Intro To Marketing - Exam 2 - A

Front 1

Requirements of a Market

Back 1

-Must need or desire a particular product
-Must have the ability to purchase the product
-Must be willing to use their buying power to purchase the product
-Must have the authority to buy the product

Hint 1

None

Front 2

Consumer Markets (B2C)

Back 2

-Purchasers and individuals in households
-Purchases are for personal consumption, not profit

Hint 2

None

Front 3

Undifferentiated Targeting Strategy

Back 3

-Defining an entire (homogeneous) market for a particular product as the target market
-Designing a single marketing mix for, and directing it at the total market

Hint 3

None

Front 4

Segmentation Variables

Back 4

Characteristics of individuals, groups, or organizations used to divide a market into segments

Front 5

Market Density

Back 5

The number of potential customers within a unit of land area

Front 6

Personality characteristics

Back 6

Marketers appeal to positive/favorable personal characteristics to influence the purchase decision

Front 7

Motives

Back 7

Marketers use individuals’ differing purchase motives to segment a product market.

Front 8

Lifestyles

Back 8

Marketers segment markets according to how individuals choose to spend their time in various activities, their income, their interest and opinions, and their education.

Front 9

Requirements for segmentation by behavior

Back 9

-Benefits sought must be identifiable
-Market must be divisible into recognizable segments using the benefits
-One or more segments must be accessible to the marketing effort

Hint 9

None

Front 10

Variables for Segmenting Business Markets

Back 10

1. Geographic Location
2. Type of Organization
3. Customer Size
4. Product Use

Hint 10

None

Front 11

Geodemographic Segmentation

Back 11

Marketing segmentation that clusters people in zip code areas and smaller neighborhood units based on lifestyle and demographic information

Front 12

Micromarketing

Back 12

An approach to market segmentation in which organizations focus precise marketing efforts on very small geographic markets

Front 13

Sales Estimates

Back 13

based on market potential and company sales potential

Hint 13

None

Front 14

Sales Potential Measurement Approaches

Back 14

1. Breakdown approach: top-down analysis
2. Build-up approach: bottom-up analysis

Hint 14

None

Front 15

Competitive Assessment

Back 15

Who, how many, how large, and how strong?

Front 16

Cost Estimates

Back 16

-The expense of developing a marketing mix and
-Costs of reaching segment relative to competitors’ costs

Hint 16

None

Front 17

Issues in Selecting a Target Market

Back 17

-Do customers’ needs differ enough to warrant the use of market segmentation?
-In which market segment(s) should the firm participate?
-Does the firm have the resources and skills to compete effectively in the target market?

Hint 17

None

Front 18

Sales Forecast

Back 18

The amount of a product a company expects to sell during a specific period at a specified level of marketing activities

Front 19

Executive Judgment

Back 19

Based on the intuition of the firm’s managers

Front 20

Time-Series Analysis

Back 20

Patterns in historical data yield information for use analyzing trends

Front 21

Regression Analysis

Back 21

Predicting sales based on the relationship between past sales and one or more variables

Front 22

Market Tests

Back 22

Making a product available in the marketplace and measuring purchases and consumer responses

Front 23

Using Multiple Forecasting Methods

Back 23

A combination of forecasting methods may yield better results

Front 24

Target Market Selection Process

Back 24

Step 1: Identify the Appropriate Targeting Strategy
Step 2: Determine Which Segmentation Variables to Use
Step 3: Develop Market Segment Profiles
Step 4: Evaluate Relevant Market Segments
Step 5: Select Specific Target Markets

Hint 24

None

Front 25

Business Markets (B2B)

Back 25

-Individuals and groups that purchase products for resale, direct use to produce other products, or use in daily business operations
-Purchasers can be categorized as producers, resellers, government, and institutional markets

Front 26

Concentrated Targeting Strategy

Back 26

-Segmenting (dividing) the total market into groups with similar product needs (heterogeneous markets) to design marketing mixes that match those needs
-Focusing on a single market segment using one marketing mix

Front 27

Differentiated Targeting Strategy

Back 27

-Targeting two or more segments by developing a marketing mix for each
-Aiming marketing mixes at more people may yield a competitive advantage

Front 28

Segmentation Variables for Consumer Markets

Back 28

-Demographic
-Geographic
-Psychographic
-Behavioristic

Front 29

Demographic Segmentation Variables

Back 29

-age
-gender
-race
-ethnicity
-income
-education
-occupation
-family size & life cycle
-religion
-social class

