Prelim 1

Question 1

What are the five core customer and marketplace concepts?

Answer 1

(1) needs, wants, and demands; (2) market offerings (products, services, and experiences); (3) value and satisfaction; (4) exchanges and relationships; and (5) markets.

Question 2

What is a market?

Answer 2

the set of actual and potential buyers of a product or service; These buyers share a particular need or want that can be satisfied through exchange relationships

Question 3

Define marketing

Answer 3

he process by which companies engage customers, build strong customer relationships, and create customer value in order to capture value from customers in return

Question 4

What are the 5 steps of the marketing process?

Answer 4

1. Understand the marketplace and customer needs and wants
2. Design a customer value-driven marketing strategy
3. Construct an integrated marketing program that delivers superior value
4. Engage customers, build profitable relationships, and create customer delight
5. Capture value from customers to create profits and customer equity

Question 5

Define human needs

Answer 5

uman needs are states of felt deprivation. They include basic physical needs for food, clothing, warmth, and safety; social needs for belonging and affection; and individual needs for knowledge and self-expression. Marketers did not create these needs; they are a basic part of the human makeup.

Question 6

Define human wants

Answer 6

Wants are the form human needs take as they are shaped by culture and individual personality. An American needs food but wants a Big Mac, fries, and a soft drink. A person in Papua, New Guinea, needs food but wants taro, rice, yams, and pork. Wants are shaped by one’s society and are described in terms of objects that will satisfy those needs.

Question 7

What are Maslow’s five hierarchical needs?

Answer 7

1. physiological needs
2. safety needs
3. social needs
4. esteem needs
5. self-actualization needs

Question 8

What are d-needs? b-needs?

Answer 8

• Maslow; deficiency needs

- ‘being needs’ or b-needs – existential or spiritual needs like creativity, aliveness, fulfillment and meaning.

Question 9

What marketing concept focuses on d-needs?

Answer 9

D-needs are dynamic and contextual, which companies with the marketing concept focus on

Question 10

What marketing concept focuses on b-needs?

Answer 10

Values (B-needs) are long-term and core, which companies with the societal marketing concept focus on

Question 11

What is laddering?

Answer 11

• Laddering is a type of probing
• It is based around the idea that values determine the benefits that we seek, which in turn determines which features we seek when buying products

Question 12

Are Maslow’s needs rigid?

Answer 12

The order of needs is not rigid but instead may be flexible based on external circumstances or individual differences

Question 13

What are the 3 aspects of laddering?

Answer 13

1) feature 2) benefit 3) value

Question 14

Define goal and objective

Answer 14

• A goal is a broad primary outcome

* An objective is a measurable outcome

Question 15

Strategy vs. tactic

Answer 15

• A strategy is the broad approach you take to achieve a goal.
• A tactic is a concrete tool you use to pursue an objective.

Question 16

Name and describe four BCG Growth Share Matrix metaphors

Answer 16

• Question marks: require a lot of cash to hold their share;
• Stars: require heavy investment to finance rapid growth, and will turn into cash cows;
• Cash cows: established and successful SBUs requiring less investment to maintain market share;
• Dogs: generate enough cash to maintain themselves but do not promise to be large sources of cash.

Question 17

What are the four market expansion strategies?

Answer 17

market penetration, product development, market development (new customer segments), diversification

Question 18

What is secondary data?

Answer 18

• Secondary data is information that already exists somewhere, having been collected for another purpose. • Ex: census, internet, library, reports

Question 19

What is primary data?

Answer 19

• Primary data is information collected for the specific purpose at hand. • Ex: interviews, surveys, experiments

Question 20

What is AIO? What is it used for?

Answer 20

• Psychographics measure a consumer’s AIOs to capture information about a person’s pattern of acting and interacting in the environment.
• Activities: someone’s daily routine and hobbies; • Interests: someone’s wants and passions on something; • Opinions: someone’s view or judgment about something.

Question 21

What are the business buying situations?

Answer 21

• Straight rebuy is a buying situation in which the buyer routinely reorders something without any modifications;
• Modified rebuy is a buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers;
• New task is a buying situation in which the buyer purchases a product or service for the first time;
• Systems selling is buying a complete solution to a problem from a single seller.

Question 22

What are the 8 steps of the business buying process?

Answer 22

1. problem recognition
2. general need description
3. product specification
4. supplier search
5. proposal soliciation
6. supplier selection
7. order-routine specification
8. performance review

Question 23

What are features of the buyer market?

Answer 23

• Business buyer market structure: fewer but far larger buyers
• The key features of business market demand • inelastic • fluctuating • derived

Question 24

Name the buying market participants

Answer 24

The buying center consists of all members of the organization who play any of five roles in the purchase decision 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

Question 25

What are in vs out suppliers in business buying market?

Answer 25

• In Suppliers: suppliers already well known to an organization and from whom they will purchase with confidence;
• Out Suppliers: suppliers with whom the buying organization has not had dealings previously and therefore considers risky.

Question 26

Major influencers on business buying (4 layers)

Answer 26

1) Environmental 2) Organizational 3) Interpersonal 4) Individual

Question 27

What are the 5 steps of the consumer decision making process?

Answer 27

1. Need Recognition
2. Search for info
3. Evaluation of alternatives
4. Purchase decision
5. Post-purchase evaluation