MM Final Review
purchase intention and the purchase decision intervention
1. Attitudes of others 2. Unanticipated situational factors
Wants
What needs become when directed to specific objects that might satisfy the need
performance and imagery
Which of the following "building block levels" corresponds to the branding objectives of points-of-parity and difference? A) performance and imagery B) judgment and feelings C) resonance and salience D) imagery and judgment E) salience and feelings
geographically
Which of the following is a challenge in which business marketers differ from the consumer marketers? A) understanding deep customer needs in new ways B) identifying new opportunities for organic business growth C) geographically concentrated buyers D) calculating better marketing performance and accountability metrics E) competing and growing in global markets, particularly China
adaptable
Which of the following is a defensive criterion for choosing brand elements? A) adaptable B) memorable C) meaningful D) likeable E) significance
opportunism
Which of the following is a form of cheating or undersupply relative to an implicit or explicit contract which usually takes place when buyers cannot easily monitor supplier performance? A) Institutional sale B) Business buying C) Opportunism D) Vertical integration E) Contractual transactionism
additional brand extension opportunities
Which of the following is a marketing advantage of strong brands? A) no vulnerability to marketing crises B) more elastic consumer response to price increases C) guaranteed profits D) additional brand extension opportunities E) more inelastic consumer response to price decreases
product specification
Which of the following is a step in the straight rebuy buyclass? A) problem recognition B) general need description C) product specification D) supplier search E) proposal solicitation
supplylink
Which of the following is an example of a functional hub? A) Plastics.com allows plastics buyers to search the best prices among thousands of plastics sellers. B) ChemConnect.com is an online exchange for buyers and sellers of bulk chemicals. C) SteelMart.com concentrates on steel buyers from the United States. D) SupplyLink.com offers manufacturers information on ensuring workplace safety. E) PaperTiger.com offers paper buyers a comprehensive look at the prices and quality in the paper market.
decision making unit
Which of the following is true about the buying center? A) In a buying center, one person cannot play more than one role. B) A typical buying center has a maximum of five or six members. C) A buying center consists of only mid-level managers and below. D) It is the decision-making unit of a buying organization. E) Gatekeepers in a buying center are people who authorize the proposed actions of deciders or buyers.
fewer and larger
Which of the following is true for business marketers? A) They deal with more and larger buyers than consumer marketers. B) They deal with more and smaller buyers than consumer marketers. C) They deal with fewer and larger buyers than consumer marketers. D) They deal with fewer and smaller buyers than consumer marketers. E) They deal with the same kind of buyers as consumer marketers.
relevance
Which of the following levels of the brand dynamics pyramid pertains to consumer's needs? A) advantage B) relevance C) bonding D) performance E) presence
Lifestyle
a person's pattern of living in the world as expressed in activities, interests, and opinions.
thematic apperception test
a picture is presented and respondents are asked to make up a story about what they think is happening or may happen in the picture
picture
a picture of two characters is presented, with one making a statement. Respondents are asked to identify with the other and fill in the empty balloon
completely unstructured
a question that respondents can answer in an almost unlimited number of ways
multiple choice
a question with three or more answers
dichotomous
a question with two possible answers
semantic differential
a scale connecting two bipolar words. The respondent selects the point that represents his or her opinion
intention to buy scale
a scale that describes the respondent's intention to buy
rating scale
a scale that rates some attribute from poor to excellent
importance scale
a scale that rates the importance of some attribute
threat of intense segment rivalry
a segment is unattractive if it already contains numerous, strong, or aggressive competitors.
threat of buyers growing bargaining power
a segment is unattractive if the company's suppliers are able to raise prices or reduce quantity supplied
threat of substitute products
a segment is unattractive when there are actual or potential substitutes for the product
laddering
a series of increasingly specific "why" questions can reveal consumer motivation and deeper goals
Value Proposition
a set of benefits that satisfy customer needs. It is made physical by an offering.
supersegment
a set of segments sharing some exploitable similarity
strategic business units
a single business or collection of related businesses that can be planned separately from the rest of the company, with its own set of competitors and a manager who is responsible for strategic planning and profit performance
sbu characteristics
a single business, or a collection of related businesses, that can be planned separately from teh rest of the company, has its own set of competitors, has a manager responsible for strategic planning and profit performance, who controls most of the factors affecting profit
core competency characteristics
a source of competitive advantage and makes a significant contribution to perceived customer benefits, has applications in a wide variety of markets, is difficult for competitors to imitate
core competency
a source of competitive advantage and makes a significant contribution to perceived customer benefits, it has applications in a wide variety of markets, and it is difficult for competitors to imitate
mobile marketing
a special form of online marketing that places communications on consumer's cell phones, smart phones, or tablets
mission statement
a statement that an organization develops to share with managers, employees, and (in many cases) customers
likert scale
a statement with which the respondent shows the amount of agreement/disagreement
marketing dashboards
a structured way to disseminate the insights gleaned from marketing metrics and marketing mix modeling
conviction
a target audience might prefer a particular product but not develop a __________ about buying it
Value chain
a tool for identifying ways to create more customer value
value chain
a tool for identifying ways to create more customer value
public relations and publicity
a variety of programs directed internally to employees of the company or externally to consumers, other firms, the government, and media to promote or protect a company's image or its individual product communications
sales promotion
a variety of short0term incentives to encourage trial or purchase of a product or service including consumer promotions (samples, coupons, and premiums), trade promotions (advertising and display allowances), and business and sales force promotions (contests for sales reps)
relevant
a well chosen event or experience can be seen as highly _____ because the consumer is often personally invested in the outcome
marketing plan
a written document that summarizes what the marketer has learned about the marketplace and indicates how the firm plans to reach its marketing objectives
partner relationship management
activites the firm undertakes to build mutually satisfying long-term relations with key partners such as suppliers, distributors, ad agencies, and marketing research suppliers
partner relationship management
activities the firm undertakes to build mutually satisfying long term relations with key partners such as suppliers, distributors, ad agencies, and marketing research suppliers
pervasiveness
advertising permits the seller to repeat a message many times. It also allows the buyer to receive and compare the messages of various competitors
amplified expressiveness
advertising provides opportunities for dramatizing the company and its brands and products through the artful use of print, sound, and color
brand personification
ask "if the brand were to come alive as a person, what would it be like, what would it do, where would it live, what would it wear..."
brand personification
ask "if the brand were to come live as a person what would it be like, what would it do, where would it live, what would it wear, who would it talk to if it went to a party (and what would it talk about)"
Holistic Marketing
based on the development, design, and implementation of marketing programs, processes, and activities that recognize their breadth and interdependencies
Close supplier customer relationship
because of the smaller customer base and the importance and power of the larger customers, suppliers are frequently expected to customize their offerings to individual business customer needs
stockless purchase plans
because the seller holds the stock, blanket contracts are sometimes called...
Inbound logistics
bringing materials into the business
customer relationship management process
building deeper understanding, relationships, and offerings to individual customers
the customer relationship management process
building deeper understanding, relationships, and offerings to individual customers
Direct purchasing
business buyers often buy directly from manufacturers rather than through intermediaries
Professional purchasing
business goods are often purchased by trained purchasing agents, who must follow their organizations' purchasing policies, constraints, and requirements
mutually adaptive
buyers and sellers make many relationship-specific adaptations, but without necessarily achieving strong trust or cooperation
Offering
can be a combination of products, services, information, and experiences
business marketers
can stimulate problem recognition by directing marketing in many different ways
geoclustering
captures the increasing diversity of the US population
electronic marketplaces
catalog sites, vertical markets, "pureplay" auction company, spot (or exchange) markets, private exchanges, barter markets, buying alliances
marketing plan
central instrument for directing and coordinating the marketing effort
Globalization
changes innovation and product development as companies take ideas and lessons from one country and apply them to another
value creation phases
choosing the value, providing the value, communicating the value
step 3
collect the information
Owned Media
communication channels marketers actually own, like a company or brand brochure, web site, blog, or social media accounts
survey research
companies undertake surveys to assess people's knowledge, beliefs, preferences, and satisfaction and to measure these magnitudes in the general population
events and experiences
company-sponsored activities and programs designed to create daily or special brand-related interactions with consumers, including sports, arts, entertainment, and cause events as well as less formal activities
advocate channels
consist of company salespeople contacting buyers in the target market
expert channels
consist of independent experts making statemnts to target buyers
social channels
consist of neighbors, friends, family members, and associates talking to target buyers
Marketing Network
consisting of the company and its supporting stakeholders-customers, employees, suppliers, distributors, retailers, and others-with whom it has built mutually profitable business relatiohships
Market Segment
consists of a group of customers who share a similar set of needs and wants
questionnaire
consists of a set of questions presented to respondents
questionnaire
consists of a set of questions presented to respondents. Because of its felixibility, it is by far the most common instrument used to collect primary data
marketing communications mix
consists of eight major modes of communications; advertising, sales promotion, events and experiences, public relations and publicity, online and social media marketing, mobile marketing, direct and database marketing, personal selling
organization
consists of its structures, policis, and corporate culture, all of which can become dysfunctional in a rapidly chainging business environment
institutional market
consists of schools, hospitals, nursing homes, prisons, and other institutuions that must provide goods and services to people in their care
Flexible market offering
consists of two parts: a naked solution containing the product and service elements that all segment members value and discretionary options that some segment members value
move to another brand
consumers are willing to ____________ if they think they are not being treated right or do not like what they are seeing
Production Concept
consumers prefer products that are widely available and inexpensive
pervasive
consumers typically carry their smart phones everywhere, so mobile communications are at their fingertips
split loyals
consumers who are loyal to two or three brands
Hard core loyals
consumers who buy only one brand all the time
shifting loyals
consumers who shift loyalty from one brand to another
switchers
consumers who show no loyalty to any brand
operations
converting materials into final products
Marketing Concept
customer-centered, sense-and-respond philosophy to find not the right customers for your products, but the right products for your customers
behavioral research
customers leave traces of their purchasing behavior in store scannign data, catalog purchases, and customer databases
primary data
data freshly gathered for a specific purpose or project
secondary data
data that were collected for another purpose and already exist somewhere
step 1
define the problem, the decision alternatives, and the research objectives
Life Stage
defines a person's major concern, such as going through a divorce, going to a second marriage, taking care of an older parent etc.
customer acquisition process
defining target markets and prospecting for new customers
the customer acquisition process
defining target markets and prospecting for new customers
strategic planning activities
defining the corporate mission, establishing strategic business units, assigning resources to each strategic business unit, assessing growth opportunities
Communication Channels
deliver and receive messages from target buyers and include newspapers, magazines, radio, tv, mail...
market definitions
describe the business as a customer satisfying process
trustworthiness
describes how objective and honest the source is perceived to be
major segmentation variables
geographic region, city or metro size, density, climate, family size, gender, income, education, religion, race, personality, benefits...
projective techniques
give people an incomplete or ambiguous stimulus and ask them to complete or explain it
projective techniques
give people and incomplete or ambiguous stimulus and ask them to complete or explain it
liking
given target members know the brand, how do they feel about it?
engaging
given their live, real-time quality, events and experiences are more actively ________ for consumers
Paid Media
includes tv, magazine, and display ads, paid search, and sponsorship, all of which allow marketers to show their ad or brand for a fee
online contact advantages
inexpensive, expansive, fast, tend to be honest and thoughtful, versatile
interactive
information can be changed or updated depending on the person's response
influential
information received or obtained via a smart phone can reach and _______ consumers as they are making a purchase decision
systems selling
is a key industrial marketing strategy in bidding to build large-scale industrial projects such as dams, steel factories, irrigation systems, ...
