Business marketing final

Customer relationship management is accomplished by

-establishing and tracking customer interactions -finding ways of improving customer satisfaction from prior customer experiences -communicating with customers in a personalized way

Steps of a Marketing Process

1. Understand the marketplace and customer needs and wants 2. Design a customer-driven marketing strategy 3. Construct an integrated marketing program that delivers superior value 4. Build profitable relationships and create customer delight 5. Capture value from customers to create profits and customer equity

corporate level strategy

A plan that indicates in which industries and national markets an organization intends to compete.

Why is it important to track customer satisfaction?

D. We discussed the concept of lifetime customer value (LCV) in the text. Customer acquisition can be very expensive, especially with a missionary sell (e.g., convincing a customer that they have a need for an unknown product or service).

Which of the following is an internal party?

Employees are internal parties.

KPI

Key Performance Indicator A measurable value that demonstrates how effectively a company is achieving key business objectives

5M of marketing

Minds (staff), Minutes (Time), Machinery (equipment), Materials (production), Money (financial).

PESTLE analysis

Political, Economic, Social, Technological, Legal, Environmental

Marketing Mix

Product, Price, Place, Promotion

In "SMART goals," what does the "R" stand for?

Realistic and Reasonable

Components of Microenvironments

Suppliers, market intermediaries, customers, general public, competitors.

Strategic Planning Process

Vison statement, mission statement, perform a gap analysis, establish goals and objectives, and monitor progress

What are the 3 questions a GAP analysis answer?

Where are we now? Where would we like to be? What's stopping us from getting there?

Jason, a purchasing agent for an electronics firm, places an order with a supplier for diodes to be used in the manufacturing process. This is an example of a transaction in the ________ market.

a. A B2B (or "business-to-business") transaction is one that is conducted between one business and another.

A program that offers discounts and special incentives designed to attract and retain customers is called a ________.

a. A customer loyalty program offers rewards, discounts, and other special incentives designed to attract and retain customers.

Jenae, a purchasing agent for an electronics firm, places an order with a local office supply company for several dozen reams of copy paper. He has ordered the same brand of paper from the company several times before. This is an example of ________.

a. A straight rebuy is making a routine purchase of a standard product or products with no modifications from a familiar supplier.

Traditionally, in China, the bride's wedding gown is red because the color is associated with good luck, happiness, and prosperity. Which influence on consumer buying behavior does this illustrate?

a. Culture refers to the values, ideas, and attitudes that are learned and shared among the members of a group.

The total potential profits a company earns from its current and potential customers is known as

a. Customer equity is the total potential profits a company earns from its current and potential customers.

The local government has just passed an ordinance requiring manufacturing firms to reduce pollutants from their manufacturing processes. As a result, Shereace Manufacturing Company is investigating the purchase of pollution control equipment. What factor appears to be influencing the B2B purchase?

a. Legal factors include laws, rules, and regulations with which a business or individual must comply.

The extent to which the supply chain adds value to our marketing strategy is best addressed by our evaluation of which of the 5Ms?

a. Materials considers the availability of the resources needed for product. It is the element that looks at the supply.

A travel agency offers adventure trips like hut-to-hut camping in the mountains as well as quieter vacations in all-inclusive resorts. On what basis has the travel agency segmented its market?

a. Psychographic segmentation divides consumers into different groups based on internal characteristics like personality, values, and beliefs.

Ra'Shana's car broke down on the way to work, and she realizes that she needs to quickly find a repair shop to take care of her vehicle. Which stage of the consumer decision process model does this represent?

a. Ra'Shana has detected a difference between her actual state (not having a functional car) and her desired state (having a car that runs).

Donita has determined that the current payroll software system is no longer adequate to handle the growing number of employees in the company. Which stage of the B2B buying process does this illustrate?

a. Similar to consumer buying, the first stage in the B2B buying decision process occurs when someone identifies a problem that can be resolved through a purchase.

What key metrics does the BCG matrix use to show the relative attractiveness of different offerings?

a. The BCG matrix captures the market share and market growth of products in a portfolio of offerings.

