Shift demand 7.Create promotional event

If a customer has a major complaint, how many many will not buy from you again; if it is resolved how many will return?

91% won't buy from you again; 82% will buy from you again

Red Ocean Strategy

Compete in existing market space; beat the competition; exploit existing demand; make the value-cost trade-off;

Managing Perceived Risk

Customer to customer interaction Sales team Experience, testimonials, tours, product exposure Familiarization (FAM) Low risk setting No cost to client Experience prior to planning Travel agents, meeting planners, corporate booking agents Hotels and resorts, airlines, food and beverage, events

customer engagement

Direct and continuous involvement in shaping brand conversations, experiences, and community.

Marketing Mix (included in integrated marketing plan)

Product, Price, Place, Promotion

Customer Relationship Management (CRM)

Provides means for individualization. Manage customer "touch points" - occasions where the customer encounters the brand and product Experiences, communication, observation Maximize customer loyalty. Create customer delight.

Benefits of customer loyalty

Reduced marketing costs Decreased price sensitivity Long-term relationship

A company should monitor three variables when analyzing each of its competitors:

Share of market, share of heart, and share of mind

Managing Service Differentiation

Solution to price competition. Differentiation through (1) people, (2) physical environment, (3) processes. Differentiation through symbols and branding.

Customer Equity

The discounted Life time values of all the company's current and potential customers.

Interactive marketing:

The perceived service quality depends heavily upon the buyer-seller interaction.

Internal marketing:

The service firm must effectively train and motivate customer contact employees.

Managing Employees as Part of the Product

Train and motivate employees to provide good customer service.

What two questions should a marketing manager answer?

What is a target market? What value do we provide in return?

Blue Ocean

in contrast, denote all the industries not in existence today. Here, competition is irrelevant because the rules of the game are waiting to be set. It is a potential market space that is not yet explored.

cultural environment

institutions and other forces that affect society's basic values, perceptions, preferences, and behaviors

Political Environment

laws, government agencies, and pressure groups that influence and limit various organizations and individuals in a given society

Customer Needs and Wants are fulfilled through

market offerings

Marketing Concept

orientation which the organization focuses on needs and wants of target markets and finding ways to deliver the desired satisfaction more effectively and efficiently than the competition.; customer focused and driven

Hospitality Sustainable Practices

water and energy conservation, recycling and waste reduction, bath amenities, rooms keys, bottled water alternatives