Chapter 8

Question 1

Target Markets and Channel Design Strategy

Answer 1

The target market’s needs and wants should drive the manner in which the channel manager shapes the design of the firm’s marketing channels.

Question 2

Market Geography

Answer 2

refers to the geographical extent of markets and where they are located

Question 3

Channel manager delineates geographical

locations of target markets by using a combination of the following:

Answer 3

1. The Bureau of Census
   data for geographical entities such as states, regions/divisions, counties, metropolitan statistical areas, towns & townships
2. Postal ZIP codes

Question 4

Tracking Changes in Market Geography

Answer 4

• A high degree of mobility within the U.S. means that market geography changes frequently.
• Southeast Asian countries & former Eastern bloc countries of central & eastern Europe have become key locations.

Question 5

Market Size

Answer 5

refers to the number of buyers or potential buyers (consumer or industrial) in a given market.

Question 6

Market Density

Answer 6

refers to the number of buyers or potential buyers per unit of geographical area.

Question 7

Efficient Congestion

Answer 7

Congested (high-density) markets can promote
efficiency in the performance of several basic distribution tasks, particularly those of transportation, storage, communication, and
negotiation.

Question 8

Market Behavior’s 4 Subdivisions

Answer 8

1. When the market buys
2. Where the market buys
3. How the market buys
4. Who in the market buys

Question 9

When the market buys

Answer 9

Seasonally/Weekly/Daily
Implications for the channel manager:
1. Variations create peaks & valleys in the manufacturer’s production schedule.
2. He should attempt to select channel members who are in tune with these changing patterns

Question 10

Where the market buys

Answer 10

The types of outlets and the location of those outlets

1. He or she should know where customers generally buy particular types of products
2. He or she should know whether these patterns may be changing

Question 11

How the market buys

Answer 11

large quantities, self-served, one-stop shopping, impulse, cash, online, comparison shopping, demanding extensive service

Question 12

Who buys

Answer 12

Who makes the physical purchase?

Who decides to make that purchase?

Question 13

Buying Centers

Answer 13

Sets of people who participate in industrial
buying decisions and who are responsible for
the consequences resulting from the decision
(Users, influencers, Deciders, Approvers, buyers, Gatekeepers)