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TMC – Marketing Exam 2 – Flashcards

Trina Garrison

8 July 2022

question

Business marketing

answer

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

question

Organizational buyers

answer

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

question

Three markets making up organizational buyers

answer

The industrial market, reseller market, and government market.

question

North American Industry Classification System (NAICS)

answer

Provides common industry definitions for Canada, Mexico, and the United States.

question

Organizational buying criteria (by use)

answer

Performance, technical support, ease of use, ease of setup, complete solution, ruggedness, customization ability, price, etc.

question

Supplier development

answer

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.

question

Reciprocity

answer

An industrial buying practice in which two organizations agree to purchase each other's products and services. (Disapproved by US Justice Department)

question

Supply partnership

answer

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.

question

Sustainable procurement

answer

Aims to integrate environmental considerations into all stages of an organization's buying process with the goal of reducing the negative impact on human health and the environment.

question

Organizational buying behavior

answer

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.

question

Five stages in the buying decision process

answer

Problem recognition, information search, alternative evaluation, purchase decision, and post-purchase behavior.

question

Buying center

answer

The group of people in an organization that participate in the buying process.

question

Five specific roles of individuals in the buying center

answer

Users, influencers, buyers, deciders, and gatekeepers.

question

Buy classes

answer

Three types of organizational buying situations: straight rebuy, new buy, and modified rebuy.

question

E-marketplaces

answer

Online trading communities that bring together buyers and supplier organizations.

question

Traditional auction

answer

Occurs when a seller puts up an item for sale and would-be buyers bid in competition with each other.

question

Reverse auction

answer

Occurs when a buyer communicates a need for something and would-be suppliers bid in competition with each other.

question

Protectionism

answer

The practice of shielding one or more industries within a country's economy from foreign competition, usually through the use of tariffs or quotas.

question

Tariff

answer

A government tax on goods or services entering a country, primarily serving to raise prices on imports.

question

Quota

answer

A restriction placed on the amount of a product allowed to enter or leaver a country.

question

World Trade Organization (WTO)

answer

Institution that sets rules governing trade between its members through a panel of trade exports. Its 153 member countries account for more than 97% of world trade.

question

European Union

answer

Consists of 27 member countries that have eliminated most barriers to the free flow of goods, services, capital, and labor across their borders.

question

North American Free Trade Agreement (NAFTA)

answer

Lifted many trade barriers between Canada, Mexico, and the United States.

question

Global competition

answer

Exists when firms originate, produce, and market their products and services worldwide.

question

International firm

answer

Engages in trade and marketing in different countries as an extension of the marketing strategy in its home country.

question

Multinational firm

answer

Views the world as consisting of unique parts and markets to each part differently.

question

Multidomestic marketing strategy

answer

A multinational firm's strategy of offering as many different product variations, brand names, and advertising programs as countries in which it does business.

question

Transnational firm

answer

Views the world as one market and emphasizes cultural similarities across countries or universal consumer needs and wants more than differences.

question

Global marketing strategy

answer

Used by transnational marketers, the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ.

question

Global brand

answer

A brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs.

question

Global consumers

answer

Consumer groups living in many countries or regions of the world who have similar needs or seek similar features and benefits from products or services.

question

Three kinds of uncontrollable market variables

answer

Cultural, economic, and political-regulatory variables.

question

Cross-cultural analysis

answer

The study of similarites and differences among consumers in two or more nations or societies.

question

Values

answer

A society's personally or socially preferable models of conduct or states of existence that tend to persist over time.

question

Customs

answer

The normal and expected ways of doing things in a specific country.

question

Foreign Corrupt Practices Act (1977)

answer

A law that makes it a crime for U.S. corporations to bribe an official of a foreign government or political party to obtain or retain business in a foreign country.

question

Cultural symbols

answer

Things that represent ideas and concepts in a specific culture.

question

Back translation

answer

Retranslating a word or phrase back into the original language using a different interpreter to catch errors.

question

Economic infrastructure

answer

A country's communications, transportation, financial, and distribution systems.

question

Microfinance

answer

The practice of offering small, collateral-free loans to individuals who otherwise would not have access to the capital necessary to begin small businesses or other income-generating activities.

question

Currency exchange rate

answer

The price of one country's currency expressed in terms of another country's currency.

question

Exporting

answer

Producing goods in one country and selling them in another country.

