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Marketing Chapters 11 & 12

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Chapter 11  
Intangibles Experience-based products that cannot be touched
Idea Marketing Marketing activities that seek to gain market share for a concept, philosophy, belief, or issue by using elements of the marketing mix to create or change a target market's attitude or behavior
Services Intangible products that are exchanged directly from the producer to the customer
Capacity Management The process by which organizations adjust their offerings in an attempt to match demand
Service Encounter The actual interaction between the customer and the service provider
Disintermediation The process of eliminating interaction between customers and salespeople
Embodying The inclusion of a service with a purchase of a physical good
Core Service The basic benefit of having a service performed
Augmented services The core service plus additional services provided to enhance value
Internal Marketing Marketing activities aimed at employees in an effort to inform them about the firm's offerings and their high quality
Gap analysis A marketing research methodology that measures the difference between a customer's expectation of a service quality and what actually occurred
Critical incident technique A method for measuring service quality in which marketers use customer complaints to identify critical incidents, specific face-to-face contacts between customers and service providers that cause problems and lead to dissatisfaction
Physical evidence A visible signal that communicates not only a product's quality but also the product's desired market position to the consumer
   
Chapter 12  
Price The value that customers give up or exchange to obtain a desired product
Bartering The practice of exchanging a good or service for another good or service of like value
Price elasticity of demand The percentage change in unit sales that results from a percentage change in price
Variable costs The costs of production (raw and processed material, parts, and labor) that are tied to, and vary depending on, the number of units produced
Fixed costs Costs of production that do not change with the number of units produced
Total costs The total of the fixed costs and the variable costs for a set number of units produced
Break-even analysis A method for determining the number of units that a firm must produce and sell at a given price to cover its costs
Marginal analysis A method that uses cost and demand to identify the price that will maximize profits
Marginal Cost The increase in total cost that results from producing one additional unit of a product
Marginal revenue The increase in total revenue (income) that results from producing and selling one additional unit of a product
Price subsidies Government payments made to protect domestic businesses or to reimburse them when they must price at or below cost to make a sale. The subsidy can be a cash payment or tax relief

Last Updated on 12/14/99
By Maria Ribaulo
Email: marbaulo@aol.com