Exam 2 Flashcards by Nicholas Koloski

In most large organizations, several people are responsible for making a purchase decision. This group is called the…
A. the reselling team.
B. decider group.
C. buying center.
D. supply chain.
E. expediters

C. buying center.

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buying center

a group that works together to make a purchase decision.

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An automaker selling a small sedan, a large SUV, and a sports car is likely to target each of these models to different benefit segments.
true
false

true

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For B2B salespeople, usually the easiest sale is a(n) ________ situation.
A. new buy
B. adapted buy
C. straight rebuy
D. generic buy
E. modified rebuy

C. straight rebuy

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Segmentation, targeting, and positioning
A. are part of the marketing plan but bear little direct relationship to the marketing mix.
B. are part of a firm’s marketing strategy.
C. are optional elements of a marketing plan.
D. should be done simultaneously so synergies can help streamline the effort.
E. are terms that can be used interchangeably in developing marketing plans.

B. are part of a firm’s marketing strategy.

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Automobile manufacturers could build cars specially designed for very short people (for example, under five feet), but it is likely that this segment
A. is not substantial.
B. is not identifiable.
C. will not be responsive.
D. is not quantifiable.
E. is unreachable.

A. is not substantial.

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After need recognition, a business develops ________ that suppliers might use to develop their proposals.
A. derived demand
B. focal alternatives
C. product specifications
D. initiator instructions
E. determinant attributes

C. product specifications

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product specification

detailed descriptions of the business’s specific requirements for the purchase occasion.

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Indea works as a sales rep for a company that produces and sells steel used in constructing large warehouses. Indea is in ________ sales.
A. G2G
B. B2C
C. G2B
D. B2B
E. C2C

D. B2B

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Which of the following would be used in calculating the profitability of a segment?
A. demographics
B. segment size
C. product positioning
D. geographic segmentation
E. segment perceptions

B. segment size

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When selecting a target market, firms will be most successful if they
A. reposition the brand.
B. seek out opportunities to customize products
C. decide between demographic and geographic segmentation methods.
D. develop a strong communication plan.
E. match the firm’s strengths with a market segment’s attractiveness

E. match the firm’s strengths with a market segment’s attractiveness

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The president of the Carlington Academy student body made a formal request to the IT department for additional computers in the main computer lab. The student body president is the ________ in the buying center.
A. buyer
B. gateway
C. decider
D. initiator
E. gatekeeper

D. initiator

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Predictive analytics tools allow firms to make informed guesses about future outcomes.
true
false

true

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Which of the following would be most likely to be considered a valuable customer insight?
A. Recognizing that employees in the marketing department enjoy playing a popular mobile game during their breaks.
B. Identifying that the CEO of the company prefers to use a specific brand of coffee in the office.
C. Monitoring the popularity of the company’s official merchandise among employees and their families.
D. Observing a correlation between the number of company-sponsored sports events attended by employees and the quarterly sales figures.
E. Discovering that sales of sunscreen have surged in a specific age group due to increased awareness about skin protection.

E. Discovering that sales of sunscreen have surged in a specific age group due to increased awareness about skin protection.

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Roberto is reviewing secondary data his company collected about seasonal variations in consumer spending because he is thinking about developing a new product. One of the advantages of using these data is that
A. they are new and can be used to project overall demand.
B. they are historical data that can be used to accurately predict future trends.
C. they can be quickly accessed at a relatively low cost.
D. they have been collected specifically for the purpose Roberto is using it for.
E. their high cost can be justified by the results.

C. they can be quickly accessed at a relatively low cost.

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Undifferentiated marketing is a popular strategy in modern marketing.
true
false

false

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One of the benefits of marketing research that it reduces the uncertainty under which managers make decisions.
true
false

true

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When a research team has gathered data for specific research needs, this is known as
A. data mining.
B. data modeling.
C. secondary data.
D. data recovery.
E. primary data.

