BMGT350 Midterm
Consumer Buyer Behavior
The buying behavior of final consumers--individuals and households that buy goods and services for personal consumption
Business Buyer Behavior
The buying behavior of organizations that buy goods and services for use in the production o other products and services that are sold, rented, or supplied to others
Business Portfolio
The collection of businesses and products that make up the company
Customer-Perceived Value
The customers's evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers
Business Buyer Process
The decision process by which business buyers determine which products and services their organizations need to purchase and then find, evaluate, and choose among alternative suppliers and brands
Customer Satisfaction
The extent to which a product's perceived performance matches buyers expectations
Wants
The form human needs take as they are shaped by culture and individual personality
Value Proposition
The full position of a brand-- the full mix of benefits on which it is positioned
Production Concept
The idea that consumers will favor products that are available and highly affordable; therefore, the organization should focus on improving production and distribution efficiency
Selling Concept
The idea that consumers will not buy enough of the firm's products unless the firm undertakes a large-scale selling and promotion effort
Word-of-Mouth Influence
The impact of the personal words and recommendations of trusted friends, associates, and other consumers on buying behavior
Macroenvironment
The larger societal forces that affect the microenviornment-- demographic, economic, natural, technological, political and cultural forces
Marketing Strategy
The marketing logic by which the company hopes to create customer value and achieve profitable customer relationships
Adoption Process
The mental process through which an individual passed from first hearing about an innovation to final adoption. Awareness, interest, evaluation, trial, adoption.
Marketing Myopia
The mistake of paying more attention to the specific products a company offers than to the benefits and experiences produced by those products
Marketing Return on Investment
The net return from a marketing investment divided by the costs of the marketing investment
Natural Environment
The physical environment and the natural resources that are needed as inputs by marketers or that are affected by marketing activities
Share of Customer
The portion of the customer's purchasing that a company gets in its product categories
Marketing
The process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return
Portfolio Analysis
The process by which management evaluates the products and businesses that make up the company
Perception
The process by which people select, organize, and interpret information to form a meaningful picture of the world
Strategic Planning
The process of developing and maintaining a strategic fit between the organization's goals and capabilities and its changing marketing opportunities
Value Chain
The series of internal departments that carry out value creating activities to design, produce, market, deliver and support a firm's products
Market
The set of all actual and potential buyers of a product/service
Culture
The set of basic values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions
Undifferentiated Mass Marketing
A market coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer
Differentiated (Segmented) Marketing
A market coverage strategy in which a firm decides to target several market segments and designs separate offers for each
Concentrated (Niche) Marketing
A market coverage strategy in which a firm goes after a large share of one or a few segments or niches
Motive (Drive)
A need that is sufficiently pressing to direct the person to seek satisfaction or reward
Value Delivery Network
A network composed of the company, suppliers, distributors, and, ultimately, customers who partner with each other to improve the performance of the entire system in delivering customer value
Opinion Leader
A person within a reference group who, because of special skills, knowledge, personality, or other characteristics, exerts social influence on others
Attitude
A person's consistently favorable or unfavorable evaluations, feelings, and tendencies toward an object or idea
Lifestyle
A person's pattern of living as expressed in his or her activities, interests, and opinions
Marketing Concept
A philosophy in which achieving organizing goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do
Product/Market Expansion Grid
A portfolio planning tool for identifying company growth opportunities through market development, penetration, product development or diversification
Growth-Share Matrix
A portfolio-planning method that evaluates a company's SBUs in terms of market growth rate and relative market share. Ex. - Stars, Cash Cows, Question Marks, Dogs.
Sample
A segment of the population selected for marketing research to represent the population as a whole. Who? How many? How (choosing)?
Target Market
A set of buyers sharing common needs or characteristics that the company decides to serve
Mission Statement
A statement of the organization's purpose-- what it wants to accomplish in the larger environment, must be measurable and motivational.
Positioning Statement
A statement that summarized company or brad positioning using this form: "To (Target Segment and Need) our (Brand) is (Concept) that (Point Of Difference)."
Consumers go through specific stages in the process of adopting a new product. Those five stages include ________, ________, _______, _________, and _______.
A. awareness, interest, evaluation, trial, and adoption
The second step in the buyer decision process might include seeking more information. Sources of information vary. Commercial sources normally ________ the buyer, but personal sources________ products for the buyer.
A. inform; legitimatize or evaluate
Marketers want to predict cultural shifts to spot new opportunities or threats. The major cultural values of a society are expressed in people's views of themselves and others, as well as in their views of ________, __________, ____________, and ________.
