Services Need Marketing Chapter 11

A service is an activity that is intangible, exchanged directly from producer to consumer, and consumed at the time of production. - #4 Practice Test The service sector is the largest and fastest- growing employment area in our economy. In a recent year, nearly 79% of all jobs in the United States were service jobs. What Are Services? Frameworks 6.2

Products (or goods) are tangible objects such as cars, DVDs, tables, and hamburgers that can be purchased and resold. What is a Product? #10 Practice Test Frameworks 6.2

The fastest growing service sector is health care with almost 2 our of every 5 new jobs by What are Services?

Fastest-Growing Industries Industry 10-Year Growth Rate Number of Jobs Added Education and Health Services30.6%5.19 million Professional and Business Services27.8%4.57 million Leisure and Hospitality17.7%2.22 million Information Services11.6%0.36 million Financial Activities10.5%0.85 million Trade, Transportation, Utilities10.3%2.62 million #12 Practice Test

Discretionary income is the amount of income left after paying basic living expenses and taxes. Today, people have more discretionary income to spend on services. What are Services? #11 Practice Test

Intangible means that the service cannot be touched, seen, tasted, heard, or felt. Unique Qualities of Services #1 Practice Test Frameworks 6.2

The most important difference between goods and services is that services are intangible. Unique Qualities of Services #13 Practice Test Frameworks 6.2

Inseparable means that the service is provided and consumed at the same time. Unique Qualities of Services #3 Practice Test Frameworks 6.2

Services such as a college class, a facial, or a car repair are produced and consumed simultaneously. This illustrates the characteristic of a service that is described as being inseparable. Unique Qualities of Services #14 Practice Test Frameworks 6.2

Perishable means that services unused in one time period cannot be stored for use in the future. Unique Qualities of Services #15 Practice Test Frameworks 6.2

Heterogeneous means there are differences between services. Unique Qualities of Services This could be a bad haircut. #16 Practice Test Frameworks 6.2

Service organizations rely heavily on publicity and word-of- mouth promotion. People often consider information from friends to be very credible. Unique Qualities of Services #9 Practice Test Frameworks 6.2

Just as with products, there are two types of markets for services: Business consumers Individual consumers Service Classifications #17 Practice Test Frameworks 6.2.2

There are not-for-profit organizations that also offer services. Service Classifications #18 Practice Test

Labor intensiveness refers to the amount of human effort required to deliver a service. Service Classifications #2 Practice Test

Service quality is defined as the degree to which the service meets customers needs and expectations. Service Classifications #6 Practice Test

An endorsement is an advertisement in which a satisfied customer publicly expresses approval of a product or service. Service Classifications #8 Practice Test

Service Classifications Bundling is the practice of combining several related services for one price. #5 Practice Test

Business-to- Business Marketing Chapter 12

Business-to-business marketing is the exchange of products and services between businesses. Business-to-Business Exchanges #19 Practice Test

Categories of the Business Product Classification System Capital Goods The building and major equipment of business Operating Equipment Equipment used in the daily operation of the business SuppliesConsumable materials used in the operation of the business Raw Materials Unprocessed materials that are incorporated into the products by the business Component Parts Partially or completely processed items that become a part of the products produced by the business ServicesTasks performed in the operation of the business or to support the production, sale, or maintenance of the businesss products and services #20 Practice Test

Purchasing includes determining the products and services needed, indentifying the best sources to obtain them, and completing the activities necessary to obtain and use them. Purchasing as a Marketing Activity #21 Practice Test Frameworks 10.6

Wholesale and retail businesses are part of the product distribution system connecting producers and consumers. Purchasing as a Marketing Activity #22 Practice Test Frameworks 10.3

Wholesalers, such as Pippin Wholesale Company, sell to retailers and/or other businesses and organizations. Purchasing as a Marketing Activity #23 Practice Test

Retailers purchase from wholesalers, agents, or manufacturers and sell to the final consumer. Purchasing as a Marketing Activity #24 Practice Test

