X hits on this document

180 views

0 shares

0 downloads

0 comments

29 / 44

Marketing Exam Study!

  • 1.

    Benefit-driven pricing – involves pricing the aspect of the service that directly benefits customers

  • 2.

    Flat-rate pricing – involves quoting a fixed price in advance of service delivery so as to avoid surprises for users

  • Discounting is not the best way to win new business if a firm is to seek loyal customers (offering discounts on large purchases or two or more services bundled together will)

Cost leadership

  • Low-priced services appeal to customers on tight financial budgets and may also

stimulate larger purchases

  • Challenge is to price low to convince customers that they are getting good value

  • Second challenge is to ensure that economic costs are low enough to enable

profits

Managing the Perception value

  • Effective communications and even personal explanations are needed to

help customers understand the value they receive

Overcome the problems of Intangibility

  • Mittal suggests intangibility of services can cause 4 problems

    • 1.

      Abstractness – abstract concepts such as financial security do not have a one to one correspondence with physical objects, it can be challenging for marketers to connect their services to those concepts

2.

Generality – refers to items that comprise a class of objects, persons, or

events; marketers must communicate that they have a specific offering distinctly

different from competing offerings

3.

Non-searchability – refers to the fact that intangibles cannot be searched

or inspected before they are purchased (ie. surgeon’s expertise)

4.

Mental impalpability – many services are sufficiently complex that it is

difficult for customers to understand what the benefits of the products are

Marketing communications mix – marketers that have access to numerous forms of communication

  • Different communication elements have distinctive capabilities relative to the

types of messages that they can convey and the market segments most likely to be exposed to them (fig. 17.2)

Downloaded for free at www.uofgexamnetwork.com

29

Document info
Document views180
Page views192
Page last viewedSun Dec 11 04:45:14 UTC 2016
Pages44
Paragraphs2313
Words14476

Comments