A. organizations, society, nature, and the universe
Which of the following is true regarding the technological environment?
B. Companies must keep up with changes in technology or risk being left behind.
______________________ is part of a company's decision on how it will create market offerings to deliver superior customer value.
B. Differentiation
There are several types of objectives market researchers might use in a marketing research project. Which of the following are the primary types of objectives?
B. Exploratory research, descriptive research, and causal research
What are the three general sources from which marketers can obtain information?
B. Internal data, marketing intelligence, and marketing research
Marketers need to understand and know the answers to several key questions when dealing with buying centers. Of the following, which is NOT one of those key questions?
B. Is price a major factor or is the buying center price sensitive?
________ is the process of dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate marketing strategies or mixes.
B. Market segmentation
To find the best strategy and mix and to put them into action, the company engages in five activities, including which of the following?
B. Marketing analysis, planning, implementation, organization, and control
Which major trend is ideal for engaging customers anytime, anywhere, as they move through the buying process?
B. Mobile marketing
Which type of business buying situation offers marketers not only the greatest opportunity, but also the greatest challenge?
D. A new task situation
Which of the following enhances how marketers learn about and interact with customers?
D. Big data and marketing analytics
Like consumer markets, business markets are segmented. Which of the following describes the variables that marketers use to segment business markets?
D. Business demographics, operating characteristics, purchasing approaches, situational factors, and personal characteristics
Which of the following is NOT among the major factors influencing consumer buying behavior?
D. Commercial
What are the four major steps in designing a customer value-driven marketing strategy, in the correct sequence?
D. Market segmentation, market targeting, differentiation, and positioning
What are the eight steps in the business buying decision process, in the correct sequence?
D. Problem recognition, general need description, product specification, supplier search, proposal solicitation, supplier selection, order-routine specification, and performance review
Which of the following is an important trend in the natural environment of which marketers should be aware?
D. Shortages of raw materials
Marketing information is of no value until it is used for what purpose?
D. To make better marketing decisions
We define the ________ process as the mental process through which an individual passes from first learning about an innovation to final adoption.
D. adoption
Buyers who face a new task-buying situation usually go through ________.
D. all of the eight stages, including performance review
Huge and complex data sets generated by today's sophisticated information generation, collection, storage, and analysis technologies are referred to as _______.
D. big data
The best ________ is the one that best fits the company's strengths and weaknesses to opportunities in the environment.
D. business portfolio
Firms with limited resources often target a market niche that is either ignored or unimportant to larger firms. This represents a(n) _______ strategy.
D. concentrated marketing
The economic environment impacts marketing decisions. The economic environment consists of two primary economic factors that affect __________________.
D. consumer purchasing power and spending patterns
Although business marketers use many of the same variables to segment their markets, they also use some additional variables, such as ________, ____________. _________, and personal characteristics.
D. customer operating characteristics, purchasing approaches, situational factors
Advances in ________ are forces that offer exciting new opportunities to target customers more selectively and engage them more deeply.
D. digital and social media
Two major public policy and ethical issues in marketing research are ________.
D. intrusions on consumer privacy and misuse of research findings
The demographic environment is of major interest to marketers because ________.
D. it involves people, and people make up markets
Legislation affecting business around the world has increased steadily over the years within the political environment. The increased legislation has been enacted in three primary areas, including________, ______________, and _______________.
D. laws protecting companies from each other, laws protecting consumers, and laws protecting the interests of society
Today's marketers face growing pressures to show that they are adding value in line with their costs. In response, marketers are developing better measures of ________.
D. marketing return on investment
The goal of ________ is to develop and maintain a fit between the organization's goals and capabilities and its changing marketing opportunities.
D. strategic planning
According to the text, __________ are perhaps the most dramatic forces affecting today's marketing strategies.
D. technological forces
The natural environment involves __________________ that are needed as inputs by marketers or that are affected by marketing activities.
D. the physical environment and natural resources
Marketing management can adopt one of five competing market orientations, which include _________.
D. the production concept, the product concept, the selling concept, the marketing concept, and the societal marketing concept
As part of marketing's role, the department works closely with partners in other departments to form an effective internal ________ and with other companies in the marketing system to create an external value delivery network that jointly serves customers.
D. value chain
Which of the following correctly identifies the five core customer and marketplace concepts?
D. Needs, wants, and demands; market offerings; value and satisfaction; exchanges and relationships; and markets
In which step of the buying decision process is the final order with the chosen supplier developed?
