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What is the primary role of frontline employees in customer interactions?
What is the primary role of frontline employees in customer interactions?
What should technology do in service delivery?
What should technology do in service delivery?
What is the primary focus of employee training?
What is the primary focus of employee training?
What is the goal of store atmospherics?
What is the goal of store atmospherics?
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What is the primary role of managing physical evidence and environment?
What is the primary role of managing physical evidence and environment?
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What is the outcome of fostering authenticity, engagement, and job satisfaction among frontline staff?
What is the outcome of fostering authenticity, engagement, and job satisfaction among frontline staff?
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What is the primary focus of sensory marketing principles?
What is the primary focus of sensory marketing principles?
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What is the primary goal of service delivery?
What is the primary goal of service delivery?
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What is the primary role of employee empowerment in service delivery?
What is the primary role of employee empowerment in service delivery?
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What is the primary outcome of managing technology-human interactions?
What is the primary outcome of managing technology-human interactions?
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What enables frontline employees to deliver exceptional service experiences?
What enables frontline employees to deliver exceptional service experiences?
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What is the primary purpose of managing technology-human interactions?
What is the primary purpose of managing technology-human interactions?
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What is the primary focus of employee training in service delivery?
What is the primary focus of employee training in service delivery?
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What is the primary role of physical evidence in service delivery?
What is the primary role of physical evidence in service delivery?
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What is the outcome of creating immersive atmospherics in service delivery?
What is the outcome of creating immersive atmospherics in service delivery?
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What is the primary goal of managing frontline employees in service delivery?
What is the primary goal of managing frontline employees in service delivery?
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What is the primary benefit of technology-supported interactions in service delivery?
What is the primary benefit of technology-supported interactions in service delivery?
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What is the primary outcome of delivering exceptional service experiences?
What is the primary outcome of delivering exceptional service experiences?
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What is the primary role of employee empowerment in service delivery?
What is the primary role of employee empowerment in service delivery?
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What is the primary goal of sensory marketing principles in service delivery?
What is the primary goal of sensory marketing principles in service delivery?
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What is the primary purpose of managing frontline employees in customer interactions?
What is the primary purpose of managing frontline employees in customer interactions?
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What can be inferred about the role of technology in service delivery?
What can be inferred about the role of technology in service delivery?
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What is the primary focus of employee training in service delivery?
What is the primary focus of employee training in service delivery?
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What is the primary goal of store atmospherics in service delivery?
What is the primary goal of store atmospherics in service delivery?
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What is the primary benefit of managing technology-human interactions in service delivery?
What is the primary benefit of managing technology-human interactions in service delivery?
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What is the primary goal of physical evidence in service delivery?
What is the primary goal of physical evidence in service delivery?
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What is the primary focus of sensory marketing principles in service delivery?
What is the primary focus of sensory marketing principles in service delivery?
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What is the primary benefit of creating immersive atmospherics in service delivery?
What is the primary benefit of creating immersive atmospherics in service delivery?
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What is the primary role of employee empowerment in service delivery?
What is the primary role of employee empowerment in service delivery?
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What is the primary outcome of delivering exceptional service experiences in service delivery?
What is the primary outcome of delivering exceptional service experiences in service delivery?
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What is the ultimate goal of creating a customer-centric culture in service delivery?
What is the ultimate goal of creating a customer-centric culture in service delivery?
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What is the primary objective of managing technology-human interactions in service delivery?
What is the primary objective of managing technology-human interactions in service delivery?
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What is the primary focus of employee training in terms of brand image?
What is the primary focus of employee training in terms of brand image?
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What is the primary role of physical evidence in service delivery?
What is the primary role of physical evidence in service delivery?
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What is the primary outcome of aligning employee behaviors with the brand image?
What is the primary outcome of aligning employee behaviors with the brand image?
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What is the primary goal of managing physical evidence and environment in service delivery?
What is the primary goal of managing physical evidence and environment in service delivery?
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What is the primary benefit of training service personnel in desired behaviors?
