Principles of Marketing Test 2

Q: What are the three markets for organizational buyers?
A: Industrial, Reseller, Government

Q: What is derived demand?
A: Demand for a business product that comes from the demand for consumer products.

Q: How does organizational buying differ from consumer buying?
A: Organizational buying involves larger quantities, is done less frequently, and often requires more formal decision-making.

Q: What is reciprocity in business-to-business marketing?
A: When two companies agree to buy each other's products/services.

Q: What is a buying center?
A: A group of people involved in the purchase decision for an organization.

Q: What are the three types of buy classes?
A: New buy (first-time purchase), Straight rebuy (routine purchase), Modified rebuy (adjusted purchase).

Q: What is countertrade?
A: A barter system where goods and services are exchanged instead of money.

Q: Define Gross Domestic Product (GDP).
A: The total value of all goods and services produced in a country in one year.

Q: What is the difference between tariffs and quotas?
A: Tariffs are taxes on imports, while quotas are limits on the number of imports.

Q: What does the World Trade Organization (WTO) do?
A: Regulates international trade and resolves trade disputes between countries.

Q: What is a global brand?
A: A brand that has consistent marketing, design, and positioning worldwide.

Q: What is the currency exchange rate?
A: The value of one country's currency in relation to another's.

Q: What is the difference between importing and exporting?
A: Importing is bringing goods into a country, while exporting is selling goods to another country.

Q: Compare licensing, exporting, joint venture, and direct investment.
A: 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.

Q: What is marketing research?
A: The process of gathering, analyzing, and interpreting data to make marketing decisions.

Q: What is data?
A: Facts and figures related to a research problem.

Q: What are the two main types of data?
A: Primary data (collected firsthand for a specific purpose) and secondary data (existing data used for research).

Q: Give an advantage and disadvantage of primary data.
A: Advantage: Specific and up-to-date. Disadvantage: Expensive and time-consuming.

Q: Give an advantage and disadvantage of secondary data.
A: Advantage: Quick and cost-effective. Disadvantage: May be outdated or not specific to the research question.

Q: What is the difference between internal and external data?
A: Internal data comes from within a company (e.g., sales reports), while external data comes from outside sources (e.g., market reports).

Q: What is the difference between observational and questionnaire data?
A: Observational data is gathered by watching behaviors, while questionnaire data is collected by asking people directly.

Q: What is market segmentation?
A: The process of dividing a market into distinct groups based on characteristics.

Q: What is product differentiation?
A: Creating a unique product to distinguish it from competitors.

Q: What is product cannibalization?
A: When a company's new product takes sales away from its existing product.

Q: What are the four types of market segmentation?
A: Geographic (location), Demographic (age, gender, income), Psychographic (lifestyle, personality), Behavioral (buying behavior).

Q: What is usage rate?
A: The quantity consumed or frequency of a product's purchase by customers.

Q: What is product positioning?
A: How a brand is perceived in the minds of consumers relative to competitors.

Q: What is head-to-head positioning?
A: Competing directly with rivals on similar product attributes in the same market.

Q: What is differentiation positioning?
A: Creating a unique product that competes in a less competitive market segment.