D. Order-routine specification
___________________________ compose a company's external value delivery network
D. Suppliers, distributors, and customers
Advances in information technology have dramatically affected the B-to-B buying process. Online purchasing, often called _______, has grown rapidly in recent years.
D. e-procurement
Some marketers face special marketing research situations, such as those conducting research in small business, not-for-profit, or international situations. International researchers deal with great variances in ________, __________, __________, and ________
E. levels of economic development, cultures and customs, buying patterns, and scarcity of secondary data
The first step in the marketing research process involves defining the problem and setting research objectives , which might be _________, ___________, or ____________ research.
E. exploratory, descriptive, or causal
The third step in the marketing research process calls for implementing the marketing research plan by _______
E. gathering, processing, and analyzing the information
Major economic variables include ________.
E. income, cost of living, and savings and borrowing patterns
People can be classified into the adopter categories, with each category having different values and rates of adoption. The adopter categories include ________, ________, __________, _________, and __________.
E. innovators, early adopters, early mainstream adopters, late mainstream adopters, and lagging adopters
Business marketers are increasingly connecting with customers online and through digital, mobile, and social media to ________, __________, __________, ___________, and maintain ongoing customer relationships.
E. engage customers, share marketing information, sell products and services, provide customer support services
Which stage of the business buying decision process involves ranking the importance of reliability, durability, and price?
E. general need description
The cultural environment consists of ________ that affect a society's values, perceptions, preferences, and behaviors.
E. institutions and forces
Online Social Networks
Online social communities-- blogs, social networking web sites, and other online communities-- where people socialize or exchange information and opinions
Marketing Mix
The set of tactical marketing tools-- product, price, place, and promotion-- that the firm blends to produce the response it wants in the target market
Demography
The study of human populations in terms of size, density, location, age, gender, race, occupation and other statistics
Competitive Marketing Intelligence
The systematic collection and analysis of publicly available information about consumers, competitors, and developments in the marketing environment
Marketing Research
The systematic design, collection, analysis and reporting of data relevant to a specific marketing situation facing an organization. Information must be relevant, accurate, current, and impartial. Step 1 - Define problem and research objectives Step 2 - Develop research plan to collect info Step 3 - Implement plan, collect and analyze data Step 4 - Interpret and report findings
Customer Equity
The total combined customer lifetime value of all the company's customers
Personality
The unique psychological characteristics that distinguish a person or group
Social Marketing Concept
The use of commercial marketing concepts and tools in programs designed to influence individuals behavior to improve their well-being and that of society
Customer Lifetime Value
The value of the entire stream of purchases a customer makes over a lifetime of patronage
Product Position
The way a product us defined by consumers on important attributes-- the place the product occupies in consumers' minds relative to competing products
Marketing Implementation
Turning marketing strategies and plans into marketing actions to accomplish strategic marketing objectives
Group
Two or more people who interact to accomplish individual or mutual goals
The second critical phase in developing a marketing information system (MIS) is developing information. The information is developed from ________, __________, and ____________.
E. internal databases, marketing intelligence activities, and marketing research
the buying center and the buying decision process are influenced by ________, __________, and __________ factors, as well as _____________ factors.
E. internal organizational, interpersonal, and individual factors, as well as external environmental factors
The fourth step in the marketing research process is ________.
E. interpreting and reporting the findings
Marketing Information System
People and procedures dedicated to assessing the information needs, developing the needed information and helping decision makers to use the information to generate and validate actionable customer and market insights
Generation Z
People born after 2000 (although many analysts include people born after 1995) who make up the kids, tweens, and teen markets
Digital and Social Media Marketing
Using digital marketing tools such as web sites, social media, mobile apps and ads, online video, email and blogs that engage consumers anywhere, anytime via their digital devices
Behavioral Targeting
Using online consumer tracking data to target advertisements and marketing offers to specific consumers
Partner Relationship Management
Working closely with partners in other company departments and outside the company to jointly bring greater value to customers
Focus Group Interviewing
Personal interviewing that involves inviting 6-10 people to gather for a few hours with a trained interviewer to talk about a product, service, or organization. The interviewer "focuses" the group discussion on important issues
Which of the following represent market offerings?