Front 30

Geographic Segmentation Variables

Back 30

-region
-urban, suburban, rural
-city size
-county size
-state size
-market density
-terrain
-climate

Front 31

Market Segment Profile

Back 31

-Describes the similarities among potential customers within a segment
-Covers demographic characteristics, geographic factors, benefits sought, lifestyles, brand preferences, and usage rates

Front 32

Psychographic Segmentation Variables

Back 32

-personality attributes
-motives
-lifestyle

Front 33

Behavioristic Segmentation Variables

Back 33

-volume usage
-end use
-brand loyalty
-price sensitivity

Front 34

Benefit segmentation

Back 34

-The division of a market according to benefits that customers want from the product
-Individuals purchase and use products that provide them with benefits that meet their needs.

Front 35

Trend Analysis

Back 35

-Cycle analysis
-Seasonal analysis
-Random factor analysis

Front 36

Surveys

Back 36

Surveys -Customer forecasting survey
-Sales force forecasting survey
-Expert forecasting survey
-Delphi technique (panel of experts)

Front 37

Buying Behavior

Back 37

The decision processes and acts of people involved in buying and using products

Front 38

Consumer Buying Behavior

Back 38

Buying behavior of people who purchase products for personal use and not for business purposes

Front 39

Level of Involvement

Back 39

An individual’s intensity of interest in a product and the importance of the product for that person
-Enduring involvement
-Situational involvement

Hint 39

None

Front 40

Routinized Response Behavior

Back 40

The process used when buying frequently purchased, low-cost items that require little search-and-decision effort

Front 41

Limited Problem Solving

Back 41

The process that buyers use when purchasing products occasionally or when they need information about an unfamiliar brand in a familiar product category

Front 42

Extended Problem Solving

Back 42

The process employed when purchasing unfamiliar, expensive, or infrequently bought products

Front 43

Impulse Buying

Back 43

An unplanned buying behavior resulting from a powerful urge to buy something immediately

Front 44

Problem Recognition

Back 44

Occurs when a buyer becomes aware of a difference between a desired state and an actual condition -- May occur rapidly or slowly

Front 45

Information Search

Back 45

-INTERNAL SEARCH: Buyers search their memories for information about products that might solve their problem
-EXTERNAL SEARCH: Buyers seek information from outside sources

Hint 45

None

Front 46

Evaluation of Alternatives

Back 46

-Consideration set
-Evaluative criteria
-Framing the alternatives

Hint 46

None

Front 47

Consideration set

Back 47

A group of brands that the buyer views as alternatives for possible purchase

Front 48

Evaluative criteria

Back 48

Objective and subjective characteristics that are important to a buyer

Front 49

Framing the alternatives

Back 49

Describing the alternatives and their attributes in a certain manner to make a particular characteristic appear more important especially to the inexperienced buyer

Front 50

Purchase

Back 50

-Choosing the product or brand to be bought based on the outcome of the evaluation stage
-The choice of seller may affect the final product selection.
-Factors such as terms of sale, price, delivery, and warranties may affect the sale.

Hint 50

None

Front 51

Cognitive dissonance

Back 51

A buyer’s doubts shortly after a purchase about whether the decision was the right one

Front 52

Situational Influences

Back 52

Factors that can influence a buyer’s purchase decision and may cause the buyer to short, lengthen, or terminate the process

Front 53

Major Situational Factors

Back 53

-Physical surroundings
-Social surroundings
-Time perspective
-Reason for purchase
-Buyer’s momentary mood and condition

Hint 53

None

Front 54

Psychological Influences

Back 54

Factors that in part determine people’s general behavior, thus influencing their behavior as consumers

Front 55

Perception

Back 55

The process of selecting, organizing, and interpreting information inputs to produce meaning

Front 56

Information Inputs

Back 56

Sensations received through the sense organs

Front 57

Selective Exposure

Back 57

The process of selecting inputs to be exposed to our awareness while ignoring others

Front 58

Selective Distortion

Back 58

An individual’s changing or twisting of information when it is inconsistent with personal feelings or beliefs

Front 59

Selective Retention

Back 59

Remembering information inputs that support personal feelings and beliefs and forgetting inputs that do not

Front 60

Perceptual Organization

Back 60

Organizing and integrating new information with what is already stored in memory.