________ is/are the benefit(s) to the customer or consumer relative to the cost of the product or service.

a. The benefit(s) to the customer or consumer relative to the cost is known as value.

If you wanted to fill a gap in the marketplace, you would have to carefully consider ________ to see what is already available on the market.

a. The competition has to be assessed to see how well and to what degree the need you hope to fulfill is currently being addressed.

Marcus is preparing a SWOT analysis for the health club he owns. One of the factors he has identified is the fact that the health club is the only facility in the area that offers water aerobics classes. In terms of a SWOT analysis, how would this factor be characterized?

a. The fact that the health club is the only facility in the area to offer water aerobics classes would be categorized as a strength in terms of a SWOT analysis.

The product concept focuses on ________.

a. The product concept is concerned most with the quality of the product a company intends to sell.

Which of the following accurately represents the evolution of marketing?

a. This order accurately represents the evolution of marketing.

How frequently should we monitor KPIs?

a. We should always monitor KPIs on a continuous basis.

In which section of the marketing plan would you identify key internal and external influences on the company's current position?

b. A SWOT analysis identifies key internal influences (strengths and weaknesses) and external influences (threats and opportunities).

Which of the following best describes a gap analysis?

b. A gap analysis is an internal analysis of a company or business unit used to identify deficiencies that may hinder its abilities to meet its goals.

An ongoing positive relationship between a customer and a business is known as ________.

b. Customer loyalty is a customer's willingness to repeatedly return to a company to conduct business.

What do you call the process of managing customer information in order to maximize brand loyalty?

b. Customer relationship management (CRM) is the means through which companies track, manage, and analyze customer interactions.

During the societal marketing concept, ________.

b. During the societal era, it was recognized that society as a whole, had to be considered in all activities.

Interest rates have gone up significantly in the past few months, prompting Johnson Manufacturing to reconsider purchasing a new building. Which factor appears to be at play in this B2B transaction?

b. Economic factors include the level of primary demand, the economic outlook, and the cost of money (i.e., interest rates).

You're at the grocery store buying potato chips for a barbeque you're having this weekend. You normally buy Lay's potato chips, but you notice that Ruffles are on sale, so you pick up a few bags of Ruffles. What buying behavior have you displayed?

b. Habitual buying behavior has low involvement in the purchase decision and doesn't perceive much brand differentiation. If your regular brand isn't available or another brand is on sale, you'll probably buy the other brand.

What is a heuristic?

b. Heuristics are types of preexisting value judgments that are used when people make purchase decisions.

During which stage of the B2B buying process will members of the buying center be called upon to develop a bill of materials?

b. In Stage 2: Need description, the buying center will work to put some parameters around what needs to be purchased and develop a bill of materials.

________ consist of third-party sellers such as retailers, wholesalers, and other resellers in the distribution channel.

b. Market intermediaries are retailers, wholesalers, and others in the distribution channel who help deliver products to the end user.

Which of the following provides the most complete definition of marketing?

b. Marketing is a complex activity and includes creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

In the buyer's black box, external stimuli that are planned and created by the producer and/or seller are known as ________ stimuli.

b. Marketing stimuli are those generated by the marketer and are comprised of the 4Ps of marketing—product, promotion, price, and place.

Attitudes are a composite of a consumer's beliefs, feelings about, and ________ toward a product or service.

b. The behavioral intention aspect of an attitude is what you as a consumer plan to do—buy the brand or not buy the brand.

Which of the following defines the reason why the business exists?

b. The mission statement sums up in a few sentences what the company does, who it serves, and what differentiates it from its competitors.

Jazmine purchases a wireless alarm system for her apartment. According to Maslow's hierarchy of needs, which level of needs does this purchase reflect?

b. The safety and security level of Maslow's hierarchy of needs reflects the need to be safe from physical and psychological harm.

Which of the domains of the macroenvironment are most likely to be responsible for cutting-edge innovations?

b. The technological domain is responsible for emerging production technologies as well as the creation of new innovations that make possible new products.

