Marketing Test Chapters 7-12

Summarize the six alternative strategies for entering global markets.

The six alternative strategies for entering global markets are exporting, franchising and foreign licensing, subcontracting, international divisions, acquisitions, and joint ventures.

Describe the six steps in the marketing research process.

The six steps in the marketing research process are define problem, conduct exploratory research, formulate hypothesis, create research design, collect data, and interpret and present research information.

Describe the four categories of business markets.

commercial, reseller, government, and institutional. Each is defined by market size, participants, and specific goods and services transacted.

Contrast the three classifications of consumer products in terms of consumer factors and marketing mix factors.

A firm's choices for marketing a good or service depend largely on the products themselves and the characteristics and behavior of the target market. Products sold in the consumer market are marketed differently than products marketed in the business market. Some products fall into both categories.

Outline the five roles within the buying center.

There are typically five main roles in a buying center: users, influencers, gatekeepers, buyers, and deciders.

Outline the various types of brand strategies used by marketers.

Because of the value associated with strong brand equity, firms expend considerable resources and task-specific staff with the development and maintenance of their brands. Brand managers, category manager, and product managers are common roles used in organizations today.

Summarize the major elements of brand equity.

Brand equity refers to the added value a brand name gives to a product in the marketplace. Brands with high brand equity often command comparatively large market shares, and consumers may pay little attention to differences in prices.

Differentiate the methods used to develop and protect brand identity.

Brands are classified in three distinct ways: generic, private, and manufacturer. Each has a different set of characteristics that defines it. In making branding decisions, firms weigh the benefits and drawbacks of each type of brand.

Describe the two primary market classifications.

Consumer products are bought by ultimate consumers for personal use. Business products are purchased for use either directly or indirectly in the production of other goods and services for resale.

Describe the five categories of purchasers based on relative time to adoption.

Consumers differ significantly in how rapidly they adopt new products. The fastest group is known as innovators; other categories include early adopters, early majority, late majority, and laggards.

Distinguish product mix breadth from product line depth.

The breadth of a product mix refers to the number of different products a firm sells. Product line depth refers to variations in each product the firm markets in its mix.

Describe the global business landscape in terms of U.S. imports, U.S. exports, and major industries.

Global marketing expands a company's market, allows firms to grow, and makes them less dependent on their own country's economy for success.

Given a list of marketing research data from various sources, classify as either primary or secondary data.

It is important for marketers to understand the difference between primary and secondary sources of data so they can design marketing research projects that accurately answer the right questions within the time and budget required by the company.

Summarize the three major objectives of packaging.

Like its brand name, a product's package can powerfully influence buyers' purchase decisions. A package serves three major objectives: protection against damage, spoilage, and pilferage; assistance in marketing the product; and cost-effectiveness.

Differentiate the four stages of the product lifecycle in terms of industry sales and profits.

Like people, products progress through lifecycle stages: introductory, growth, maturity, and decline. Each of these stages is associated with distinctive fluctuations in overall industry sales and profits.

Given an example of a product, identify marketing strategies for that product's stage of the product lifecycle.

Marketers face different challenges as their products move through the product lifecycle. They may need to stimulate demand, encourage trial, counter intense competition, or make deletion decisions.

Describe four types of geographic segmentation.

Marketers have long practiced geographic segmentation—dividing an overall market into homogeneous groups based on their locations. Four types of geographic segmentation are market size, market density, climate, and region.

Given an example of a company's goals for expanding globally, determine the most appropriate market entry strategy.

Marketers must consider factors such as risk propensity, local demand for the product, degree of control, and knowledge of the foreign market when considering which market entry strategy is most appropriate.

Distinguish between the three basic strategies for reaching target markets.

Marketers spend a lot of time and effort developing strategies that best match their firm's product offerings to the needs of particular target markets. An appropriate match is vital to the firm's marketing success. Marketers have identified three basic strategies to effectively reach target markets: undifferentiated marketing, differentiated marketing, and concentrated marketing.

Explain how marketers build value propositions utilizing positioning strategies.

Once firms have selected a target market, marketers must then decide how best to position the product. The concept of positioning seeks to put a product in a certain position, or place, in the minds of prospective buyers.

Describe the three forms of behavioral segmentation.

Segmentation based upon how consumers behave with respect to a product may also enable marketers to group or classify individuals who exhibit similar behavior. Three forms of behavioral segmentation are segmentation by benefits sought, usage rates, and brand loyalty.

