Book Quiz 1: Chapters 1-7
want
what is the recognition of an unfulfilled need and a product that will satisfy it?
Customer Value
what is the relationship between benefits and the sacrifice necessary to obtain those benefits?
need recognition
what is the result of an imbalance between actual and desired states?
limited decision making
what is the type of consumer decision making that requires a moderate amount of time for gathering information and deliberating about an unfamiliar brand in a familiar product category?
routine response behaviour
what is the type of decision making exhibited by consumers buying frequently purchased, low-cost goods/services; requires little search and decision time?
perceived value
what is the value a consumer expects to obtain from a purchase?
%Relationship Marketing entails seeking and establishing long-term alliances or partnerships with customers. %Strategic Alliance is a cooperative agreement between businesses and firms to leverage what they do well by partnering with others that have complementary skills
what roles do relationship marketing and strategic alliances play in business marketing?
Societal Market Orientation
which marketing philosophy acknowledges that some products that customers want may not really be in their best interests or the best interest of society as a whole?
Societal Market Orientation
which marketing philosophy is based on the idea that an organization exists to satisfy customer wants and needs, to meet organizational objectives, and to preserve or enhance individuals' and society's long-term best interest?
extensive decision making
which type of consumer decision making has high consumer involvement products, where consumers usually experience the most cognitive dissonance?
limited decision making
which type of consumer decision making has lower involvement, but not lower than routine decisions?
reduces marketing manegers' uncertainty when they are defining a target market and designing a marketing mix
why should marketing managers understand consumer behavior?
Business Markets: Demand is derived, inelastic, joint, and fluctuating. Purchase Volume is much larger, customers are fewer and more geographically concentrated, and distribution channels are more direct than in consumer markets. Buying is approached more formally using professional purchasing agents. Negotiation is more complex. Reciprocity and leasing are more common. Selling strategy is business markets normally focuses on personal contact rather than advertising
Explain in detail the differences in a business market from a consumer market?
%share content %increase awareness %build relationships and community
How do B-to-B companies use social media?
%Buying is normally done via buying center consisting of many people ranging widely in authority levels %Business buyers typically evaluate alternative products and suppliers based on quality, service, and price (in order) %Business buying falls into 3 categories: New Buys, Modified Rebuys, and Straight Rebuys. %the Ethics of business buyers and sellers are often scrutinized %Customer Service before, during, and after the sale plays a big role in business purchase decisions.
In depth, discuss the 5 unique aspects of business buying behavior:
True
True or False: marketing requires all facets of a company to work together to pool ideas and resources.
True
True/False: Google offers many amenities to its employees, part of the reason Fortune magazine named them best company to work for from 2012-2014
False
True/False: If all 5 conditions of an exchange are met, the exchange will always occur
True
True/False: People engage in marketing whether or not an exchange happens
False
True/False: having a market orientation and a focus on customer wants means offering customers everything they want
True
True/False: internet and social media use have accelerated the shift in power from manufactures and retailers to consumers and business users
true, a change in price will not cause change in demand
True/False: the demand for business products is inelastic with regard to price
False; not necessarily
True/False: the type of decision making that consumers use to purchase a product remains constant
Consumer-Oriented Personnel, The Role of effective Training programs, Empowerment of employees to make authoritative problem-solving decisions, and Teamwork
What 4 things do most successful relationship marketing strategies depend on?
%Marketing affects the allocation of goods and services that influence a nation's economy and standard of living %Understanding marketing is crucial to understanding most businesses %Career opportunities in marketing are diverse, profitable, and expected to increase significantly during the coming decade %Understanding marketing makes consumers more informed
What are 4 (lengthy) reasons to study marketing?
%Use their websites to facilitate communication and orders %Use digital marketing to increase brand awareness %Use digital marketing to position their businesses as thought leaders and therefore generate sales leads (primarily in the form of content marketing)
What are the 3 major ways that B-to-B companies use the internet?
%Must be at least 2 parties, %Each party has something to trade that is of value to the other, %Each party is capable of communication and delivery, %Each party is free to accept or reject the offer, %Each party believes it is appropriate or desirable to deal w/ the other
What are the 5 conditions of an exchange?