Hoffman Enterprises has a portfolio of businesses in a wide variety of unrelated industries. One of its strategic business units (SBUs) has high market share in a low-growth industry. How would this SBU be characterized in terms of the BCG matrix?

c. A cash cow has high market share in a low-growth industry.

What is a perceptual map, and how is it used?

c. A perceptual map suggests where your product or service stands in relation to the competition.

Alejandro is a salesperson for a company that manufactures electrosurgical units. He calls on hospitals in his sales region to familiarize the buying centers in the hospitals with the benefits of his company's equipment. Which difference between B2B and B2C markets does this scenario illustrate?

c. B2B purchasing is more likely to involve complex negotiations concerning price, delivery schedules, technical specifications, etc., so personal selling plays a vital role.

You're considering buying a widescreen TV. You've researched different features, looked up and reviewed models on the Internet, and even asked a few friends for their recommendations. What type of buying behavior are you exhibiting?

c. Complex buying behavior involves high involvement in the buying decision and the perception of significant differences between brands.

The decisions and actions people undertake to buy products or services for personal use are known as ________.

c. Consumer buying behavior encompasses the actions you take before buying a product or service.

Which of the following strategies covers the entire organization when the business includes multiple divisions or operating units?

c. Corporate-level strategy covers the entire business in a complex organization in which there are multiple businesses, divisions, or operating units.

Road Scholar is an American not-for-profit organization that provides educational travel programs geared primarily to older adults. On what basis has Road Scholar segmented the market?

c. Demographic segmentation groups consumers by focusing on traits such as age, gender, income,

The demand for smartphones and similar devices has created a demand for other needed components, such as touch-sensitive glass screens, microchips, and circuit boards. This is an example of ________ demand.

c. Derived demand is a market demand for a good or service that results from a demand for a related good or service.

Hoffman Enterprises, a manufacturer of electronic controls for appliances, has segmented its customers based upon the size of the company in terms of revenue and its geographic location. What method of segmenting B2B markets is Hoffman Enterprises using?

c. Firmographics segments customers based on sets of characteristics such as industry, location, size, legal structure, and performance.

Garnier offers a wide range of shampoos, including hydrating shampoo, smoothing shampoo, color-safe shampoo, volumizing shampoo, and more. On what basis has Garnier segmented the market?

c. Garnier has segmented the market based upon the benefits sought by the consumer.

The largest business and organizational market in the United States is ________.

c. Government markets make up the largest single business and organizational market in the United States.

Jason is considering buying a new laptop computer. He is researching different models based on factors like the processor, the hard drive capacity and speed, RAM, operating system, and price. He has also asked a few friends what they like and dislike about their laptops. Which stage of the consumer decision process model does this illustrate?

c. Having identified that he needs a new laptop, Jason is searching for more information about different laptops and their capabilities.

In a SWOT analysis, which factors are internal to the organization?

c. In a SWOT analysis, strengths and weaknesses are factors that are internal to the organization.

Alejandro, the owner of a Mexican restaurant, decides to revise the restaurant's menu. He intends to use the same printing company but has to make several changes in the menu. What type of buying situation does this best illustrate?

c. In a modified rebuy, the purchaser is buying goods that have been purchased previously but changes either the supplier or certain elements of the previous order.

Nathan and his husband have decided to purchase a new car. They have narrowed their list to a few models and visited a few dealerships to see the models and test-drive them. Which stage of the consumer decision process does this illustrate?

c. It appears that Nathan and his husband have already done an information search and are now evaluating their new car alternatives.

Sanjay is creating a SWOT analysis for the vegan restaurant he owns in a small college town. Until recently, there has been only one competitor in the vegan market, but that restaurant has recently closed temporarily due to health code violations. How would this development be characterized in terms of the SWOT analysis?

c. Opportunities are openings for something positive to happen if you can capitalize on them.