E. primary data

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Data mining is defined as:
A. Conducting surveys to gather opinions and preferences
B. Programming algorithms to generate random data sets
C. Extracting valuable patterns from large datasets
D. Analyzing geological data for resource exploration
E. Creating visual representations of data through charts and graphs

C. Extracting valuable patterns from large datasets

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Which of the following is NOT a challenge associated with Big Data?
A. variety - data comes in many different forms
B. vertical - data is clustered around certain sectors
C. veracity - data is not always reliable
D. volume - more and more data is being collected all the time
E. value - it can be costly to analyze overly-complex datasets

B. vertical - data is clustered around certain sectors

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Which of the following is most likely to be considered a form of qualitative research?
A. experiments
B. in-depth interviews
C. panel data
D. field study
E. scanner data

B. in-depth interviews

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Eye-tracking and focus groups are most likely to be considered ________ research methods.
A. syndicated marketing
B. data warehousing
C. quantitative
D. structured
E. qualitative

E. qualitative

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Qualitative research methods

include observation, in-depth interviewing, focus groups, and social media monitoring.

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Sales reps/Account managers/Customer success managers

Meet with customers/clients, manage and strengthen
business relationships

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Content marketing specialists

Create content with specific audiences in mind (social content, podcasts, blogs, reports, etc)

Procurement managers

Buy goods/services for a company’s use, negotiate with suppliers/vendors

Strategic partnerships managers

develop relationships with other companies to capitalize on shared opportunities

Business-to-Business (B2B) marketing:

process of buying and selling goods or services to be used by another business

Structure of Business Markets

Fewer but larger buyers Derived Demand Inelastic Demand Fluctuating Demand

B2B Market Segments

Manufacturers Service Providers Resellers Institutions Government

B2B Transactions

Raw materials/components Tools/machinery/equipment Operating supplies Technology (hardware & software) Cloud computing Misc. business services Consulting

Consulting services

help businesses solve complex problems, helping them improve performance

Business Buyer Decision Process

Need Recognition Product specification RFP process Proposal analysis, vendor, negotiation Order specification Vendor performance

Need Recognition

someone in the company recognizes a problem or need (internal, external)

Product Specification

technical criteria for the needed item

Request for Proposals

Process for inviting vendors to bid on providing solution for a business's needs

Proposal Analysis

proposals from bidders are evaluated

once a vendor is selected what does a company create?

order specification

What is order specification?

more detailed than product specification - outlines EXACTLY what both companies are committing to.

Performance Assessment

firms hold vendors accountable and can inform priorities for contracts with future vendors

Members of the buying center include

Initiator User Influencer Decider Gatekeeper

Initiator

first to suggest making a purchase

User

those who will use the product or service

Influencer

technical personnel and others who help define the company's needs

decider

select and approve final suppliers

Gatekeeper

Serve to separate external salespeople from firms influencers and deciders

New Buy

Business purchasing a good or service for the first time

Modified Re-buy

Business has purchased a similar product in the past, but has decided to change some specifications

Straight Re-buy

Organization is simply buying additional units of a product or renewing a contract with a service provider for the same service.

Market Segmentation

process of categorizing groups of customers to divide a market into manageable prices based on consumer differences

stereotype

an over-generalized belief about a particular category of people

Market Segment

a group of consumers who respond in a similar way to a given set of marketing efforts

Geographic Segmentation

dividing a market into different geographical units

Demographic Segmentation

dividing the market based on variables such as age, life-cycle stage, gender, income, occupation, religion, or ethnicity

Psychographic segmentation

based on social class, lifestyle, values, personality, interests, and/or opinions

Behavioral segmentation

divides a market based on consumers’ use of and/or responses to products

Multiple Segmentation:

Using 2+ segmentation strategies simultaneously to identify smaller target groups

Intermarket Segmentation

involves forming segments of consumers who have similar needs despite being located in different countries

Segmentation Method 1: Define the Broad Market

What do customers want? What do they need to satisfy them?

Segmentation Method 2: narrow the market

focuses on both the customer and the product

Segmentation Method 3: Select General Variable Category for Segmentation

Demographics, Geographics, Psychographics, Behavioral?

Segmentation 4: Specific Segmentation Variable

How many variables will be used?

Segmentation Method 5: Identify Customer Categories for each Variable

How many categories will each variable divide the market info?