Front 61

Perceptual Interpretation

Back 61

The assignment of meaning to what has been organized based on what is expected or what is familiar

Front 62

Attempts to influence interpretation can fail because

Back 62

-consumers block out seller’s information.
-consumers interpret seller’s information differently than intended.
-consumers discard information that is inconsistent with prior beliefs.

Hint 62

None

Front 63

Motives

Back 63

An internal energizing force that directs a person’s behavior toward satisfying needs or achieving goals

Front 64

Maslow’s Hierarchy of Needs

Back 64

The five levels of needs that humans are motivated to seek and satisfy, from least to most important:
-Physiological needs—food, water, sex, clothing, shelter
-Safety needs—security, freedom
-Social needs—love, affection, belonging
-Esteem needs—respect, recognition, self-worth
-Self-actualization needs—personal growth needs

Hint 64

None

Front 65

Learning

Back 65

-Changes in an individual’s thought processes and behavior caused by information and experience
-Behaviors that produce satisfying consequences are likely to be repeated.

Hint 65

None

Front 66

How consumers learn about products

Back 66

-experiencing the products personally.
-gaining additional product knowledge from seller-provided information.
-indirect information from other purchasers/users

Hint 66

None

Front 67

Attitudes

Back 67

An individual’s enduring evaluation of, feelings about, and behavioral tendencies toward an object or idea

Front 68

Attitudinal Components

Back 68

-cognitive
-affective
-behavioral

Hint 68

None

Front 69

Cognitive

Back 69

Knowledge and information about the object or idea

Front 70

Affective

Back 70

Feelings and emotions toward the object or idea

Front 71

Behavioral

Back 71

Individual’s action regarding the object or idea

Front 72

Attitude Scale

Back 72

A means of measuring consumer attitudes by gauging the intensity of an individual’s reactions to adjectives, phrases, or sentences about an object

Front 73

Personality

Back 73

A set of internal traits and distinct behavioral tendencies that result in consistent patterns of behavior in certain situations

Front 74

Self-concept (self-image)

Back 74

Perception or view of oneself

Front 75

Lifestyle

Back 75

An individual’s pattern of living expressed through activities, interests, and opinions

Front 76

Social Influences

Back 76

The forces other people exert on one’s buying behavior

Front 77

Role

Back 77

-Actions and activities that a person in a particular position is supposed to perform based on expectations of the individual and surrounding persons
-Multiple role-expectation sets affect behavior.
-Roles influence both general and buying behaviors.

Hint 77

None

Front 78

Consumer socialization

Back 78

The process through which a person acquires the knowledge and skills to function as a consumer

Front 79

Family Decision-Making Processes

Back 79

-Autonomic—equally shared decision-making
-Husband-dominant—husband makes decisions
-Wife-dominant—wife makes decisions
-Syncratic—decisions made jointly

Hint 79

None

Front 80

Reference Groups

Back 80

Any group that positively or negatively affects a person’s values, attitudes, or behavior:
-Membership
-Aspirational
-Disassociative

Hint 80

None

Front 81

Opinion Leader

Back 81

A knowledgeable, accessible individual who provides information about a specific sphere of interests to followers

Front 82

Social Class

Back 82

-An open group of individuals with similar social rank
-Individuals in the same social class
develop and assume common behavioral patterns.
have similar attitudes, values, language patterns, and possessions.
-Influences many major life decisions
-Influences shopping patterns and spending habits

Hint 82

None

Front 83

Culture

Back 83

The accumulated values, knowledge, beliefs, customs, objects, and concepts of a society

Front 84

Subcultures

Back 84

Groups of individuals whose characteristic values and behavior patterns are similar and differ from those of the surrounding culture

Front 85

Consumer Buying Decision Process

Back 85

-Problem recognition
-Information search
-Evaluation of alternatives
-Purchase
-Postpurchase Evaluation

Hint 85

None

Front 86

Psychological Influences on the Buying Decision Process

Back 86

Perception - Motives - Learning
Attitudes - Personality and self-concept - Lifestyles

Hint 86

None

Front 87

Social Influences on the Buying Decision Process

Back 87

Roles - Reference groups and opinion leaders
Family Influences - Social Classes
Culture and Subcultures

Hint 87

None

Front 88

Business Markets

Back 88

Individuals or groups that purchase a specific kind of product for resale, direct use in producing other products, or use in daily operations

Front 89

Producer Markets

Back 89

Individuals and business organizations that purchase products to make profits by using them to produce other products or using them in operations

Front 90

Reseller Markets

Back 90

Intermediaries who buy finished goods and resell them for profit:
-Wholesalers purchase products for resale to retailers.
-Retailers purchase products and resell them to final customers.

