Test 1 - Marketing

Steps in Segmentation Process

1. Establish the Overall Strategy or Objectives 2. Use Segmentation Methods (geo/demo/psychographic, benefit, and behavioral) 3. Evaluate Segment Attractiveness (Identifiable, Substantial, Reachable, responsive, and profitable) 4. Select a Target Market (differential, concentrated, micro-marketing, un-differential) 5. Identify and Develop Positioning Strategy

4 types of B2B markets

1. Resellers -- mark up price without changing much (wholesalers, retailers) 2. Institutions -- (hospitals, churches, schools, museums) 3.Manufacturers/Service Providers -- buy raw materials & components to make and market own goods/services 4.Government -- (largest B2B buyer)

concentrated marketing

A market-coverage strategy in which a firm goes after a large share of one or a few segments or niches

When Starbucks sells its coffee and mugs to the public on its website, it is a ________ sale.

B2C

evoked set

Comprises the alternative brands or stores that the consumer states he or she would consider when making a purchase decision.

higher involvement/risk

Greater attention and extended problem solving

low involvement

Lower attention

Which of the following is an example of an institutional buyer?

Mayo Clinic Hospital

The five steps of the consumer purchasing process

Need recognition, information search, alternative evaluation, purchase and consumption, and post-purchase

________ is the term used to describe the situation when retailers use some combination of stores, catalogs, and the Internet to sell merchandise.

Omnichannel retailing

What are the different types of risks associated with purchase decision?

Performance, Psychological, Financial, physiologic/safety, and social risks

________ in a marketing channel exists when one firm has the means or ability to dictate the actions of another member at a different level of distribution.

Power

Differentiated marketing

Strategy that focuses on producing several products and pricing, promoting, and distributing them with different marketing mixes designed to satisfy smaller segments

The Decider

The buying center participant who ultimately determines any part of or the entire buying decision—whether to buy, what to buy, how to buy, or where to buy. (ex. The Hospital)

straight rebuy

a business buying situation in which the buyer routinely reorders something without any modifications

modified rebuy

a business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers

The consumer buying process begins when

a consumer recognizes an unsatisfied need

selective distribution

a form of distribution achieved by screening dealers to eliminate all but a few in any single area (ex. Greenwise)

As a type of retailer, category specialists offer

a narrow but deep assortment of merchandise.

new buy

a situation requiring the purchase of a product for the first time

Retailing is defined as the set of business activities that

adds value to products and services sold to consumers for their personal or family use.

the buying center

all the individuals and units that play a role in the purchase decision-making process. (For B2B)

What aspect of the product is being described when a used-car salesperson explains that each car comes with a one-year extended warranty and a two-year maintenance plan?

associated services

The service dimension called ________ refers to the ability of the firm's employees to convey trust and confidence.

assurance

Toothpastes sold in supermarkets and pharmacies promise various results, such as whiter teeth, protection against gum disease, tartar control, or fresh breath. Toothpaste marketers are using ________ segmentation.

benefit

A service is any intangible offering that involves a deed, performance, or effort that

cannot be physically possessed.

Four frequently used targeting strategies are the micromarketing, undifferentiated, differentiated, and __________ targeting strategies.

concentrated

Business-to-business marketing involves buying and selling goods or services by all of the following except

consumers.

Marketers selling milk, bread, and other consumer staples know that most customers do not spend much time searching or comparing alternatives. For most consumers, these are ________ goods.

convenience

Macy's, Kohl's, JCPenney, and Nordstrom are examples of

department stores.

Adidas Group owns Reebok, Rockport, and TaylorMade brands. Adidas uses the different brands to pursue a(n) ________ strategy.

differentiated targeting

Along the service-product continuum, which of the following would be considered the most service dominant?

doctor's office

Consumers consider universal, retrieval, and evoked sets during which stage of the consumer decision process?

evaluation of alternatives

Marketers particularly want their brands and products to be in consumers' ________ sets.

evoked

When Walmart relies on its experience and knowledge to decide how to market a product without giving the supplier much of a say in the matter, this is an example of

expertise power.

