Final Exam Marketing Exam -18

Saleperson is objective is to

search for and qualify potential customer

Today marketers increasing Tiffany / Walmart which is to offer

different variations of the same iofferings to o high-end and low-end segments

Regarding goals and objectives, which statement is most accurate ?

Objectives convert an organizations mission and business into long-term and short-term performance target

Least likely target market for a company producing canned food in single serving sizes ?

School kitchens

Unique combination of benefits received by target buyers ?

Customer Value

Relationship marketing refers to

The linking of the organization to its individuals customers, employees, suppliers, and other partners for their mutual long-term benefit

FTC does

corrective advertising

Probable sampling

give everyone the chance to be selected to participate

Zappos initial market segmentation was to sell

shows and other products to people who will buy them online and like to use mobile technology

The size of the purchase is … then in is my consumer buying but it is done more frequently

typically smaller

Drawing conclusion about every women

statistical inference

How do most commodities compete if it is a commodity ?

Price

Might be reluctant to adopt a new product usage barriers

the product is not compatible with existing habits

growth stage of the PLC

growing proportion of trial purchases come from brand loyal users

cotton incorporated

Primary Demand

Snack loads bottled water

intensive distribution

Goodyear tire dealers question

Horizontal conflict

marketing of durable goods often emphasizes

personal selling

Reducing package content w/o changing package size

downsizing

FTC ‘Anew’ only

for a period of six months after it enters regular distribution

Amount of time per month spent on a company’s websites is referred to

stickiness

customization refers to

digital capabilities that make possible a highly interactive and individualized information and exchange environment for shoppers and buyer

Which of the factors balance elements of the promotional mix ?

Products life cycle

Media selected decisions related to the target audience

the cost of alternative media

Which one of these is one of three types of personal selling

suggestive selling

The number of different people on household’s exposed to an advertisements is referred to

Reach

In marketing, advertising or salespeople can activate a consumers purchase decision process by

showing shortcomings of competing ( or currently owned ) products

Perceived Risk

anxiety felt b/c consumer cant anticipate outcomes of a purchase but believe there may be negative consequences

Small groups differ from departments in org. mutually accountable to accomplish task/common set of performance goals are referred to as:

cross-functional teams

Women buying new cars

the answer

A marketing strategy that involves a firm using diff. marketing mix actions to help the consumer perceive the product as being different & better than competing :

product differentiation

When expenses are greater than potential increased sales from marketing segmentation, a frim should

not consider marketing segmentation at this time

Which of these is a characteristic of growth stage of product life cycle ?

Advertising emphasis -- selective demand

Supply chain management

integration & organization of info & logistics

Marketing of durable goods

Personal Selling

Amount of time per month that visitors spend on company’s website

stickiness

Which of these factors is used to balance elements in promotional mix ?

Product life cycle

ICR : Interest creating remark

Build rapport & start your approach strong

Market Segmentation

Involves aggregating prospective buyers into groups, or segments, that (1) have common needs and (2) will respond similarly to a marketing action.

Market segments are

The relatively homogenous groups of consumers that result from the segmentation process.

product differentiation

This strategy involves a firm using different marketing mix actions, such as product features and advertising, to help consumers perceive the product as being different and better than competing products.

marketing segmentation

leads to tangible marketing actions that increase sales and profitability.

market-product grid

a framework to relate the market segments of potential buyers to products offered or potential marketing actions

mass customization

tailoring products to meet the needs of individual customers on a high volume sale

built to order

involves manufacturing a product only wen there is an order from a customer (apple) (lamborghini)

Organizational Synergies

the increased customer value achieved through performing organizational functions such as marketing or manufacturing more efficiently

cannibalizaiton

new products stealing customer/sale from the older existing ones.

Steps in segmenting and targeting markets

1. Group potential buyers into segments

2. Group products to be sold into categories

3. Develop a market-product grid and estimate size of markets

4. Select target markets

5. Take marketing actions to reach target markets

Simplicity and cost-effectiveness of assigning potential buyers to segments

identifying the characteristics of potential buyers in a market and then cost - effectively assigning them to a segment

Potential for increased profit

maximizes the opportunity for future profit and return on investment (ROI). If this potential is maximized without segmentation, don't segment. For nonprofit organizations, the criterion is the potential for serving clients more effectively.