contact methods
mail, telephone, personal, online
old perspective
manufacture products and sell them via marketing. Will work in economies with goods shortages; overfull demand
arranged interviews
marketers contact respondents for an appointment and often offer a small payment or incentive
providing the value
marketing must identify specific product features, prices, and distribution
core business processes
marketing sensing process, new offering realization process, customer acquisition process, customer relationship management process, fulfillment management process
current perspecitve
marketing starts at the beginning of planning- firms are a part of the value delivery process
Business markets
markets for products and services, local to international, that are bought by businesses (Unilever), Government bodies (FCC), and Institutions (hospitals) for incorporation (components), consumption (advertising services), use (printing), or resale (selling to other consumers)
internal stimulus
might be a decision to develop a new product that requires new equipment and materials or a machine that breaks down and requires new parts
timeley
mobile communications can be very time sensitive and reflect when and where a consumer is
Multiple buying influences
more people typically influence business buying decisions. Buying committees that include technical experts and even senior management are common in the purchase of major goods
rich
much information or entertainment can be provided as much or as little as a consumer might want
collaborative
much trust and commitment lead to true partnership
marketers
must find the right balance between the quantity and quality of leads
high credibility
news stories and features are more authentic and ________ to readers than ads
Inelastic demand
not much affected by price changes
Impressions
occur when consumers view a communication, are a useful metric for tracking the scope or breadth of a communication's reach that can also be compared across all communication types
promotional alliances
one company agrees to carry a promotion for another company's product or service
product or service alliances
one company licenses another to produce its product, or two companies jointly market their complementary products or a new product
logistics alliances
one company offers logistical services for another company's product
pricing collaborations
one or more companies join in a special pricing collaboration
mail questionnaire
one way to reach people who would not give personal interviews or whos responses might be biased or distorted by the interviewers
online and social media marketing
online activities and programs designed to engage customers or prospects and directly or indirectly raise awareness, improve image, or elicit sales of products and services
undifferentiated
or mass marketing, the firm ignores segment differences and goes after the whole market with one offer
mass marketing
or undifferentiated, the firm ignores segment differences and goes after the whole market with one offer
Age/stage in life cycle
our taste in food, clothes, furniture, and recreation is often related to our age. Consumption is also shaped by the family life cycle and the number, age, and gender of people in the household at any point in time.
relationship oriented
personal selling relationships can range from a matter of fact selling relationship to a deep personal friendship
services
play an increasing strategic and financial role for many b2b firms selling primarily products. adding high quality services to their product offerings allows them to provide greater value and establish closer ties with customers
step 5
present the findings
Support activities
procurement, technology development, human resource management, and firm infrastructure
support activites
procurement, technology development, human resource management, firm infrastucture
complementary
product information can be provided that helps other marketing communications, especially in terms of e-commerce
marketing alliance categories
product or service, promotional, logistics, pricing collaborations
Product Concept
proposes that consumers favor products offering the most quality, performance, or innovative features
marketing insights
provide diagnostic information about how and why we observe certain effects in the marketplace and what that means to marketers
ability to be attention getting
sales promotion draw attention and may lead to the consumer to the product
invitation
sales promotion include a distinct ______ to engage in the transaction now
incentive
sales promotions incoporate some concession, inducement, or contribution that gives value to the consumer
build enthusiasm
sales reps can ______ dealer _______ by dramatizing planned advertising and communications support for the company's brand
increase stock position
sales reps can persuade dealers to take more stock and devote more shelf space to the company's brand
conduct missionary selling
sales reps can sign up more dealers
manage key accounts
sales reps can take responsibility for growing business with the most important accountsf
online contact disadvantages
samples can be small and skewed, panels and communities can suffer excessive turnover, market research can suffer technological problems and inconsistencies
sampling plan decisions
sampling unit: whom should we survey?, sample size: how many people should we survey?, sampling procedure: how should we choose the respondents?
data sources
secondary and primary
e-procurement uses
set up direct extranet links to major suppliers, form buying alliances, set up company buying sites
outbound logistics
shipping out final products
marketing plan
the central instrument for directing and coordinating the marketing effort. It operates at two levels- strategic and tactical
coorperative systems
the partners in cooperative systems are united in operational ways, but neither demonstrates structural commitment through legal means or adaptation
Perception
the process by which we select, organize, and interpret information inputs to create a meaningful picture of the world.
goal formulation
the process of developing specific goals for the planning period
differentiable
the segments are conceptually distinguishable and respond differently to different marketing mix elements and programs
substantial
the segments are large and profitable enough to serve. A segment should be the largest possible homogeneous group worth going after with a tailored marketing program.
accessible
the segments can be effectively reached and served
marketing metrics
the set of measures that helps marketers quantify, compare, and interpret their performance
marketing metrics
the set of measures that helps marketings quantify, compare, and interpret their performance
corporate culture
the shared experiences, stories, beliefs, and norms that characterize an organization
measurable
the size, purchasing power, and characteristics of the segments can be measured
expertise
the specialized knowledge the communicator possesses to back the claim
Value
the sum of the tangible and intangible benefits and costs
lead generation
the supplier's task is to ensure it is considered when customers are-or could be- in the market and searching for a supplier
knowledge
the target audience might have brand awareness but not know much more.
preference
the target audience might like the product but not _____ it to others
basic buying and selling
these are simple, routine exchanges with moderate levels of cooperation and information exchange
contractual transaction
these exchanges are defined by formal contract and generally have low levels of tryst, cooperation, and interaction
custom marketing research firms
these firms are hired to carry out specific projects. they deign the study and report the findings
syndicated service research firms
these firms gather consumer and trade information, which they sell for a fee
specialty line marketing research firms
these firms provide specialized research services. the best example is the field-service firm, which sells field interviewing services to other firms
bare bones
these relationships require more adaption by the seller and less cooperation and information exchange
mission statement
they focus on a limited number of goals, they stress the company's major policies and values, they define the major competitive spheres within which the company will operate, they take a long term view, they are as short, memorable, and meaningful as possible.
sbu objectives criteria
they must be arranged hierarchically, from most to least important, objectives should be quantitative whenever possible, goals should be realistic, objectives must be consistent
systems buying
this practice originated with government purchases of major weapons and communications systems
specific investments
those expenditures tailored to a particular company and value chain partner (investments in company specific training, equipment, and operating procedures or systems)
marketing mix modeling
to estimate casual relationships and measure how marketing activity affects outcomes
word association
to identify the range of possible brand associations, ask subjects what words come to mind when they hear the brand's name
word associations
to identify the range of possible brand associations, ask subjects what words come to mindwhen they hear the brand's name
stakeholder performance scorecard
tracks the satisfaction of various constituencies who have a critical interest in and impact on the company's performance: employees, suppliers, banks, distributors, retailers, and stockholders
stakeholder performance scorecard
tracks the satisfaction of various constituencies who have a critical interest in and impact on the company's performance: employees, suppliers, banks, distributors...
Actual Self-Concept
How we view ourselves.
Ideal Self-Concept
How we would like to view ourselves.
Brand Personality
How would you describe this company if it was a person?
Variety-Seeking Buying Behavior
Some buying situations are characterized by low involvement but significant brand differences. Here consumers often do a lot of brand switching.
High Involvement Decision
Spend a lot of time and effort making a decision to purchase or not, or what product to purchase ex. buying a car
Attitudinal Age
State of mind, when you think you're a different age you shop like that age
Core Values
The belief systems that underlie attitudes and behaviors
Problem Recognition
The buyer recognizes a problem/need triggered by internal/esternal stimuli
Social Risk
The product results in embarrassment in front of others
Internal Information Search
When you access knowledge structures in your brain to determine if you have enough information there before externally searching.
Information Search
Where you look if you're trying to find information on what to buy. Internal and External
Primary Groups
With whom the person interacts fairly continuously and informally, such as family, friends, neighbors, and coworkers.
market sensing process
gathering and acting upon information about the market
the market sensing process
gathering and acting upon information about the market
false
Brand imagery is a consumer's emotional response and reaction with respect to the brand.
Modified rebuy
The buyer wants to change product specifictions, prices, delivery requirements, or other tterms
Heightened Competition
-Private labels -Mega-brands -Deregulation -Privatization
Changing Channels
-Retail Transformation -Disintermediation
B2b biggest hurdles
1. Build stronger interfaces between marketing and sales 2. Building stronger innovation marketing interfaces 3. Extracting nd leveraging more granular customer and market knowledge
Mental accounting core principles
1. Consumers tend to segregate gains 2. Consumers tend to integrate losses 3. Consumers tend to integrate smaller losses with larger gains 4. Consumers tend to segregate small gains from large losses
Additional imperatives cited by ISBM
1. Demonstrating marketing's contribution to business performance 2. Engaging more deeply with customers nd customers' customers 3. Finding the right mix of centralized versus dcentralized marketing activities 4. Finding and grooming marketing talent and competencies
Types of Perceived Risk
1. Functional Risk 2. Physical Risk 3. Financial Risk 4. Social Risk 5. Psychological Risk 6. Time Risk
one to one marketing
1. Identify your prospects and customers 2. differentiate customers in terms of (1) their needs (2) their value to the company 3. interact with individual customers to improve your knowledge about their individual needs and to build stronger relationships 4. customize products, services, and messages to each customer
Integrated Marketing
1. Many different marketing activities can create, communicate, and deliver value 2. Marketers should design and implement any one marketing activity with all other activities in mind
Buyphases
1. Problem Recognition 2. General Need Description 3. Product Specification 4. Supplier Search 5. Proposal Solicitation 6. Supplier Selection 7. Order-routine Specification 8. Performance review
Buying Decision Process
1. Problem Recognition 2. Information Search 3. Evaluation of Alternatives 4. Purchase Decision 5. Postpurchase Behavior
Selective Attention Stimuli
1. Stimuli that relate to a current need 2. Stimuli they anticipate 3. Stimuli whose deviations are large in relationship to the normal size of the stimuli
memory retrieval facts
1. The presence of other product information in memory can produce interference effects and cause us to either overlook or confuse new data. 2. The time between exposure to information and encoding has been shown generally to produce only gradual decay. 3. Information may be available in memory but not accessible for recall without the proper retrieval cues or reminders
Sets Involved in Decision Making
1. Total Set (Apple, Dell, Hewlett-Packard, Toshiba, Compaq, NEC, Chrome....) 2. Awareness Set (Apple, Dell, Hewlett-Packard, Toshiba, Compaq) 3. Consideration Set (Apple, Dell, Toshiba) 4. Choice Set (Apple, Dell) 5. Decision (?)