%Sales Market Oriented firms: focus on their own needs, consider themselves to be delivers of goods and services, direct their products to everyone, place a higher premium on making a sale, and pursue maximum sales volume through intensive promotion %Market Oriented Firm: focus on customers' needs and preferences, view themselves as satisfiers of customers, aim at specific segments of the population, seek a long-term relationship with the customer, and pursue satisfaction through coordinated activities
What are the differences between sales and market orientations?
Production Orientation, Sales Orientation, Marketing Orientation, Societal Marketing Orientation
What are the four marketing management philosophies?
an Exchange
What is it called when people give up something in order to receive something else they would rather have?
Exchange
What is one major goal of marketing?
marketing
What is 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?
marketing concept
What is the idea that the social and economic justification of customer wants and needs while meeting organizational objectives?
Production Orientation
What marketing philosophy focuses on the internal capabilities of the firm rather than on the desires and needs of the market place?
Marketing Orientation
Which marketing philosophy assumes that a sale does not depend on an aggressive sales force but rather on a customer's decision to purchase a product?
Sales Orientation
Which marketing philosophy is a belief that people will buy more goods and services if aggressive sales techniques are used and that high sales result in high profits?`
Market Orientation
Which marketing philosophy is synonymous with the marketing concept?
content marketing
a strategic marketing approach that focuses on creating and distributing content that is valuable, relevant, and consistent
although the concepts of relationship marketing and strategic alliances are relatively new to American marketers, these ideas have long been used by marketers in other cultures
how new or old are relationship marketing and strategic alliances to America? to other cultures?
Intended use, not physical product
in business marketing, what distinguishes a business product from a consumer product?
seek positive reinforcement for the purchase decision, avoiding negative information about the purchase decision, or revoke the purchase/return the product
what 3 choices do consumers generally have when they experience cognitive dissonance?
awareness, engagement, and conversion
what are 3 metrics that are particularly useful for increasing the success of a social media campaign?
supplies
what are consumable items that do not become part of the final product?
prepurchase expectations, prepurchase information search, and consumer's general level of self-confidence
what are consumer postpurchase evaluations influenced by?
business services
what are expense items that do not become part of a final product?
original equipment manufactures (OEMs)
what are individuals and organizations that buy business goods and incorporate them into the products they produce for eventual sale to other producers?
industrial marketing, business-to-busisness marketing, B-to-B, B2B
what are other names for business marketing?
processed materials
what are products used directly in manufacturing other products?
Major Equipment, Accessory Equipment, Raw Materials, Component Parts, Processed Materials, Supplies, and Business Services
what are the 7 types of business goods and services?
%Need Recognition: external/internal stimuli trigger awareness of unfulfilled want. %Internal/External Information Search of any additional info needed for the consumer to make their purchase decision %Evaluates the Alternatives w/ this info and establishes purchase guidelines %Makes a Purchase Decision
what are the components of the consumer decision-making process?
producer markets, reseller markets, government markets, and institutional markets
what are the four major categories of business market customers?
raw materials
what are unprocessed extractive or agricultural products, such as mineral ore, lumber, wheat, corn, fruits, vegetables, and fish?
government markets
what category of business market customers consists of federal, state, county and city governments that buy goods and services to support their own operations and serve the needs of citizens?
Producer Markets
what category of business market customers consists of for-profit individuals and organizations that buy products to use in producing other products as components of other products or in facilitating business operations?
institutional markets
what category of business market customers consists of very diverse nonbusiness institutions whose main goals do not include profit?
reseller markets
what category of business market customers consists of wholesalers and retailers that buy finished products to resell for profit?
routine response behaviour
what category of consumer buying decisions has consumers that are familiar with several market brands but stick with only one, and usually do not experience need recognition until they are exposed to advertising or see the product on a store shelf?
customer relationship management (CRM)
what is a company-wide business strategy designed to optimize profitability, revenue, and customer satisfaction by focusing on highly defined and precise customer groups?
strategic alliance (strategic partnership)
what is a cooperative agreement between business firms?
customer satisfaction
what is a customer's evaluation of a good or service in terms of whether or not the good has met their needs and expectations?
empowerment
what is a delegation of authority/responsibility to solve customers' problems quickly (- usually by the first person the customer notifies regarding a problem)?