You're at the shopping mall looking for a new pair of shoes when you smell the wonderful aroma of freshly baked pretzels. Before you know it, you've bought a giant pretzel with cheese sauce. What type of factors influenced your purchase?

c. Situational factors influencing consumers are external factors that affect how consumers encounter and interact with a product, forming their opinions at that moment in time.

In China, Starbucks offers tea-based drinks featuring regional ingredients. On what basis has Starbucks segmented its market?

c. Starbucks researches the culture of the countries in which it operates so that beverages appeal to local tastes.

Many of the world's high-tech companies are located in Silicon Valley, California, including the headquarters of more than 30 businesses in the Fortune 1000. Which difference between B2B and B2C markets does this illustrate?

c. The B2B market is more geographically concentrated in areas based on cost, access, and availability of resources.

In the exchange process, the ________ is the individual who purchases the product or service, and the ________ is the individual who actually uses the product or service.

c. The customer is the individual or business that purchases the product or service. The consumer is the user of the product or service.

Which of the following best describes a satisfactory exchange process?

c. The exchange process is designed to allow for the transaction to occur without either party feeling like the other has benefitted at its own cost.

During which marketing era concept would companies not only produce products but also try to persuade customers through advertising and personal selling to purchase those products?

c. The goal of the selling concept was simple: beat the competition. Customer needs and satisfaction took a back seat to beating the competition.

Garrett's company is considering whether or not to purchase new manufacturing equipment that will lower its manufacturing cost significantly and improve its profit margins. Which factor appears to be influencing the B2B purchase?

c. The goals and objectives act as a major element as to what the business purchases.

The human resources manager submits a request to upper management for a new software package that will manage payroll, benefits, compliance, and information technology. Within the buying center, what role is illustrated by this scenario?

c. The initiator is the individual within the buying center who first suggests the idea of purchasing a new product or service.

A blueprint that outlines the product the company will be building, what it is going to look like, and its specific requirements and functions is known as a ________.

c. The purpose of a product specification is to provide a description and statement of the requirements of a product, the components of a product, the capability or performance of a product, and/or the service or work to be performed to create a product.

Which of the marketing eras or concepts is most closely related to sustainability and environmental consciousness?

c. The societal marketing concept involves meeting consumers' and businesses' current needs while simultaneously being aware of the environmental impact of marketing decisions on future generations' ability to meet their needs.

Janelle and her sister are planning a reception for their parents' 50th wedding anniversary. They have looked at several venues, comparing size, location and accommodations, photo opportunities, and parking. What stage in the consumer decision process model does this best illustrate?

c. They are evaluating the "bundle of attributes" of each venue.

What do you call the plans, actions, objectives, and goals that outline how a business will compete in its chosen markets?

d. A business's overall strategy encompasses the plans, actions, objectives, and goals that outline how the business will compete in its chosen markets given its portfolio of products or services.

Which strategy involves the creation of new or improved products to replace existing ones in order to improve a company's competitive position and sales?

d. A company that pursues a product development strategy introduces new (and/or improved) products into the market to replace existing ones in order to improve its competitive position and sales.

________ needs are those that provide the "wow" factor in a customer's purchase.

d. A delight need is an added value you may get from the seller without prior expectation or request for the same.

The observation is made that a single data point in isolation is not very useful. What can we do with a KPI data point to make it useful?

d. A single data point in isolation tells us very little. However, we can compare the data point to other data points (for example, historical results, forecasts, operating tolerances, or industry averages) to judge our effectiveness.

Metro Corp. wants to acquire a new IT system, and Aliyah has been charged with selecting potential new vendors. Within the buying center, what is Aliyah's role?

d. Buyers are those who have authority within the organization to select suppliers and negotiate and arrange the purchase terms.

Which type of customer relationship management (CRM) system would pool data from outside companies and organizations in order to create even better experiences for their customers?

d. Collaborative CRM is sharing customer data with outside companies. It can give the company a fuller perspective on customers by collaborating with other companies in order to obtain data to which it would not otherwise have access.

