Marketing Study Guide
7 Ps of service-pg 309-312 READ
• Product Elements – All components of the service performance that create value for the
• Place and Time – Management decisions about when, where, and how to deliver
services to customers.
• Price and Other User Outlays – Expenditures of money, time, and effort that customers
incur in purchasing and consuming services.
• Promotion and Education – All communication activities and incentives designed to
build customer preference for a specific service or service provider
• Process – A particular method of operations or series of actions, typically involving
steps that need to occur in a defined sequence.
• Physical Environment – The appearance of everything physically related to a firm
• People – Customers and employees who are involved in service production
Brand Equity – pg 188-189
• Brand equity is the dollar amount attributed to the value of the brand, based on all the
intangible qualities that create that value.
• A measure of brand equity is the extent to which people are willing to pay more for the
• Brand equity is valued along four consumer perception dimensions: Differentiation,
Relevance, Knowledge, and Esteem
• Brand Equity and brand value, in monetary terms, is important because it means brands
can be bought and sold by companies, and frequently are.
Competition-based pricing (services) – pg 376
• The last leg of the pricing tripod is competition. Firms with relatively similar services
need to monitor what competitors are charging and try to price accordingly. When
customers see little or no difference between competing offerings, they may just choose
what they think is the cheapest.
• The firm with the lowest cost per unit of service enjoys a market advantage, and often
assumes price leadership.
• Price competition increases with increasing number of competitors, increasing number
of substituting offers, wider distribution of competitor/substitute offers, and increasing
excess capacity in the industry.
Consumer buyer behaviour
• Difference comes down to value (notes not filled out)
• Buyer decision making process
o Need Recognition and problem awareness
o Information Search
o Evaluation of Alternatives
o Post-Purchase Evaluation
Consumerism – pg 45-46 • The concept that an ever-expanding consumption of goods is advantageous to the
• Consumerism, bolstered by advertising, encourages people to judge themselves and
others by what they own rather than by who they are. To be considered successful,
some people believe they must own a large home, two cars, and the latest high tech
Conventional distribution channel vs vertical marketing system pg 255-258
• Conventional distribution channel – Simple distribution method, goes from producer to
wholesaler to retailer to the consumer
• Vertical Marketing System – A distribution channel structure in which producers,
wholesalers, and retailers act as a unified system. One channel member owns the
others, has contracts with them, or has so much power that they all cooperate.
Core product & Supplementary services (flower of service) pg 353-360
• Flower of Service – A visual framework for understanding the supplementary service
elements that surround and add value to the product core.
• The supplementary services are Information, Consultation, Order Taking, Hospitality,
Safekeeping, Exceptions, Billing, and Payment
• Should read this section for understanding of the above
Criticisms of marketing
• Marketing leads to high prices
• Unnecessary advertising (Ex. Ads in washrooms above urinals)
• High Pressure Selling (Ex. Limited Time Deal)
• Deceptive Advertising (Ex. Vacation Prices)
• Creating False Needs (Ex. Cologne/Perfume)
• Planned Obsolescence
CRM (Customer Relationship Management) Strategies pg 470-473
• Better to read from text
Cycle of failure, mediocrity, success
Demand management approaches
Demand Management Strategies
Differentiation Strategies pg 163-166
• Positioning begins with actually differentiating the company’s marketing offer so that it
will give consumers ore value than competitors offers do.
• A company or market offer can be differentiated along the lines of product, services,
channels, people, or brand image.
• Product Differentiation – Two ends of the differentiation spectrum, some physical
products are tough to differentiate such as chicken, while some are extremely easy,
such as automobiles. Similarly, companies can differentiate their products on attributes
such as consistency, durability, reliability, or reparability.
• Service Differentiation – Beyond differentiating its physical product, a firm can also
differentiate the services that accompany the product. For example, CIBC paired with Loblaws to form President’s Choice Banking, which is very convenient because of their
• Channel Differentiation -
Dimensions of service quality
Distribution channel conflict
Environmentalism pg 50-55
• Group of citizens, businesses and government agencies that…
o Protect and improve the living environment
o Maximize life quality, rather than consumption, choice or satisfaction
o Strive for environmental sustainability
o Enact government regulations to support these goals.
Establishing service levels
Four categories of service
Tangible Actions People Processing- Possession Processing-
(services directed at peoples (Services directed at
bodies) physical possessions)
-Barbers/health care -Refueling/Disposal
Intangible Actions Mental Stimulus Information Processing-
Processing-(Services (services directed at
directed at peoples minds) intangible assets)
Four service focus strategies
Front and back stage personnel
Gaps in service design and delivery
General Pricing Approaches
• Read Notes
Good vs. Service
High vs. Low involvement products
Important vs determinant attributes
Jack Trout’s four principles of positioning
Marketing communications mix
• The factors and forces outside the marketing’s direct control that affect marketing
managements ability to develop and maintain successful transactions with target
• Factors include the microenvironment – (The Company, Suppliers, Marketing
intermediaries, Customers, Competitors, and Policies • Forces include the macro environment – (Demographic forces, economic forces,
Natural Forces, Technological Forces, Political Forces, and Cultural Forces.
• Demographics – Marketers track changing age and family structures, geographic
population shifts, educational characteristics, and population diversity.
• Economic Environment – All those factors that affect consumer buying power and
spending patterns. These include income levels and distribution, the necessity of
products, changes in trends and consumer spending patterns, and economies of
• Cultural Environment – The institutions and other forces that affect a society’s basic
values, perceptions, preference and behaviours. Cultural values are highly present.
Learned from family and community. This includes core beliefs and values are passed
on from parents to children and are reinforced by schools, churches, business and
government. Secondary beliefs and values are more open to change.
• International Trades Issues can also have an impact, these include trade restrictions
such as tariffs and quotas, the world trade organization has a say in this and economic
communities are important
• The set of controllable, tactical marketing tools that the firm blends to