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MKT 300 Exam 2, Exam 2- Chapter 7, MKTG 3832 Exam 2 Williams, Chapter 7: Business Marketing, Test 2 ch. 7-12

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Stage 5

Acquire and analyze proposals ex: may involve competitive bidding, especially if the buyer is the government or a public agency

1.) You work in the stock market. Stock markets allow businesses to raise additional funds for new projects, business expansions, and capital investment plans. Moreover, they enable the public trading and selling of market shares of a company. Major purchases of stock typically require input from various parts of the organization, including senior management and accounting. One of your colleagues, Amos, works in the IT department of one of the U.S.-based tech firms for which you are trading. Amos is in charge of receiving information about new technologies from commercial sources, universities, and Web-based sources, to name a few, and then working with other IT professionals to find solutions. Which of the following statements is true about the buying center described above?

Amos has a dual role as a gatekeeper and influencer.

1.) You work for a firm that franchises high-end spas. The company wishes to identify promising new locations. Your marketing research consultant believes you can forgo the costly collection of primary data, because secondary data will provide the key information you need. You were skeptical, but his or her presentation changed your mind. His or her presentation included all of the following points except:

Because of your up-to-date mailing list, you can readily implement cost-effective mail surveys.

What are the 3 stages of brand loyalty? Explain them.

Brand recognition-consumer awareness and identification of a brand (you received a coupon in the mail to try a new type of cookie and use the coupon to purchase it.) Brand preference- consumer choice of a product on the basis of a previous experience Brand insistence- consumer refusal of alternatives and extensive search for desired merchandise

1.) Estee Foods has succeeded in the highly competitive candy market by focusing on sugar-free sweets that meet the needs of people on strict sugar-free diets, like diabetics. Estee practices which of the following strategies for reaching its target market?

Concentrated marketing.

1.) Which of the following is not part of the international political-legal environment that affects U.S. firms operating abroad?

Cultural norms.

According to the scenario presented above, at which of the following stages is cable television?

Decline

Explain the Marketing Research Process

Define problem conduct exploratory research- seeks to discover the cause of a specific problem by discussing the problem with informed sources both inside and outside the firm and by examining data formulate hypothesis-a tentative explanation for some specific event create research design- a master plan or model for conducting marketing research collect data primary- information collected for the first time specifically for a marketing research study (notes, telephone survey, questionnaire) secondary-information from previously published or compiled sources (newspaper, magazine clippings, info graph on tv Interpret and present research info- present them to decision makers in a format that allows managers to make effective judgments

h stage of the new product development process should a firm typically expect the first substantial increase in its financial outlays on the process?

Development

Define "Relationship Marketing"

Development, growth, and maintenance of long term, cost effective relationships with customers, suppliers, and employees

1.) You're the marketing director for a startup firm in the snack food industry. In the past, you've sold only to small specialty stores, but now you hope to crack a major supermarket chain. As you plan your approach to this prospective new buyer, which of the following likely influences on its decision should you consider?

Interpersonal influences and organizational factors.

You are learning about strategies that can help a friend's company extend her product's lifecycle. Your friend, Celeste, sells desserts locally and is known for her holiday cakes. Which of the following strategies is likely to be unsuccessful in extending the lifecycle of her cakes?

Introduce a line of pies

What are the benefits of a global marketing strategy?

It can effectively market goods and services to segments in many nations It can be highly effective for luxury products that target upscale consumers everywhere It has a low cost to implement

What are the advantages of the supply chain?

It increased innovation Decreased costs Improved conflict resolution within the chain Better communication among members of the chain

Define "benchmarking"

Measuring the quality by comparing performance against the industry leaders

Define "Limited-Service Research Suppliers"

Organization that specializes in a limited number of activities, such as conducting FIELD INTERVIEWS or preforming data processing

Define "Business-to-Business Marketing"

Organizational sales and purchases of goods and services to support production of other products one business makes a commercial transaction with another. This typically occurs when: A business is sourcing materials for their production process (e.g. a food manufacturer purchasing salt).

Define "brand name"

Part of a brand that can be SPOKEN

Name the four components of a marketing mix

Product Price Promotion Place/distribution

Stage 6

Evaluate proposals and select suppliers ex: buyers choose the proposal best suited to their needs --final choice involves trade-offs

1.) The organizational buying process is multifaceted and is demonstrated through a seven-stage process. Which of the following descriptions pertains to an activity that the purchaser would be likeliest to undertake during the last stage?

Examine the frequency of on-time delivery.

1.) As a marketing strategist just hired by your company, you want to be respectful of your new colleagues. However, during a meeting to plan research into the firm's global opportunities, a coworker clearly errs in one of his or her comments. You feel obligated to point out his or her mistake. Which of the following statements do you point out?

Face-to-face interviewing is the least common method for conducting primary research outside the United States.

Define "Frequency Marketing"

Frequent buyer marketing programs that reward customers a marketing strategy which is used to lure and retain customers for a long term

You work for a popular restaurant chain. Now your firm wants to transition into selling prepared foods to supermarkets. How is the company's form of promotion most likely to change?

From an emphasis on advertising to an emphasis on personal selling.

Characteristics of the B2B Market

Geographic Market Concentration: the US business market is more concentrated than the consumer market, certain industries locate in particular areas to be close to customers, due to the internet, business markets may become less geographically concentrated

Apple products have had an exciting lifecycle, which indicates just how large and in demand the company's product lines are. While it took the iPod five years to break the 30 million units per year mark, the iPhone reached this mark in four. The iPad reached this mark in two years. Modifications of its popular products continue to sell briskly to new buyers as well as to early Apple customers, despite ever-increasing competitive pressure. Based on the details provided in the scenario above, in which of the following stages of a product lifecycle are Apple products?

Growth

What are "Shopping Products?"

Homogeneous- airplane flights, computers Heterogeneous- childcare, Zumba, yoga)

1.) In your new marketing position with an international company making custom leather boots, you recognize the global environment offers a different set of challenges for you to navigate on behalf of your employer. You have been assigned to track product sales to Spain. Which of the following information should you thoroughly familiarize yourself with, to respond to Spain's political-legal environment?

Import tariffs on leather goods.

What are "Convenience products?"