objective and task method
1. establish the market share goal 2. select the percentage of the market that should be reached by advertising 3. estimate the percentage of aware prospects who should be persuaded to try the brand 4. calculate the number of advertising impressions per 1 percent trial rate 5. find the number of gross rating points to be purchased 6. calculate the necessary advertising budget on the basis of the average cost of buying a gross rating point
Problem Recognition
1st step in buying process, the buying process begins when someone in the company recognizes a problem or need that can be met by acquiring a good or service, can be triggered by internal or external
General need description
2nd step in buying process, for standard items it's simple but for complex items, the buyer will work with others to define characteristics such as reliability, durability, or price
Product specification
3rd step in buying process, develops the item's technical specifications
Product, Price, Promotion, Place
4 Ps
Supplier search
4th step in buying process, identify the most appropriate suppliers through trade directories, contacts with other companies, trade advertisements, trade shows, and the internet
proposal solicitation
5th step in buying process, buyer invites qualified suppliers to submit written proposals. After evaluating them, the buyer will invite a few suppliers to make formal presentations
Supplier selection
6th step in buying process
order routine specification
7th step in buying process, after selecting suppliers, the buyer negotiates the final order, listing the technical specifications, the quantity needed, the expected time of delivery, return policies, warranties, and so on
brand contract
A ________ can be defined as any information-bearing experience a customer or prospect has with the brand, the product category, or the market that relates to the marketer's product or service. A) brand value B) brand personality C) brand trait D) brand character E) brand contact
brand line
A ________ consists of all productsoriginal as well as line and category extensionssold under a particular brand. A) brand line B) cobrand C) generic brand D) licensed product E) subbrand
stockless purchase plan
A ________ establishes a long-term relationship in which the supplier promises to resupply the buyer as needed, at agreed-upon prices, over a specified period of time. A) stockless purchase plan B) direct stock purchase plan C) defined contribution plan D) stock purchase plan E) share purchase plan
brand mix
A ________ is a set of all brand lines that a particular seller makes. A) brand platform B) brand image C) cobrand D) brand extension E) brand mix
brand community
A ________ is a specialized group of consumers and employees whose identification and activities focus around the brand. A) brand community B) brand channel C) brand association D) brand personality E) brand cluster
brand portfolio
A ________ is the set of all brands and brand lines a particular firm offers for sale to buyers in a particular category. A) brand architecture B) brand position C) brand portfolio D) brand extension E) brand image
true
A brand community can be a constant source of inspiration and feedback for product improvements or innovations.
false
A brand that is seen as prototypical of a product category is easy to extend outside the category.
Industry
A collection of sellers
bonding
A consumer who expresses rational and emotional attachments to the brand to the exclusion of most other brands has reached the ________ level in the brand dynamics pyramid. A) advantage B) relevance C) presence D) performance E) bonding
Belief
A descriptive thought that a person holds about something
true
A firm's branding strategy is also called the brand architecture.
the acceleration effect
A given percentage increase in consumer demand can lead to a much larger percentage increase in the demand for plant and equipment necessary to produce the additional output. Economists refer to this as ________. A) derived demand B) inelastic demand C) the acceleration effect D) a straight rebuy E) the sales cycle
false
A good illustration of a member of the institutional market would be Boeing because it is a member of the aviation institution structure.
Aspirational Groups
A group that a person hopes to join. ex. country club
Pospurchase uses and disposal
A key driver of sales frequency is product consumption rate- the more quickly buyers consume a product, the sooner they may be back in the market to repurchase it. If consumers throw the product away, the marketer needs to know how they dispose of it, especially if it can damage the environment.
separate family brand name
A major advantage of a ________ strategy is that the company does not tie its reputation to the product. A) blanket family name B) licensing C) separate family brand name D) category extension E) brand revitalization
Long-term Memory
A more permanent, essentially unlimited repository. It is that portion of total memory devoted to permanent information storage.
problem recognition
A new-task buyclass decision begins with which of the following steps? A) supplier search B) general need description C) product specification D) problem recognition E) proposal solicitation
family brand
A parent brand that is associated with multiple products through brand extensions is also called a(n)________. A) category brand B) subbrand C) extension brand D) family brand E) line brand
false
A performance review is the first step in the buygrid framework.
Attitudes
A person's enduring favorable or unfavorable evaluations, emotional feelings, and action tendencies toward some object or idea
Postpurchase Action
A satisfied consumer is more likely to purchase the product again and will also tend to say good things about the brand to others. They may seek information that confirms its high value. They may take public action by complaining to the company, going to a lawyer... Private actions include to stop buying the product (exit option) or warning friends (voice option)
Personality
A set of distinguishing human psychological traits that lead to relatively consistent and enduring responses to environmental stimuli including buying behavior.
Drive
A strong internal stimulus impelling action.
the brand value chain
A structured approach to assessing the sources and outcomes of brand equity and the manner in which marketing activities create the financial worth of the brand is called ________. A) the brand value chain B) the brand portfolio C) the brand life cycle D) brand partitioning E) brand positioning
true
A successful extension cannot only contribute to the parent brand image but also enable a brand to be extended even farther.
risk and gain sharing
A supplier signs an agreement with a customer that states that $350,000 in savings will be earned by the customer over the next 18 months in exchange for a tenfold increase in the customer's share of supplies ordered by the customer. If the supplier achieves less than this promised savings, it will make up the difference. If the supplier achieves substantially more than promised, it participates in the extra savings. This is an example of ________. A) solution selling B) price fixing C) demand shifting D) systems buying E) risk and gain sharing
Social Stratification
A system by which a society ranks categories of people in a hierarchy
Short-term Memory
A temporary and limited repository of information. the portion of total memory that is currently activated or in use. Short-lived. Limited Capacity.
presence
According to the BRANDZ model of brand strength, brand building involves people progressing through a sequential series of steps. Which of these steps would address the question "Do I know about this brand?" A) relevance B) presence C) performance D) advantage E) bonding
false
According to the BRANDZ model, "Bonded" consumers at the lower levels of the pyramid build stronger relationships with and spend more on the brand than those at the top.
Psychogenic Need
Arises from psychological states of tension such as the need for recognition, esteem, or belonging.
false
The buying center is where consumers go to purchase their goods and services.
presence
Aromas Inc., introduced a new line of shower gels. To analyze consumer reaction, the company interviewed people who bought them. When Sarah was asked why she had chosen the new shower gel, she said she bought it because a friend recommended it. Sarah is at which level of the brand dynamics pyramid? A) presence B) bonding C) relevance D) performance E) advantage
linking internal and external marketing
AT&T's business campaign not only helped to change public perceptions of the company, it also signaled to employees that AT&T was determined to be a leader in telecommunication services. Which principle of internal branding does this example portray? A) choosing the right moment to capture employees' attention and imagination B) furnishing energizing and informative internal communication C) bringing the brand alive for employees D) linking internal and external marketing E) understanding how brand communities work
buyphases
According to Patrick J. Robinson, the eight stages in the business buying-decision process are known as ________. A) buyphases B) buybacks C) buyouts D) buyables E) buyoffs
line extension trap
According to Ries and Trout, Cadbury suffered from ________ when the company allowed its brand to become diluted by putting their name on such variants as mashed potatoes, powdered milk, and soups, apart from chocolates and candies. A) liquidity trap B) cognitive dissonance C) branding fallout D) cannibalization E) line-extension trap
esteem
According to Young and Rubicam's brand asset valuator, a brand's ________ measures how well the brand is regarded and respected. A) differentiation B) energy C) relevance D) esteem E) knowledge
true
According to brand asset valuator (BAV) model, knowledge is one of the key components of brand equity.
high knowlege
According to brand asset valuator model, declining brands show ________. A) higher levels of esteem and knowledge than relevance, whereas both differentiation and energy are lower still B) high relevance—appropriateness of brand's appeal—a lower level of energy and differentiation, and even lower knowledge C) high levels on energy, differentiation, relevance, knowledge, and esteem D) higher levels of differentiation and energy than relevance, whereas both esteem and knowledge are lower still E) high knowledge—evidence of past performance—a lower level of esteem, and even lower relevance, energy, and differentiation
strength
According to brand asset valuator model, energized differentiation and relevance, the two pillars of brand equity combine to determine what is called brand ________. A) position B) image C) depth D) knowledge E) strength
brand stature
According to brand asset valuator model, esteem and knowledge, the two pillars of brand equity together create ________, a "report card" on past performance and a current indicator of current value. A) brand stature B) brand parity C) brand strength D) brand personality E) brand architecture
high levels of energy, differentiation, relevance, knowledge, and esteem
According to brand asset valuator model, leadership brands show ________. A) high levels of energy, differentiation, relevance, knowledge, and esteem B) higher levels of esteem and knowledge than relevance, whereas both differentiation and energy are lower still C) higher levels of differentiation and energy than relevance, whereas both esteem and knowledge are lower still D) low levels on energy, differentiation, relevance, knowledge, and esteem E) high knowledge—evidence of past performance—a lower level of esteem, and even lower relevance, energy, and differentiation
supply
According to research studies, the closest relationships between customers and suppliers arise when ________. A) supply is important to the customer and there were procurement obstacles B) procurement is simple C) there are many undifferentiated vendors in the marketplace D) the customer is highly price sensitive E) the suppliers charge a premium for their products
bonding
According to the BRANDZ model of brand strength, brand building involves people progressing through a sequential series of steps. Which of these steps convey the message " Nothing else beats this brand"? A) bonding B) relevance C) advantage D) performance E) presence
performance
According to the BRANDZ model of brand strength, brand building involves people progressing through a sequential series of steps. Which of these steps would address or answer the question "Can this brand deliver?" A) performance B) bonding C) advantage D) relevance E) presence
relevance
According to the BRANDZ model of brand strength, brand building involves people progressing through a sequential series of steps. Which of these steps would address or answer the question "Does this brand offer me something?" A) advantage B) presence C) relevance D) bonding E) performance
advantage
According to the BRANDZ model of brand strength, brand building involves people progressing through a sequential series of steps. Which of these steps would address or answer the question "Does this brand offer something better than the others?" A) performance B) presence C) advantage D) bonding E) relevance
higher levels of differentiation and energy than relevance, whereas both esteem and knowledge are lower still
According to the brand asset valuator model, strong new brands show ________. A) higher levels of esteem and knowledge than relevance, whereas both differentiation and energy are lower still B) higher levels of differentiation and energy than relevance, whereas both esteem and knowledge are lower still C) high knowledge—evidence of past performance—a lower level of esteem, and even lower relevance, energy, and differentiation D) high levels on energy, differentiation, relevance, knowledge, and esteem E) low levels on energy, differentiation, relevance, knowledge, and esteem
knowledge
According to the brand asset valuator model, which of the components of brand equity measures how aware and familiar consumers are with the brand? A) esteem B) energized differentiation C) relevance D) knowledge E) presence
relevance
According to the brand asset valuator model, which of the components of brand equity measures the breadth of a brand's appeal? A) differentiation B) relevance C) esteem D) knowledge E) value
Commercial Information Source
Advertising, web sites, e-mails, salespersons, dealers, packaging, displays
Reference Groups
All the groups that have a direct (face-to-face) or indirect influence on their attitudes or behavior.
Business buyers
Also have personal motiviations, perceptions, and preferences influenced by their age, income, education, job posisiton, personality, attitudes toward risk, and culture
false
An important part of reinforcing brands is providing uniform and unchanging marketing support.
false
An increase in the demand for plant and equipment can lead to a much larger increase in consumer demand. This is known as the acceleration effect.
Learning
Any change that happens to our long-term memory. Induces changes in our behavior arising from experience. Most human behavior is learned, though much leaning is incidental.
a sub brand
Apple's ipod shuffle is an example of ________. A) a sub-brand B) a parent brand C) family brand D) a brand mix E) an umbrella brand
Biogenic Need
Arises from physiological states of tension, such as hunger, thirst, or discomfort.
true
Framing occurs when customers are given a perspective or point of view that allows the firm to "put its best foot forward."
false
The buying process begins when someone places an order with a sales representative.
