Principles of Marketing Test 2

What are the three markets for organizational buyers?

Industrial, Reseller, Government

What is derived demand?

Demand for a business product that comes from the demand for consumer products.

How does organizational buying differ from consumer buying?

Organizational buying involves larger quantities, is done less frequently, and often requires more formal decision-making.

What is reciprocity in business-to-business marketing?

When two companies agree to buy each other's products/services.

What is a buying center?

A group of people involved in the purchase decision for an organization.

What are the three types of buy classes?

New buy (first-time purchase), Straight rebuy (routine purchase), Modified rebuy (adjusted purchase).

What is countertrade?

A barter system where goods and services are exchanged instead of money.

Define Gross Domestic Product (GDP).

The total value of all goods and services produced in a country in one year.

What is the difference between tariffs and quotas?

Tariffs are taxes on imports, while quotas are limits on the number of imports.

What does the World Trade Organization (WTO) do?

Regulates international trade and resolves trade disputes between countries.

What is a global brand?

A brand that has consistent marketing, design, and positioning worldwide.

What is the currency exchange rate?

The value of one country's currency in relation to another's.

What is the difference between importing and exporting?

Importing is bringing goods into a country, while exporting is selling goods to another country.

Compare licensing, exporting, joint venture, and direct investment.

Licensing allows another company to use intellectual property, exporting sells goods abroad, joint ventures partner with local firms, and direct investment involves setting up operations in another country.

What is marketing research?

The process of gathering, analyzing, and interpreting data to make marketing decisions.

What is data?

Facts and figures related to a research problem.

What are the two main types of data?

Primary data (collected firsthand for a specific purpose) and secondary data (existing data used for research).

Give an advantage and disadvantage of primary data.

Advantage: Specific and up-to-date. Disadvantage: Expensive and time-consuming.

Give an advantage and disadvantage of secondary data.

Advantage: Quick and cost-effective. Disadvantage: May be outdated or not specific to the research question.

What is the difference between internal and external data?

Internal data comes from within a company (e.g., sales reports), while external data comes from outside sources (e.g., market reports).

What is the difference between observational and questionnaire data?

Observational data is gathered by watching behaviors, while questionnaire data is collected by asking people directly.

What is market segmentation?

The process of dividing a market into distinct groups based on characteristics.

What is product differentiation?

Creating a unique product to distinguish it from competitors.

What is product cannibalization?

When a company's new product takes sales away from its existing product.

What are the four types of market segmentation?

Geographic (location), Demographic (age, gender, income), Psychographic (lifestyle, personality), Behavioral (buying behavior).

What is usage rate?

The quantity consumed or frequency of a product's purchase by customers.

What is product positioning?

How a brand is perceived in the minds of consumers relative to competitors.

What is head-to-head positioning?

Competing directly with rivals on similar product attributes in the same market.

What is differentiation positioning?

Creating a unique product that competes in a less competitive market segment.