Impulse- magazines, gum, candy Staples- gas, dry cleaning, milk Emergency- emergency room visit, asthma inhaler, plumbing repair kit

Define "Brand mark"

Symbol or pictorial design that distinguishes a product

Example of NAICS Hierarchy

See slide #6

As consumers opt to watch their favorite television shows and movies online via Web-streaming platforms such as Netflix and Hulu, the appeal of cable television seems to have dwindled. Some cable companies have gone out of business, and others have merged to ensure stability during these challenging economic times. According to the scenario presented above, at which of the following stages is cable television? a. Growth b. Decline c. Challenged d. Maturity

b. Decline

Define "Brand Licensing"

The leasing of a brand name to a company other than the owner of that particular brand. As an example, a beer company located in Europe could lease its brand name to an American brewer. Practice that expands a firm's exposure in the marketplace

You work for a new company in an emerging market, the 3D printer industry. With about 200 employees, your company is undoubtedly growing, and order requests have doubled within the last year. Because of the size of your company, you are not quite ready to compete with industry giants. You do, however, understand that there is a huge potential for success because a 3D printer can potentially be used for a wide range of activities, including printing products within the home, printing organs for transplant that can be used in operating rooms across the world, and printing and filling small orders for local businesses. Which of the following types of business-to-business market segmentation would you use in the scenario described above? a. Customer-type segmentation. b. End-use application segmentation. c. Buyer decision segmentation. d. Demographic segmentation.

b. End-use application segmentation.

The organizational buying process is multifaceted and is demonstrated through a seven-stage process. Which of the following descriptions pertains to an activity that the purchaser would be likeliest to undertake during the last stage? a. Identify an improvement to be made in how the purchaser operates. b. Examine the frequency of on-time delivery. c. Ascertain which company best meets the purchaser's needs. d. Accept competitive bidding in writing. e. Decide the design and necessary amount of the product to be made.

b. Examine the frequency of on-time delivery.

1.) You work for a tech firm that wants to invest in some capital development projects that could potentially position the company as a multinational giant in the competitive market. One of the projects would require your company to purchase a $500 million software package. Company executives believe the investment would pay off; however, before approving such a costly purchase, they want to identify someone in the IT department who has the expertise to work with this highly specialized package. The person would play a key role within the buying center. Which role would the IT expert be likeliest to play?

User.

1.) Last year, you left a job in consumer marketing to take one in business marketing. The shift required you to become accustomed to all of the following changes except:

You have more potential buyers than before.

What are "Unsought Products?"

a product of which consumers are unaware or are not that interested in actively pursuing for purchase long term health care, insurance

What are "Specialty Products?"

a product that certain consumers will actively seek to purchase because of unique characteristics or loyalty to a specific brand. Luxury products (Lexus, Tory Burch, Botox)

Straight re-buy

a recurring purchase decision in which a customer repurchases a good or service that has performed satisfactorily in the past less involving

You work in the stock market. Stock markets allow businesses to raise additional funds for new projects, business expansions, and capital investment plans. Moreover, they enable the public trading and selling of market shares of a company. Major purchases of stock typically require input from various parts of the organization, including senior management and accounting. One of your colleagues, Amos, works in the IT department of one of the U.S.-based tech firms for which you are trading. Amos is in charge of receiving information about new technologies from commercial sources, universities, and Web-based sources, to name a few, and then working with other IT professionals to find solutions. Which of the following statements is true about the buying center described above? a. Amos has a dual role as a gatekeeper and influencer. b. Stock markets cannot function as buying centers because they do not have formal organizational structures. c. Amos could potentially function as a user and as a gatekeeper. d. Amos functions as a buyer within the business center.

a. Amos has a dual role as a gatekeeper and influencer.

After spending time in the marketing department of a cookware company based in Ohio, you've been told to prepare for a move to a new international division. Your boss hasn't specified its location—only that it will be outside the most mature markets for many U.S. consumer products. Based on that information, you can assume the move will not take you to: a. Canada. b. China. c. Brazil. d. India.

a. Canada.

Inventory Adjustments

adjustments in inventory policies can also affect business demand

Influencers

affect the buying decisions by supplying information to guide evaluations of alternatives or by setting buying specifications

Stage 1 in the B2B Buying Process

anticipate a problem/need/opportunity and a general solution ex: need to provide employees with coffee to enhance productivity

1.) Airbnb, the online home rental business, has partnered with the Hearst publishing company to create Airbnb Magazine. This is primarily an example of:

brand extension.

Define a "Trademark"

brand for which the owner claims exclusive legal protection

1.) You are preparing a seminar for your colleagues on the topic "How Marketers Protect Brand Equity." Which of the following pairs of terms and examples should you use when you explain the symbol that distinguishes a product?

brand mark, Nike swoosh

A firm's buying center encompasses everyone who is involved in any aspect of its ___________ activity

buying

Sole Sourcing

buying a firm's entire stock of a product from just one vendor

Reciprocity

buying from suppliers who are also customers taboo

You are browsing through job listings for global marketing-related jobs on Monster.com. One job catches your attention because it lists the following major responsibilities that closely match your experience: The candidate will be involved in purchase decisions of robotic manufacturing firms in Asia. The candidate will be involved in setting up an independent division with responsibility for robotic equipment production and marketing. The candidate's major focus will be on evaluating the performance of robotic manufacturing activities and incorporating strategies for effectiveness and efficiency. The candidate should have an international customer value orientation. Which of the following terms best describes the focus of this job? a. Foreign licensing. b. International contract management. c. International direct investment. d. Franchising. e. Exporting.

c. International direct investment.

As an experienced marketer, you understand the importance of thinking critically about any proposal to add breadth or depth to your product mix. Whenever a member of your team makes such a proposal, you ask all of the following questions except: a. Do all of our current products make adequate contributions to our portfolio? b. Are we overlooking a viable consumer segment? c. Are we matching the breadth and depth of our competitors' product mixes? d. Are we at risk of ending up with too many products?

c. Are we matching the breadth and depth of our competitors' product mixes?

Benchmarking involves three steps. Which of these steps requires external analysis? Step 1: Identifying processes that need improvement. Step 2: Comparing processes to those of industry leaders. Step 3: Implementing changes for quality improvement. a. None of the steps requires external analysis. b. Step 1 c. Step 2 d. All of the steps require external analysis.

c. Step 2

Mercy Hospital needs to purchase a highly specialized drug that is patented and sold by only one pharmaceutical company. These constraints will primarily affect which step in the organizational buying process? a. Step 1. b. Step 2. c. Step 3. d. Step 6. e. Step 7.

c. Step 3.

Below is a list of the five new-product adopter categories. In what order do these groups of consumers adopt new products? Category 1: Laggards Category 2: Late majority Category 3: Consumer innovators Category 4: Early majority Category 5: Early adopters a. 4, 2, 1, 5, 3 b. 3, 4, 1, 2, 5 c. 5, 4, 3, 2, 1 d. 3, 5, 4, 2, 1

d. 3, 5, 4, 2, 1

You're the marketing director for a startup firm in the snack food industry. In the past, you've sold only to small specialty stores, but now you hope to crack a major supermarket chain. As you plan your approach to this prospective new buyer, which of the following likely influences on its decision should you consider? a. Economic constraints and organizational changes. b. Demand influences and social factors. c. Category influences and organizational changes. d. Interpersonal influences and organizational factors.

d. Interpersonal influences and organizational factors.