Motive
What a need becomes when it is aroused to a sufficient level of intensity to drive us to act.
true
Both brand equity and customer equity emphasize the importance of customer loyalty and the notion that we create value by having as many customers as possible pay as high a price as possible.
equity
Brand ________ is the added value endowed to products and services. A) loyalty B) equity C) preference D) identity E) licensing
false
Brand differentiation occurs when consumers no longer associate a brand with a specific product or highly similar products and start thinking less of the brand.
false
Brand equity arises from unanimity in consumer response
secondary association
Brand equity can be built by ________, which create(s) equity by linking the brand to other information in memory that conveys meaning to customers. A) internal marketing B) brand transferability C) secondary associations D) customer alignment E) brand auditing
true
Brand equity can be built by linking the brand to sources, such as channels of distribution as well as to other brands.
false
Brand equity is essentially the same as brand valuation.
true
Brand extensions can reduce the costs of introductory launch campaigns and make it easier to convince retailers to stock and promote a new product.
is how often and how easily customers think of the brand under various purchase or consumption situations
Brand salience ________. A) is customers' emotional responses and reactions with respect to the brand B) is how often and how easily customers think of the brand under various purchase or consumption situations C) is how well the product or service meets customers' functional needs D) describes the extrinsic properties of the product or service, including the ways in which the brand attempts to meet customers' psychological or social needs E) describes the relationship customers have with the brand and the extent to which they feel they're "in sync" with it
false
Brand salience describes the extrinsic properties of the product or service, including the ways in which the brand attempts to meet customers' psychological or social needs.
endowing products and services with the power of a brand
Branding is ________. A) all about creating unanimity between products B) the process of performing market research and selling products or services to customers C) endowing products and services with the power of a brand D) the process of comparing competing brands available in the market E) use of online interactive media to promote products and brands
false
Brands are built only by advertising.
problem recognition
Business buyers may get new ideas at a trade show, see an ad, or receive a call from a sales representative who offers a better product or a lower price compared to the current in-supplier. These situations spur the ________ stage. A) problem recognition B) general need description C) order-routine specification D) supplier search E) performance review
true
Business buyers often select suppliers who also buy from them.
Highest benefit package
Business buyers seek the ____ ____ _____ (economic, technical, service, and social) in relationship to a market offering's cost
direct mail
Business marketers can stimulate problem recognition by ________. A) ensuring a presence in trade directories B) direct mail, telemarketing, and calling on prospects C) encouraging the Better Business Bureau to release statistics D) using consumer advertising E) conducting surveys of existing customers
Place
Channels, coverage, assortments, locations, inventory, transport
Business marketers
May divide the marketplace in many different ways to choose the types of firms to which they will sell
Availability Heuristic
Consumer base their predictions on the quickness and ease with which a particular example of an outcome comes to mind. ex. Note blows up, Samsung washers fail= Samsung sucks
Irregular Demand
Consumer purchases vary on a seasonal, monthly, weekly, daily, or even hourly basis
Key Customer Markets
Consumer, Business, Global, Non profit and Governmental
Full Demand
Consumers are adequately buying all products
Declining Demand
Consumers begin to buy the product less frequently frequently or not at all
energized differentiation
Christian Louboutin is a footwear designer who launched his line of high-end women's shoes in France in 1991. Since 1992, his designs have incorporated the shiny, red-lacquered soles that have become his signature. These red-lacquered soles and high stilettos of Louboutin distinguish him from other designer shoe brands. In accordance with the brand asset valuator model, which of the following components of brand equity has Louboutin fulfilled in the given scenario? A) energized differentiation B) relevance C) esteem D) knowledge E) advantage
esteem
Christian Louboutin is a footwear designer who launched his line of high-end women's shoes in France in 1991. The brand caters to an elite clientele whose satisfaction with the brand has always been evident. Apart from being high-end, Louboutin footwear signifies power in elite social circles. Celebrities are often seen sporting "Loubs" at special occasions, such as movie premieres. This has resulted in people associating Louboutin footwear with class and power. In accordance with the brand asset valuator model, which of the following components of brand equity has Louboutin fulfilled in the given scenario? A) knowledge B) energized differentiation C) esteem D) advantage E) presence
program multiplier
Clarity, relevance, distinctiveness, and consistency are factors that influence the ________ of the brand value chain. A) program multiplier B) brand multiplier C) market multiplier D) customer multiplier E) profit multiplier
false
Commoditization strengthens customer loyalty.
true
Companies are increasingly reducing the number of suppliers they utilize, and there is a trend toward single sourcing.
New Company Capabilities
Companies can: -use the internet as a powreful information and sales channel, including for individually differentiated goods -collect fuller and richer info about markets, customers, prospects, and competitors -reach consumers quickly and efficiently via social media and mobile marketing, sending targeted ads, coupons, and info -improve purchasing, recruiting, training, and internal and external communications -improve their cost efficiency
Purchase Decision Processes
Compensatory vs. noncompensatory models
customer multiplier
Competitive superiority and channel support are factors that influence the ________ of the brand value chain. A) program multiplier B) customer multiplier C) brand multiplier D) profit multiplier E) market multiplier
Business market
Consists of all the organizations that acquire goods and services used in the production of other products or services that are sold, rented, or supplied to others
Family of Orientation
Consists of parents and siblings.
Broad Environment
Consists of six components: Demographic environment, economic environment, social-cultural environment, natural environment, technological environment, and political-legal environment
Role
Consists of the activities a person is expected to perform
true
On spot electronic markets, prices of products or commodities change by the minute.
New Consumer Capabilities
Consumers can: -use the internet as a powerful information and purchasing aid -search, communicate and purchase on the move -tap into social media to share opinions and express loyalty -actively interact with companies -reject marketing they find innapropriate
Negative Demand
Consumers dislike the product and may even pay to avoid it
Unwholesome Demand
Consumers may be attracted to products that have undesirable social consequences
Nonexistent Demand
Consumers may be unaware of or uninterested in the product
true
Consumers may evaluate identical products differently depending on how they are branded.
Latent Demand
Consumers may share a strong need that cannot be satisfied by an existing product
false
Contracts are always sufficient to govern supplier transactions and prevent supplier opportunism.
true
Corporate credibility depends on corporate expertise, corporate trustworthiness, and corporate likability.
What influences Consumer Behavior?
Cultural and Social Factors
Brand Involvement
Customer Loyalty
true
Customer lifetime value is affected by revenue and by the costs of customer acquisition, retention, and cross-selling.
Value chain primary activities
inbound logistics, operations, outbound logistics, marketing, and service
primary activities
inbound logistics, operations, outbound logistics, marketing, service
Memory Encoding
Describes how and where information gets into memory. The strength of the resulting association depends on how much we process the information at encoding.
Promotion
Sales promotion, advertising, sales force, public relations, direct marketing
Herzberg's Theory
Developed a two-factor theory that distinguishes dissatisfiers from satisfiers. The absence of dissatisfiers is not enough to motivate a purchase; satisfiers must be present
Multitasking
Doing two or more things at the same time.
Subculture
Each culture consists of smaller subcultures that provide more specific identification and socialization for their members. Subcultures include nationalities, religions, racial groups, and geographic regions
Emotions
Emotion always helps the memory process and many different kinds of emotions can be linked to brands
Consumer Involvement
Engagement and active processing the consumer undertakes in responding to a marketing stimulus
cannibalizing
Even if sales of a brand extension are high and meet targets, the revenue may be coming from consumers switching to the extension from existing parent-brand offeringsin effect ________ the parent brand. A) diluting B) cannibalizing C) reinforcing D) eroding E) revamping
false
Flankers are brands that may be kept around despite dwindling sales because they manage to maintain their profitability with virtually no marketing support.
the initial choices for the brand elements or identities making up the brand
From a marketing management perspective, there are three main sets of brand equity drivers. Which of these drivers was most applicable when McDonald's decided to use the "golden arches" and Ronald McDonald as symbols of their brand? A) the product and all accompanying marketing activities and supporting marketing programs B) the service and all accompanying marketing activities and programs C) the initial choices for the brand elements or identities making up the brand D) associations indirectly transferred to the brand by linking it to some other entity E) the profitability associated with brand development
reduce customer costs
GM employees work at large customer facilities to reduce materials-management spending. This is an example of the ________ form of solution selling. A) solutions to encourage partnerships B) solutions to alter corporate culture C) solutions to enhance customer revenues D) solutions to decrease customer risks E) solutions to reduce customer costs
Membership Groups
Groups having a direct influence. Some of these are primary groups and some are secondary ex. frat
Others' Self-Concept
How we think others see us
Experiential Information Source
Handling, examining, using the product
Maslow's Theory
He believed that human needs are arranged in a hierarchy from most to least pressing.
Freud's Theory
He believed that the psychological forces shaping people's behavior are largely unconscious and taht a person cannot fully understand his or her own motivations.
Build brand attitude
Helping consumers evaluate the brand's perceived ability to meet a currently relevant need
Elimination-By-Aspects Heuristic
Here, the consumer compares brands on an attribute selected probablilistically- where the probability of choosing an attribute is positively related to its importance- and eliminates brands that do not meet minimum acceptable cutoffs.
different from competitors
How can a marketer overcome the negative effects of commoditization? A) convince target consumers that the firm's products are as good as those of competitors B) convince target consumers that price is irrelevant in determining quality C) convince target consumers that the firm's products are different from those of competitors D) convince target customers that buying the highest-priced product is no guarantee of quality E) convince target customers that all the products in the market are equivalent
energized differentiation, relevance, esteem, and knowledge
Identify the four pillars of brand equity, according to brand asset valuator model. A) relevance, performance, bonding, and advantage B) presence, performance, advantage, and bonding C) energized differentiation, relevance, esteem, and knowledge D) brand salience, brand feelings, brand imagery, and brand performance E) energized differentiation, esteem, brand feelings, and brand salience
systems contracting
If Ampex Support Systems is the single supplier for a local manufacturing company's MRO (maintenance, repair, operating) supplies and needs, Ampex Support Systems is considered as providing ________ for the manufacturer. A) guided selling B) purchasing support C) turnkey logistics D) decision support E) systems contracting
transferable
If a brand element can be used to introduce new products in the same or different categories, the brand element is said to be ________. A) memorable B) meaningful C) likeable D) transferable E) adaptable
false
If a brand element has the characteristic of being memorable, the brand is credible and suggestive of the type of person who might use the brand.
performance
If a consumer, trying to decide between alternatives, believes that a particular brand delivers acceptable product performance and can be short listed, she is in the ________ level of the brand dynamics pyramid. A) presence B) relevance C) performance D) advantage E) bonding
memorable
If consumers can easily recall and recognize a brand element, the brand element is said to be ________. A) meaningful B) protectable C) adaptable D) transferable E) memorable
MRO
If you decided to go into the systems contracting business, which of the following categories would constitute your main area of expertise, the service you provide for customers? A) computer applications B) database management C) manufacturing D) promotion management E) MRO (maintenance, repair, operating) supplies
gatekeeper
If you performed the role of the ________ in a buying center, you would be the person that has the power to prevent sellers or information from reaching other members of the buying center. A) initiator B) influencer C) decider D) gatekeeper E) approver
multilevel in-depth selling
If you were an upper-level marketing executive of a large seller of trucks, which of the following strategies would be most appropriate in reaching buying center targets? A) Concentrate on key buying influencers. B) Use multilevel in-depth selling. C) Use trade-based promotions. D) Concentrate sales efforts on the support staff. E) Move all operations to the Internet.
