Marketing

Market Structure and Demand

-Fewer but larger buyers -Derived demand -Inelastic demand -Fluctuating demand

Buyer Decision Process for New Products

1. Awareness 2. Interest 3. Evaluation 4. Trial 5. Adoption

Requirements for Effective Segmentation

1. Measurable 2. Accessible 3. Substantial 4. Differentiable 5. Actionable

The buyer decision process

1. Need recognition 2. Information search 3. Evaluation of alternatives 4. Purchase decision 5. Post-purchase behavior

Stages of the Business Buying Process

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

A company's mission could appropriately be stated as "making more sales or profits."

False

Tariffs are limits on the amount of foreign imports that a country will accept in certain product categories.

False

The World Trade Organization established the General Agreement on Tariffs and Trade, which replaced the WTO in 1995 and now oversees the original WTO provisions.

False

variety-seeking buying

Low customer involvement, perceived brand differences

Characteristics affecting consumer behavior

Cultural - The set of basic values, perceptions, wants and behaviors learned by a member of society from family and other important institutions Social - Personal - Psychological

Which of the following is NOT part of the business market?

Maria Theresa shops for her family's groceries at the local Whole Foods store.

Consumer research, product development, communications, distribution, pricing, and service are all core _______ activities.

Marketing

Competitor intelligence can be collected from people inside the company, such as executives, engineers, purchasing agents, and the sales force, as well as customers.

True

Marketing is managing profitable customer relationships.

True

The "bottom of the economic pyramid" has become an attractive target for many companies.

True

The difference between human needs and wants is that needs are not created by marketers.

True

The purpose of strategic planning is to find ways in which your company can best use its strengths to take advantage of attractive opportunities in the environment.

True

A current trend in the U.S. involves rediscovering the benefits of home-cooked food and the use of organic ingredients. People are choosing to spend hours in the kitchen using only the freshest ingredients to cook healthy and nutritious meals. This change in ________ is one of the reasons for the increasing demand for organic ingredients.

lifestyle

Dividing the market into various groups of customers that a company may serve is called _________.

market segmentation

Selecting which segments of a population to serve is called ____________.

target marketing

Which of the following is the reason a company may choose not to focus on the largest, fastest-growing segments?

the smaller segments may be more profitable to the firm

The real value of marketing research lies in the customer insights that it provides.

true

Marketing is defined as a social and managerial process by which individuals and organizations obtain what they need and want through ______________.

value creation and exchange

Companies can research many aspects of buying decisions. However, the one that is the most difficult to identify is

why they buy

A competitive analysis involves first identifying and assessing competitors and then selecting which competitors to attack or avoid.

True

A market is the set of actual and potential buyers of a product or service.

True

An experience such as a vacation can be defined as a market offering.

True

According to the text, what location does Coca Cola consider a promising long-term growth opportunity?

Africa

Types of buying decision behavior

Complex buying behavior Dissonance-reducing buying behavior Habitual buying behavior Variety-seeking buying behavior

Dissonance-reducing buying behavior

Consumer buying behavior in situations characterized by high involvement but few perceived differences among brands

habitual buying behavior

Consumer buying behavior in situations characterized by low consumer involvement and few significant perceived brand differences; consumers may simply select a familiar brand out of habit

differentiation strategy

Distinguishing an organization's products from the products of competitors on dimensions such as product design, quality, or after-sales service.

Market Segmentation

Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors, and who might require separate products or marketing programs

Which of the following is NOT a step in the strategic planning process?

Evaluating members of the company's value chain

A business's suppliers are the most important actors in the company's microenvironment.

False

A company's marketing environment excludes the forces outside the marketing department that affect marketing management's ability to build and maintain successful relationships with target customers.

False

A company's mission statement provides the depth needed for all segments of the company to reach their goals.

False

In a subsistence economy, fast growth in manufacturing results in rapid overall economic growth.

False

Internal information is almost always sufficient for making marketing decisions.

False

Market offerings are limited to physical products.

False

The microenvironment consists of larger societal forces that affect a company, such as demographic, economic, political, and cultural forces.

False

With current technology systems, marketers find it simple to access and sift through the data that is gathered.

False

When entering a foreign market, companies typically start with _______, working through independent intermediaries to sell products produced in the home country.

Indirect exporting

Complex buying behavior

Involves much customer involvement because the items are expensive and purchased infrequently, such as cars, laptop computers, and homes

Which of the following terms is used to describe the actors and forces outside marketing that affect marketing management's ability to build and maintain successful relationships with target customers?

Marketing environment

Which of the following is a component of a firm's microenvironment?

Marketing intermediaries

Which of the following is true with regard to marketing research?

Marketing research gives marketers insights into customer motivations.

At the narrowest level, a company can define its competitors as other companies offering similar products and services to the same customers at similar prices.

True

Evaluating Market SEgments

Segment size and growth Segment structural attractiveness Company objectives and resources

Customer-Driven Marketing Strategy

Segmentation - Dividing a market into distinct groups of buyers who have different needs, characteristics, or behaviors and who might require separate marketing strategies or mixes Targeting - Evaluating each market segment's attractiveness and selecting one or more segments to serve Differentiation - Differentiating the market offering to create superior customer value Positioning - Arranging for a product to occupy a clear, distinctive, and desirable place relative to competing products in the minds of target consumers

Major Types of Buying Situations

Straight rebuy - A business buying situation in which the buyer routinely reorders something without modifications Modified rebuy - A business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers New task - A business buying situations in which the buyer purchases a product or service for the first time

________ is the process of developing and maintaining a crucial fit between the organization's goals and capabilities and its changing marketing opportunities.