Joint Demand

demand for a product that depends on the demand for another product used (ex: consumer conserve energy, demand for electricity falls, fewer plants are built and less machinery added, so fewer replacement parts or components used to generate electricity are needed)

You work for a popular restaurant chain. Now your firm wants to transition into selling prepared foods to supermarkets. How is the company's form of promotion most likely to change? a. From social media to TV ads. b. From an emphasis on advertising to an emphasis on publicity. c. From TV ads to radio ads. d. From an emphasis on personal selling to an emphasis on advertising. e. From an emphasis on advertising to an emphasis on personal selling.

e. From an emphasis on advertising to an emphasis on personal selling.

Environmental Factors

economic, political, regulatory, competitive and technological considerations influence business buying decisions, natural disasters

Influences in B2B

environmental organizational interpersonal

New-Task Re-buy

first-time or unique purchase situation that require considerable effort by decision makers more involving

Define "Target Market"

group of people a firm believes is most likely to buy its goods and services

Define "Market"

group of people with sufficient purchasing power, authority, and willingness to buy

Segmenting by Demographic Characteristics

grouping by size, based on sales, revenues, or number of employees

Buyer

has the formal authority to select a supplier and to implement the procedures for securing goods and services

80/20 principle

holds that 80 percent (more or less) of a product's revenue comes from 20 percent (more or less) of its customers.

Commercial market

individuals and firms that acquire products to support, directly or indirectly, production of other goods and services --largest market

Your company is experiencing technical problems and financial losses with one of its products. Which stage of its lifecycle has the product most likely reached?

introductory

Expense Items

items the are consumer quickly so costs are charged against income (supplies, maintenance, materials)

Capital Items

larger, long-lived assets that depreciate over time, meaning part of their costs are charged against company revenue

____________ shifts in a consumer demand can greatly affect certain manufacturers

modest

Offshoring

movement of higher-wage jobs from one country to lower-cost overseas locations

Near-shoring

moving jobs to vendors in countries close to the business's home country (Canada and Mexico are attractive locations to US firms)

Stage 8

obtain feedback and evaluate performance --some firms rely on outside organizations to gather quality feedback and summarize needs

Business-to-Business Marketing

organizational sales and purchases of goods and services to support production of other products, to facilitate daily company operations or for resale

buying center

participants in an organizational buying action

Public and Private Institutions

public and private comprise a wide range of organizations --hospitals, churches, rehabs, colleges, museums, not-for-profits

Multiple Sourcing

purchasing from many vendors and spreading orders among them --this ensures against shortages, but takes time and complicates the process

Consumer buying involves purchases made by individuals. We purchase items for our own use and enjoyment, not _______

resale

B2B purchases are made by businesses, government and marketing intermediaries to be ....

resold combined with other items used up in day-to-day operations of the organization

Trade industries

retailers or wholesalers that purchase products for resale to others ex: target

Segmentation by Purchases Categories

segmenting according to organizational buyer characteristics

Category Advisor

trade industry vendor who develops a comprehensive procurement plan for a retail buyer

Merchandisers

trade sector buyers who secure needed products at the best possible prices; determining needs, locating and evaluating alternative suppliers, making purchase decisions

Define "Concentrated Marketing"

type of marketing that focuses its efforts on profitably satisfying a single market segment concentrated marketing, because yours is a small business lacking financial resources and offering highly specialized goods

Define "Undifferentiated Marketing"

type of marketing that focuses on producing a SINGLE product and marketing it to ALL customers (mass marketing)

Influences on Purchases

--Environmental Factors --Organizational Factors --Interpersonal Influences

problems with offshoring and outsourcing

--cost savings are less than expected --can raise security concerns over proprietary technology or customer data --can reduce a company's ability to respond quickly to marketplace --can create conflicts between nonunion outside workers and in-house union employees --can negatively affect employee morale and loyalty

Volatile Demand

--derived demand creates volatility in business market demand, or volatile demand --If demand for a good decreases even slightly, a firm may hold off on buying new equipment or facilities related to producing that good

Buying Center roles

--users --gatekeepers --influencers --decider --buyer

Company Characteristics

-Geographic location -Volume of Purchase -Company size -Product use

reasons for outsourcing

1) cost reduction 2) quality and speed of software maintenance and development 3) greater value

Firms acquiring finished goods have 3 options

1) make the good or provide the service in house 2) purchase it from another organization 3) lease it from another organization

Define "Brand Extension"

A strategy of attaching a popular brand name to a new product in an unrelated product category

Define "Partnership"

affiliation of two or more companies that help each other achieve common goals

Business markets differ from consumer markets in several ways. Choose the correct example(s) of these differences.

Personal selling is usually emphasized more in business than consumer markets.

Define "Comarketing"

Two or more businesses jointly market each other's products

Business Marketing on the Internet

-B2B e-commerce is the use of the Internet to facilitate the exchange of goods, services, and information between organizations. -Many B-to-B marketers are experimenting with how to use social media to build successful relationships with business customers. 1. In 1995, there were few commercial Web sites, and those that did exist were static. Today, B-to-B sites look more like consumer sites with social media, valuable content, and community building applications. 2. A recent study found that, in 2012, 32 percent of marketers were "very" or "fully" engaged in marketing through social channels, compared with 21 percent in 2011. 3. Content marketing is becoming more and more important to B-to-B marketing.

What is the Distribution Decision?

1. Firm just decide on a method of entering the foreign market 2. Firm must determine how to distribute the product within the foreign market

Types of Business Products

1. Major equipment: capital goods such as large or expensive machines, airplanes, buildings. Depreciated over time, often custom-designed. Personal selling is an important marketing strategy. 2. Accessory equipment: Less expensive and shorter-lived than major equipment, includes fax machines, personal computers, power tools. Often charged as an expense. Often standardized and purchased by more customers. 3. Advertising is an important promotional tool. Raw materials: Unprocessed products, such as minerals, timber, wheat, corn, fish. Become part of finished products. Personal selling is the marketing mix component used, distribution channels usually direct from producer to business user. 4. Component parts: Finished items ready for assembly or that need very little processing. Examples are tires and electric motors. Two important markets for component parts: original equipment manufacturer (OEM) and replacement market. 5. Processed materials are used directly in manufacturing other products. Sheet metals, chemicals, and lumber. Do not retain their identity in final products. Price and service are important factors in choosing a supplier. 6. Supplies are consumable items that do not become part of the final product. Short lived and inexpensive. Generally fall into categories of maintenance, repair, or operating supplies (MRO), and include such items as detergents, pencils, paper, etc. 7. Business services are expense items that do not become part of the final product. This includes janitorial, advertising, legal, management consulting, marketing research, and maintenance services.