Explain how companies organize to manage brands and products.

Organizations identify their products in the marketplace with brand names, brand marks, and distinctive packaging, and protect these brand elements with trademarks.

Compare the three principal methods of collecting primary marketing research data.

Primary data refers to information collected for the first time specifically for a marketing research study. The three principal methods of collecting primary marketing research data are observation, survey, and experimental.

Summarize methods commonly used for measuring and managing product quality.

Product quality as a marketing strategy may be pursued for both tangible goods and intangible services. Methods such as quality programs, benchmarking, and implementation of Lean or Six Sigma methods can help firms make objective, actionable quality assessments.

Contrast psychographic segmentation with other segmentation variables.

Psychographic segmentation is defined as differentiating population groups according to values and lifestyle factors which are common to the group.

Summarize four sources of secondary marketing research data.

Secondary data is information from previously published or compiled sources and comes from many sources. The four sources of secondary marketing research data are internal, government, industry, and research services.

Distinguish between goods and services.

Services are intangible products. You can't hold a service in your hand. By contrast, goods are tangible products that customers can see, hear, smell, taste, and/or touch.

List the seven steps in the organizational buying process.

Step 1: Anticipate or Recognize a Problem, Need, or Opportunity Step 2: Define Characteristics and the Quantity of a Needed Good or Service Step 3: Search for and Qualify Potential Suppliers Step 4: Gather and Analyze Proposals Step 5: Evaluate Proposals and Select Supplier(s) Step 6: Select an Order Routine Step 7: Obtain Feedback and Evaluate Performance

Summarize how technology is used to assist collection and analysis of marketing research data.

Technology has changed how marketing research is collected, reported, and analyzed. Marketers can now analyze volumes of data and find insights within that data that would have been nearly impossible using manual analysis techniques of the past.

Differentiate between WTO, NAFTA, and EU in terms of basic functions and member countries.

The World Trade Organization oversees GATT agreements, mediates disputes, and tries to reduce trade barriers throughout the world. The European Union is a customs union whose goal is to remove all barriers to free trade among its members. The North American Free Trade Agreement removes trade restrictions among Canada, Mexico, and the United States.

Identify the six types of business products.

The classification system for business products emphasizes product uses rather than customer buying behavior. Business market products generally fall into one of six categories for product uses: installations, accessory equipment, component parts and materials, raw materials, supplies, and business services.

Describe the five alternative marketing mix strategies used in global marketing.

The five alternative marketing mix strategies used in global marketing include straight extension, promotion adaptation, product adaptation, dual adaptation, and product invention.

Summarize the five major factors that influence the global marketing environment.

The five major factors that influence the global marketing environment are the economic, social-cultural, technological, political-legal, and competitive environments.

Outline four considerations for conducting marketing research in global markets.

The four considerations for conducting marketing research in global markets include access to secondary data, language differences, the global business environment, and data collection methods.

Given a target market profile, classify each variable according to its base of segmentation.

The four primary segmentation bases are geographic, demographic, psychographic, and behavioral. All four bases can be utilized in combination to create a more complete customer profile and enable marketers to effectively communicate their value proposition.

Summarize the five most commonly used demographic variables.

The most common method of market segmentation—demographic segmentation—defines consumer groups according to demographic variables such as gender, age, ethnic group, family lifecycle stage and household type, and income.

Summarize the four strategies for new product development.

The most effective strategy for new product development depends on a firm's current product mix and market conditions. Companies may choose to develop new offerings through market penetration, market development, product development, or product diversification.

Summarize the three components necessary for effective market segmentation.

The three criteria for effective segmentation are that the segment should be significant in size and purchasing power, profitable, and consistent with the firm's marketing capabilities.

Describe the six steps in the product development process.

To minimize the risks of new product development, firms follow a disciplined step-by-step development process. The steps include idea generation, screening, business analysis, development, test marketing, and commercialization.

Describe the three major factors that influence purchase decisions in the business market.

To understand organizational buying behavior, business marketers require knowledge of influences on the purchase decision process. These influences are environmental factors, organizational factors, and interpersonal factors.

Summarize the three major ways marketers segment business markets.

he three major ways to segment business markets are by demographics, customer type, and end-use application.

Compare the major characteristics of the business market to the consumer market.

products, size and number of buyers, promotion, distribution, geographic market concentration, buyer-seller relationships, and purchase decision process.