What is the primary benefit of training service personnel in desired behaviors?
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What is the primary role of frontline employees in service delivery?
What is the primary role of frontline employees in service delivery?
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What is the primary focus of sensory marketing principles in service delivery?
What is the primary focus of sensory marketing principles in service delivery?
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What is the primary outcome of managing frontline employees in customer interactions?
What is the primary outcome of managing frontline employees in customer interactions?
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Study Notes
Market Evolution
- Markets evolve through four stages: Emergence, Growth, Maturity, and Decline
- Each stage is characterized by distinct market dynamics and challenges
Emerging Market Strategies
- Companies may adopt Single-Niche, Multiple-Niche, or Mass-Market approaches to capitalize on opportunities
- Single-Niche: Focusing on serving a specific niche market with specialized products or services
- Multiple-Niche: Targeting multiple niche markets with different products or services tailored to each segment
- Mass-Market: Catering to a broad audience with products or services designed to appeal to a wide range of customers
Product Characteristics and Classifications
- Product Levels: Understanding the hierarchy of product benefits helps marketers create offerings that meet customer needs
- Core Benefits: Fundamental needs or problems that the product addresses for the customer
- Basic Product: Essential features and functions that directly address the core benefits
- Expected Product: Additional features and attributes that customers expect as standard
- Augmented Product: Extra features or services that exceed customer expectations
- Potential Product: Innovative or future-oriented features and capabilities that redefine the category
Product/Market Offering Hierarchy
- Hierarchy Levels: Products are classified into various levels to help marketers identify target markets and develop product lines
- Need Families: Broad categories representing fundamental consumer needs or desires
- Product Lines: Groups of related products marketed together
- Product Categories: Specific groupings within a product line
- Individual Products: Distinct items within a product category
Packaging and Labeling
- Packaging: Plays a crucial role in branding, protection, information communication, and sustainability
- Labeling: Provides essential information about products, including branding, ingredients, usage instructions, and regulatory compliance
Warranties and Guarantees
- Warranties: Assure customers of product quality and performance, providing recourse in case of defects or malfunctions
- Guarantees: Offer assurances of satisfaction or refunds if customers are not fully satisfied with their purchase
New Market Offering Options
- Make or Buy: Companies have the option to develop new market offerings internally or externally through acquisition
- Types of New Products: New products can range from entirely novel innovations to incremental improvements or extensions of existing offerings
Challenges in Developing a New Product
- Innovation Imperative: Firms must continually innovate to stay competitive
- Budgeting for New Product Development: Companies employ various approaches to budgeting, including allocating funds based on sales figures or desired outcomes
- Reasons for New Product Failure: New products may fail due to ineffective management, poor market research, design flaws, high development costs, incorrect positioning, or fierce competition
Organizing New Product Development
- 7 stages: Idea Generation, Idea Screening, Concept Development and Testing, Market Strategy Development, Business Analysis, Product Development, and Market Testing
- Crowdsourcing: Involves asking a large group of people for their input, ideas, or help with tasks
- Co-creation: Collaborative process where companies work with customers, partners, or employees to create new products or services
Consumer Adoption Process
- Sequential steps that influence consumers' adoption decisions: Awareness, Interest, Evaluation, Trial, and Adoption
- Readiness to Try New Products: Consumers exhibit varying degrees of readiness to try new products, categorized into segments such as innovators, early adopters, early majority, late majority, and laggards
Characteristics of Innovation
- Relative Advantage: How much better the new product is compared to existing options
- Compatibility: How well the new product fits with consumers' needs and habits
- Complexity: How easy it is for consumers to understand and use the new product
- Divisibility: Whether consumers can try the new product on a limited basis
- Communicability: How easily information about the new product can be shared and understood
Price-Related Definition of Value
- Value in pricing is defined as the perceived benefits a customer receives from a product or service minus the perceived price they pay