The new-product development process is often costly, risky, and requires a significant amount of time on the part of the company developing the product. Your company is developing a new product. Hoping to be successful, your product development manager follows the six-step development process. The rate of new product failure averages 80 percent; however, he or she knows that a company can reduce the chances of a new product's failure by implementing and carefully proceeding through this process. Below is a description of what occurs during each of the six steps in the development process. In what order should these activities take place? Step 1: Your company runs through a checklist of standards to be met for its products. Step 2: The product is assessed to find out its likely growth and competitiveness. Step 3: The product is ready for full-scale marketing. Step 4: Your company has an idea for a new product. Step 5: Your company converts the new product idea into a visible prototype. Step 6: This step will help determine a consumer's reaction to the new product in a real-world environment.

4, 1, 2, 5, 6, 3

What are the benefits of going global?

A company gets additional revenue a new insight an advancement of new products

Your professional rival, Maureen, works for one of your company's competitors. You both work for companies that specialize in condiments and salad dressings. Maureen's company's major product is a seasonal salad dressing, which happens to be in the decline stage of its product lifecycle. She asks your advice about how to extend the product's lifecycle. You do not want Maureen's company to outcompete your company in the market. Which of the following steps would you tell her to take?

Eliminate the product and introduce a completely new one

You have been hired as the new head of development for a dessert company and have been asked to come up with strategies to expand one of your many product lines. Since the market share for cheesecake continues to increase, you are interested in enhancing the depth of this product's mix. You are aware of changing consumer demands and tastes and want to create an innovative variation that does not deviate too much from the cheesecake line. You and your staff conduct market research and collect feedback from customers. Survey responses indicate that though customers enjoy cheesecake treats, they are becoming more health conscious. You decide to come up with a sugar-free cheesecake. As an experienced marketer, you understand that though there are several general advantages to adding depth, some general drawbacks exist as well. Which of the following drawbacks is most likely to hinder sales of the new cheesecake?

After adding the cheesecake variation, your firm may be selling too many desserts overall.

Are we matching the breadth and depth of our competitors' product mixes?

What are the five stages in the consumer adoption process?

Awareness Interest Evaluation Trial Adoption/rejection

1.) While totaling your quarterly receipts for your business, The Breakfast Bar, you note that a sizable amount of your revenue comes from selling packaged coffee beans to regular customers who come in every day for an extra-large cup of coffee togo. Your plan for the next quarter is to promote your selection of fresh roasted beans with a buy one, get one half off incentive to encourage these customers to purchase more and/or try something new. Which segmentation approach are you employing to bolster sales for the next quarter?

Behavioral.

Evaluative Criteria for Business Buyers

Business buyers evaluate products and suppliers against the criteria of quality, service, and price—in that order. 1) Quality refers to technical suitability. Quality improvement should be part of every organization's marketing strategy. 2) Service includes prepurchase as well as postpurchase service, along with dependability of supply. Services that help sell the finished products are especially appropriate when the seller's product is an identifiable part of the end product. 3) Business buyers want to buy at low prices. However a buyer who pressures a supplier to cut prices to the point of money loss may force shortcuts on quality. It may force the supplier to quit selling to him/her.

Business (Industrial) Marketing

Business marketing is the marketing of goods and services to individuals and organizations for purposes other than personal consumption. The sale of a personal computer to a college is an example of business marketing. If that same computer is purchased for personal or family consumption or as a gift, it is a consumer good.

Components of the Business Market

Commercial Market Trade Industries Government Public and Private Institutions

1.) Making soap has been your hobby for some time, but now you are contemplating turning your hobby into a small business. You use only hypoallergenic ingredients in your small batch soaps. Now sales come by word of mouth, but you plan to promote your handmade goods and sell them on one or more online outlets to people who are sensitive to the cleaning agents used in mass market soaps. Which marketing strategy will fit your newly established business? Select the best answer.

Concentrated marketing, because you will concentrate on meeting the needs of a single market segment.

1.) You work for a beverage distribution company and have been asked to support the marketing research team in the preliminary phases of their process. You have been tasked with finding out which beverages are most popular at sporting events, so you visit local stadiums, talking with fans about their preferences and to concession owners about their beverage sales. You also gather samples of sports-oriented ads being run by your competitors. Your teammates ask you why you chose to employ this strategy. Which of the following themes explain your choice?

Conducting exploratory research may include talking to customers and retailers, and/or evaluation of available competitive data.

1.) Your large retail store sells power tools and construction supplies, and your customer base is made up primarily of home improvement contractors, subcontractors, and serious DIYers. But business has stagnated now that the housing market has seen a downturn. What can you do to boost your sales and keep your business solvent?

Consider marketing to a segment that meets the criteria for effective segmentation.

What are the four dimensions that brand equity is built on?

Differentiation (takes new products and enters them in an established market.) Relevance (d. Marta buys a pair of Dr. Scholl's shoe inserts because she thinks they will help her feet while she is jogging. This illustrates the dimension of relevance.) Esteem (Peyton buys his jeans from Gap because he likes their quality and because most of his friends like Gap's clothing. This illustrates the dimension of esteem.) Knowledge (c. Gabriella buys her children Campbell's soup when they are sick because she thinks it comforts them. This illustrates the dimension of knowledge. )

Over the last few years, you have seen how important social media has become in shaping people's attitudes and their purchasing behavior. You want to make sure your company takes full advantage of this new avenue for building relationships with current and potential customers. You recognize that the power of social media marketing can be magnified if marketers target the right group of users. You want to target the most influential users of social media when you market new or existing products. Which of the following groups of consumers should you target on social media if you want to generate the highest number of word-of-mouth communications about your products?

Early adopters

1.) You are about to engage in the marketing research process. It includes the following steps, listed in alphabetical order—not necessarily the order in which they should be carried out. -Collecting primary or secondary data -Conducting exploratory research -Creating a research design -Defining the problem -Formulating a hypothesis -Interpreting and presenting research information Indicate which two of these steps should come first and last.

First: Defining the problem. Last: Interpreting and presenting research information

1.) Two demographic variables used when segmenting consumer markets are segmenting by age and segmenting by stage in the life cycle. Which of the following situations does not illustrate segmenting by age?

Flat-pack furniture is marketed as inexpensive and easily portable.

Explain each different part of the segmentation of consumer markets

Geographic- government classifies urban data Demographic- based on gender, age, sex, income, education Psychographic- based on similar attitudes, values, and lifestyles Product-related- based on benefits people seek when buying a product, brand loyalty, and usage rates for a product (Market segmentation using these four criteria offers guidance for developing strategies that appeal to a target market. )

Define "services"

INTANGIBLE tasks that satisfy the needs of customers and business users

If potential buyers believe the monitor watch will deliver an experience at odds with their prior experiences, their adoption rate will increase.

What are some ways to extend the product life cycle?

Increase frequency use Increase number of users Find new uses Change package size, labels, or product quality

Define "Big Data"

Information that originates in unprecedented volume and at unprecedented speed from the world around us

What are the characteristics of "services"

Intangible inseparable from the service providers Perishable Cannot be standardized buyers play important roles

What are the four stages of the product life cycle?

