Mgt 430

Introductions/What is Marketing?

What is the rationale behind the Marshmallow Challenge? Who is typically most

successful? Who is usually the least successful? What does it have to do with

marketing?

What is marketing? Are each of the 4 P’s equally important all of the time for firms?

Why/when does promotion become necessary?

1. The primary goal of marketing is to develop good products that people want and need.

2. All 4 P’s are equally important in order to drive profits.

3. Competitors force firms to promote their products in order to differentiate them from close competitiors.

The Service Sector & The Characteristics of Services

Why is the service sector so important and what are the key factors contributing to its growth?

What are the unique Characteristics of Services?

1. Intangibility

2. Perishability

3. Inseparability

4. Variability

What strategic implications does each service characteristic have for service managers?

1. Intangibility- Stress Tangible Cues, Price-Quality Relationship, Customer Referrals

2. Perishability

a. Manage Supply and Demand

b. Pricing- Early Bird

c. Promotions- Thirsty Thursday

d. Strong Recovery Strategies

3. Inseparability

e. Employees

f. Physical Environment

g. Other Customers- Ex. Crying Baby

h. Online Technology

4. Heterogenity

i. Customize a Physical Good; Standardize a Service

j. Service Blueprinting

What are the “3 Other Characteristics of Services” and what types of products are these qualities associated with?

1. Search Qualities

a. Product/Service attributes that can be evaluated before purchase

b. Ex- Test Drive, Samples

2. Experience Qualities

c. Product/Service attributes that can be evaluation only after purchase

d. Ex: Movie

3. Credence Qualities

e. Product/Service attributes that cannot be evaluated

f. Ex: Healthcare, Funeral...