Similarity of needs of potential buyers within a segment

potential buyers with a segment should be similar in terms of common needs that, in turn, lead to common marketing actions

Difference of needs of buyers among segments

If the needs of the various segments aren't very different, combine them into fewer segments. A different segment usually requires a different marketing action that, in turn, means greater costs. If increased sales don't offset extra costs, combine segments and reduce the number of marketing actions.

potential of a marketing action to reach assignment

reaching a segment requires a simple but effective marketing action

geographic segmentation

based on where prospective customers live or work

demographic segmentation

based on some objective physical (gender, race), measurable (age, income), or other classification attribute (birth era, occupation) of prospective customers

psychographic segmentation

based on some subjective mental or emotional attributes (personality), aspirations (lifestyle), or needs of prospective customers

Behavorial Segmentation

based on some observable actions or attitudes by prospective customers such as where they buy what benefits they seek, how frequently they buy and why they buy

usage rate

is the quantity consumed or patronage (store visits) during a specific period.

frequency marketing

focuses on usage rate

Customer Lifetime Value (CLV)

represents the financial worth of a customer to a company over the course of their relationship

Step 2 of segmenting a market

group products to be sold into categories

step 3 of segmenting a market

develop of marketing - product grid and estimate the size of markets

estimate the size of the market in each cell of the market-product grid

true

step 4 in the marketing segmenting process

select target markets

if it picks too narrow a set of segments it may fail to reach the volume of sales and profits it needs.

true

Selects too broad a set of segments it may spread its marketing efforts so thinly that they extra expense exceeds the increase sales and profits.

true

Criteria to use in selecting the target segments

1. divide the market into segments

2. actually pick the target segments

what are the criteria?

market size
expected growth
competitive position
cost of reaching the segment
compatibility with the organization's objectives and resources

synergies

efficiencies its vital to success in selecting target market segments and making marketing decisions

marketing synergies

horizontal - represents an opportunity for efficiency in terms of a market segment

Product synergies

vertical - each column represents an opportunity for efficiency in research and development and production

product positioning

the place a product occupies in consumers' minds based on important attributes relative to competitive products

product repositioning

changing the place a product occupies in a consumer's mind relative to competitive products

Head-to-head positioning

competing directly with competitors on similar product attributes in the same target market

differentiation positioning

involves seeking a less-competitive, smaller market niche in which to locate a brand

customer value proposition

directs the company's overall marketing strategy

perceptual map

a means of displaying in two dimensions the location of products or brands in the minds of consumers to enable a manager to see how they perceive competing products or brands, as well as the firm's own product or brand

Product positioning using perceptual maps

-Identification of the important attributes of a product or brand class -discover how to target customers and rate competing products or brands with respect to these attributes

• discover where the company's product or brand is on these attributes in the minds of potential customers

• reposition the company's product or brand in the minds of potential customers.

Holacracy

emphasizes self-management by eliminating traditional hierarchical reporting lines and replacing them with "work circles"

business-to-business marketing

the marketing of products and services to companies, governments, or not-for-profit organizations for use in the creation of products and services that they can produce and market to others

organizational buyers

manufacturers, wholesalers, retailers, and government agencies that buy products and services for their own use or for resale

Organizational markets

industrial, reseller, government

industrial firms

reprocess a product or service they buy before selling it again to the next buyer

Resellers

wholesalers and retailers that buy physical products and resell them again without any reprocessing

government units

federal, state, and local agencies that buy goods and services for the constituents they serve

NAICS

provides common industry definitions for Canada, Mexico, and the United States, which makes it easier to measure economic activity in the three member countries of the North American Free Trade Agreement (NAFTA).

derived demand

means that the demand for industrial products and services is driven by, or derived from, demand for consumer products and services

the size of the purchase involved in organizational buying is typically much larger than that in consumer buying + most organizations place constraints on their buyers in the form of purchasing policies or procedures

true

business firms

the buying objective is usually to increase profits through reducing costs or increasing revenues

Organizational buying criteria

the objective attributes of the supplier's products and services and the capabilities of the supplier itself

supplier development

involves the deliberate effort by organizational buyers to build relationships that shape suppliers' products, services, and capabilities to fit a buyer's needs and those of its customers

organizational buying criteria

1. price

2. ability to meet the qualify specifications required for the item

3. ability to meet required delivery schedules

4. technical capability

5. warranties and claim policies in the event of poor performance

6. post performance on previous contracts

7. production facilities and capacity

Reciprocity

industrial buying practice in which two organizations agree to purchase each other's products and services

sustainable procurement

supply partnerships often include provisions for this - a system of procurement of inputs and how their buying decisions affect the environment.

supply partnership

exists when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of lowering the cost or increasing the value of products and services delivered to the ultimate consumer

organizational buying behavior

the decision-making process that organizations use to establish the need for products and services and identify, evaluate, and choose among alternative brands and suppliers

vendors

The buying function involves gathering and screening information about products and services, prices, and suppliers called

Stages in the organizational buying process

1. problem recognition

2. information search

3. alternative evaluation

4. purchase decision

5. post purchase behavior

buying center

the group of people in an organization who participate in the buying process and share common goals, risks, and knowledge important to a purchase decision

highly formalized buying center

buying committee