modified rebuy
In a ________ purchasing situation, the buyer wants to make some change to existing product specifications, prices, delivery requirements, or other terms. A) new rebuy B) regular buy C) straight rebuy D) modified rebuy E) new task
true
In buyer-seller relationships, the contractual transaction generally shows low levels of trust, cooperation, and interaction.
false
In buying alliances, participants offer to trade goods or services.
customer equity
In its focus on bottom-line financial value, the ________ approach often overlooks the "option value" of brands and their potential to affect future revenues and costs. A) brand equity B) brand value chain C) customer tracking D) customer equity E) brand extension
government organizations
In most countries, ________ are the major buyers of goods and services. They typically require suppliers to submit bids and often award the contract to the lowest bidder. A) consumer packaged-goods companies B) government organizations C) health services vendors D) educational institutions E) households
performance review
In reordering office supplies, the only stages that the buyer passes through are the product specification stage and the ________ stage. A) problem recognition B) general need description C) order-routine specification D) supplier search E) performance review
customer is king
In the ________ category of buyer-supplier relationship, although bonded by a close, cooperative relationship, the seller adapts to meet the customer's needs without expecting much adaptation or change on the part of the customer in exchange. A) contractual transaction B) cooperative system C) collaborative D) mutually adaptive E) customer is king
customer supply
In the ________ category of buyer-supplier relationships, competition rather than cooperation is the dominant form of governance. A) basic buying and selling B) bare bones C) contractual transaction D) customer supply E) collaborative
field
In the ________ method for assessing customer value, customers are asked how costs of using a new product compare to those of using an incumbent. A) direct survey B) importance ratings C) field value-in-use assessment D) benchmarking E) conjoint analysis
false
In the business market, small sellers concentrate on reaching as many participants as possible because their chances of success are slim.
true
In the buying center, several people can occupy a given role such as user or influencer, and one person may play multiple roles
gatekeepers
In the purchasing decision process, the ________ are those who have the power to prevent sellers or information from reaching members of the buying center. A) approvers B) buyers C) initiators D) gatekeepers E) deciders
initiators
In the purchasing decision process, the ________ are those who request that something be purchased. They may be users or others in the organization. A) users B) initiators C) influencers D) deciders E) approvers
buyers
In the purchasing decision process, the major role of ________ is in selecting vendors and negotiating. A) gatekeepers B) buyers C) initiators D) approvers E) deciders
true
In the straight rebuy, "out-suppliers" try to get a small order and then enlarge their purchase share over time.
true
Influencers influence the buying decision by helping define specifications and providing information for evaluating alternatives.
LKG
In which of the following is a person performing the role of a gatekeeper? A) Dan decides on the product requirements and makes the final choice of suppliers. B) Luke has the authority to pick out the supplier and negotiate the terms of purchase. C) Liam heads the Tech team at LKG and provides information for evaluating the possible alternatives. D) LKG gets many calls from potential suppliers, and it is Leah's job to weed out the good prospects and refer them to others in LKG. E) Dana authorizes the actions of the deciders and buyers in LKG.
dana
In which of the following is a person performing the role of an approver? A) Dan decides on the product requirements and makes the final choice of suppliers. B) Luke has the authority to pick out the supplier and negotiate the terms of purchase. C) Liam heads the Tech team at LKG and provides information for evaluating the possible alternatives. D) LKG gets many calls from potential suppliers, and it is Leah's job to weed out the good prospects and refer them to others in LKG. E) Dana authorizes the actions of the deciders and buyers in LKG.
liam
In which of the following is a person performing the role of an influencer? A) Dan decides on the product requirements and makes the final choice of suppliers. B) Luke has the authority to pick out the supplier and negotiate the terms of purchase. C) Liam heads the Tech team at LKG and provides information for evaluating the possible alternatives. D) LKG gets many calls from potential suppliers, and it is Leah's job to weed out the good prospects and refer them to others in LKG. E) Dana authorizes the actions of the deciders and buyers in LKG.
true
Increasing shelf presence and retailer dependence in the store is one of the reasons for introducing multiple brands in a category.
false
Initiators are those who authorize the proposed action of deciders or buyers.
false
Intrabrand shifts in a company's sales are always undesirable.
Marketing
It's about identifying and meeting human and social needs
modified rebuy
Jason Riggs' company is considered to be an in-supplier for a lawn mower manufacturer. However, recently the lawn mower company has put out a memo to in- and out-suppliers indicating that it would like to change product specifications and delivery schedules. Which of the following buying situations is most likely to be in operation given this data? A) straight rebuy B) single rebuy C) rakeback rebuy D) system buy E) modified rebuy
new task
Kenilworth Inc. is shifting from its rented four-room office to a standalone office building owned by the company itself. This can be classified as a ________. A) modified rebuy B) regular buy C) straight rebuy D) new rebuy E) new task
Consumer, Business, Global, Non profit and Governmental
Key customer markets
Multilevel in depth selling
Larger sellers go for _____ __ _____ ____ to reach as many participants as possible
Price
List price, Discounts, Allowances, Payment Period, Credit Terms....
step 6
Make the decision
systems buying
Many business buyers prefer to buy a total solution to a problem from one seller. This process is also known as ________. A) channel consolidation B) systems buying C) vertical buying D) horizontal buying E) supply buying
brand bonding
Mark feels that Shell delivers on its promises to supply the best gasoline possible to the public. His experiences with Shell have always been good resulting in positive brand contact. Mark is most likely experiencing ________. A) brand alliance B) brand essence C) brand harmonization D) brand parity E) brand bonding
true
Marketers must judge each potential brand extension by how effectively it leverages existing brand equity from the parent brand, as well as how effectively, in turn, it contributes to the parent brand's equity.
Heuristics
Mental short cuts, signals you use to remember something else, things you use in decision making process when you don't have the mental capacity
Cues
Minor stimuli that determine when, where, and how a person responds.
false
Modifying a brand to suit group-level or individual needs is called staking.
Overfull Demand
More consumers would like to buy the product than can be satisfied
false
Most business buyers reject what is called systems buying from one seller.
false
Most performance reviews are conducted by outside auditing agencies to avoid bias and internal discrepancies.
influence brand purchase intention
Moving consumers to decide to purchase the brand or take purchase-related action
Occupation and Economic Circumstances
Occupational groups that have above-average interest in specific products and services are targeted by marketers, who even tailor products for certain occupational groups. Both product and brand choice are greatly affected by economic circumstances like spendable income, debts, borrowing...
Framing
Occurs when customers are given a perspective or point of view that allows the seller to "put its best foot forward"
Hedonic Bias
Occurs when people have a general tendency to attribute success to themselves and failure to external cause.
spot market
On an online ________ , prices change by the minute. A) buying alliance B) barter market C) systems seller D) spot market E) catalog site
true
One of the advantages of having a strong brand is the ability to have a more elastic consumer response to price decreases of the brand
true
One of the forms of solution selling is to provide solutions to enhance customer revenues.
true
One of the problems facing B2B on the Web is that many firms often impose more stringent requirements on their online business partners than they do on non-online partners.
true
One of the selection criteria for creating a successful brand element is that it should be protectable.
true
Organizational buying is the decision-making process by which formal organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers.
systems selling
Orica Inc. competes in the market for commercial explosives. The company recently changed its business model from just selling explosives to managing an entire blast in a quarry. This customer-solution-based approach to the sale of explosives is an example of ________. A) systems selling B) straight rebuying C) customer referencing D) derived demand E) channel consolidation
buygrid
Patrick J. Robinson and his associates have identified eight stages in the business buying-decision process. This model is called the ________ framework. A) buygrid B) buying/selling C) seller-centered D) commercial E) buy-analysis
Mavens
People knowledgeable about big and small things
Approvers
People who authorize the proposed actions of deciders or buyers
Bridges
People who belong to one clique and are linked to a person in another.
Deciders
People who decide on product requirements or on suppliers
Buyers
People who have formal authority to select the supplier and arrange the purchase terms, may help shape product specifications, but they play their major role in selecting vendors and negotiating. In more complex purchases, might include high-level managers
Gatekeepers
People who have the power to prevent sellers or information from reching members of the buying center
Influencers
People who influence the buyign decision, often by helping define specifications and providing information for evluating alternatives. Tecnical people are particularly important influencers
Connectors
People who know and communicate with a great number of other people
External Information Search
Personal, Commercial or marketer-dominated sources, public, experiential
false
Physical goods, services, and stores can be branded, but ideas and people cannot.
vertical market
Plastics.com allows plastics buyers to search the best prices among thousands of plastics sellers. Plastics.com is an example of a(n) ________. A) buying alliance B) barter market C) systems seller D) vertical market E) auction site
Non-compensatory models
Positive and negative attribute considerations don't necessarily net out
Salesmen
Possess natural persuasive power`
VMI
Praxair Limited is a supplier of synthetic graphite to a number of electrode manufacturers in the U.S. Its customers have shifted their ordering responsibilities to Praxair and the company regularly monitors its customer's inventory levels and has taken responsibility for replenishing the supplies automatically through continuous replenishment programs. Which of the following systems do Praxair and its customers follow with respect to order-routine specification? A) Supplier Added Value Effort ($AVE) B) Vendor Managed Inventory (VMI) C) Direct Concentrated Buying (DCB) D) Supplier Performance Management (SPM) E) Product Value Analysis (PVA)
false
Product value analysis is an approach to efficiency that studies whether components can be redesigned or made by more efficient methods of production without adversely impacting product performance.
Product
Product variety, Quality, Design, Features, Brand Name, Packaging, Sizes....
4 Ps
Product, Price, Promotion, Place
the product and all accompanying marketing activities and supporting marketing programs
Red Bull enlisted college students as "Red Bull student brand managers" to distribute samples, research drinking trends, design on-campus product promotion activities, and write stories for student newspapers. From a marketing management perspective, which of the following brand equity drivers is most applicable in the given scenario? A) the profitability associated with brand development B) associations indirectly transferred to the brand by linking it to a person C) the product and all accompanying marketing activities and supporting marketing programs D) the initial choices for the brand elements or identities making up the brand E) associations indirectly transferred to the brand by linking it to a place
Social Classes
Relatively homogeneous and enduring divisions in a society, hierarchically ordered and with members who share similar values, interests, and behavior.
true
Research indicates that high-quality brands stretch farther than average-quality brands, although both types of brands have boundaries.
true
Risk and gain sharing can offset price reductions that customers request
enhance customer revenues
Robert Jennings consultants help farmers deliver an incremental animal weight gain of 8% to 12% over competitors. This is an example of ________. A) solutions selling to enhance customer revenues B) solutions selling to reduce customer costs C) solutions selling to decrease customer risks D) solutions selling to simplify customer purchasing E) solutions to provide better partnership
Postpurchase Satisfaction
Satisfaction is a function of the closeness between expectations and the product's perceived performance. If performance falls short of expectations, the consumer is disappointed; if it meets expectations, the consumer is satisfied; if it exceeds expectations, the consumer is delighted
true
Sellers benefit from systems contracting through lower operating costs as a result of steady demand and reduced paperwork.
inelastic demand
Shoe manufacturers are not going to buy much more leather if the price of leather falls, nor will they buy much less leather if the price rises, unless they can find satisfactory substitutes. This is an example of ________. A) inelastic demand B) direct purchasing C) the acceleration effect D) a modified rebuy E) a straight rebuy
Cliques
Small groups whose members interact frequently.
false
Small sellers concentrate on multilevel in-depth selling instead of reaching the key buying influencers.