question

Licensing

answer

A company offers the right to a trademark, patent, trade secret, or other similarly valued item of intellectual property in return for a royalty or a fee.

question

Joint venture

answer

When a foreign company and a local firm invest together to create a local business, sharing ownership, control, and the profits of the new company.

question

Direct investment

answer

When a domestic firm invests in and owns a foreign subsidiary or division.

question

Product extension strategy

answer

Selling virtually the same product in other countries.

question

Product adaptation strategy

answer

Changing a product in some way to make it more appropriate for a country's climate or consumer preferences.

question

Product invention strategy

answer

Investing in totally new products designed to satisfy common needs across countries.

question

Communication adaptation strategy

answer

Adapting the promotional message for the same product.

question

Dual adaptation strategy

answer

Modifying both the product and promotion messages.

question

Dumping

answer

When a firm sells a product in a foreign country below its domestic price or below its actual cost.

question

Gray market

answer

A situation where products are sold through unauthorized channels of distribution.

question

Marketing research

answer

The process of defining a marketing problem and opportunity, systemativally collecting and analyzing information, and recommending actions.

question

Five steps in marketing research

answer

Define the problem, develop the research plan, collect relevant information, develop findings, and take marketing actions (includes: evaluate results).

question

Step 1: Define the problem

answer

Set research objectives and identify possible marketing actions.

question

Step 2: Develop the research plan

answer

Specify constraints, identify data needed for marketing actions, and determine how to collect data.

question

Step 3: Collect relevant information

answer

Obtain secondary data and obtain primary data.

question

Step 4: Develop findings

answer

Analyze the data and present the findings.

question

Step 5: Take marketing actions.

answer

Make action recommendations, implement action recommendations, and evaluate results.

question

Measures of success

answer

Criteria or standards used in evaluating proposed solutions to a problem.

question

Constraints

answer

Restrictions placed on potential solutions to a problem.

question

Secondary data

answer

Facts and figures that have already been recorded prior to the project at hand.

question

Primary data

answer

Facts and figures that are newly collected for the project.

question

Other methods of collecting primary data

answer

Social media, panels and experiments, information technology, and data mining.

question

Panel

answer

A sample of consumers or stores from which researches take a series of measurements.

question

Data mining

answer

The extraction of hidden predictive information from large databases to find statistical links between consumer purchasing patterns and marketing actions.

question

Sales forecast

answer

The total sales of a product that a firm expects to sell during a specified time period under specified conditions.

question

Market segmentation

answer

Involves aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action.

question

Market segments

answer

The relatively homogeneous groups of prospective buyers that result from the market segmentation process.

question

Product differentiation

answer

The strategy of using different marketing mix activities to help consumers perceive the product as being different and better than competing products.

question

Market-product grid

answer

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

question

Three specific segmentation strategies

answer

One product and multiple market segments, multiple products and multiple market segments, and segments of one, or mass custimization

question

Organizational synergy

answer

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

question

Cannabilization

answer

When the new products or new chain simply steals customers and sales from the older, existing ones.

question

Five-step process used to segment a market

answer

Group potential buyers into segments, group products to be sold into categories, develop a market-product grid and estimate the size of markets, select target markets, and take marketing actions to reach target markets.

question

Criteria to segment a given market

answer

Simplicity and cost-effectiveness of assigning potential buyers to segments, potential for increased profit, similarity of needs of potential buyers within a segment, difference of needs of buyers among segments, and potential of a marketing action to reach a segment.

question

Four general bases of market segmentation

answer

Geographic segmentation, demographic segmentation, psychographic segmentation, and behavioral segmentation.

question

Usage rate

answer

The quantity consumed or the number of store visits during a specified period.

question

80/20 rule

answer

The idea that 80 percent of a firm's sales are obtained from 20 percent of its customers.

question

Criteria to use in selecting target segments

answer

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

question

Marketing synergies

answer

An opportunity for efficiency in terms of the market segment.

question

Product synergies

answer

An opportunity for efficiency research and development and production.

question

Product positioning

answer

The place a product occupies in consumer's minds based on important attributes relative to competitive products.

question

Product repositioning

answer

Changing the place a product occupies in a consumers mind relative to competitive products.

question

Head-to-head positioning

answer

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

question

Differentiation positioning

answer

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

question

Perceptual map

answer

A means of displaying in two dimensions the location of products or brands in the minds of consumers.

question

Four steps to discover the perceptions in the minds of potential customers

answer

Identify the important attributes for a product or brand class, discover how target customers 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, and reposition the company's product or brand in the minds of potential customers.

