Marketing Management Test 2 – Flashcards
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Gatekeepers are important in the B2B buying process because...
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All of these (they limit the number of vendors in a given buying process)
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Deciders are an important group for the salesperson to be able to identify because...
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They make the ultimate purchase decision
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In the buying process there is one group that can play a critical role. This group is often the first to recognize the problem based on a need and they help define the product specifications. This group is called...
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Users
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When Walter, the brand manager for a consumer packaged good, says that a segment has sufficient size, he means...
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The market has an expected return on investment that is positive
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There are conditions necessary that a market needs to be able to segment properly. The item below that is not necessary is...
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Market has to be bigger than 10,000 people
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When it is said that a market can be reached, it means that...
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All of these (market can be reached by transportation, language, technology, and communication)
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Approaches to geographic segmentation include all except...
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Sensitivity of Population
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The product life cycle (PLC) for a particular product has...
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More than 1 life cycle- industry and brand life cycles
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It is not uncommon to see...profits in the introduction phase of the product life cycle for an industry
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No (or loses)
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The objective in the introduction phase of the product life cycle (PLC) is to...
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Build market awareness for the product, leading to trial purchase
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The essential marketing objective in the growth phase of the PLC is to...
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Differentiate the product from those of new competitors
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In the...phase of PLC, sales continue to increase but at a decreasing rate
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Maturity
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Recently, Mercedes-Benz quietly reduced its warranty coverage by eliminating some few scheduled maintenance because the expense for the firm was too high. At the same time, Hyundai and others have expanded their warranties to build consumer confidence in their cars. They realize that extending the period of warranty coverage demonstrates they are making better cars in a very tangible way. These are examples of firms considering the...of the product warranty.
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Costs and Benefits
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Victorinox, maker of the Swiss Army knife, warrants its knives to be "fee from defects in material and workmanship for the entire life of the knife." This is an example of a...
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Warranty
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The American Marketing Association defines...as "a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or groups of sellers and to differentiate them from those of competitors."
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Brand
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Inelastic Demand
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changes in demand are not significantly affected by changes in price
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Buying Decisions
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-Nature of the purchase -Number of people involved in the decision -Understanding of the product being purchased -Time frame for the decision
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Straight Rebuy
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Reorder products that are used on a consistent basis
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Modified Rebuy
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Familiar with product and supplier but still seek additional information
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New Purchase
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First-time purchase of product or service
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Three steps in target marketing
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-Analyze market segments -Develop profiles of each potential target market -Select a target marketing approach
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Key Business Market Segmentation Variables
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-Demographic -Operating Variables -Purchasing Approaches -Situational Factors -Personal Characteristics
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Four Basic Levels of Priority for Development
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-Primary Target Markets -Secondary Target Markets -Tertiary Target Markets -Target Markets to Abandon for Future Development
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Primary target markets
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those segments that clearly have the best chance of meeting ROI goals and the other attractiveness factors
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Secondary target markets
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those segments that have reasonable potential but for one reason or another are not best suited for development immediately
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Tertiary target markets
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those segments that may develop emerging attractiveness for investment in the future but that do not appear attractive at present
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Continuum of Target Marketing Approaches
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Very Broad: Undifferentiated target marketing, Differentiated target marketing, Concentrated target marketing, Customized target marketing: Very Narrow
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Innovation Diffusion Process
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how long it takes a product to move from first purchase to last purchase
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1. Awareness
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Know of the product, but insufficient information to move forward through the adoption process
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2. Interest
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Receive additional information (advertising, word of mouth) and motivated to seek out added information for further evaluation
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3. Evaluation
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Combine all information (word of mouth, reviews, advertising) and evaluate the product for trial purchase
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4. Trial
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Purchase the product for the purpose of making a value decision
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5. Adoption
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Purchase the product with the intent of becoming a dependable user
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Consumer Product Adoption Chart
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Innovators, Early Adopters, Early Majority, Late Majority, Laggards
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Brand Identity
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a summary of unique qualities attributed to the brand
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Brand Equity
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a set of assets (and liabilities) linked to a brand's name and symbol that adds to (or subtracts from) the value provided by a product or service to a firm or that firm's customers
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Brand Awareness
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the most basic form of brand equity is simply being aware of the brand
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Brand Loyalty
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the strongest form of brand equity and reflects a commitment to repeat purchases
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Perceived Quality
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brands convey a perception of quality that is either positive or negative
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Brand Association
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customers develop a number of emotional, psychological, and performance associations with a brand
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Brand Assets
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trademarks and patents that represent a significant competitive advantage