Key buying influencers
Small sellers concentrate on reaching the...
influencers
Small sellers should first concentrate their marketing efforts on reaching ________. A) approvers B) initiators C) influencers D) users E) initiators
fluctuating demand
Sometimes a rise of only 10% in consumer demand can cause as much as a 200% rise in business demand for products for the next period. This is an example of ________. A) inelastic demand B) direct purchasing C) fluctuating demand D) derived demand E) a straight rebuy
true
Spending on product research, development, and design constitutes investment in the brand value development process.
category extension
Starbucks introduced ice creams in the same flavors as the frappucinos it sold in its coffee shops. This is an example of ________. A) brand dilution B) cobranding C) brand variants D) category extension E) brand harmonization
true
Systems selling is a key industrial marketing strategy in bidding to build large-scale industrial projects such as dams or pipelines.
Secondary Groups
Tend to be more formal and require less continuous interaction such as religious, professional, and trade-union groups.
false
The "customer is king" category of buyer-seller relationship is relatively simple, and one in which routine exchanges with moderately high levels of cooperation and information exchange occur.
brand
The American Marketing Association defines a ________ as "a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors." A) copyright B) trademark C) slogan D) brand E) logo
true
The U.S. government is the largest customer in the world.
compositional
The ________ approach to consumer research asks customers to attach a monetary value to alternative levels of a given attribute. The value of a given configuration is determined by adding the average values of each of the given attributes. A) benchmarking B) compositional C) importance rating D) focus-group E) conjoint analysis
business market
The ________ consists of all the organizations that acquire goods and services used in the production of other products or services that are sold, rented, or supplied to others. A) business market B) consumer market C) e-commerce market D) global market E) domestic market
institutional
The ________ market consists of schools, hospitals, nursing homes, prisons, and other institutions that must provide goods and services to people in their care. A) vertical B) nonprofit C) spot D) secondary business E) institutional
Chronological Age
The actual age that you are
identifying and establishing brand positioning
The first step in the strategic brand management process is ________. A) measuring consumer brand loyalty B) identifying and establishing brand positioning C) planning and implementing brand marketing D) measuring and interpreting brand performance E) growing and sustaining brand value
straight rebuy
The business buyer has to make the fewest decisions when involved in a ________. A) modified rebuy B) regular buy C) straight rebuy D) new rebuy E) new task
true
The business buyer makes the fewest decisions in the straight rebuy situation and the most in the new-task situation.
Culture
The fundamental determinant of a person's wants and behavior.
true
The business market consists of all the organizations that acquire goods and services used in the production of other products or services that are sold, rented, or supplied to others.
false
The business market is essentially the same market as the consumer market.
true
The business marketer normally deals with far fewer, much larger buyers than the consumer marketer does.
false
The buyer in a straight rebuy usually changes product specifications, prices, delivery requirements, or other terms.
PVA
The approach to cost reduction that studies whether components can be redesigned or standardized or made by cheaper methods of production without adversely impacting product performance is termed as ________. A) maintenance, repair, and operating (MRO) B) product value analysis (PVA) C) vendor managed inventories (VMI) D) supplier performance management (SPM) E) supplier added value effort (SAVE)
Marketing Management
The art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior superior customer value
Needs
The basic human requirements such as for air, food, water, clothing and shelter.
true
The brand audit can be used to set strategic direction for the brand.
the associations indirectly transferred to the brand by linking it to a place or thing
The brand name of New Zealand vodka 42BELOW refers to both a latitude that runs through New Zealand and the percentage of its alcohol content. From a marketing management perspective, which of the brand equity drivers is most applicable in the given scenario? A) the associations indirectly transferred to the brand by linking it to a place or thing B) the product and all accompanying marketing activities and supporting marketing programs C) the initial choices for the brand elements or identities making up the brand D) the profitability associated with brand development E) the service and all accompanying marketing activities and program
true
The brand promise will not be delivered unless everyone in the company lives the brand
ensuring that customers have the right type of experiences with their products and marketing programs to create the desired brand knowledge
The challenge for marketers in building a strong brand is ________. A) ensuring that customers have the right type of experiences with their products and marketing programs to create the desired brand knowledge B) pricing the product at a point that maximizes sales volume C) minimizing the number of people to whom the product is targeted in order to provide consumers with a personalized experience D) minimizing the impact of customer brand equity E) avoiding the usage of an established brand to introduce a new product in the market
Organizational buying
The decision making process by which formal organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers
The buying center
The decision-making unit of a buying organizations, consists of those individuals and groups who participate in the purchsing decision-making process
consumer goods
The demand for business goods is ultimately derived from the demand for ________. A) raw materials B) consumer goods C) services D) business solutions E) e-commerce
false
The demand for business goods is ultimately derived from the demand for raw materials.
Low-Involvement Consumer Decision Making
The expectancy-value model assumes a high level of consumer involvement. We buy many products under conditions of low involvement and without significant brand differences.
Time Risk
The failure of the product results in an opportunity cost of finding another satisfactory product
the ability of each brand to maximize equity in combination with all the other brands in it
The hallmark of an optimal brand portfolio is ________. A) the ability of each brand to maximize equity in combination with all the other brands in it B) the ability of each brand to maximize its individual equity in isolation C) maximum brand overlap D) the eventual reduction of brand differentiation to create a unified brand appearance E) maximum internal competition within the firm
false
The indirect approach to assessing brand equity assesses the actual impact of brand knowledge on consumer response to different aspects of marketing.
line extension
The introduction of diet coke by the Coca Cola Company is an example of ________. A) line extension B) brand harmonization C) category extension D) brand dilution E) co-branding
Competition
includes all the actual and potential rival offerings and subsittutes a buyer might consider
Decision Framing
The manner in which choices are presented to and seen by a decision maker. ex. "Buy now, Save x%" vs. "Don't buy now, Lose y%"
false
The most effective advertising strategy for an extension emphasizes the parent brand.
seek
The new, more strategically oriented purchasing departments have a mission. Which of the following most accurately describes that mission? A) Make the most profit possible and remain independent of entanglements. B) Approach every purchasing opportunity as means to create interdependency. C) Seek the best value from fewer and better suppliers. D) Outsource the supply function. E) Abandon all strategies except for systems selling and buying.
collaborative
The partners in ________ systems are united in operational ways, but neither demonstrates structural commitment through legal means or adaptation. A) mutually adaptive B) collaborative C) basic buying and selling D) customer supply E) cooperative
Opinion Leader
The person who offers informal advice or information about a specific product or product category, such as which of several brands is best or how a particular product may be used. ex. people you would ask advice
Family of Procreation
The person's spouse and children.
Market Partitioning
The process of identifying the hierarchy of attributes that guide consumer decision making in order to understand different competitive forces and how these various sets get formed.
Selective Attention
The process of screening most stimuli out.
Psychological Risk
The product affects the mental well-being of the user
Functional Risk
The product does not perform to expectations
Financial Risk
The product is not worth the price paid
Physical Risk
The product poses a threat to the physical well-being or health of the user or others
New task
The purchaser buys a product or service for the first time.
straight rebuy
The purchasing department buys office supplies on a routine basis from a pre-approved list of suppliers. This type of purchase is classified as a ________. A) straight rebuy B) modified rebuy C) new task D) secondary purchase E) procure-to-pay
Straight rebuy
The purchasing department reorders items like office supplies and bulk chemicals on a routine basis and chooses from suppliers on an approved list
false
The quantity, rather than quality, of a marketer's investment in brand building is the critical factor in building brand equity
customer supply
The relationship between a company and its office supplies vendor where competition rather than cooperation is the dominant form of governance is probably best described as ________. A) basic buying and selling B) contractual transaction C) collaborative D) customer supply E) customer is king
false
The role of a relatively high-priced brand in the portfolio is often to attract customers to the brand franchise or to "build traffic".
true
The total demand for many business goods and services is inelasticthat is, not much affected by price changes.
inelastic
The total demand for many business goods and services is not much affected by price changes. Thus, this demand is ________. A) derived B) fluctuating C) accelerated D) multiple E) inelastic
integrated marketing
The traditional "marketing-mix" concept and the notion of the "four Ps" may not adequately describe modern marketing programs. ________ is about mixing and matching marketing activities to maximize their individual and collective effects. A) Personalized marketing B) Mass customization C) Globalized marketing D) Relationship marketing E) Integrated marketing
mutually adaptive
The type of buyer-supplier relationship in which buyers and sellers make many relationship-specific adaptations, but without necessarily achieving strong trust or cooperation is termed as ________. A) customer is king B) mutually adaptive C) collaborative D) contractual transaction E) customer supply
Mental Accounting
The way consumers code, categorize, and evaluate financial outcomes of choices.
Memory Retrieval
The way information gets out of memory.
Low Involvement Decision
Things you don't take long to decide to purchase ex. grocery shopping
Users
Those who will use the product or service. In many cases, the users initiate the buing proposal and help define the product requirements
Dissociative Groups
Those whose values or behavior an individual rejects.
enhance customer revenues
Through its dedicated research team, CISCO Systems Inc. has developed new value-added business solutions which enable its variant class-II capacitors to provide incremental productivity of 10 to 20 percent over its competitors. This is an example of the ________ form of solution selling. A) solutions to reduce customer costs B) solutions to decrease customer risks C) solutions to alter corporate culture D) solutions to enhance customer revenues E) solutions to partnerships
true
To achieve integrated marketing, marketers need a variety of different marketing activities that consistently reinforce the brand promise
brand extensions
Two advantages of ________ are that they can facilitate new-product acceptance and provide positive feedback to the parent brand and company. A) product licensing B) brand extensions C) brand architecture D) brand audits E) brand dilutions
Task Environment
includes the actors engaged in producing, distributing, and promoting the offering
derived demand
Ultimately, the amount of steel sold to General Motors depends on the consumers' demand for GM cars and trucks. From the standpoint of the steel manufacturer, which of the following demand forms is most pertinent? A) derived demand B) inelastic demand C) geographic demand D) relational demand E) static demand
true
Under the BRANDZ model of brand strength, customers who are bonded to the brand believe "nothing else beats it."
Selective Retention
We're more likely to remember good points about a product we like and forget good points about competing products.
Initiators
Users or others in the organization who request that something be purchsed
Conjunctive Heuristic
Using this, the consumer sets a minimum acceptable cutoff level for each attribute and chooses the first alternative that meets the minimum standard for all attributes.