Importance of Price from a Marketing Perspective
- Price plays a critical role in shaping consumer behavior and has a significant impact on a company's profitability
- Small changes in price can lead to disproportionate effects on profits
Consumer Psychology and Pricing
- Reference prices: Internal benchmarks consumers use to evaluate whether a price is fair or a good deal
- Price endings: Influencing consumer perceptions, e.g., using 9 as the last digit (e.g., $9.99)
- Scarcity effect: Products that are scarce or perceived as difficult to obtain tend to be more desirable and valuable to consumers
Steps in Setting a Price
- ODCCMF: Selecting the price objective, determining demand elasticity, estimating costs, analyzing competitors, selecting a pricing model, and adapting the final price### Pricing Strategies
- Price Discounts and Allowances: Offering reductions in price to incentivize purchases or participation in promotions
- Promotional Pricing: Temporarily lowering prices to stimulate sales during promotions or special events
- Differentiated Pricing: Setting different prices for different customer segments, products, or channels to maximize revenue
Behavioral Decision Theory and Behavioral Economics
- Heuristics:
- Availability Heuristic: People judge the likelihood of an event based on how easily they can recall similar instances
- Representativeness Heuristic: People make judgments based on how closely something resembles a typical example or prototype
- Anchoring-and-Adjustment: People rely too much on initial information (the anchor) when making decisions and don't adjust enough when new information is presented
- Prospect Theory: Emphasizes loss aversion, leading to risk-averse behavior
Framing and Prospect Theory
- Framing: Presenting information to influence decision-making
- Attribute Framing: Highlighting different aspects of information
- Message Framing: Emphasizing potential gains or losses
- Goal Framing: Motivating people by offering rewards or penalties
Marketing Communications
- Role of Marketing Communications: Shaping consumer perceptions, driving purchase decisions, and building brand loyalty
- Marketing Communications Mix:
- Advertising: Building brand awareness and visibility through paid messages in traditional and digital media
- Sales Promotion: Encouraging immediate purchase behavior through incentives
- Public Relations: Shaping public perception and enhancing brand credibility
- Direct Marketing: Reaching consumers directly through channels like email, direct mail, or telemarketing
- Interactive Marketing: Engaging consumers through online platforms and interactive experiences
- Word-of-Mouth Marketing: Harnessing the power of recommendations and referrals
- Social Media Marketing: Utilizing social media platforms to connect with audiences and create brand awareness
Micro-Models of Communication Process
- Cognitive Stage: Consumers become aware of the message and process the information, forming perceptions and attitudes
- Affective Stage: Consumers develop emotional responses to the message, influencing their feelings and preferences
- Behavioral Stage: Consumers take action based on their cognitive and affective responses
Developing Effective Communication
- Understanding the Target Audience: Conducting research to identify demographics, psychographics, and behavior
- Defining Communication Objectives: Setting clear objectives aligned with marketing goals
- Crafting Compelling Messages: Developing message strategies that appeal to the target audience's emotions, values, and motivations
- Selecting the Right Channels: Choosing communication channels that reach the target audience effectively
- Implementing Integrated Campaigns: Integrating various communication tactics cohesively to create synergy and maximize impact
- Monitoring and Measuring Results: Tracking key performance metrics to evaluate the effectiveness of communication efforts
Managing Distribution Channels
- Role of Distribution Channel Members: Bridging the gap between producers and consumers, facilitating the movement of products and services
- Channel Levels:
- Zero-level channel: Direct selling from manufacturer to customer
- One-level channel: Involves one intermediary
- Two-level channel: Includes two intermediaries
- Three-level channel: Features three intermediaries
- Channel-Design Decisions:
- Analyzing customer needs and wants related to price, convenience, product assortment, and service level
- Understanding the five service outputs provided by channels: lot size, waiting and delivery time, spatial convenience, product variety, and service backups
Integrated Marketing Communications (IMC)
- Ensuring all communication efforts work together cohesively to deliver a consistent and unified brand message across multiple channels
- Coordinating various elements of the marketing communications mix to create synergy and amplify the impact of marketing efforts### New Product Development
- Failure to develop new products can leave companies vulnerable to changes in consumer preferences, emerging technologies, and increased competition