Invention, growth, maturity, and decline

1.) You turned on your tablet to read an online article about a Texas-based furniture retailer that reported its first gain in same-store sales in almost two years. The gains were realized in foldable tables and convertible sofas, areas specifically targeted for improvement and often preferred by apartment dwellers with limited space. The company attributes its success to having moved its stores from rural and suburban communities into Dallas-Ft. Worth, 1 of the 10 largest metropolitan areas in the United States. What significant geographic variable or combination of variables is likeliest to be responsible for this retailer's success?

Market density.

1.) Market segmentation is used by marketers to develop the strategy they will use to present their product or service to the consumer. Select the statement below that best describes how market segmentation works.

Market segmentation groups consumers according to similarities and differences in reference to factors that influence purchase decisions.

1.) As the marketer for a new electronics firm that produces a limited number of products, you recognize that consumers are not all cut from the same cloth—many variables exist in needs and preferences. But your company cannot change its products to suit each individual consumer preference. Select the statement below that does not accurately tell how market segmentation can help your company sell its goods.

Market segmentation will help your company identify product changes that will meet all consumer preferences and needs.

1.) You have entered a stage in the organizational buying process. The scenarios below indicate which stage you have entered: At this stage in the buying process, you will consider how well a particular supplier has responded to your company's needs. Because your company is so large, it uses standardized methods to judge whether a vendor has met or exceeded the company's expectations. Which of the following is an added benefit of the stage in the organizational buying process identified above?

Measurement of whether or not a vendor has reduced your employees' workloads.

Buying Situations

New Buy-A situation requiring the purchase of a product for the first time. Modified Rebuy-A situation where the purchaser wants some change in the original good or service. Straight Rebuy-A situation in which the purchaser reorders the same goods or services without looking for new information or investigating other suppliers.

Define "Full-Service Research Suppliers"

Organization that offers ALL aspects of the marketing research process VARIANCE ex: Detroit-based Morspace Inc. provides quantitative and qualitative research to clients in the automotive, financial services, retail, and technology, supporting clients' strategies in brand management, product development, and customer satisfaction.

Define "Competitive Intelligence"

Process of finding information about competitors using secondary sources aimed to uncover the specific advantages a competitor has

Define "Marketing Intelligence"

Process of gathering information and analyzing it to improve business strategy, tactics, and daily operations **expressed as metrics

What are the 3 components of the product mix? Explain them

Product mix width- number of product lines a firm offers Ex: Johnson and Johnson- prescription medication, skin care, dental care, first aid Product mix length- number of different products a firm sells Ex: Pain relievers, antihistamine products Product mix depth- variations in each product that the firm markets Ex: bandaids that come in different shapes and sizes

1.) Lassie is failing her "Marketing 101" course. She has to get at least a 97 percent on the next exam to ensure a passing grade this semester, but she is still confused about the difference between two key dimensions of brand personality: relevance and esteem. As her study partner, you want to help Cassie pass the exam. Select the description of this concept that you will urge Cassie to review.

Relevance reflects the brand's pertinence to its target; esteem is a combination of quality perception and other opinions about the brand.

1.) Organizations want to have a reputation for producing quality products with strong brand identities to give them an advantage in the marketplace. Brand equity, the added value of a brand name, has four dimensions. Choose the example that is not identified with the appropriate brand equity dimension.

Ruben buys a Ferrari because he thinks it will set him apart from other drivers. This illustrates the dimension of esteem.

Stage 7

Select order routine --buyer and vendor work out the best way to process future purchases

Define "Cobranding"

Two or more businesses team up to closely link their names on a single product

Roles in the Buying Center

Several people may play a role in the business purchase decision: 1. Initiator: the person who suggests the purchase. 2. Influencers: help define specifications and provide information for evaluating options. 3. Gatekeepers: group members who regulate the flow of information, often the purchasing agent. 4. Decider: the person with the power to choose or approve the selection. 5. Purchaser: the person who negotiates the purchase. 6. Users: members of the organization who actually use the product.

What is a Global Marketing Strategy?

Standard marketing mix that is implemented with minimal modifications in all foreign markets

1.) You decide to start a dog-walking service because you notice a number of trends that suggest a high demand for this type of service. You are trying to convince your brother to partner with you in this business, but one of his comments suggests that he doesn't understand the nature of a service. Which of the following comments did your brother make?

Standardized services are easier to provide than unstandardized services.

1.) Mercy Hospital needs to purchase a highly specialized drug that is patented and sold by only one pharmaceutical company. These constraints will primarily affect which step in the organizational buying process?

Step 3.

1.) You work for a digital timepiece company which started its entry into the global market a year ago. Your predecessor assumed that the company could use the same product and preexisting marketing campaign materials in nations that shared the same language. Sales never got off the ground. You were brought on board to make strategic changes and continue the fight for customers. Which strategy are you most likely to change?

Straight extension.

1.) Alanis has to collect primary data for the floral company for which she works. The company, which is currently based in Miami, Florida, is seeking to expand to other cities within the state. Alanis is interested in gauging what motivates people to buy flowers and customers' attitudes toward online flower delivery. Which of the following primary research methods would best capture the information Alanis wants to collect?

Surveys

Define "goods"

TANGIBLE products that customers can see, hear, smell, taste, or touch

You can market your products to a different segment than what you have traditionally, one that is growing, so that there is potential for profit, and that holds significant purchasing power, for instance, minorities and women. 1.) XYZ Company defines its primary customer group based on demographic variables. To guide the development of its advertising, you were asked to write a description of the typical customer in that group. Just before submitting the assignment, you caught an error: one sentence is wrong because it references a variable that isn't demographic. Which sentence is wrong?

The XYZ consumer doesn't want to look her age.

Major Categories of Business Customers

The business market consists of four major categories of customers: producers, resellers, governments, and institutions. *Producers*-include profit-oriented organizations that use purchased goods and services to produce or incorporate into other products. Examples of producers include construction, manufacturing, transportation, finance, real estate, and food service firms. Producers are often called original equipment manufacturers, or OEMs.- *Resellers*-market includes retail and wholesale businesses that buy finished goods to resell at a profit(Wholesalers, Retailers). *Government organizations*- include thousands of federal, state, and local buying units. This may be the largest single market for goods and services in the world. State and local buying agencies include school districts, highway departments, government-operated hospitals, housing agencies, and many other departments and divisions. *Institutions*- do not have the standard business goals of profit, market share, and return on investment. Includes schools, hospitals, colleges and universities, churches, labor unions, fraternal organizations, civic clubs, foundations, and other nonbusiness organizations. The fourth major segment of the business market consists of institutions that seek to achieve goals other than the standard business goals of profit, market share, and return on investment.

Define "Transaction-based marketing"

The buyer and seller exchanges characterized by limited communications and little to no ongoing relationships

Define "Affinity Marketing"

a partnership between a company and an organization that gathers people sharing the same interests. A method of selling goods and services by creating partnerships with similar or compatible companies and brands Affinity marketing focuses on the firm's best customers.

1.) The executives of Majority Productions, an entertainment and public relations agency with offices in five countries, are trying to figure out why their marketing strategies in four of the five countries appear to have failed. The company is thriving in the United States, where executives built the company's first office about a decade ago. At the time, they collected primary data that were extremely helpful, leading to a 20-percent growth for the company within the first two years. Because the company's marketing strategies worked so efficiently, the executives saw no need to conduct market research before they entered the other markets. You are diagnosing Majority Productions' inability to compete in international markets. Which of the following is likely to be a major factor in the company's failure in other countries

The executives of Majority Productions needed to bolster their knowledge about consumers in other countries.

Business versus Consumer Markets

The main differences between business and consumer markets are summarized on this slide. The first characteristic demand is described on the next slide. -Purchase volume: Business customers buy in larger quantities than consumers. -Number of customers: Business marketers have fewer customers than consumer marketers. An advantage is that it is easier to identify buyers, monitor customer needs, and build personal relationships. A disadvantage is that each customer becomes crucial, especially for those manufacturers who have only one customer. -Location of buyers: Business customers are more geographically concentrated than consumers. -Distribution structure: Business products typically have shorter channels of distribution, and direct channels are common. On the other hand, consumer products pass through a distribution system that may include the producer, the wholesaler(s), and the retailers. -Nature of buying: More people are involved in a business market purchase decision than in a consumer purchase. Representatives from quality control, marketing, finance, and purchasing may be grouped in a buying center. -Nature of buying influence: Typically, more people are involved in a single business purchase decision than in a consumer purchase. -Type of negotiations: Negotiation is more common in business marketing decisions and may take months to work out the final contracts. -Use of reciprocity: Business purchasers often choose to buy from their own customers. It is not unethical or illegal unless the exchange is coerced. -Use of leasing: Businesses commonly lease expensive equipment to reduce capital outflow, keep state of the art products, and gain tax advantages. -Primary promotional method: Business marketers emphasize personal selling, especially for expensive, custom-designed products. *See slide #7*

Define "Marketing Research"

The process of collecting an using information for decision making in marketing

1.) You have been asked to supervise a new intern, who inquires about the benefits of having combined goods and services businesses. Rather than explicitly tell him or her the answer, you explain to him or her how these types of businesses operate, so he or she can make an inference about the benefits. To illustrate the purpose of combined goods and services businesses, you tell your intern that sometimes, the combination of a primary good with additional services defines the complete product to the customer and better satisfies their needs. To further illustrate your point, you explain that local coffee shops offer coffee and breakfast as primary goods. However, they also provide free Wi-Fi to make customers more comfortable, encouraging longer stays and extra beverage or food purchases. Based on the information provided, what can your intern infer about the benefits of combined goods and services businesses?

These businesses aim to better satisfy their customers by offering goods and services that complement each other.

1.) You head a marketing team preparing to launch a revised global marketing campaign for a high-end jewelry and accessory company. You review the previous strategies your team has implemented: -You started with selling delicate, antique-looking jewelry across all international markets, with the same theme of "Looking Your Feminine Best." -Then your team experimented with some countries using the same jewelry, but with a theme of "Investing in Your Best Self." -For other countries, your team used the same theme of "Investing in Your Best Self" to sell jewelry-encrusted purses. -Buoyed by that success, your team plans a dramatic marketing change: An award-winning designer recrafted the profile of the jewelry to be chunky, rather than delicate. Your team came up with the slogan of "Be Visibly Lovely." Choose the international product and promotional strategy that does not illustrate a form of adaptation.

You started with selling delicate, antique-looking jewelry across all international markets, with the same theme of "Looking Your Feminine Best."

Which of the following is not part of the international political-legal environment that affects U.S. firms operating abroad? a. Cultural norms. b. International law. c. Export subsidies. d. Legal requirements of host nations.

a. Cultural norms.

Choose any of the following types of B2B segmentation that is(are) incorrectly described. a. End-use application segmentation deals with the way in which the product or service is engineered and manufactured. b. Customer-type segmentation is more specific than commercial segmentation. c. Demographic segmentation can include the number of people employed by the company. d. In buyer decision segmentation, a company may deal with one or multiple individuals involved in the purchase decision.

a. End-use application segmentation deals with the way in which the product or service is engineered and manufactured. d. In buyer decision segmentation, a company may deal with one or multiple individuals involved in the purchase decision.

You work for a fabric company that sources unique materials from around the world. In the past, you have focused solely on the business of supplying fashion designers with fabric they make into dresses. However, you've recently recognized an opportunity to expand the business by supplying stores like Jo-Ann Fabrics that sell sewing and craft goods to consumers who sew at home. If you pursue this opportunity, in which direction would your company be expanding? a. From a commercial market into a reseller market. b. From one reseller market to another. c. From a fabric market into a home goods market. d. From a materials market to a reseller market. e. From a business market to a consumer market.

a. From a commercial market into a reseller market

a. Growth

In your new marketing position with an international company making custom leather boots, you recognize the global environment offers a different set of challenges for you to navigate on behalf of your employer. You have been assigned to track product sales to Spain. Which of the following information should you thoroughly familiarize yourself with, to respond to Spain's political-legal environment? a. Import tariffs on leather goods. b. Cultural dress traditions. c. Major foreign competitors. d. Whether or not Spanish consumers purchase leather boots online. e. Value placed on outdoor exercise, like hiking.

a. Import tariffs on leather goods.

1.) Marketing research activities yield different types of data for the marketer. The techniques used to obtain the data and the source of the data are the most significant factors that dictate what type of data are obtained in the marketing research process. From the following list, choose any example(s) of primary data.

a. Surveys, polls b. Focus groups, interviews c. Experiments

You work for a tech firm that wants to invest in some capital development projects that could potentially position the company as a multinational giant in the competitive market. One of the projects would require your company to purchase a $500 million software package. Company executives believe the investment would pay off; however, before approving such a costly purchase, they want to identify someone in the IT department who has the expertise to work with this highly specialized package. The person would play a key role within the buying center. Which role would the IT expert be likeliest to play? a. User. b. Manager. c. Gatekeeper. d. Decider. e. Evaluator.

a. User.

After interviewing candidates for the job of business marketing specialist, Fred decided to eliminate one—despite her strong paper credentials. Explaining his decision to you, Fred quoted a comment that betrayed the candidate's misunderstanding of B2B market segmentation. Which comment did Fred quote? a. When I segment customers demographically, I believe in concentrating on how they use my product. b. Customer-based segmentation could improve our specificity in targeting buyers. c. Segmentation by end-use application is especially helpful when prospective buyers differ in the volume of product they need. d. I've found that the number of employees a firm has is often a useful demographic segmentation characteristic.

a. When I segment customers demographically, I believe in concentrating on how they use my product.

The North American Free Trade Agreement (NAFTA), the World Trade Organization (WTO), and the European Union (EU) were all formed to achieve the same purpose of removing trade restrictions between countries. However, there are important differences in the characteristics of these organizations. Fill in the blanks with the word(s) from the drop-down list that would best complete the passage. Each word or term may be used more than once. a. The ____________ involves more than 150 countries. b. NAFTA involves ___________ countries. c. The _____________ is a monitor of trade policies and mediator of ______________ . d. The ______________ has adopted a common currency among its members. e. The _____________ promotes human rights.

a. World Trade Organization b. three c. World Trade Organization, trade disputes d. European Union e. European Union

You head a marketing team preparing to launch a revised global marketing campaign for a high-end jewelry and accessory company. You review the previous strategies your team has implemented: You started with selling delicate, antique-looking jewelry across all international markets, with the same theme of "Looking Your Feminine Best." Then your team experimented with some countries using the same jewelry, but with a theme of "Investing in Your Best Self." For other countries, your team used the same theme of "Investing in Your Best Self" to sell jewelry-encrusted purses. Buoyed by that success, your team plans a dramatic marketing change: An award-winning designer recrafted the profile of the jewelry to be chunky, rather than delicate. Your team came up with the slogan of "Be Visibly Lovely." Choose the international product and promotional strategy that does not illustrate a form of adaptation. a. You started with selling delicate, antique-looking jewelry across all international markets, with the same theme of "Looking Your Feminine Best." b. Then your team experimented with some countries using the same jewelry, but with a theme of "Investing in Your Best Self." c. For other countries, your team used the same theme of "Investing in Your Best Self" to sell jewelry-encrusted purses. d. An award-winning designer recrafted the profile of the jewelry to be chunky, rather than delicate. Your team came up with the slogan of "Be Visibly Lovely." e. All of the strategies illustrate some form of adaptation.

a. You started with selling delicate, antique-looking jewelry across all international markets, with the same theme of "Looking Your Feminine Best.

Check My Work The business-to-business (B2B) purchasing decision process is much more complicated than the individual consumer's decision process. The B2B purchase decision process often involves multiple people or groups whose input affects the final decision. Fill in the blanks with the word(s) from the drop-down list that would best complete the passage. a. Company B recently experienced a delay in production due to political riots in the country where its factory is located. Its CEO recognizes that the delay was due to _______________. b. Company A uses groups to make purchases and must have a majority vote to make a purchase decision. This means its decisions are subject to _________________. c. Company C has branches all over the United States, but has decided to consolidate all its purchasing at company headquarters. This means its vendors must now consider .

a. environmental factors b. interpersonal influences c. organizational factors

Fill in the blanks with the word(s) from the drop-down list that best complete each passage. a. For a marketer, it may be difficult to identify the most influential members of a buying center because often these members don't work in the ___________ department. b. An organization's _________ consists of each individual who works in any capacity of its purchasing activities. c. In many business buying situations, one person serves as both the decider and the ____________ . d. A buying center is a(n) _________ group.

a. purchasing b. buying center c. buyer d. informal

Companies that decide to pursue global marketing efforts have a choice of several ways to initiate building international business organizations. These alternatives give ample choices for the firm to match financial resources, envisioned outcomes, and comfortable risks. Which of the following descriptions of global marketing alternatives is(are)accurate? a. To create an overseas division, a company buys an existing firm in a foreign country. b. An exporter markets domestically produced merchandise to customers in other countries. c. In a joint venture, the company shares risks, costs, and management with partners. d. In an acquisition, a company sets up an independent facility outside its home country.

b. An exporter markets domestically produced merchandise to customers in other countries. c. In a joint venture, the company shares risks, costs, and management with partners.

At which stage of the new product development process should a firm typically expect the first substantial increase in its financial outlays on the process? a. Commercialization b. Development c. Screening d. Test marketing e. Idea generation

b. Development

1.) Companies that decide to pursue global marketing efforts have a choice of several ways to initiate building international business organizations. These alternatives give ample choices for the firm to match financial resources, envisioned outcomes, and comfortable risks. Which of the following descriptions of global marketing alternatives is(are)accurate?

b. In a joint venture, the company shares risks, costs, and management with partners. c. An exporter markets domestically produced merchandise to customers in other countries.

Business markets differ from consumer markets in several ways. Choose the correct example(s) of these differences. a. Channels of distribution are typically longer in business markets than in consumer markets. b. Personal selling is usually emphasized more in business than consumer markets. c. Sales promotion is usually emphasized more in business than consumer markets. d. The U.S. consumer market is more geographically concentrated than the business market.

b. Personal selling is usually emphasized more in business than consumer markets.

You work for a digital timepiece company which started its entry into the global market a year ago. Your predecessor assumed that the company could use the same product and preexisting marketing campaign materials in nations that shared the same language. Sales never got off the ground. You were brought on board to make strategic changes and continue the fight for customers. Which strategy are you most likely to change? a. Product adaptation. b. Straight extension. c. Promotion adaptation. d. Sales adaptation.

b. Straight extension.

c. 4, 1, 2, 5, 6, 3

You have entered a stage in the organizational buying process. The scenarios below indicate which stage you have entered: At this stage in the buying process, you will consider how well a particular supplier has responded to your company's needs. Because your company is so large, it uses standardized methods to judge whether a vendor has met or exceeded the company's expectations. Which of the following is an added benefit of the stage in the organizational buying process identified above? a. Translation of product characteristics into detailed specifications. b. Identification of quality products, manufacturers, and suppliers that can ensure cost efficiency. c. Measurement of whether or not a vendor has reduced your employees' workloads. d. Assessment of relationship factors, including communication and trust.

c. Measurement of whether or not a vendor has reduced your employees' workloads.

Darren King owns a small printing company and uses reams of print paper every month. When he goes to the wholesaler to pick up his normal paper supply, he also sees that the supplier is selling remnants of colored construction paper. Darren purchases the colored construction paper for his children to use for school projects and to make art. Select the two statements below that correctly describe Darren's purchases. a. The supply of print paper from the wholesaler is a consumer product because Darren is the ultimate consumer of the product. b. The colored construction paper from the wholesaler is a business product because it was purchased from a wholesaler. c. The colored construction paper from the wholesaler is a consumer product because Darren's family will use it for personal projects. d. The supply of print paper from the wholesaler is a business product because Darren is a business owner. e. The supply of print paper from the wholesaler is a business product because Darren uses it to provide a service that he sells.

c. The colored construction paper from the wholesaler is a consumer product because Darren's family will use it for personal projects. e. The supply of print paper from the wholesaler is a business product because Darren uses it to provide a service that he sells.

Last year, you left a job in consumer marketing to take one in business marketing. The shift required you to become accustomed to all of the following changes except: a. The purchase decision process used by each of your customers now includes more decision-makers than before. b. The buyer-seller relationships you're involved with are more complex than before. c. You have more potential buyers than before. d. The number of distribution channel members you're dealing with is smaller than before.

c. You have more potential buyers than before.

Organizational buyers purchase two types of items

capital items expense items

Systems Integration

centralization of the procurement function within an internal division or as a service of an external supplier

Decider

chooses a good or service, although another person may have the formal authority to do so

What is "Total Quality Management?" (TQM)

continuous effort to improve products and work processes with the goal of achieving customer satisfaction and world-class performance

Gatekeepers

control the information that all buying center members review

Your company manufactures a watch that doubles as a heart and caloric intake monitor. Company managers are excited about this innovation and have been pushing it along the product development stages quickly. You have identified the consumers that are most likely to try the new product and hopefully, ensure the product's success. You know that these early adopters will be opinion leaders for this product, and if they like the product, will tell others about the innovation. Because you understand that the rate of adoption for the product will be determined by a myriad of factors, you conduct a webinar for your marketing team on this topic. Your webinar makes all of the following points except: a. If the monitor watch appears far superior to other watches and monitors, it will have a relative advantage and a faster adoption rate. b. If potential buyers get a free two-day trial of the monitor watch, their adoption rate will increase. c. The relative difficulty of understanding how to use the monitor watch will influence the speed of its adoption. d. If potential buyers believe the monitor watch will deliver an experience at odds with their prior experiences, their adoption rate will increase.

d. If potential buyers believe the monitor watch will deliver an experience at odds with their prior experiences, their adoption rate will increase.

The United States places first in a number of categories of global marketing and trade opportunities. For example, the United States is the world's largest exporter of services and retailing. More than $600 billion is spent annually in U.S. service exports. Twenty percent of that $600 billion—more than $120 billion—comes from travel and tourism. Which of the following customer descriptions identifies a buyer of this U.S. service export? a. Sahil, tracing the path his ancestors took from Pakistan to Nepal to India. b. Len, a third-generation Californian, visiting the Prague birthplace of his grandparents c. Florine, a native of Kentucky, working at her Appalachian tour company. d. Parisian Cecile, driving a convertible up the West Coast from California to Washington.

d. Parisian Cecile, driving a convertible up the West Coast from California to Washington.

You are the CEO of a food manufacturer that sells only holiday candy. About 85 percent of your company's products are sold between October 15 and December 31 of each year. As the company's overhead costs increase, you need new ways to increase sales and profits. Your research confirms that if the company sold cookies or other baked sweets year round, you could better manage overhead costs and other expenses. How should your marketing managers respond to the scenario described above? a. Cannibalization b. Market penetration c. Market development d. Product diversification

d. Product diversification

The business-to-business (B2B) market can be grouped into four major categories: commercial, reseller, government, and institutional. Organizations can fall into one of the business market categories. Choose the organizations that are part of the reseller market. a. Duke University purchases new desks for each of its alumni. b. Keebler buys chocolate chips in bulk to use in the production of its cookies. c. The Rhode Island State Police buys new Kevlar vests for its officers. d. Toys "R" Us purchases Barbie dolls from the toy manufacturer Mattel. e. Arkansas Surgical Hospital signs a contract for a service that will launder all surgical scrubs.

d. Toys "R" Us purchases Barbie dolls from the toy manufacturer Mattel.

Inelastic Demand

demand throughout an industry will not change significantly due to a price change

Stage 3

describe characteristics and the quantity of a needed good or service ex: firms need a simple system for brewing a good cup of coffee; quantity requirements are easily correlated to the number of coffee drinkers

Stage 2

determine the characteristics and quantity of a needed good or service ex: offering a coffee system that brews one cup of coffee at a time according to each employee's preference

Customer-based segmentation

dividing a B2B market into homogenous groups based on buyers' product specifications --Manufacturer? Service Provider? Government Agency? Not-for-Profit?

Define "Market segmentation"

division of the total market into smaller, homogeneous groups Market segmentation will help your company identify product changes that will meet all consumer preferences and needs. Market segmentation groups consumers according to similarities and differences in reference to factors that influence purchase decisions. ex: henry ford used to just sell one type and color of car but the market began to expand models and colors

Government

includes domestic government-- federal, state, and local --> the primary motivation of government purchases is to provide some form of public benefit such as national defense or pollution control

Just-in-Time (JIT)

inventory policies boost efficiency by cutting inventory and requiring vendors to deliver inputs as they are needed by the production process

Fill in the blanks with the word(s) from the drop-down list that would best complete the passage. Free trade has not produced all of the economic impacts that were originally predicted. At the same time, it is known that global shifts in production and trade have generally __________ consumer costs, __________ company profits, and ____________ product ___________ .

lowered, improved, increased, choice

Interpersonal Influences

many different people influence B2B buying decisions, sometimes as individuals and sometimes as part of a committee, markers must know the influencers and understand their priorities, sales personnel must have a good technical understanding of their product

Organizational Factors

marketers must understand their customers' organizational structures, policies and purchasing systems, many companies use multiple sourcing to avoid depending too heavily on a sole supplier

Define "Viral Marketing"

marketing that allow satisfied customers to spread the word about products to other customers a method of marketing whereby consumers are encouraged to share information about a company's goods or services via the Internet. A program that enables satisfied customers to get the word out about products to other consumers is called VIRAL marketing.

Define "Grassroots Marketing"

marketing that connects DIRECTLY with existing and potential customers through non-mainstream channels you target your efforts to a small group and hope the group will spread your message to a much larger audience

Define "Buzz Marketing"

marketing that relies on volunteers to try products and then talk about their experiences (Word-of-mouth) BUZZ marketing gathers volunteers to try products and then relies on them to talk about their experiences with friends and colleagues

Stage 4

search for and qualify potential sources ex: choice of supplier may be relatively straightforward or very complex

Segmentation by end-use application

segmenting a B2B market based on how industrial purchases will use the product

What is a supply chain?

sequence of suppliers that contribute to the creation and delivery of a product

Modified Re-buy

situation in which a purchaser is willing to reevaluate available options for repurchasing a good or service less involving

A buying center is an informal group that varies in composition and size, depending on purchase __________ and firms

situations

Classifying Business Buying Situations

straight rebuy modified rebuy new-task rebuy reciprocity

Outsourcing

using outside vendors to provide goods and services formerly produced in house (third party)

Derived Demand

the linkage between demand for a company's output and its purchase of resources ex: demand for computer microprocessor chips is derived from demand for personal computers

Define "Trade dress"

visual components that contribute to the overall look of a brand

User

the people who will actually use the good/service, with influence ranging from negligible to extremely important

Define "Customer Win-Back"

the process of rejuvenating lost relationships with customers

Define "Differentiated Marketing"

type of marketing that focuses on producing SEVERAL products and pricing, promoting, and distributing them with DIFFERENT marketing mixes designed for small segments

Define "micro-marketing"

type of marketing that focuses on targeting potential customers at very narrow, basic levels such as zip code, occupation, or lifestyle

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