Buying centers
Usually include participants with differing interests, authority, status, susceptibility to persuasion, and sometimes very different decision criteria
collaborative
Value Central has a partnership of high trust and commitment with certain suppliers and gives them access to its sophisticated and detailed daily, individual store-based sales data. In exchange, those suppliers are responsible for managing Value Central's inventory of their products. This relationship is best described as ________. A) basic buying and selling B) contractual transaction C) collaborative D) customer supply E) customer is king
Associative Network Memory Model
Views long-term memory as a set of nodes and links. Nodes are stored information connected by links that vary in strength. A spreading activation process from node to node determines how much we retrieve and what information we can actually recall in any given situation
Discrimination
We have learned to recognize differences in sets of similar stimuli and can adjust our responses accordingly.
false
When Honda expanded its brand into such areas as automobiles, snowblowers, and marine engines, it was pursuing a strategy called line extension.
brand knowledge
When a consumer expresses thoughts, feelings, images, experiences, and beliefs associated with the brand, the consumer is expressing ________. A) brand knowledge B) ethnocentric bias C) self-serving bias D) cognitive dissonance E) brand identity
brand extension
When a firm uses an established brand to introduce a new product, it is called a ________. A) brand harmonization B) brand valuation C) brand extension D) brand positioning E) brand parity
Interdependent Culture
When a group succeeds, broadly classified as eastern culture ex. China, Japan, Korea...
a brand promise
When a marketer expresses his or her vision of what the brand must be and do for consumers, they are expressing what is called ________. A) a brand promise B) a brand personality C) a brand identity D) a brand position E) a brand revitalization
true
When a parent brand covers a new product within a product category it currently serves, it is called a line extension.
Independent Culture
When an individual succeeds, broadly classified as western culture ex. Western Europe, US...
true
When change is necessary, marketers should vigorously preserve and defend sources of brand equity.
decider
When purchasing disposable surgical gowns, Mercy Hospital's vice president of purchasing analyzes whether the hospital should buy disposable gowns or reusable gowns. If the findings favor disposable gowns, then the operating-room administrator compares various competitors' products and prices and makes a choice. Surgeons influence the decision retroactively by reporting their satisfaction with the particular brand. In this situation, the operating-room administrator performs the role of the ________. A) gatekeeper B) initiator C) user D) decider E) influencer
user
When purchasing disposable surgical gowns, Mercy Hospital's vice president of purchasing analyzes whether the hospital should buy disposable gowns or reusable gowns. If the findings favor disposable gowns, then the operating-room administrator compares various competitors' products and prices and makes a choice. Surgeons influence the decision retroactively by reporting their satisfaction with the particular brand. In this situation, the surgeons perform the role of the ________. A) decider B) initiator C) user D) gatekeeper E) buyer
including price
Which of the following methods is most likely to be used by buyers to review the performance of chosen suppliers? A) the buyer may contact different suppliers and ask for their evaluations B) the buyers may rate the end-users on several criteria using a weighted-score method C) the buyer might aggregate the cost of poor performance to come up with adjusted costs of purchase, including price D) the buyers may aggregate the opinions of various competitors and come up with the adjusted cost of supply E) the buyers might adopt the Supplier Added Value Effort technique to calculate supplier efficiency
collaborative
Which of the following relationships is characterized by much trust and commitment leading to a true partnership? A) mutually adaptive B) collaborative C) basic buying and selling D) customer supply E) cooperative systems
documenting
Which of the following value creation processes means detailing the brand relationship journey in a narrative way, often anchored by and peppered with milestones? A) documenting B) milestoning C) badging D) evangelizing E) staking
evangelizing
Which of the following value creation processes means sharing the brand "good news" and inspiring others to use the brand? A) staking B) badging C) evangelizing D) justifying E) milestoning
badging
Which of the following value creation processes means translating milestones into symbols and artifacts? A) staking B) evangelizing C) milestoning D) badging E) documenting
true
With respect to assessing customer value, in conjoint analysis customers are asked to rank their preference for alternative market offerings or concepts.
buying alliance
With respect to e-procurement, Coca-Cola, Sara Lee, Kraft, PepsiCo, P&G, and several other companies joined forces to form a ________ called Transora to use their combined leverage to obtain lower prices for raw materials. A) manufacturer's co-op B) supplier's co-op C) middleman group D) buying alliance E) buying cabal
vertical and functional hubs
With respect to e-procurement, which of the two types of e-hubs are Web sites organized around? A) vertical and horizontal hubs B) vertical and functional hubs C) functional hubs and organizational hubs D) supplier and user hubs E) manufacturer and supplier hubs
a slogan
With respect to powerful brand elements, ________ is an extremely efficient means to build brand equity. This element functions as a useful "hook" or "handle" to help consumers grasp what the brand is and what makes it special. A) the tangibility of a product B) a product's shape C) a slogan D) a patent E) a copyright
brand feelings
With respect to the "six brand building blocks," ________ are customers' emotional responses and reactions with respect to the brand. A) brand imagery statements B) brand judgments C) brand performances D) brand feelings E) brand resonances
brand imagery
With respect to the "six brand building blocks," ________ describes the extrinsic properties of the product or service, including the ways in which the brand attempts to meet customers' psychological or social needs. A) brand imagery B) brand judgment C) brand resonance D) brand salience E) brand performance
brand resonance
With respect to the "six brand building blocks," ________ describes the relationship customers have with the brand and the extent to which they feel they're "in sync" with it. A) brand imagery B) brand judgment C) brand resonance D) brand salience E) brand performance
brand judgment
With respect to the "six brand building blocks," ________ focuses on customers' own personal opinions and evaluations. A) brand salience B) brand performance C) brand imagery D) brand judgment E) brand resonance
brand performance
With respect to the "six brand building blocks," ________ signifies how well the product or service meets customers' functional needs. A) brand judgment B) brand imagery C) brand salience D) brand performance E) brand resonance
resonance
With respect to the brand building pyramid, at which of the following "building block levels" would we expect the consumer to develop an intense, active loyalty? A) salience B) imagery C) feelings D) judgments E) resonance
feelings
With respect to the brand building pyramid, at which of the following "building block levels" would we expect the consumer to develop positive and accessible reactions? A) resonance B) salience C) imagery D) performance E) feelings
judgment
With respect to the brand building pyramid, the branding objective of developing deep, broad brand awareness corresponds to which of the following "building block levels"? A) resonance B) imagery C) performance D) salience E) judgment
false
With respect to the buying center, approvers are people who have the power to prevent sellers or information from reaching members of the buying center.
Lexicographic Heuristic
With this, the consumer chooses the best brand on the basis of its perceived most important attribute.
systems buying
Xerox offers a ________ approach to prospective clients when it offers a complete turnkey solution, including the operation and management of the client's information and communication need. A) guided selling B) fair trading C) systems buying D) cross-selling E) local purchasing
Purchasing agents, other employees
_______ _______ are influential in straight-rebuy and modified-rebuy situations, whereas _____ _____ are more influential in new-buy situations
brand tracking studies
________ are a means of understanding where, how much, and in what ways brand value is being created to facilitate day-to-day decision making. A) Internal marketing campaigns B) Brand portfolio audits C) Brand value chains D) Sales cycles E) Brand-tracking studies
brand elements
________ are devices that can be trademarked and serve to identify and differentiate the brand. A) Brand elements B) Brand value propositions C) Brand perceptions D) Brand images E) Brand extensions
flanker
________ brands are positioned with respect to competitors' brands so that more important (and more profitable) flagship brands can retain their desired positioning. A) Flanker B) Attacker C) Defender D) Cash cow E) Simulation
internal branding
________ consists of activities and processes that help inform and inspire employees about brands. A) Internal branding B) Personal branding C) Individual branding D) External branding E) Co-branding
specific
________ investments are those expenditures tailored to a particular company and value chain partner. A) Diversified B) Pooled C) Specific D) Umbrella E) General
systems selling
________ is a key industrial marketing strategy in bidding to build large-scale industrial products such as dams, pipelines, etc. A) Systems contracting B) Systems buying C) Systems selling D) Solutions buying E) Turnkey logistics
the buying center
________ is composed of all parties who participate in the purchasing decision-making process and share common goals and risks associated with their decisions. A) The buying center B) The marketing sales team C) Strategic management D) Engineering support E) The logistics center
customer based brand equity
________ is the differential effect that brand knowledge has on consumer response to the marketing of that brand. A) Mission-driven brand equity B) Customer-based brand equity C) Product-driven brand equity D) Service-driven brand equity E) Function-based brand equity
brand valuation
________ is the job of estimating the total financial worth of the brand. A) Brand tracking B) Brand auditing C) Brand equity D) Brand valuation E) Brand harmonization
framing
________ occurs when customers are given a perspective or point of view that allows the firm to "put its best foot forward." A) Gatekeeping B) Commoditization C) Framing D) Rebuying E) Bartering
organizational buying
________ refers to the decision-making process by which formal organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers. A) Marketing channels B) Organizational buying C) Corporate retailing D) Brand auditing E) Inventory control
personal
__________ facts, opinions, and experiences can be stored in massive databases and incorporated into personal messages
environmental threat
a challenge posed by an unfavorable trend or development that, in the absence of defensive marketing action would lead to lower sales or profit
environmental threat
a challenge posed by an unfavorable trend or development that, in the absence of defensive marketing action, would lead to lower sales or profit
Supply Chain
a channel stretching from raw materials to components to finished products carried to final buyers
Market
a collection of buyers and sellers who transact over a particular product or product class (such as the housing market or the grain market)
value delivery network
a company's supply chain and how it partners with specific suppliers and distributors to make products and bring them to markets
marketing dashboards
a concise set of interconnected performance drivers to be viewed in common throughout the organization
marketing decision support system
a coordinated collection of data, systems, tools, and techniques, with supporting software and hardware, by which an organization gathers and interprets relevant information from business and environment and turns it into a basis for marketing action
proactive
a direct marketing piece can create attention, inform consumers, an include a call to action
selective specialization
a firm selects a subset of all the possible segments, each objectively attractive and appropriate
trust
a firms willingness to rely on a business partner
strategy
a game plan for getting to achievement
strategy
a game plan for getting to company goals
focus group
a gathering of 6-10 people carefully selected for demographic, psychographic, or other considerations and convened to discuss various topic at length for a small payment
focus group
a gathering of 6-10 people carefully selected for demographic, psychographic, or other considerations and convened to discuss various topics at length for a small payment
telephone interviewing
a good method for gathering information quickly; the interviewer is also able to clarify questions if respondents do not understand them
up to date
a message can be prepared very quickly and diffused through social media channels
risk analysis
a method by which possible rates of returns and their probabilities are calculated by obtaining estimates for uncertain variables affecting profitability
Relationship Marketing
aims to build mutually satisfying long-term relationships with key constituents in order to earn and retain their business
Product value analysis
an approach to cost reduction that studies whether components can be redesigned or standardized or made by cheaper methods of production without adversely affecting product performance
marketing opportunity
an area of buyer need and interest that a company has a high probability of profitably satisfying
Internal Marketing
an element of holistic marketing, is the task of hiring, training, and motivating able employees who want to serve customers well
sentence completion
an incomplete sentence is presented and respondents complete the sentence
story completion
an incomplete story is presented, and respondents are asked to complete it
Brand
an offering from a known source
marketing mix models
analyze data from a variety of sources, such as retailer scanner data, company shipment data, pricing, media, and promotion spending data, to understand more precisely the effects of specific marketing activities
step 4
analyze the information
advertising
any paid form of nonpersonal presentation and promotion of ideas, good, or services y an identified sponsor via print media (newpapers and magazines), broadcast media (radio and tv), network media (telephone, cable, satellite, wireless), electronic media (audiotape, videotape, webpage), and display media (billboards, signs, posters)
government organizations
are a major buyer of goods and services.