What are the three types of retailers?

food- supermarket, convenience general merchandise- drug, off price, extreme value service- auto rental, spa

A(n) ________ is used in the shipment of products directly to customers.

fulfillment center

Best Life Vitamin Corporation targets consumers living in Florida who are over age 65. Golden Years is using ________ segmentation.

geo-demographic

Segmentation Methods

geographic- location demographic- age, sex, income, education psychographic- consumers buying patterns and usage benefits- The grouping of consumers on the basis of the benefits they derive from products or services. behavioral- how they use the product or service

exclusive distribution

giving a limited number of dealers the exclusive right to distribute the company's products in their territories

The Influencer

help define specifications and provide information for evaluating options. (ex. The Medical Device Supplier, the Pharmacy)

universal set

includes all possible choices for a product category

retrieval set

includes those brands or stores that the consumer can readily bring forth from memory

What are the 6 buying center roles?

influencer, decider, buyer, user, gate keeper, and initiator

When marketers state that services are ________, they are referring to the fact that services are produced and consumed at the same time.

inseparable

Some companies want to get their products into as many outlets as possible, understanding that the more exposure a product gets, the more it will sell. If this belief is consistent with the company's overall strategy, it will choose ________ distribution.

intensive

What are the three levels of distribution intensity?

intensive, exclusive, selective

A company's product mix consists of

its various product lines.

Traditionally, marketing activities have been divided into product, price, place, and promotion. Select the term that best describes the four Ps.

marketing mix

The activity, set of institutions, and processes for creating, capturing, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large is called

marketing.

Del Monte, Nike, Pepsi, KitchenAid, and Sony are considered famous ________ brands because they are owned and managed by the manufacturer.

national

Different buying situations

new buy, straight rebuy, modified rebuy

Internet sites, physical stores, and kiosks are most closely associated with which element of the marketing mix?

place

Which element of the marketing mix specifically deals with supply chain management?

place

undifferentiated marketing

plan wherein the same basic product is offered to all customers

A ________ is a group of associated items that consumers tend to use together or think of as part of a group of similar products.

product line

After need recognition, a business develops ________ that suppliers might use to develop their proposals.

product specifications

Venicia is assessing market growth, market competitiveness, and market access for each segment she has identified. Venicia is assessing the ________ of each potential market segment.

profitability

Many Hollywood movie stars were among the first to buy electric and hybrid vehicles. These stars often become ________, influencing other consumers' behavior.

reference groups

What type of B2B organization is a retail store such as Marshalls?

reseller

Unlike manufacturers, ________ buy products from other businesses but do not significantly alter the form of the products they buy before selling them.

resellers

Institutional buyers

schools, hospitals, libraries, foundations, clinics, churches, and not-for-profit agencies

Stores like Home Depot and Costco act as wholesalers when they

sell to contractors or restaurant owners.

The traditional marketing strategy of selling umbrellas when it is raining is an example of how ________ factors influence consumers' decisions.

situational

intensive distribution

stocking the product in as many outlets as possible

micro marketing

tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments; it includes local marketing and individual marketing

Marketing

the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large

The Gatekeeper

the buying center participant who controls information or access to decision makers and influencers. (ex. Insurance)

The Buyer

the buying center participant who handles the paperwork of the actual purchase (ex. hospital's materials manager)

geo-demographic segmentation

the grouping of consumers on the basis of a combination of geographic, demographic, and lifestyle characteristics

associated services

the non-physical attributes of the product including product warranties, financing, product support, and after-sale service

distribution intensity

the number of supply chain members to use at each level of the supply chain.

The Initiator

the person who brings up the idea or identifies a need. (ex. doctor)

The User

the person who consumes or uses the product or service purchased by the buying center (ex. The patient)

When referring to "exchange," marketers are focusing on

the trading of things of value.

Customers have a defined ________ when it comes to waiting in line at a retail checkout counter. The amount of time consumers are willing to wait varies with the type of store.

zone of tolerance