- Companies employ various approaches to budgeting for new product development, including allocating funds based on sales figures, competitor spending, or desired outcomes
- Reasons for new product failure include ineffective management, poor market research, design flaws, high development costs, incorrect positioning, or fierce competition
Organizing New Product Development
- The process consists of eight stages:
- Idea Generation: generating a wide range of potential ideas for new products or innovations
- Idea Screening: evaluating and screening ideas to determine which ones have the most potential for further development
- Concept Development and Testing: developing selected ideas into concrete concepts or prototypes and testing them with target customers
- Market Strategy Development: developing a comprehensive market strategy for bringing the new product to market
- Business Analysis: evaluating the financial viability and potential return on investment of the new product
- Product Development: designing, engineering, and manufacturing the product according to finalized specifications and requirements
- Market Testing: testing the product in a real-world environment to assess its performance
- Commercialization: launching the product to the target market
Crowdsourcing and Co-creation
- Crowdsourcing involves asking a large group of people for their input, ideas, or help with tasks
- Co-creation is a collaborative process where companies work with customers, partners, or employees to create new products, services, or solutions together
- Both can play significant roles at various stages of organizing new product development
Consumer Adoption Process
- The consumer adoption process describes the stages individuals go through when deciding to adopt a new product:
- Awareness: becoming aware of the existence of the new product or service
- Interest: showing interest and seeking more information about the product or service
- Evaluation: evaluating the product or service based on its features, benefits, and how it meets their needs
- Trial: trying the product or service on a small scale to experience its benefits firsthand
- Adoption: deciding to adopt the product or service on a regular basis
- Consumers exhibit varying degrees of readiness to try new products, categorized into segments such as innovators, early adopters, early majority, late majority, and laggards
Innovations and Characteristics
- Innovations possess characteristics that influence their rate of adoption among consumers:
- Relative advantage: how much better the new product is compared to existing options
- Compatibility: how well the new product fits with consumers' needs and habits
- Complexity: how easy it is for consumers to understand and use the new product
- Divisibility: whether consumers can try the new product on a limited basis
- Communicability: how easily information about the new product can be shared and understood
Pricing Strategies
- Price-related definition of value: the perceived benefits a customer receives from a product or service minus the perceived price they pay for it
- Importance of price from a marketing perspective: price plays a critical role in shaping consumer behavior and has a significant impact on a company's profitability
- Consumer psychology and pricing: consumer psychology influences how people perceive prices
- Steps in setting a price:
- Selecting the price objective based on strategic goals
- Determining demand elasticity
- Estimating costs
- Analyzing competitors' prices and offerings
- Selecting a pricing model
- Adapting the final price through strategies like geographical pricing, discounts, or differentiated pricing
Behavioral Decision Theory and Behavioral Economics
- Behavioral economics examines how psychological factors influence economic decisions
- Concepts like heuristics, availability heuristic, representativeness heuristic, anchoring-and-adjustment, and prospect theory help explain why people may make irrational choices in pricing situations
Marketing Communications
- Marketing communications play a pivotal role in shaping consumer perceptions, driving purchase decisions, and building brand loyalty
- The marketing communications mix encompasses various tools and tactics, including advertising, sales promotion, public relations, direct marketing, personal selling, interactive marketing, and social media marketing
- Micro-models of communication process focus on understanding how individuals respond to marketing messages, involving cognitive, affective, and behavioral stages
Effective Communication
- Creating effective communication involves several key steps:
- Understanding the target audience
- Defining communication objectives
- Crafting compelling messages
- Selecting the right channels
- Implementing integrated campaigns
- Monitoring and measuring results
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Description
Learn about the four stages of market evolution: Emergence, Growth, Maturity, and Decline. Understand the different strategies companies adopt in emerging markets, including Single-Niche, Multiple-Niche, and Mass-Market approaches.