Shane's company has been experiencing a downturn in sales, and cash is tight right now. This has caused Shane to look only at suppliers who offer credit to the company. Which factor appears to be influencing the B2B purchase?

d. Conditional factors include the present financial condition of the organization, as well as product/service availability.

DaVonte has a home repair business. He goes to a home improvement store to purchase a large quantity of lumber for his next repair project. While he is there, he picks up batteries for the smoke detector in his house. In this scenario, the lumber is a ________ purchase, and the batteries are a ________ purchase.

d. DaVonte's purchase of the lumber in connection with his business is a B2B transaction; the purchase of batteries for the smoke detector in his house is a B2C transaction.

During which stage of the B2B buying process will the B2B buyer negotiate the order?

d. In Stage 7: Order-routine specification, the B2B buyer negotiates the order, listing the technical specifications, the quantity needed, the expected time of delivery, etc.

In which section of the executive summary of a marketing plan would you describe the current marketplace and industry sectors within which you sell your products or services and the innovations currently taking place within the market?

d. In this paragraph of the executive summary, you would describe the current marketplace and industry sectors in which you sell your products and/or services, the trends affecting and influencing them, and the innovations currently taking place within the market.

Peloton's main products are Internet-connected stationary bikes and treadmills that enable subscribers to remotely participate in live classes via streaming media. This enables subscribers to have a "spin class" experience without going to the gym. On what basis has Peloton segmented the market?

d. Just like our in-text example of Mirror, Peloton speaks to the personality of people who want to work out but can't find the time to go to the gym.

What are key performance indicators (KPIs)?

d. KPIs consist of a very focused selection of core variables that allow us to monitor the health/performance of the organization.

Samantha sees a TV commercial announcing that a mattress she's been considering is on sale through the holiday weekend and makes plans to visit the store the next day in order to take advantage of the sale. In terms of the buyer's black box, how would this TV commercial be characterized?

d. Purchase timing is the outcome of the thinking that takes place in the buyer's black box. Samantha is stimulated to buy the mattress during the holiday weekend in order to take advantage of the sale.

The tendency of people to interpret information in a way that supports what they already believe is known as ________.

d. Selective distortion is the tendency of people to interpret information in a way that fits their preconceived notions.

Jackson has asked several qualified vendors to submit proposals. Which stage of the B2B buying process does this illustrate?

d. Stage 5 of the B2B buying process is proposal solicitation, in which qualified vendors are asked to submit proposals.

At which step in the marketing process would the lifetime values to a company's customers be considered?

d. The aim of successful customer relationship management is to produce high customer equity.

A worldwide shortage of microchips has prompted Vorderman Enterprises to use a new vendor who has higher prices but can deliver the product on time. Which factor appears to be at play in this B2B transaction?

d. The availability of the product or service plays a significant role in the buying decision, and availability is a conditional factor.

You want to target a market more narrowly than simply using demographic data. You are also considering segmenting on people's attitudes and interests. Which domain of the macroenvironment is most likely to be a relevant data source for your decision-making?

d. The social and cultural domain is concern with such things as social trends, attitudes, and opinions.

Which of the following terms refers to the promised value of a product or service?

d. The value that a product promises to deliver is called the value proposition.

In which section of the marketing plan would you include a competitive analysis and discussion of the company's top competitors?

d. Within the current marketing situation of your marketing plan, you should include a competitive analysis and a discussion of how competitors fare in the marketplace.

B2B are driven by what demand

derived demand

B2C (business-to-consumer) are driven by what demand

direct demand

Coca-Cola's mission is to refresh the world, and to that end, it has ensured that you can buy a Coke product at numerous locations—vending machines, convenience stores, restaurant fountains, stadiums, etc. What type of utility has marketing created through this process?

place utility

what are 8 stages of B2B buying process

problem recognition, need description, product specification, supplier search, proposal solicitation, supplier selection, order specification, performance review.

SWOT analysis

strengths, weaknesses, opportunities, threats

What is customer relationship management (CRM)

the means through which companies track, manage, and analyze customer interactions.

Define market segmentation

the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups