Marketing Exam 2

Question 1

3 reasons why businesses purchase products.

Answer 1

Resale, direct use in producing other products, use in general daily operations

Question 2

Market characteristics of organizational buyers

Answer 2

Derived demand: the demand for industrial products and services is driven by demand for consumer products and services.

Size of order or purchase

number of potential buyers,

purchases tend to be made by commitee

Question 3

Differences between B2B and B2C purchase decision process.

Answer 3

Business customers differ from consumers
-better informed
-demand more detailed product info
-goals of a purchase agent may include advancement of financial awards
-some suppliers and business customers build and maintain mutually beneficial relationships or partnerships

Question 4

what’s is the buying center

Answer 4

A buying center consists of the group of people in an organization who participate in the buying
process and share common goals,
risks, and knowledge important to purchase decisions

Question 5

What’s a buying committee

Answer 5

a more formal buying center within an organization

Question 6

Roles in the buying center

Answer 6

USERS: members who frequently initiate the purchase, use the product and evaluate the product

INFLUENCERS: technical personnel who develop the specifications and evaluate alternative products

BUYERS: select suppliers and negotiate terms

DECIDERS: actually choose the products

GATEKEEPERS: control the flow of information to and among people who occupy other roles in the buying center

Question 7

What are the three buying classes, why are they different.

Answer 7

New-task purchase: Initial purchase of an item for use in performing a new job or solving a new problem

Straight rebuy purchase: Routine purchases of the same products under approximately the same terms of sale

Modified rebuy purchase: When new-task purchases are changed on repeat orders or straight rebuy purchases are modified

Question 8

Traditional vs. reverse auction

Answer 8

Traditional Auction: One seller, many buyers. Higher price.

Reverse Auction: Many sellers competing for one buyer. Lower price.

Question 9

Market segmentation

Answer 9

Aggregating prospective buyers into groups, or segments, that
(1) have common needs/wants and
(2) will respond similarly to a marketing action.

Question 10

Market segments

Answer 10

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

Question 11

Effective segmentation does what 2 things

Answer 11

Forms meaningful groups, and develops specific marketing actions

Question 12

3 targeting strategies

Answer 12

Undifferentiated strategy, concentrated strategy, differentiated strategy

Question 13

One product multiple markets vs. multiple products multiple markets segments

Question 14

The segmentation tradeoff

Answer 14

Synergies vs. Cannibalization

Organizational Synergy, Customer value

Cannibilzation: New products/chains can steal customers from each other

Question 15

Mass customization vs. Build-to-order

Answer 15

Mass customization: tailoring goods or services to the tastes of individual customers on a high-volume scale

Build-to-order: Manufacturing a product only when there is an order for it

Question 16

5-step segmentation process

Answer 16

1. Group potential buyers into segments
2. Group products sold into categories
3. Develop a market product grid and estimate a size market
4. Select target markets
5. Take marketing actions to reach target markets

Question 17

Ways to segment consumer markets

Answer 17

Demographic segmentation, Geographic segmentation, Psychographic Segmentation, Behavioral Segmentation

Question 18

Product positioning (head-to-head VS. differentiation)

Question 19

Product repositioning

Question 20

Product defintion

Answer 20

A product is:
a good (tangible physical entity), service (intangible result of the application of human and mechanical efforts to people and object), or idea (concept, philosophy, image, issue)

consisting of a bundle of tangible nd intangible attributes that satisfy a customers needs/wants and is received in exchange for money or something else of value

Question 21

3 layers of a product

Answer 21

Augmented product: ALL additional, non-tangible benefits the
product provides (e.g.
service, warranty,
delivery, etc.)

Actual Product: The actual product
itself

Core Product: The basic need/want
the product fulfills

Question 22

Durable vs. nondurable goods

Answer 22

Durable Goods: Many uses, consumed over longer period of time, focus on personal selling

Nondurable goods: 1 or few uses, consumed in short period of time, focus on consumer advertising

Question 23

Benefits of packaging

Answer 23

Communication benefits: Information conveyed to the consumer, alternative uses, directions, seals of approval

Functional Benefits: Storage, convenience, protection, or quality

Perceptual Benefits: Shape, color, graphics, etc. distinguish brands, Packaging can enhance brand image

Question 24

Classification of Products (4 types of consumer products)

Answer 24

Convenience products: inexpensive, purchased frequently, ow involvement

Shopping Products: somewhat expensive, mid to high involvement

Speciality products: unique items, buyers willing to expend significant effort to obtain

Unsought products: Solve “sudden problems” (people don’t think about buying)

Question 25

Product Item, line, mix
( Breadth vs. depth )

Answer 25

Product Item: a specific product

Product Line: Group of product or service items that are closely related

Product Mix: All of the product lines offered by an org

Question 26

Four I’s of Services

Answer 26

Intangibility: services cannot be touched or seen before purchase

Inconsistency: Services depend on the people who provide them

Inseparability: Services are consumed immediately. Consumer cannot distinguish services from the provider itself.

Inventory: Idle Product Capacity (occurs when the service provider is available, but there is no demand for the service.) Services cannot be stored, saved, returned once used

Question 27

Goods-services continuum

Question 28

RATER framework

Answer 28

Reliability: Did the company provide the promised service consistently,
accurately, and on a timely basis?

Assurance: Did the knowledge, skills, and credibility of the employees
inspire trust and confidence?

Tangibles: Were the physical aspects of the service (offices, equipment, employees, etc.) appealing?

Empathy: Was there a good relationship b/t employees & customers?

Responsiveness: Did the company provide fast, high-quality service to
customers?

Question 29

New products

What is new? – Organization’s perspective, consumer’s perspective

Question 30

Why so many new products fail

Answer 30

-Insignificant Point of Difference
-No Economical Access to Buyers
-Not Satisfying Critical Customer Needs
-Bad Timing
-Poor Quality
-Too Little Market
-Poor Marketing Mix (4 P’s)

Question 31

Product life cycle

Question 32

Product Adoption

Answer 32

From bottom to top: Awareness, Interest, Evaluation, Trial, Adoption

Question 33

Branding

Answer 33

A marketing decision by an organization to use a name,
term/phrase, design, and/or symbols, or combination of these to identify its products and distinguish them from
those of competitors.

Question 34

Brand Equity

Answer 34

The added marketing/financial value a brand name gives to a
product beyond the functional benefits provided.
7-27.

Provides a Competitive Advantage, Consumers Willing to Pay a Higher Price

Question 35

4 branding strategies

Answer 35

Multi-product branding strategy

Multi-branding strategy

Private branding strategy

Mixed branding strategy