Chapter 2

Question 1

we are living in the “___ __ __ ___”

Answer 1

“century of the consumer”

Question 2

consumer analysis

Answer 2

the process of understanding consumer trends, global consumer markets, models to predict purchase and consumption patterns, and communication methods to reach target markets most effectively

Question 3

strategy

Answer 3

a decisive allocation of resources (capital, technology, and product) in a particular direction

Question 4

what is industrial demand created by?

Answer 4

consumer demand; therefore, B2C affects B2B

Question 5

customer centricity

Answer 5

strategic commitment to focus every resource of the firm on serving and delighting profitable customers

Question 6

what is the essence of customer centricity?

Answer 6

a vision/set of values/a belief that the future of the firm is embedded in consumers

Question 7

the goal of a customer-centric company?

Answer 7

to provide customers with more value than its competitors

Question 8

value

Answer 8

the difference between what consumers give up (time, money, etc) for a product and the benefits they receive

Question 9

marketing strategy

Answer 9

the allocation of resources to develop and sell products and services that consumers will perceive to provide more value than competitive products or services

the process includes: market analysis, market segmentation, brand strategy, and implementation

Question 10

market analysis

Answer 10

the process of analyzing changing consumer trends, current and potential competitors, company strengths and resources, and the technological, legal, and economic enviornments

Question 11

consumer insight

Answer 11

an understanding of consumers’ expressed and unspoken needs and realities that affect how they make life, brand, and product choices. this concept combines fact (from research) with intuition, resulting in an insight that can lead to a new product, exiting product innovation, brand extension, or a revised communication plan.

Question 12

market segmentation

Answer 12

process of identifying groups of people who behave in similar ways to each other, but somewhat differently than other groups

Question 13

the opposite of market segmentation

Answer 13

market aggregation or mass marketing

Question 14

market aggregation or mass marketing

Answer 14

when organizations choose to market and sell the same product or service to all consumers

Question 15

affluence

Answer 15

consumers can afford products that are more customized to suit their individual tastes, needs, and lifestyles

Question 16

consumer database

Answer 16

info on consumers needed to advertise to them

Question 17

manufacturing technology

Answer 17

production processes can be computer controlled and tailored to smaller production runs without corresponding cost increases

Question 18

multiple distribution channels

Answer 18

multiple methods of retailing, including direct sales and the internet, allow distribution to be close related to the needs and desires of specific segments

Question 19

mass customization

Answer 19

customizing goods or services for individual customers in high volumes and at relatively low costs

Question 20

making mass customization pay off in terms of value to the company requires what?

Answer 20

an understanding of what type of customization customers value the most, which varies in different situations

Question 21

the ultimate goal of segmentation

Answer 21

increased customer satisfaction and profitability

Question 22

criteria for choosing segments

Answer 22

measureability: the ability to obtain information about the size, nature, and behavior of a market segment

accessibility: (or reachability) the degree to which segments can be reached

substantiality: refers tot eh size of the market

congruity: how similar members within the segemtn exhibit behaviors or characteristics that correlate with consumption behavior

Question 23

brand

Answer 23

a product or product line, store, or service with an identifiable set of benefits, wrapped in a recognizable personality, carrying with it a connection between product and customers

Question 24

what does the development of brand equity require?

Answer 24

exellence with the functional and emotional elements of a brand

Question 25

fucntional elements

Answer 25

performance, quality, price, reliability, and logistics

Question 26

emotional elements

Answer 26

image, personality, style, and evoked feelings

Question 27

brand promise

Answer 27

what customers can expect in exchange for their money

Question 28

brand equity

Answer 28

–the difference in value created by a brand less than the cost of creating the brand

–the difference in profitability between firms with powerful brands and those with weak brands

Question 29

brand personality

Answer 29

the reflection consumers see of themselves of think they will develop by using a brand

Question 30

where is the brand equity of a firm protected?

Answer 30

in the Lanham Act, the Federal Trademark Registry, and other legislation

Question 31

brand protection

Answer 31

by promising a certain outcome, brands reduce the risk to consumers that a product or service may not deliver as expected

Question 32

7 R’s of the marketing mix

Answer 32

Research
Rate
Resources
Reatiling
Reliability
Reward
Relationship

Question 33

basic steps in implementing CRM

Answer 33

1. Identify all customers and the nature of contacts with them
2. Identify which types of customers are most profitable (by sales or by profit contribution)
3. Indentify and understand behaviors of the most profitable customers
   –how to encourage behaviors of the most profitable customers
   –how to encourage those behaviors among other segments of the customer base
   –how to cross-sell other products to customers
4. Manage contacts with most profitable customers
5. Manage activities of the firm that will please the most profitable customers, including both strategies and tactics

Question 34

cross-cultural analysis

Answer 34

the comparison of similarities and differences in behavioral and physical aspects of cultures

Question 35

cultural empathy

Answer 35

the ability to understand the inner logic and coherence of other ways of life and refrain from judging other value systems

Question 36

ethnography

Answer 36

describing and understanding consumer behavior by interviewing and observing consumers in real-world situations, can help analyze the subtle ways buyers and sellers interact in the marketplace and be useful in the business negotiation process