The key is the implementation of a marketing strategy called capacity management.

Perishability - Unconsumed services cannot be stored or warehoused.

Inseparability - Because services are rendered by people, the service provider must be present
each and every time the service is provided.
needs are defined as physiological necessities
Wants, on the other hand, are more psychological, indicating preferences that can improve the
customers condition
Market is defined as the group of individual or organizational customers who have both the
willingness
Market demand is the total demand of all potential customers for a specific product/
service
Primary demand refers to the total demand for all brands of a particular product or service.
Selective demand is the demand for a specific brand of product or service.
Potential demand emerges when there is no demand yet for a particular product/service,
Latent demand results when customers in a market are unable to satisfy specific desire
industrial goods are purchased in order to make other good
Undifferentiated goods are products whose physical characteristics are so identical
differentiated goods are varied in their characteristics and features that make them
distinguishable from one another.
The ability of manufacturers to successfully distinguish their products from other competitors is
called branding
This appreciation in a brand's value from the point of view of customers is called brand equity.
Current demand is defined as the number of people of a particular market at present
Utility refers to the total satisfaction consumers can receive from the consumption of a product
or service.
Value, on the other hand, refers to the value customers place on a product or service.
Satisfaction is the measure of how well customer expectations from a purchased
product or service have been met.
Customer-perceived value is the quantitative difference between the expected benefits
customer value proposition is a comparison of the benefits offered by a company's
Customer service is the process of ensuring customer satisfaction with a product or service.
customer is a person or organization that transacts with a business person or business
organization
The relationship marketing concept believes that all marketing activities are for the purpose of
establishing, maintaining, and strengthening meaningful long-term relationships with customers.
The marketing concept considers the needs of both the customer and the product offered.
contemporary marketing approaches are centered on the customer, relationships, and the well-
being of society.
The selling concept emphasizes aggressive selling and promotional efforts.
The product concept assumes that customers will always prefer and patronize products of high
quality.
production concept assumes that customers prefer products that are inexpensive, affordable,
and widely available.
The company with the largest market share in an industry is the industry's market leader.
Marketing is a form of communicating of promoting the value of a product, service, or brand to
the consumers.
Consumer goods are goods that are purchased for personal consumption and/or for household
use.
certain types of products/goods, particularly those that are very expensive and have long service
lives, require a third level: the augmented product.
The effectiveness of marketing strategies in an industry can be measured using what is referred
to as market share.
customer then considers a number of available options. These are the generic and form
competitors
COMPETITION. competitor is any company in an industry or a similar industry that offers a similar
product or service
brand competitors are the most "direct" competitors because they offer the same form of
product the customer has finally decided to consume..
Customer Relationship Management (CRM) is a process of managing an organization's
interactions with current and future customers.
Variability - Because services are performed by human beings, no service provider can render the
same service in exactly the same way every single time.
Intangibility - services are intangible.
Unsought goods are good: thar consursers seldon actively look for,
Specialty goods are goods that require an unustally large effort onthe part of consumers
Shopping goods, on the other hand, are purchased less frequently
Convenience goods are products that are purchased frequently,
Durables are products that are manufactured to last a long time.
semi-durables provide benefits to the consumer for a longer period of time,
consumable is a product whose benefit can only be used by a consumer for a short period
core or generic product, which houses its core or generic function.
This second level is called the formal product.
Marketing stimuli refer to the elements of the marketing mix, oftentimes referred to as the 4P's:
Product, Price, Place, and Promotion.
Marketing research is the function responsible for acquiring and evaluating market
The natural macto-environment refers to natural resource imputs and envionraenta
concerns.
Publics may include any individual or entity with an actual of potentid intercet to the company
and its products or services.
Technological Macro-environment
The technological macro-environment is composed of current and impending technological
change.
A company's demographic macro-environment consists of changes in population characteristics.
Socio-cultural Macro-environment Each geographical area has a specific euleure that dictates
how business is conducted.
marketing micro-environment includes forces that are internal to the company
Qualitative - includes focus groups, in-depth interviews, and projective techniques.
Experimental - includes laboratory experiments and test marketing. Results from two sets of
samples are compared.
Observational - social phenomenon is observed in its natural setting, and observations
Initiator - person who initially suggests buying a particular product or service.
• Influencer - person who tries to convince others of the need for the product/ service and
influences the purchase decision.
• Decider - the person who makes the final decision to purchase or makes the final decision on
any product/service components such as what to buy, how to buy, where to buy, ete.
• Buyer - the person who makes the actual purchase.
• User - the person who actually uses the product/service whether or not he/she was involved in
the buying decision.
Social class is a status hierarchy in which indiniduals and groups are classified
aspirational groups are groups that a person currently does not belong to but wishes to belong
to or to be associated with.
Reference groups include individuals or groups that influence consumer opinions, beliefs,
attitudes, and behaviors. They often serve as role models and inspiration.
Metric questions - questions which require respondents to answer using a number on a scale
developed by the researcher.
Open-end questions - a respondent can answer these questions in his/her own words.
Categorical response questions - questions where answer options are provided.
• Introduction - contains a greeting, researcher introduction and affiliation, purpose, and a
statement assuring the respondent of confidentiality/anonymity of their responses.
• Screening - the series of questions designed to eliminate respondents who are not qualified to
take part in the survey.
• Core - the body of the survey questionnaire.
• Classification - questions used to classify respondents into different groups for stratification and
analysis purposes.
Forward integration
This involves gaining ownership or increased control over distributors or retailers.
Backward integration
This involves gaining ownership or increased control over suppliers.
Horizontal integration
This involves purchase of or increased control over competitors.
Focused
Efforts are concentrated on a relatively small but profitable market.
Differentiation seeks to achieve superior product attributes and features that are different from
industry competitors.
Cost leadership
This is a strategy primarily for achieving low cost leadership among industry competitors.
Liquidation
This involves selling all of a company's assets,
Divestiture
This involves selling a division or part of an organization.
Retrenchment
This involves halting or reversing declining sales and profits
Credible - Once a brand position is selected,
Beneficial - The selected position must be perceived by its customers as beneficial.
Unique - A brand must select a position that is not currently occupied by another brand.
belief is defined as confidence in the truth or existence of something not immediately susceptible
to rigorous proof.'
attitude is a settled way of feeling about someone or something,
Learning is a relatively lasting change in behavior that is the result of experience.!8
Selective retention - means that consumers tend to remember only the positive things
Selective distortion - pertains to the tendeney of individuals to twist or "distort" information to
fit their existing mindset toward a brand.
Competitive advantage is defined as the superiority of an organization over its competitor.
Cost advantage - results when a firm has the ability to produce a product or service at
• a lower cost compared to its competitors.
Differential advantage - when a company's product or service differs from its competitors and
are perceived by consumers to be better or of greater value.
Focus advantage - when a company knows its target market very well, and can service its needs
better than any of its competitors.
An even stronger influence on buyer behavior is the family.