The largest category of business customers in the United States is service businesses. Purchasing as a Marketing Activity #25 Practice Test

The total purchases made by the U.S. government make it the largest single customer in the world. Purchasing as a Marketing Activity #26 Practice Test

Compared to final consumers, business customers purchase in larger quantities, base their purchases on derived demand, and more frequently buy directly from the producer. Purchasing as a Marketing Activity #27 Practice Test

Purchase Specifications: These are the detailed requirements for construction or performance of a product. The Buying Decision #28 Practice Test

The reorder point is the level of inventory needed to meet the usage needs of the business until the product can be resupplied. The Buying Decision #29 Practice Test

Reciprocal trading is a form of bartering in which the products or services of one company are used as payment for the products or services of another company. The Buying Decision #30 Practice Test

The purchase decisions of businesses are usually more rational than the purchase decisions of final consumers. Business Purchasing Procedures #31 Practice Test

Vendors are companies that offer products for sale to other businesses, aka suppliers. Business Purchasing Procedures #32 Practice Test Frameworks 10.1

A vendor analysis is an objective rating system used by buyers to compare potential suppliers on important purchasing criteria. Business Purchasing Procedures #33 Practice Test

A request for proposal (RFP) contains a specific description of the type of product or service needed and the criteria that are important to the buyer. Business Purchasing Procedures #34 Practice Test

In bidding, several suppliers develop specific prices at which they will meet detailed purchase specifications and other criteria prepared by the buyer. Business Purchasing Procedures #35 Practice Test

A supply chain is the flow of products, resources, and information through all of the organizations involved in producing and marketing a companys products. Business Purchasing Procedures #36 Practice Test

Just-in-time (JIT) means that the inventory level is kept low and resupplied by supply chain members just as it is needed. Business Purchasing Procedures #37 Practice Test Frameworks 10.5

Total quality management (TQM) establishes specific quality standards for all procedures. This is a commitment to zero defects and 100% accuracy, 100% of the time. Business Purchasing Procedures #38 Practice Test

Inventory is the assortment of products maintained by a business. Business Purchasing Procedures #39 Practice Test Frameworks 10.1

A physical inventory system determines the amount of product on hand by visually counting the items. Business Purchasing Procedures #40 Practice Test Frameworks 10.5

A perpetual inventory system determines the amount of a product on hand by maintaining records on purchases and sales. This is the amount of inventory that SHOULD be on hand according to computer inventory records. Business Purchasing Procedures #41 Practice Test Frameworks 10.5

A purchase order is a form listing the variety, quantity, and prices of products ordered and is completed by the buyer and sent to the seller to begin the purchasing process. Business Purchasing Procedures #42 Practice Test Frameworks 10.6

Harrison School District Purchase Order Frameworks 10.6

Packing List: The seller fills the order and sends it to the buyer along with this form. Business Purchasing Procedures #43 Practice Test

The invoice is an itemized billing statement with terms of payment for the order. Business Purchasing Procedures #44 Practice Test Frameworks 10.6

A receiving record is completed listing all the merchandise received in the shipment and its condition. Business Purchasing Procedures #45 Practice Test Frameworks 10.6

A merchandise plan identifies the types, assortments, prices, and quantities of products that will be stocked by the business for a specific period of time. Business Purchasing Procedures #46 Practice Test

A basic stock list identifies the products a store must have available to meet the most important needs of the its customers. These are items that customer expect to find anytime they visit the store. Business Purchasing Procedures #47 Practice Test

A model stock list identifies the complete assortment of products a store would like to offer its customers. More extensive than a basic stock list and more subject to change. Business Purchasing Procedures #48 Practice Test

Retailers track sales and inventory using scanners that read the electronic bar code on each product that is sold. Business Purchasing Procedures #49 Practice Test

A wholesaler is a business that buys products in very large quantities and resells them to retailers and other businesses in smaller quantities. The Wholesaler #50 Practice Test Frameworks 10.1

Test End of Chapters 11 and 12 Services Need Marketing & Business-to Business Marketing