Strategic planning

In a(n) _____________, the vast majority of people engage in simple agriculture and consume most of their output.

Subsistence economy

Business buyer behavior

The buying behavior of organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others

Consumer buying behavior

The decision processes and purchasing activities of people who purchase products for personal or household use and not for business purposes

Which of the following best describes a strategic business unit?

The key businesses that make up a company

Positioning strategy

The key themes or concepts an organization features for communicating the distinctiveness of its product or service to the target segment.

Market Targeting

The process of evaluating each market segment's attractiveness and selecting one or more segments to enter

Participants in the Business Buying Process

Users are those that will use the product or service. Influencers help define specifications and provide information for evaluating alternatives. Buyers have formal authority to select the supplier and arrange terms of purchase. Deciders have formal or informal power to select and approve final suppliers. Gatekeepers control the flow of information.

________ are human needs that are shaped by culture and individual personality.

Wants

Gina Parker owns an ad agency in Baton Rouge. She regularly purchases cleaning supplies for her custodial staff, using the same vendor and ordering relatively consistent amounts of the same products on each purchase. This is an example of ________.

a straight rebuy situation

Costs are involved in obtaining, ________, storing, and delivering information.

analyzing

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 is known as

business buying process

The collection of businesses and products that make up a company is called its ________.

business portfolio

Business buyer behavior refers to the

buying behavior of the organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others

The interrelated departments within a company that influence marketing decisions form the ________ environment.

company

Each competitor has a mix of objectives. The company wants to know the relative importance that a competitor places on all of the following EXCEPT ________.

company history

Strategies that strongly position a company against competitors and that give the company the best possible strategic advantage are ________ strategies.

competitive marketing

A company is guilty of ________ if the company forgets latent competitors and only focuses on current competitors.

competitor myopia

Individuals and households that buy or acquire goods and services for personal consumption make up the

consumer market

Green Bees, a popular American heavy-metal band, will perform in Berlin during Christmas. There is a high demand for concert tickets among fans worldwide who are looking forward to the much-awaited performance. In this instance, the high demand for tickets for the Green Bees concert is representative of ________ demand.

derived

Which of the following types of research would be best suited for understanding the attitudes of consumers who buy a particular brand of soft drink?

descriptive research

For the past ten years, Bill and Margaret have saved money to go to the Super Bowl should their team, the Chicago Bears, reach the finals of the NFC championship. This is the year, and several tour companies offer attractive, but very similar, packages to the game. Since all packages are pretty much the same, they have chosen one that fits their budget. Bill and Margaret are most likely exhibiting ________.

dissonance-reducing buying behavior

In ________ research, the objective is to gather preliminary information that will help define the problem and suggest hypotheses.

exploratory

The simplest way to enter a foreign market is through _____________.

exporting

Peter Adams, an entrepreneur, decided to start a new technology venture. As he needed servers and computers for his company, he decided to order these from a local vendor who was offering attractive discounts. In this instance, Peter ________. A) faces a new task situation B) faces a modified rebuy situation C) is most likely to benefit the most from reverse auction D) faces the need for product differentiation E) plans to attract customers by offering products at below-market prices

faces a new task situation

Firms use competitive marketing intelligence to ________.

gain early warnings of competitor moves and strategies

The term big data refers to the ________ generated by today's sophisticated information generation, collection, storage, and analysis technologies.

huge and complex data sets

The real value of marketing information lies in how it is used

in the customer insights that it provides

Gilron Holidays runs a premium membership club which caters to customers whose annual salary exceeds $100,000. Members of this club are offered seasonal discounts on select luxury hotels in select cities worldwide. Gilron Holidays most likely follows a(n) ________ segmentation approach.

income

In a(n) _____________ economy, fast growth in manufacturing results in rapid overall economic growth.

industrializing

Donna wants to buy a new coat. During the ________ stage of her purchase process she asked her friends to recommend a store and/or a style of coat. She searched the newspaper for coat sales, and she visited nearby stores to see what is available in her price range. A) product evaluation B) alternative evaluation C) need recognition D) information search E) purchase decision

information search

Which of the following is characteristic of online social networks?

interactive media content

A(n) ________ 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.

marketing information system

A ________ documents an organization's purpose—what it wants to accomplish in the larger environment.

mission statement

An invitation to go skiing over the weekend forced Donna to look at her current wardrobe. She realized that she required a warmer coat. Which of the following stages of the buyer decision process does Donna exemplify?

need recognition

A competitor analysis requires the assessment of all of the following EXCEPT the competitors' ________.

organizational hierarchy

Differences between business markets and consumer markets include all of the following EXCEPT

people who make purchase decisions to satisfy needs

Firms that decide against international expansion to play it safe _________.

risk losing their home markets

A recent study conducted by Estelle Cosmetics Company showed that heavy users of Estelle's products comprise a small percentage of the market. The study indicated that less than 7 percent of all shoppers buy nearly 71 percent of Estelle's products in the United States. This is an example of ________.

segmentation by usage rate

Family is one of the ________ factors that influence consumer behavior.

social