likability
describes the source's attractiveness, measured in terms of candor, humor, and naturalness
experimental research
designed to capture cause and effect relationships by eliminating competing explanations of the findings
experimental research
designed to capture cause-and-effect relationships by eliminating competing explanations of the findings
step 2
develop the research plan
scenario analysis
developing plausible representations of a firm's possible future that make different assumptions about forces driving the market and include different uncertantites
goal formation
developing specific goals for the planning period
scenario analysis
develops plausible representations of a firms possible future using assumptions about forces driving the market and different uncertanties
vertical hubs
e-hub centered on industries (plastics, steel, chemicals, paper)
functional hubs
e-hub, focused on (logistics, media buying, advertising, energy management)
actionable
effective programs can be formulated for attracting and serving the segments
transformational appeal
elaborates on a nonproduct-related benefit or image
informational appeal
elaborates on product or service attributes or benefits
technological devices
galvanometers can measure the interest or emotions aroused by exposure to a specific ad or picture
creative research
engaging students or professors to design and carry out projects, using the internet, checking out rivals, tapping into marketing partner expertise, tapping into employee creativity and wisdom
implicit
events are typically an indirect soft sell
Unstated Needs
ex. The customer expects good service from the dealer
Real Needs
ex. The customer wants a car whose operating cost, not initial price, is low
Stated Needs
ex. The customer wants an inexpensive car
Secret Needs
ex. The customer wants friends to see him or her as a savvy consumer
Delight Needs
ex. The customer would like the dealer to include an onboard GPS system
distinctive capabilities
excellence in broader business processes
marketing plan sections
executive summary and table of contents, situation analysis, marketing strategy, marketing tactics, financial projections, implementation controls
personal selling
face-to-face interaction with one or more prospective purchasers for the purpose of making presentations, answering questions, and procuring orders.
strategic group
firms purchasing the same strategy directed to the same target market
strategic group
firms pursuing the same strategy directed to the same market
mission statement characteristics
focus on a limited number of goals, stress the company's major policies and values, define the major competitive spheres within which the company will operate, take a ling-term view, as short, memorable, and meaningful as possible
target market definition
focuses on selling a product or service to a current market
strategic market definition
focuses on the potential market
Geographically concentrated buyers
for years, more than half of US business buyers have been concentrated in seven states: NY, CA, PA, IL, OH, NJ, MI
build brand awareness
fostering the consumer's ability to recognize or recall the brand in sufficient detail to make a purchase
distribution channels
help display, sell, or deliver the physical product or service(s) to the buyer or user
Selling Concept
holds that consumers and businesses, if left alone, won't buy enough of the organization's products
pricing collaborations
hotel and rental car companies often offer mutual price discounts
supply chain
how a company partners with specific suppliers and distributors to make products and bring them to markets
congruity
if a person has a positive attitude toward a source and a message or a negative attitude toward both
awareness
if most of the target audience is unaware of the object, the communicator's task is to build __________.
principle of congruity
implies that communicators can use their good image to reduce some negative feelings toward a brand but in the process might lose some esteem with the audience
promotional alliances
in 2011 vibe urban music and lifestyle magazine announced a promotional alliance with Hoop it up the worlds largest participatory 3 on 3 tournament. the multi platform partnership included vibe digital vibe cityguide app, editorial coverage and a highly integrated social media campaign with a strong vibe branded presence at all hoop it up live events
customer is kind
in this close, cooperative relationship, the seller adapts to meet the customers' needs without expecting much adaptation or change in exchange
customer supply
in this traditional supply situation, competition rather than cooperation is the dominant form of governance
establish need for category
is necessary for removing or satisfying a perceived discrepancy between a current motivational state and a desired motivational state
Multiple sales calls
it takes 4-4 1/2 calls to close an average industrial sale
Strategic marketing plan
lays out the target markets and the firm's value proposition, based on an analysis of the best market opportunities
strategic marketing plan
lays out the target markets and the firm's value proposition, based on an analysis of the best market opportunities
personal communications channel
let two or more persons communicate face to face or person to audience through a phone, surface mail, or e-mail.
ability to reach hard to find buyers
public relations can reach prospects who prefer to avoid mass media and targetted promotions
dramatization
public relations can tell the story behind a company, brand, or product
research instruments
questionnaires, qualitative measures, technological devices
fulfillment management process
receiving and approving orders, shipping goods on time, and collecting payment
the fulfillment management process
receiving and approving orders, shipping goods on time, and collecting payment
customer performance scorecard
records how well the company is doing year after year on perecentage o new customers to average number of customers, lost customers, win back customers, would recommend the product customers etc.
customer performance scorecard
records how well the company is doing year after year on such customer based measures
Satisfaction
reflects a person's judgment of a product's perceived performance in relationship to expectations
qualitative research techniques
relatively indirect and unstructured measurement approaches, limited only by the marketing researcher's creativity, that permit a range of responses
visualization
requires people to create a collage from magazine photos or drawings to depict their perceptions
Performance Marketing
requires understanding the financial and non financial returns to business and society from marketing activities and programs
observational research
researchers can gather fresh data by observing unobtrusively as customers shop or consume products
customer-supplier relationship
researchers have noted that establishing a ____-_____ ____ creates tension between safeguarding (ensuring predictable solutions) and adapting (allowing for flexibility for unanticipated events).
intercept interviews
researchers stop people at a shopping mall or busy street corner and request an interview on the spot
the new offering realization process
researching, developing, and launching new high quality offerings quickly and within budget
new offering realization process
researching, developing, and launching new high-quality offerings quickly and within budget
limited quantities, no refunds, no adjustments, and no services
some companies handle price-oriented buyers by setting a lower price but establishing restrictive conditions
opportunism
some form of cheating or undersupply relative to an implicit or explicit contract
qualitative measures
some marketers prefer ______ for gauging consumer opinion because they feel consumers' actions don't always match their answers to survey questions
purchase
some members of the target audience might have conviction but not quite get around to making the _________
Marketer
someone who seeks a response- attention, a purchase, a vote, a donation- from another party, called the prospect
Target Markets
specific customer groups or segments to whom a company wants to sell a particular product
tactical marketing plan
specifies the marketing tactics, including product features, promotion, merchandising, pricing, sales channels, and service
tactical marketing plan
specifies the marketing tactics, including product, features, promotion, merchandising, pricing, sales, channels, and service
Earned Media
streams in which consumers, the press, or other outsiders voluntarily communicate something about the brand via word of mouth, buss, or viral marketing methods
categories of market research firms
syndicated service, custom marketing, specialty line marketing
market opportunity annalysis
system used to determine the attractiveness and probability of success
performance review
the 8th step of the buying process, the buyer may contact end users and ask for their evaluations, rate the supplier on several criteria using a weighted score method, or aggregate the cost of poor performance to come up with adjusted costs of purchase, including price
mass customization
the ability of a company to meet each customer's requirements- to prepare on a mass basis individually designed products, services, programs, and communications
control
the advertiser can choose the aspects of the brand and product on which to focus communications
Fewer, larger buyers
the business marketer normally deals with much ___ and ____ _____ than the consumer marketer does, particularly in such industries as aircraft engines and defense weapons
response oriented
the buyer is often given personal choices and encouraged to directly respond
external stimulus
the buyer may get new ideas at a trade show, see an ad, receive an email, read a blog, or receive a call from a sales representative who offers a better product or a lower price
Customer Value Triad
the combination of quality, service, and price
overall cost leadership
the company's sales expressed as a percentage of total market sales
product or service alliances
the credit card industry is a complicated combination of cards jointly marketed by banks such as Bank of America, credit card companies such as Visa and affinity companies such as Alaska Airlines
Fluctuating demand
the demand for business goods and services tends to be more volatile than the demand for consumer goods and services
Derived demand
the demand for business goods is ultimately derived from the demand for consumer goods
Engagement
the extent of a customer's attention and active involvement with a communication
corporate expertise
the extent to which a company is seen as able to make and sell products or conduct services
corporate likability
the extent to which a company is seen as likable, attractive, prestigious, and dynamic
corporate trustworthiness
the extent to which a company is seen as motivated to be honest, dependable, and sensitive to customer needs
corporate credibility
the extent to which customers believe a firm can design and deliver products and services that satisfy their needs and wants
market specialization
the firm concentrates on serving many needs of a particular customer group, such as by selling an assortment of products only to university laboratories
product specialization
the firm sells a certain product to several different market segments
differentiated marketing
the firm sells different products to all the different segments of the market
marketing research
the function that links the consumer, customer, and public to the marketer through information
prime contractors
the government solicited bids from ____ ____ that if awarded the contract became responsible for bidding out and assembling the system's subcomponents from second-tier contractors.
choosing the value
the homework marketers must do before any product exists. they must segment the market, select the appropirate target, and develop the offering's value propositioning
value chain core business processes
the market sensing process, the new offering realization process, the customer acquisition process, the customer relationship management process, the fulfillment management process
marketing communications
the means by which firms attempt to inform, persuade, and remind consumers- directly or indirectly- about the products and brands they sell.
customized
the message can be designed to appeal to any individual
threat of new entrants
the most attractive segment is one in which entry barriers are high and exit barriers are low
personal interviewing
the most versatile method, the interviewer can ask more questions and record additional observations about the respondent, such as dress and body language
value proposition
unique to you, value not offered by competition
direct and database marketing
use of mail, telephone, fax, e-mail, or Internet to communicate directly with or solicit response or dialogue from specific customers and prospects
marketing metrics
used to asses marketing effects
ethnographic research
uses concepts and tools from anthropology and other social science disciplines to provide deep cultural understanding of how people live and work
communicating the value
utilizing the internet, advertising, sales force, and any other communication tools to announce and promote the product
systems contracting
variant of systems selling, in which a single supplier provides the buyer with its entire requirement of MRO supplies
Demands
wants for specific products backed by an ability to pay
logistics alliances
warner music group and sub pop records created the alternative distribution alliance in 1993 as a joint venture to distribute and manufacture records owned by independent labels.
e-procurement
web sites are organized around two types of e-hubs; vertical hubs and functional hubs
qualitative measure methods
word associations, projective techniques, visualization, brand personification, laddering
word association
words are presented, one at a time, and respondents mention the firs word that comes to mind
Brand Personality
The specific mix of human traits that we can attribute to a particular brand.
Public Information Source
Mass media, social media, consumer-rating organizations
Anchoring and Adjustment Heuristic
Consumers arrive at an initial judgement and then adjust it- sometimes only reluctantly- based on additional information ex. Brand loyalty to southwest but someone tells you they suck. You have to pause and decide if they really do and take the time to adjust your opinion.
Representatives Heuristic
Consumers base their predictions on how representative or similar the outcome is to other examples. ex. if you have hands and walk on 2 legs you are a human= false chimps have that too
Personal Information Source
Friends, family, neighbors, acquaintances
Consumer Behavior
The study of how individuals, groups, and organizations select, buy, use, and dispose of goods, services, ideas, or experiences to satisfy their needs and wants.
Selective Distortion
The tendency to interpret information in a way that fits our preconceptions. Consumers will often distort information to be consistent with prior brand and product beliefs and expectations.
Brand Associations
consist of all brand-related thoughts, feelings, perceptions, images, experiences, beliefs, attitudes, and so on, that become linked to the brand node.
Expectancy-Value Model
of attitude formation posits that consumers evaluate products and services by combining their brand beliefs- the positives and negatives- according to importance.