question

Which of the following statements about positioning is FALSE? A. Positioning often makes use of techniques such as perceptual mapping. B. Positioning refers to how customers think about proposed or present brands in a market. C. Managers make graphs for positioning decisions by asking consumers to make judgments about different brands. D. Positioning issues are especially important when competitors in a market are highly dissimilar. E. Positioning helps marketing managers know how customers view the firm's offering.

answer

D. Positioning issues are especially important when competitors in a market are highly dissimilar.

question

A vendor is MOST likely to make a sale if the buyer has bought from the vendor before and is doing:

answer

straight rebuy buying.

question

When Hallmark stores offer a product line that includes everything you need to have a Spiderman theme birthday party, what is the primary segmenting dimension that Hallmark is using? A. Gender B. Size of city C. Family size D. Rate of use E. Benefits sought

answer

E. Benefits sought

question

A person who needs to purchase something usually completes a requisition. True or False

answer

TRUE

question

In a generic market, A. sellers may compete in different product-markets. B. customers have broadly similar needs. C. diverse types of products may compete for customers. D. All of these are correct for a generic market. E. there may be many ways to satisfy customers' needs.

answer

D. All of these are correct for a generic market.

question

Which of the following statements about the combined target market approach is True? A. Combiners try to extend their basic offering to satisfy customers from multiple segments with a single marketing mix. B. Combiners feel that two or more segments are similar enough that-together-they can be treated as one large target market. C. All of these statements about the combined target market approach are true. D. Combiners may fall victim to an innovative segmenter that offers a more attractive marketing mix to a segment of the combined target market.

answer

C. All of these statements about the combined target market approach are true.

question

Combiners

answer

try to increase the size of their target markets by combining two or more segments. They try to extend or modify their basic offering to appeal to these "combined" customers with just one marketing mix.

question

New-task buying

answer

occurs when an organization has a new need and the customer wants a great deal of information.

question

According to the text, segmenting should be viewed as a(n) ______________ process.

answer

"clustering" or aggregating

question

Dependability of supply is usually much less important than price for most business customers. True or False

answer

FALSE (An organization may not be able to function if purchases don't arrive when they're expected so dependability is often the most important thing.)

question

Organizational buyers are often referred to as the B2B market.

answer

TRUE (Marketing managers often refer to organizational customers collectively as the "business-to-business" market, or simply, the B2B market.)

question

Organizational buyers purchase the same product from more than one source

answer

to help ensure continuing supplies.

question

A producer of electrical components combined electrical supply wholesalers and manufacturers of electrical equipment into the same market segment-one of several segments it was targeting. Soon it lost the manufacturers' business to a competitor. It seems that the firm failed to consider the risk of

answer

too much aggregating.

question

Cost considerations usually

answer

encourage more aggregating and favor combining as costs often drop due to economies of scale. However, many customers prefer to have their needs satisfied more exactly and vulnerable to competitors who offer them more targeted approaches.

question

A "good" market segment should be composed of people who are as homogeneous as possible with respect to their likely responses to marketing mix variables. True or False

answer

TRUE

question

Strategy decisions pertaining to product features, packaging, product line assortment, and branding will be most affected by which target market dimension?

answer

Behavioral needs and attitudes of consumers

question

Behavioral needs and attitudes of consumers

answer

affect product features, packaging, product line assortment, and branding.

question

When Procter and Gamble offers both Pantene and Vidal Sassoon shampoos to its customers, which target market approach is Procter and Gamble using?

answer

Multiple (segments the market and chooses two or more segments, and then treats each as a separate target market needing a different marketing mix.)

question

A sales representative calls on a prospective business customer only to find that the customer has an established relationship with another supplier that seems to be working well. The customer is not interested in considering other suppliers. The customer is currently in a ____________________ situation.

answer

straight rebuy

question

Ideally, segmenters should start with the idea that each person is "one of a kind" and can be described by a special set of dimensions that may be used to aggregate similar customers together.

answer

TRUE

question

A catalog merchant wants to build a new distribution center that will improve inventory management, storage of products, shipping, and returns. The company develops a close relationship with UPS, its main supplier of shipping services. UPS helps the catalog merchant design its new distribution center so that it coordinates well with the shipping processes at UPS. This arrangement reduces shipping costs and improves service to the catalog merchant's customers. This situation is an example of:

answer

relationship-specific adaptations.

question

Relationship-specific adaptations

answer

involve changes in a firm's product or procedures that are unique to the needs or capabilities of a relationship partner.

question

Regarding new-task organizational buying, which of the following are likely to be involved? A. All of these are likely to be involved in new-task organizational buying B. Production process engineers C. Purchasing manager D. Production line supervisors E. Top managers

answer

A. All of these are likely to be involved in new-task

question

In cooperative relationships in a business market, the buyer and seller work together to jointly achieve both mutual and individual objectives. True or False

answer

TRUE

question

When moving to international markets, some firms insist that local operations and decisions should be handled by natives because:

answer

the natives have a feel for the market.

question

A product-market is

answer

a market with very similar needs and sellers offering various close substitute ways of satisfying those needs.

question

______________ is a marketing management aid that refers to how customers think about proposed and/or present brands in a market.

answer

Positioning

question

With respect to buyer-seller relationships in business markets,

answer

some customers simply are not interested in a close relationship with a supplier.

question

U.S. manufacturers:

answer

tend to concentrate by industry.

question

A qualifying dimension for people who consider purchasing a pill for pain relief:

answer

physiological need.

question

Qualifying dimensions

answer

are those dimensions that are relevant to including a customer type in a product-market.

question

Determining dimensions

answer

motivate a consumer to buy a specific product or brand.