Products, services, information, and experiences
E-Procurement
Purchasing through electronic connections between buyers and sellers--usually online
Social Class
Relatively permanent and ordered divisions in a society whose members share similar values, interests, and behaviors
Market Offerings
Some combination of products, services, information, or experiences offered to a market to satisfy a need or want
Needs
States of felt deprivation
Supplier Development
Systematic development of networks of supplier-partners to ensure an appropriate and dependable supply of products and materials for use in making products or reselling them to others
Local Marketing
Tailoring brands and marketing to the needs and wants of local customer segments-- cities, neighborhoods, and even specific stores
Individual Marketing
Tailoring products and marketing programs to the needs and preferences of individual customers
Micromarketing
Tailoring products and marketing programs to the needs and wants of specific individuals and local customer segments; it includes local marketing and individual marketing
Generation X
The 49 million people born between 1965 and 1976 in the "birth dearth" following the baby boom
Baby Boomers
The 78 million people born during the years following WWII and lasting until 1964
Millennials (Generation Y)
The 83 million children of the baby boomers born between 1977 and 2000
Exchange
The act of obtaining a desired object from someone by offering something in return
Marketing Environment
The actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers
Microenvironment
The actors close to the company that affect its ability to serve its customers-- the company, suppliers, marketing intermediaries, customer markets, competitors, and publics
Marketing Management
The art and science of choosing target markets and building profitable relationships with them
To determine which market segments to target and serve, the company first evaluates each segment's ________.
size and growth characteristics, structural attractiveness, and compatibility with company objectives and resources
What are the five stages of the consumer adoption process, in the correct sequence?
A. Awareness, interest, evaluation, trial, and adoption
Secondary Data
Information that already exists somewhere, having been collected for another purpose
Cultural Environment
Institutions and other forces that affect society's basic values, perceptions, preferences, and behaviors
New Task
A business buying situation in which the buyer purchases a product or service for the first time
Straight Rebuy
A business buying situation in which the buyer routinely reorders something without any modifications
Modified Rebuy
A business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers
Belief
A descriptive though that a person holds about something
Product Concept
A detailed version of the new product idea stated in meaningful consumer terms
Ethnographic Research
A form of observational research that involves sending trained observers to watch and interact with consumers in their "natural environments"
New Product
A good, service, or idea that is perceived by some potential customers as new
Market Segment
A group of customers who respond in a similar way to a given set of marketing efforts
Subculture
A group of people with shared value systems based on common life experiences and situations
To target the best market segments, the company first evaluates various factors related to market attractiveness. Of the following, which is NOT one of those factors?
A. Compatibility with company mission and vision
In which targeting strategy does a firm go after a large share of one or a few smaller segments?
A. Concentrated marketing
Which of the following is included in a broad definition of marketing?
A. Creating customer value, building customer relationships, and engaging customers
Which of the following is NOT one of the components of a company's microenvironment?
A. Cultural forces
_________ refers to the set of values, perceptions, wants, and behaviors learned by a member of society from family and other important institutions.
A. Culture
________ are at the center of marketing strategy and programs.
A. Customer engagement, value, and relationships
Which of the following statements regarding the business market is correct?
A. Many sets of business purchases are made for one set of consumer purchases.
Fairly recently, Starbucks began expanding into China. At one point, Starbucks was opening a new store in China every 15 hours. Which product/market expansion strategy does this represent?
A. Market development
The product/market expansion grid is a tool that allows marketers to identify growth opportunities. Of the following, which represent the four components of the product/market expansion grid?
A. Market penetration, market development, product development, and diversification
The focus of which of the following processes not only sets the stage for planning in the firm, but also represents the maintenance and development of the organization's goals and capabilities and its changing marketing opportunities?
A. Strategic planning
What are the two keys to building lasting customer relationships?
A. Superior customer value and satisfaction
What are perceptual positioning maps used for?
A. To show consumer perceptions of different brands on important buying dimensions
What advice would you give a firm about how to respond to the changing marketing environment?
A. Whenever possible, take a proactive approach to the environment.
The differentiation and positioning task consists of three steps: identifying ________ that create competitive advantage, choosing ________ on which to build a position, and selecting an overall positioning strategy.
A. a set of possible differentiations; advantages
The key to learn about and engage with individual customers is to blend the new digital technologies and approaches with traditional marketing to create _____________
A. a smoothly integrated marketing strategy and mix
When effective programs can be designed for attracting and serving market segments, these segments are ________.
A. actionable
Many companies see the marketing environment as uncontrollable. They ________ that will help the company avoid the threats and take advantage of the opportunities the environment provides
A. analyze environmental forces and design strategies
The two steps in business portfolio planning are ________ and ________.
A. analyzing the current business portfolio; developing strategies for growth and downsizing
Consumers go through a distinct process in making a purchase. Of the following, which is the final step in that process?
A. Post-purchase behavior
Marketers keep a close eye on demographic trends and developments in their markets. They analyze ________.
A. changing age and family structures, geographic population shifts, educational characteristics, and population diversity
In the broadest sense, a new product marketer must research _____________________ when developing a new product and a marketing program.
A. characteristics influencing the rate of adoption
Understanding needs, wants, and demands helps companies to design market offerings and build value-laden customer relationships through which they can capture____________________________.
A. customer lifetime value and greater share of customer
Once market segments have been selected, the company then must decide on _____________________________.
A. differentiation and positioning strategy
The mission is transformed into detailed supporting goals and objectives, which in turn guide decisions about the business portfolio. Then each business and product unit must develop detailed________ plans in line with the company-wide plan.
A. functional
The customer-driven company divides the total market into smaller segments, selects segments it can best serve and decides how it wants to bring value to target consumers in the selected segments. It then designs a(n) ________.
A. integrated marketing mix
Business markets differ in many ways from consumer markets. The main differences are in ________, __________, and __________.
A. market structure and demand, the nature of the buying unit, and the types of decisions and the decision process
A __________________________ consists of the people and procedures dedicated to assessing information needs, developing the needed information, and helping decision makers use the information to generate and validate actionable customer and market insights.
A. marketing information system
The company's ________ consists of actors close to the company that combine to form its value delivery network or that affect its ability to serve customers.
A. microenvironment
The business buyer decision process itself can be quite involved, with several basic stages. The process begins with ______________ and concludes with _______________.
A. problem recognition; performance review
Companies need meaningful customer insights so they can _____________________________.
A. produce superior value for their customers
The most common mistake firms make is to view CRM, marketing analytics, and AI as _______.
A. technology processes only
What are the five marketing management functions used to manage the marketing process?
A. Analysis, planning, implementation, organization, and control
Differentiation
Actually differentiating the market offering to create superior customer value
Consumer Market
All the individuals and households that buy or acquire goods and services for personal consumption
Buying Center
All the individuals and units that play a role in the purchase decision-making process
Competitive Advantage
An advantage over competitors gained by offering greater customer value, either by having lower prices or providing more benefits that justify higher prices
SWOT Analysis
An overall evaluation of the company's Strengths, Weaknesses, Opportunities, and Threats
Public
Any group that has an actual or potential interest in or impact on an organization's ability to achieve its objectives
Positioning
Arranging for a market offering to occupy a clear, distinctive and desirable place relative to competing products in the minds of target consumers
What is the mistaken assumption that business-to-business companies often make about digital and social media?
B. That digital and social media are useful primarily to consumer products and services companies
Most standard portfolio analysis methods evaluate strategic business units (SBUs) on their performance in two important dimensions. What are these two dimensions?
B. The attractiveness of the SBU's market or industry and the strength of the SBU's position in that market or industry
__________ consists of people and procedures dedicated to assessing information needs, developing the needed information, and helping decision makers use the information to generate and validate actionable customer and market insights.
B. The marketing information system
__________________ determines whether the buyer is satisfied or dissatisfied with a purchase.
B. The relationship between the consumer's expectations and the product's perceived performance
Customer insights come from good marketing information, which contributes to creating value and meaningful customer relationships. Companies use these customer insights to develop________.
B. a competitive advantage
Today's marketers see information not only as a tool for input for better decision-making, but also as ___________________________.
B. an important strategic asset and marketing tool
Generally, the consumer's purchase decision will be to buy the most preferred brand, but two factors can come between the purchase intention and the purchase decision. These two factors are________.
B. attitudes of others and unexpected situational factors
The environment that consists of institutions and forces that affect a society's values, perceptions, preferences, and behaviors is the ________________________.
B. cultural environment
Satisfied customers buy again and tell others about their good experiences. What is customer satisfaction based on?
B. customer expectations
To analyze individual customer data, many companies have now acquired or developed special software and analysis techniques called ________.
B. customer relationship management (CRM)
The definition of the company's mission is the first step in the strategic planning process. The mission is then transformed into ________, which in turn guide decisions about ________.
B. detailed supporting goals and objectives; the business portfolio
Environmental sustainability concerns have grown steadily over the past three decades. Marketers should be aware of three primary trends in the natural environment, which include ________, ________________, and ________________.
B. growing shortages of raw materials, increased pollution, and increased government intervention in natural resource management
One concern about the expanding use of e-procurement for B-to-B purchasing is that ________.
B. it can erode decades-old customer-supplier relationships
One important consideration in using a differentiated targeting strategy is that _______.
B. it can increase costs
Companies apply ________ to dig out meaningful patterns in big data to gain customer insights and gauge marketing performance.
B. marketing analytics
Outstanding marketing companies go to great lengths to learn about and understand their customers' ________.
B. needs, wants, and demands
When making a purchase, the buyer goes through a decision process consisting of all of the following: ________.
B. need recognition, information search, evaluation of alternatives, purchase decision, and post-purchase behavio
Occupation, age, and lifestyle are _________ factors that influence consumer buyer behavior.
B. personal
Once a company has decided which segments to enter, it must decide on its ________ strategy.
B. positioning and differentiation
Software and analytical techniques that integrate, analyze, and apply the mountains of individual customer data to gain a 360-degree view of customers enable companies to________________________.
B. practice customer relationship management
Many companies view the marketing environment as an uncontrollable element to which they must ________.
B. react and adapt
A company rarely gets 100 percent of a customer's purchases for a product category. The share it does get of the customer's purchasing in its product categories is called ________.
B. share of customer
Once segments have been identified, market ________ evaluates each segment's attractiveness and selects one or more to serve.
B. targeting
A simple model of consumer behavior suggests that marketing stimuli and other major forces enter the consumer's "black box." This black box has two parts: ________ and ________.
B. the buyer's characteristics and the buyer's decision process
The microenvironment consists of those close to the company that combine to form its value delivery network or that affect its ability to serve customers through six key ways, which include________, __________, ___________, ________, _________, and _______.
B. the company, suppliers, marketing intermediaries, customer markets, competitors, and publics
Marketing must also partner effectively with other companies in the marketing. value delivery networkng system to form a competitively superior ________.
B. value delivery network
In addition to segmentation and targeting, there are two other major steps in designing a customer value-driven market strategy: ________ seeks to create superior customer value in the mind of theconsumer, and ________ seeks to firmly place the market offering in the minds of target customers.
B. Differentiation; positioning
There are four major variables that might be used in segmenting consumer markets. Those major variables are ________ variables.
B. geographic, demographic, psychographic, and behavioral
The core marketplace concepts are ________.
B. needs, wants, and demands; market offerings (products, services, and experiences); value and satisfaction; exchange and relationships; and markets
Consumer-Generated Marketing
Brand exchanges created by consumers themselves--both invited and uninvited-- by which consumers are playing an increasing role in shaping their own brand experiences and those of other consumers
Derived Demand
Business demand that ultimately comes from (derives from) the demand for consumer goods
Cognitive Dissonance
Buyer discomfort caused by post-purchase conflict
Systems (Solutions) Selling
Buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation
Market Development
Company growth by identifying and developing new market segments for current company products
Market Penetration
Company growth by increasing sales of current products to current market segments without changing the product
A SWOT is a part of which marketing management function?
C. Analysis
Which of the following is NOT one of the forces in a company's macroenvironment that shape opportunities and pose threats to the company?
C. Competitive forces
________ is the overall process of building and maintaining profitable customer relationships by delivering superior customer value and satisfaction.
C. Customer relationship management
What is the correct sequence of the steps in the strategic planning process?
C. Define the company mission, set company objectives and goals, design the business portfolio, and plan the market and other functional strategies
Which of the following environments demonstrates a changing age structure, shifting family profiles, geographic population shifts, a better-educated and more white-collar population, and increasingdiversity?
C. The demographic environment
Which marketing management orientation holds that a firm should have a customer focus to achieve sales and profits?
C. The marketing concept
What determines whether the buyer is satisfied or dissatisfied with a purchase?
C. The relationship between the consumer's expectations and the product's perceived performance
According to Peter Drucker, what is the aim of modern marketing?
C. To make selling unnecessary
The marketing information system (MIS) first ________.
C. assesses information needs
To ________ for customers and ________, marketers must first gain fresh, deep insights into what customers need and want.
C. create value; build meaningful relationships with them
The marketing process involves five steps. The first four steps focus on ________.
C. creating value for customers
The first four steps of the marketing process focus on creating value for customers. The next step is designing a ________.
C. customer value-driven marketing strategy
A marketing information system (MIS) helps users analyze and use information to ________, ______________, and _______________.
C. develop customer insights, make marketing decisions, and manage customer relationships
In recent years, today's marketers are also reexamining their ________ responsibilities.
C. ethical and societal
Marketers are viewing information not only as an input for making better decisions, but also as a(n) ______________.
C. important strategic asset and marketing tool
As a direct result of the explosion in digital technology, one regulatory area that advocates and public policy makers are acting on is ____________.
C. invasion of privacy
Companies must manage the ________, which often includes many different buying decisions in various stages of the buying decision process.