North American Industry Classification System (NAICS)
what is a detailed numbering system developed by the united states, canada, and manioc to classify North American business establishments by their main product processes?
relationship commitment
what is a firm's belief that an ongoing relationship with another firm is so important that the relationship warrants maximum efforts at painting it indefinitely?
evoked set (consideration set)
what is a group of brands resulting from an information search from which a buyer can choose?
keiretsu
what is a network of interlocking corporate affiliates?
value
what is a personal assessment of the net worth one obtains from making a purchase, or the enduring belief that a specific mode of conduct is personally or socially preferable to another mode of conduct?
multiplier effect (accelerator principle)
what is a phenomenon in which a small increase or decrease in consumer demand can produce a much larger change in demand for the facilities and equipment needed to make the consumer product?
reciprocity
what is a practice whereby business purchases choose to buy from their own customers?
consumer product
what is a product bought to satisfy an individual's personal wants or needs
business product (industrial product)
what is a product used to manufacture other goods or services, to facilitate an organization's operations, or to resell to other customers
straight rebuy
what is a situation in which the purchaser reorders the same goods or services without looking for new information or investigation other supplies?
modified rebuy
what is a situation in which the purchaser wants some change in the original good or service?
new buy
what is a situation requiring the purchase of a product for the first time
relationship marketing
what is a strategy that focuses on keeping and improving relationships with current customers?
North American Industry Classification System (NAICS)
what is a system in which organizations can be identified and compared by a numeric code indicating business sector, subsection, industry group, and industry subdivision?
North American Industry Classification System (NAICS)
what is a valuable tool in business marketing for identifying, analyzing, segmenting, and targeting business markets and government markets?
utilitarian value
what is a value that acts as an end in itself rather than a mean to its value?
hedonic value
what is a value that acts as an end in itself rather than as a means to an end?
business-to-business online exchange
what is an electronic trading floor that provides companies with interpreted links to their customers and supplies?
nonmarketing-controlled information source
what is an external product information source that is not associated with advertising or promotion (includes personal experiences, personal sources and public sources)?
marketing-controlled information source
what is an external product information source that originates with marketers promoting a product?
stimulus
what is any unit of input affecting one or more of the five senses: (sight, smell, taste, touch, & hearing)?
on-demand marketing
what is it called when a firm is delivering relevant experiences, integrated across both physical and virtual environments, throughout the consumer's decision and buying process?
involvement
what is the amount of time and effort a buyer invests in the search, evaluation, and decision processes of consumer behavior?
teamwork
what is the collaborative efforts of people to accomplish common objectives called?
trust
what is the condition that exists when one party has confidence in an exchange partner's reliability and integrity?
derived demand`
what is the demand for business products?
joint demand
what is the demand for two or more items used together in a final product?
consumer-making decision process
what is the five-step process used by consumers when buying goods or services?
cognitive dissonance
what is the inner tension that a consumer experiences after recognizing an inconsistency between behavior and values or opinions?
business marketing
what is the marketing of goods and services to individuals and organizations for purposes other than personal consumption?
extensive decision making
what is the most complex type of consumer decision making, used when buying an unfamiliar, expensive product or an infrequently bought item; requires use of several criteria for evaluating options and much time for seeking information?
buying center
what is the name for all those people in an organization who become involved in the purchase decision?
consumer behavior
what is the name for processes a consumer uses to make purchase decisions, as well as to use and dispose of purchased goods or services; also includes factors that influence purchase decisions and product use?
major equipment (installations)
what is the name of capital goods such as large or expensive machines, mainframe computers, blast furnaces, generators, airplanes, and buildings?
component parts
what is the name of either finished items ready for assembly or products that need very little processing before becoming part of some other product?
accessory equipment
what is the name of goods such as portable tools and office equipment, that are less expensive and shorter-lived than major equipment?
showrooming
what is the practice of examining ,merchandise in a physical retail location without purchasing it, and then shopping online for a better deal on the same item?
internal information search
what is the process of recalling past information stored in the memory?
external information search
what is the process of seeking information in the outside environment?