1 of

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question

Business marketing

answer

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

question

Organizational buyers

answer

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

question

Three markets making up organizational buyers

answer

The industrial market, reseller market, and government market.

question

North American Industry Classification System (NAICS)

answer

Provides common industry definitions for Canada, Mexico, and the United States.

question

Organizational buying criteria (by use)

answer

Performance, technical support, ease of use, ease of setup, complete solution, ruggedness, customization ability, price, etc.

question

Supplier development

answer

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.

question

Reciprocity

answer

An industrial buying practice in which two organizations agree to purchase each other's products and services. (Disapproved by US Justice Department)

question

Supply partnership

answer

question

Sustainable procurement

answer

Aims to integrate environmental considerations into all stages of an organization's buying process with the goal of reducing the negative impact on human health and the environment.

question

Organizational buying behavior

answer

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.

question

Five stages in the buying decision process

answer

Problem recognition, information search, alternative evaluation, purchase decision, and post-purchase behavior.

question

Buying center

answer

The group of people in an organization that participate in the buying process.

question

Five specific roles of individuals in the buying center

answer

Users, influencers, buyers, deciders, and gatekeepers.

question

Buy classes

answer

Three types of organizational buying situations: straight rebuy, new buy, and modified rebuy.

question

E-marketplaces

answer

Online trading communities that bring together buyers and supplier organizations.

question

Traditional auction

answer

Occurs when a seller puts up an item for sale and would-be buyers bid in competition with each other.

question

Reverse auction

answer

Occurs when a buyer communicates a need for something and would-be suppliers bid in competition with each other.

question

Protectionism

answer

The practice of shielding one or more industries within a country's economy from foreign competition, usually through the use of tariffs or quotas.

question

Tariff

answer

A government tax on goods or services entering a country, primarily serving to raise prices on imports.

question

Quota

answer

A restriction placed on the amount of a product allowed to enter or leaver a country.

question

World Trade Organization (WTO)

answer

Institution that sets rules governing trade between its members through a panel of trade exports. Its 153 member countries account for more than 97% of world trade.

question

European Union

answer

Consists of 27 member countries that have eliminated most barriers to the free flow of goods, services, capital, and labor across their borders.

question

North American Free Trade Agreement (NAFTA)

answer

Lifted many trade barriers between Canada, Mexico, and the United States.

question

Global competition

answer

Exists when firms originate, produce, and market their products and services worldwide.

question

International firm

answer

Engages in trade and marketing in different countries as an extension of the marketing strategy in its home country.

question

Multinational firm

answer

Views the world as consisting of unique parts and markets to each part differently.

question

Multidomestic marketing strategy

answer

A multinational firm's strategy of offering as many different product variations, brand names, and advertising programs as countries in which it does business.

question

Transnational firm

answer

Views the world as one market and emphasizes cultural similarities across countries or universal consumer needs and wants more than differences.

question

Global marketing strategy

answer

Used by transnational marketers, the practice of standardizing marketing activities when there are cultural similarities and adapting them when cultures differ.

question

Global brand

answer

A brand marketed under the same name in multiple countries with similar and centrally coordinated marketing programs.

question

Global consumers

answer

Consumer groups living in many countries or regions of the world who have similar needs or seek similar features and benefits from products or services.

question

Three kinds of uncontrollable market variables

answer

Cultural, economic, and political-regulatory variables.

question

Cross-cultural analysis

answer

The study of similarites and differences among consumers in two or more nations or societies.

question

Values

answer

A society's personally or socially preferable models of conduct or states of existence that tend to persist over time.

question

Customs

answer

The normal and expected ways of doing things in a specific country.

question

Foreign Corrupt Practices Act (1977)

answer

A law that makes it a crime for U.S. corporations to bribe an official of a foreign government or political party to obtain or retain business in a foreign country.

question

Cultural symbols

answer

Things that represent ideas and concepts in a specific culture.

question

Back translation

answer

Retranslating a word or phrase back into the original language using a different interpreter to catch errors.

question

Economic infrastructure

answer

A country's communications, transportation, financial, and distribution systems.

question

Microfinance

answer

The practice of offering small, collateral-free loans to individuals who otherwise would not have access to the capital necessary to begin small businesses or other income-generating activities.