C. overall customer relationship
Another strategy for creating value and building strong customer relationships includes ________, which means working closely with others inside and outside the company to jointly engage and bring more value to customers.
C. partner relationship management
Rather than simply watching and responding to environmental events, firms can be proactive by ____________.
C. pressing lawsuits to keep competitors in line
Marketing departments can be organized in a number of ways. However, more and more companies are changing organizational focus from ________ to ________.
C. product or territory management; customer relationship management
Segmentation provides a powerful tool for marketers of all kinds. It can help companies identify and better understand key customer segments, ________________ to their specific needs.
C. reach them more efficiently, and tailor market offerings and messages
Companies can do e-procurement in several ways, including _______, ________, ________, and __________.
C. reverse auctions, trading exchanges, company buying sites, and extranet links
Marketing tools used in digital and social media marketing include _______.
C. social media, mobile apps, and blogs
Product Development
Company growth by offering modified or new products to current company segments
The first step of the marketing process is to ___________________.
C. understand the marketplace, which includes customer needs and wants
The full positioning of a brand is called the brand's ________, which is the full mix of benefits on which a brand is differentiated and positioned
C. value proposition
Which of the following correctly identifies the three research approaches for gathering primary data?
C. observation, surveys, and experiments
Other companies do not see the marketing environment as uncontrollable. They take a ________ stance toward the marketing environment and develop strategies to ________ the environment.
C. proactive; change
Partners in a value chain would typically include:
C. suppliers, distributors, and customers
Product Value Analysis
Carefully analyzing a product's or service's components to determine if they can be redesigned and made more effectively and efficiently to provide a greater value
Learning
Changes in an individual's behavior arising from experience
Online Marketing Research
Collecting primary data online through internet surveys, online focus groups, web-based experiments or tracking consumers' online behavior
Diversification
Company growth through starting up or acquiring new businesses outside the company's current products and markets
Age, race, gender, and other statistics are part of a company's _____ environment.
E. demographic
Environmental Sustainability
Developing strategies and practices that create a world economy that the planet can support indefinitely
Age and Life Cycle Segmentation
Dividing a market into different age and life-cycle groups
Geographic Segmentation
Dividing a market into different geographical units, such as nations, states, regions, counties, cities, or even neighborhoods
Income Segmentation
Dividing a market into different income segments
Gender Segmentation
Dividing a market into different segments based on gender
Psychographic Segmentation
Dividing a market into different segments based on social class, lifestyle, or personality characteristics
Occassion Segmentation
Dividing a market into segments according to occasions when buyers get the idea to buy, actually make their purchase, or use the purchased item
Behavioral Segmentation
Dividing a market into segments based on consumer knowledge, attitudes, uses of a product or responses to a product
Market Segmentation
Dividing a market into smaller segments of buyers with distinct needs, characteristics, or behaviors that will require separate marketing strategies or mixes
Benefit Segmentation
Dividing the market into segments according to the different benefits that consumers seek from the product
Demographic Segmentation
Dividing the market into segments based on variables such as age, life-cycle stage, genre, income, occupation, education, religion, ethnicity, and generation
Market segmentation is the act of dividing a market into distinct groups of buyers who have ________ and who might require separate marketing strategies or mixes.
E. different needs, characteristics, or behaviors
Which one of the following statements about marketing research in small businesses and nonprofit organizations is correct?
E. Although the research methods of small businesses and nonprofits are less complex and costly, they still must be conducted carefully.
What is the correct sequence of the four steps of the marketing research process?
E. Define the problem and research objectives, develop the research plan, implement the research plan, interpret and report the findings
What is market segmentation?
E. Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes
Which of the following correctly defines the consumer market?
E. Individuals and households that buy goods and services for personal consumption
One useful device for identifying growth opportunities is the product/market expansion grid, which includes which of the following strategies?
E. Market penetration, market development, product development, and diversification
What are the five characteristics that are especially important in influencing an innovation's rate of adoption?
E. Relative advantage, complexity, compatibility, divisibility, and communicability
Which of the following is NOT true regarding international marketing research?
E. The cost of international research is lower.
Which of the following consists of factors affecting buying power and patterns?
E. The economic environment
The marketing process consists of five key steps. Which of the following is the first step?
E. Understand the marketplace and customer needs and wants
The ________ market comprises all organizations that buy goods and services for use in the production of other products and services or for the purpose of reselling or renting them to others at a profit.
E. business
The ultimate aim of customer relationship management is to produce high _____.
E. customer equity
The marketing concept holds that successful marketing strategies are based on _______.
E. customer satisfaction and value
The step in the strategic planning process that should be market-oriented, realistic, specific, motivating, and consistent with the market environment is ________.
E. defining the company's mission
Companies need to consider many factors when choosing a market-targeting strategy. However, which targeting strategy is best depends on company resources, product variability, product life-cycle stage, as well as ________________________.
E. market variability and competitive marketing strategies
Marketing plays a key role in the company's strategic planning by providing a ________ concept philosophy and inputs regarding attractive market opportunities.
E. marketing
There are too many different kinds of consumers with too many different kinds of needs. So, companies must design strategies for profitably serving chosen segments. The design of the strategies begins with four key elements, which are ________, _______, ________, and ___________.
E. market segmentation, market targeting, differentiation, and positioning
Changes in the _____________________ have focused greater emphasis on ethics and socially responsible actions.
E. political and social environment
Firms that develop strategies to change the environment, instead of assuming that strategic options are bounded by the current environment, are being _______.
E. proactive
Larger ________ that affect the entire microenvironment combine to form the macroenvironment.
E. societal forces
Marketing provides a guiding philosophy for a company's strategic planning. This philosophy, known as __________, focuses on creating customer value and building profitable relationships with important consumer groups.
E. the marketing concept
Marketing information has no value until it is used ________.
E. to make better marketing decisions
The ________________________ is a brand's full positioning or the full mix of benefits on which the brand is positioned.
E. value proposition
The Council of American Survey Research Organizations (CASRO) Code of Standards and Ethics for Survey Research outlines researcher responsibilities to survey respondents. Choose the most comprehensive set of responsibilities from the following.
E. Confidentiality, privacy, and avoidance of harassment
________ companies research customers deeply to learn about their desires, gather new product ideas, and test product improvements.
E. Customer-driven
What are the variables in a company's marketing mix?
E. Product, price, place, and promotion
The marketing process consists of five distinct steps, with four of them focused on creating value for customers. One strategy for creating value for customers is ________, which fosters direct and continuous customer involvement in shaping brand conversations, brand experiences, and brand community.
E. customer-engagement marketing
Technology advances have made B-to-B online purchasing possible. This is called ________.
E. e-procurement
Economic Environment
Economic factors that affect consumer purchasing power and spending patterns
Internal Databases
Electronic collections of consumer and market information obtained from data sources within the company network
Market Targeting
Evaluating each market segment's attractiveness and selecting on or more segments to enter
Technological Environment
External factors in technology that impact business operations, changes in technology affect how a company will do business. A business may have to dramatically change their operating strategy as a result of changes in the technological environment.
Marketing Intermediaries
Firms that help the company to promote, sell, and distribute its goods to final buyers
Intermarket (Cross-Market) Segmentation
Forming segments of consumers who have similar needs and buying behaviors even though they are located in different countries
Customer Insights
Fresh understandings of customers and the marketplace derived from marketing information that become the basis for creating customer value and relationships
Online Focus Groups
Gathering a small group of people online with a trained moderator to chat about a product, service, or organization and gain qualitative insights about consumer attitudes and behavior
Survey Research
Gathering primary data by asking people questions about their knowledge, attitudes, preferences and buying behavior. Best suited for descriptive research.
Observational Research
Gathering primary data by observing relevant people, actions and situations. Best suited for exploratory research.
Experimental Research
Gathering primary data by selecting matched groups of subjects, giving them different treatments, controlling related factors and checking for differences in group responses. Best suited for causal information.
Major variables used to segment consumer markets include which of the following?
Geographic, demographic, psychographic, and behavioral
Demands
Human wants that are backed by buying power
Cross-Cultural Marketing
Including ethnic themes and cross-cultural perspectives within a brand's mainstream marketing, appealing to consumer similarities across subcultures rather than differences
Primary Data
Information collected for the specific purpose at hand
Political Environment
Laws, government agencies, and pressure groups that influence and limit various organizations and individuals in a given society
Customer-Engaged Marketing
Making the brand a meaningful part of consumers' conversations and lives by fostering direct and continuous customer involvement in shaping brand conversations, experiences, and community
Customer Relationship Management
Managing detailed information about individual customers and carefully managing customer touch points to maximize customer loyalty
Descriptive Research
Marketing research to better describe marketing problems, situations, or markets such as the market potential for a product or the demographics and attitudes of consumers
Exploratory Research
Marketing research to gather preliminary information that will help define problems and suggest hypotheses
Causal Research
Marketing research to test hypotheses about cause-and-effect relationships
Marketing Control
Measuring and evaluating the results of marketing strategies and plans and taking corrective action to ensure that the objectives are achieved