question

Gina Williams wanted to start a decorating business. She identified several possible target markets, but decided to serve a market composed of recently married couples that owned their first home. Gina appears to be following:

answer

A single target market approach.

question

When segmenting markets, cost considerations typically encourage a company to ________ and _______.

answer

aggregate; combine segments

question

A modified rebuy would be most likely when:

answer

A car producer is developing a sportier car which will require wider tires

question

Purchasing specifications may include A. the product grade B. all of these may be included in purchasing specifications C. the brand name D. the part number

answer

B. all of these may be included in purchasing specifications

question

Which of the following is NOT one of the target marketing approaches for developing market-oriented strategies in a broad product-market? A. Combined. B. Multiple. C. All of these are target marketing approaches. D. Exclusive. E. Single.

answer

D. Exclusive.

question

The method by which suppliers provide deliveries to organizations precisely when the buyer needs them ("just in time") involves this dimension of buyer-seller relationships:

answer

operational linkages.

question

A target marketer who uses a single marketing mix strategy to appeal to both office tablet computer users and home tablet computer users is applying:

answer

the combined target market approach.

question

A generic market definition includes all of the following terms EXCEPT:

answer

product type.

question

As part of its promotional efforts, Blue Ink Projectors Inc. offered pens and other merchandise to teachers in private schools—their primary target market. However, teachers in most private schools were hesitant to accept the promotional material as their organizational policy was against accepting gifts from suppliers. As a result, the company's promotional efforts failed. What lesson did the marketers of Blue Ink Projectors learn?

answer

Their marketing efforts must avoid conflicts of interest between the customer company and its employees who influence the purchase.

question

A digital camera, a computer video-cam, and a computer scanner might compete in the same

answer

generic market.

question

Organizational buyers:

answer

are problem solvers.

question

The process of marketing strategy planning is about:

answer

narrowing down possible market opportunities to the most attractive ones.

question

The process of organizational buying is entirely different from consumer buying.

answer

FALSE

question

A generic market definition includes

answer

customer (user) needs, customer types, and geographic area.

question

Which of the following is the BEST example of a "generic market?"

answer

the "singles" entertaining market.

question

In the three-step approach to organizational buying, the second step—the buying process—involves:

answer

soliciting proposals bids from suppliers.

question

Although we talk about close "relationships" between firms in business markets, in practice it is just the relationship between the salesperson and purchasing manager that becomes close.

answer

FALSE (Purchasing managers for the buying firm and salespeople for the supplier usually coordinate the different dimensions of a relationship. However, close relationships often involve direct contacts between a number of people from different areas in both firms—R&D, Quality, Accounting, Marketing, Production, Engineering, Finance.)

question

Creative Electronics has an idea for a new MP3 accessory. Now it is looking for a supplier to design and manufacture the product. It will most likely use ______________ buying.

answer

negotiated contract

question

Negotiated contract buying means

answer

agreeing to contracts that allow for changes in the purchase arrangements.

question

Every new customer at Five Elements Spa is asked to register his or her personal details, which includes the customer's age, purpose of visit, and contact information. With this information, the company regularly keeps in touch with its customers, reminding them of their next appointments, new spa offers, and any other promotions. The database is used to predict a customer's next visit to the spa based on his or her previous visits. It also helps the company design service packages to suit the customer's individual needs. In this scenario, Five Elements Spa is using _____.

answer

customer relationship management

question

Firms that operate on the Internet are at a disadvantage when it comes to using approaches like CRM.

answer

FALSE (Firms are able to communicate with customers via a website or e-mail, which means that the whole effort is not only targeted but also very inexpensive. Further, it's fast and easy for a customer to reply.)

question

In large retail firms

answer

buyers have computers systems that let them know the profitability of different competing products.

question

Which of the following segmenting dimensions probably would be LEAST LIKELY to result in segments that would meet the criteria that product-market segments should be "operational?" A. Geographic region. B. Income level. D. Personality. E. Family size.

answer

D. Personality.

question

_______ are the terms of sale offered by different suppliers in response to the purchase specifications posted by the buyer.

answer

Competitive bids

question

The goal of vendor analysis is:

answer

lowering the total costs associated with purchases.

question

Ideally, product-markets should be described in terms of: A. urgency to get needs satisfied and desire and willingness to compare and shop. B. All of these are true. C. geographic location and other demographic characteristics of potential customers. D. behavioral needs, attitudes, and how present and potential goods or services fit into customers' consumption patterns.

answer

B. All of these are true.

question

Marketing managers want market segments to have each of the following characteristics EXCEPT: A. Large enough to be profitable. B. As similar as possible within segments. C. As numerous as possible. D. As different as possible between segments. E. Useful for identifying marketing mix variables.

answer

C. As numerous as possible.

question

A "good" market segment meets the following criteria:

answer

Homogeneous (similar) within; Heterogeneous (different) between; Substantial—the segment should be big enough to be profitable; and Operational—should be useful for identifying marketing mix variables.

question

The Internet is making it faster and easier for organizational buyers to use competitive bidding procedures.

answer

TRUE (Rather than search for suppliers, buyers sometimes post their requirements and invite qualified suppliers to submit a bid. Some firms set up or participate in a procurement website that directs suppliers to companies (or divisions of a company) that need to make purchases.)

question

A profit-oriented firm will usually want to continue aggregating potential customers into larger submarkets until every consumer fits neatly into some segment.

answer

FALSE

question

Just-in-time delivery reliably helps to get products and store them long before the customer needs them.

answer

FALSE (Just-in-time delivery involves reliably getting products there, just before the customer needs them.)

question

A ______________ market is a market with broadly similar needs and sellers offering various-and often diverse-ways of satisfying those needs.

answer

generic

Principles of Marketing Chapters 5;6 – Flashcards

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