question

Currency exchange rate

answer

The price of one country's currency expressed in terms of another country's currency.

question

Exporting

answer

Producing goods in one country and selling them in another country.

question

Licensing

answer

A company offers the right to a trademark, patent, trade secret, or other similarly valued item of intellectual property in return for a royalty or a fee.

question

Joint venture

answer

When a foreign company and a local firm invest together to create a local business, sharing ownership, control, and the profits of the new company.

question

Direct investment

answer

When a domestic firm invests in and owns a foreign subsidiary or division.

question

Product extension strategy

answer

Selling virtually the same product in other countries.

question

Product adaptation strategy

answer

Changing a product in some way to make it more appropriate for a country's climate or consumer preferences.

question

Product invention strategy

answer

Investing in totally new products designed to satisfy common needs across countries.

question

Communication adaptation strategy

answer

Adapting the promotional message for the same product.

question

Dual adaptation strategy

answer

Modifying both the product and promotion messages.

question

Dumping

answer

When a firm sells a product in a foreign country below its domestic price or below its actual cost.

question

Gray market

answer

A situation where products are sold through unauthorized channels of distribution.

question

Marketing research

answer

The process of defining a marketing problem and opportunity, systemativally collecting and analyzing information, and recommending actions.

question

Five steps in marketing research

answer

Define the problem, develop the research plan, collect relevant information, develop findings, and take marketing actions (includes: evaluate results).

question

Step 1: Define the problem

answer

Set research objectives and identify possible marketing actions.

question

Step 2: Develop the research plan

answer

Specify constraints, identify data needed for marketing actions, and determine how to collect data.

question

Step 3: Collect relevant information

answer

Obtain secondary data and obtain primary data.

question

Step 4: Develop findings

answer

Analyze the data and present the findings.

question

Step 5: Take marketing actions.

answer

Make action recommendations, implement action recommendations, and evaluate results.

question

Measures of success

answer

Criteria or standards used in evaluating proposed solutions to a problem.

question

Constraints

answer

Restrictions placed on potential solutions to a problem.

question

Secondary data

answer

Facts and figures that have already been recorded prior to the project at hand.

question

Primary data

answer

Facts and figures that are newly collected for the project.

question

Other methods of collecting primary data

answer

Social media, panels and experiments, information technology, and data mining.

question

Panel

answer

A sample of consumers or stores from which researches take a series of measurements.

question

Data mining

answer

The extraction of hidden predictive information from large databases to find statistical links between consumer purchasing patterns and marketing actions.

question

Sales forecast

answer

The total sales of a product that a firm expects to sell during a specified time period under specified conditions.

question

Market segmentation

answer

Involves aggregating prospective buyers into groups that have common needs and will respond similarly to a marketing action.

question

Market segments

answer

The relatively homogeneous groups of prospective buyers that result from the market segmentation process.

question

Product differentiation

answer

The strategy of using different marketing mix activities to help consumers perceive the product as being different and better than competing products.

question

Market-product grid

answer

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

question

Three specific segmentation strategies

answer

One product and multiple market segments, multiple products and multiple market segments, and segments of one, or mass custimization

question

Organizational synergy

answer

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

question

Cannabilization

answer

When the new products or new chain simply steals customers and sales from the older, existing ones.

question

Five-step process used to segment a market

answer

question

Criteria to segment a given market

answer

question

Four general bases of market segmentation

answer

Geographic segmentation, demographic segmentation, psychographic segmentation, and behavioral segmentation.

question

Usage rate

answer

The quantity consumed or the number of store visits during a specified period.

question

80/20 rule

answer

The idea that 80 percent of a firm's sales are obtained from 20 percent of its customers.

question

Criteria to use in selecting target segments

answer

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

question

Marketing synergies

answer

An opportunity for efficiency in terms of the market segment.

question

Product synergies

answer

An opportunity for efficiency research and development and production.

question

Product positioning

answer

The place a product occupies in consumer's minds based on important attributes relative to competitive products.

question

Product repositioning

answer

Changing the place a product occupies in a consumers mind relative to competitive products.

question

Head-to-head positioning

answer

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

question

Differentiation positioning

answer

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

question

Perceptual map

answer

A means of displaying in two dimensions the location of products or brands in the minds of consumers.

question

Four steps to discover the perceptions in the minds of potential customers

answer

TMC – Marketing Exam 2 – Flashcards

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