Segmentation Method 6: Develop a Profile for each Segment

Get a better understanding of all the combinations

Effective Segmentation

Identifiable Reachable Sustainable Responsive Profitable

Targeting

highlights differences between segments and involves selecting which segments to focus on

Segment profitability

Segment size × Adoption % × Purchase × Margin %) – Fixed Costs

Undifferentiated Marketing

targets the whole market with one offer

Differentiated Marketing

targets several different market segments and designs separate offers for each

Niche Marketing

targets smaller markets that larger firms may have overlooked

Niche Marketing

targets smaller markets that larger firms may have overlooked

Micromarketing

is the practice of tailoring products and marketing programs to suit specific individuals and locations

Target Market Segments

Company Resources Product life-cycle stage market opportunities variety of applications

Positioning

how the product or brand is seen by consumers

value proposition

involves the full mix of costs and benefits

perceptual maps

consumer perceptions of competing brands on relevant dimensions

Consumer insights

fresh information-based understandings of customers and the marketplace

Understanding the problem or opportunity that needs to be investigated

Defining the research objectives

exploratory research

gather preliminary information that will help define the problem more clearly

Descriptive research

describes marketing problems, situations, or markets-in-depth

Casual research

tests specific hypotheses about cause-and-effect relationships

Double-barreled questions, loaded questions, and double negatives are examples of

survey pitfalls

Data being collected on a larger and larger scale

volume

data is collected in more formats than ever before

variety

data can be collected much more quickly today, but the marketing environment also changes faster

veloctiy

its relevance to addressing marketers problems and research questions

value

Use of available data to forecast/predict future outcomes

predictive analytics tools

use simulations based on a "what-if" questions to recommend what action to take

Prescriptive analytics tools

product

customer benefits

price

cost

place

convenience

promotion

communication

Value that can be offered through a marketing exchange (bundle of benefits)

product

organizations, people, places, and ideas are examples of types of

product marketing

set of products offered by a company is known as

product mix

groups associated products that share features/ benefits

product lines

identifies the producer, provider, and seller of a product

branding

involves 2+ brands into a joint product

co-branding

use an established brand to introduce a new product in a different category (new product line)

brand extension

new product within the brands current product category using the same brand name

line extension

when brand/ line extension negatively affects consumer perceptions about attributes of the core brand

brand dilution

process by which ideas become new offerings

innovation

specific problems faced by potential customers

pain points

Degree to which an innovation appears superior to existing products

Relative Advantage

Private label brands are managed by... A. National manufacturers B. Retailers C. Local boutiques D. Governments E. Individual Consumers

B. retailers

Which of the following fictional examples represents a brand increasing the breadth of its product mix? A. Amazon Echo Micro - Ultra-small smart speaker B. Band-Aid x Rifle Paper Co. Adhesive Bandages C. Levi's Unleashed - Denim dog accessories D. Panera Philly Cheesesteak sandwich with Kraft Cheez Wiz E. Tesla Model Z compact electric car

C. Levi's Unleashed - Denim dog accessories

The fact that the Apple iPad is easy to try—demo units are available at Apple stores as well as other retail stores—has helped it diffuse more quickly. true false

true

Why is experiential marketing especially important in today's marketplace? A. Experiential marketing is the newest fad in marketing B. Experiential associations are more central in consumers' minds C. Experiential marketing appeals to loyal customers more than new customers D. Advertising is a sensory experience E. Experiential marketing helps brands stand out from the competition

E. Experiential marketing helps brands stand out from the competition

Many restaurants roll out new ideas first in Orlando, Florida, a location that attracts a vast range of diverse tourists and thus might offer insights into what various consumer groups will like. This is an example of A. product launching B. market creation C. market targeting D. market testing E. aftermarket updating

D. market testing

In which of the following (fictional) situations would you expect brand dilution to occur? A. all of the above B. roblox selling a line of watches at walmart C. starbucks offering oil changes at its locations D. pepsi creating a line of pet foods E. old navy selling upscale, real-fur coats

A. all of the above

Brand awareness contributes to brand equity. true false

true

When Michaela began helping her favorite uncle Barton with his finances, she discovered her uncle was still renting a rotary-dial telephone from the phone company. Uncle Barton had paid thousands of dollars in rental fees over the previous 30 years. Uncle Barton is a(n) ________ in the diffusion of innovation process for telephones. A. early adopter B. late majority C. innovator D. early majority E. laggard

E. laggard

During the ______ stage of the product life cycle, sales are low, and profits are small or negative. A. introduction B. leveling C. growth D. maturity E. decline

A. introduction

Inkjet printers were a big improvement over the dot-matrix printers they replaced, creating higher-quality prints at faster speeds. Given this information, it is likely that inkjet printers gained rapid acceptance in the marketplace primarily because of their A. observability B. relative advantage C. complexity D. compatibility E. trialability

B. relative advantage

Exam 2 Flashcards

(114 cards)