Hint 90

None

Front 91

Factors affecting resellers’ purchase decisions:

Back 91

-Level of demand
-Profit potential (sales per square foot)
-Supplier’s ability to provide goods on demand
-Ease of ordering and producer support
-Competing or complementary product characteristics

Hint 91

None

Front 92

Government Markets

Back 92

Federal, state, county, and local governments
-Purchase a broad variety of goods and services
-Public accountability results in complex buying procedures requiring bids and negotiated contracts

Hint 92

None

Front 93

Institutional Markets

Back 93

Organizations with charitable, educational, community, or other non-business goals
-Churches, hospitals, fraternities and sororities, charities, and private colleges

Hint 93

None

Front 94

Characteristics of Transactions with Business Customers

Back 94

-Orders are much larger and more costly/expensive.
-Purchases are made more frequently.
-Terms of sales contracts are longer.
-Several people or committee may be involved in the purchase decision.
-A buyer and a seller purchase from each other (reciprocity).

Hint 94

None

Front 95

Attributes of Business Customers

Back 95

-Better informed about products purchased
-Demand more detailed product information
-Personal goals (in support of organizational goals) may influence buying behavior

Hint 95

None

Front 96

Primary Concerns of Business Customers

Back 96

-Price of goods affecting ability to compete
-Return on investment in product
-Price of product compared to the benefits it provides
-Quality of the product in meeting specifications
-Quality of services offered by suppliers in support of their products

Hint 96

None

Front 97

Methods of Business Buying

Back 97

-Description
-Sampling
-Inspection
-Negotiation

Hint 97

None

Front 98

Description

Back 98

Products standardized by certain characteristics

Front 99

Inspection

Back 99

Products with particular characteristics

Front 100

Sampling

Back 100

Product is homogenous and a single specimen can be evaluated as representative of the entire product

Front 101

Negotiation

Back 101

Sellers are asked to bid on specified product characteristics and purchasers negotiate with successful bidders

Front 102

Types of Business Purchases

Back 102

-New-task purchase
-Straight rebuy purchase
-Modified rebuy purchase

Hint 102

None

Front 103

New-task purchase

Back 103

An initial item purchase to be used to perform a new job or solve a new problem

Front 104

Straight rebuy purchase

Back 104

The routine purchase of the same products by a business buyer

Front 105

Modified rebuy purchase

Back 105

A new-task purchase that is changed on subsequent orders or when requirements of a straight rebuy are modified

Front 106

Demand for Business Products

Back 106

-Derived demand
-Inelasic demand
-Joint demand
-Fluctuating demand

Hint 106

None

Front 107

Derived demand

Back 107

Demand for industrial products that stems from demand for consumer products

Front 108

Inelastic demand

Back 108

Demand that is not significantly altered by a price increase or decrease

Front 109

Joint demand

Back 109

Demand involving the use of two or more items in combination to produce a product

Front 110

Fluctuating demand

Back 110

Demand that varies directly as consumer demand varies

Front 111

Business (Organizational) Buying Behavior

Back 111

The purchase behavior of producers, government units, institutions, and resellers

Front 112

Buying Center

Back 112

The people within an organization who make business purchase decisions

Front 113

Users

Back 113

The people within an organization who actually use the products

Front 114

Influencers

Back 114

The people within an organization who help develop the specifications and evaluate alternative products

Hint 114

None

Front 115

Buyers

Back 115

The people within an organization who select suppliers and negotiate terms of purchase

Front 116

Deciders

Back 116

The people within an organization who actually choose the products

Front 117

Gatekeepers

Back 117

The people within an organization who control the flow of information to others in the buying center

Front 118

Stages of the Business Buying Decision Process

Back 118

-Problem Recognition
-Development of product Specifications
-Search for and Evaluation of potential products and Suppliers
-Selection of Product and Supplier
-Evaluation of Product and Supplier Performance

Hint 118

None

Front 119

Problem Recognition

Back 119

Arises under a variety of circumstances both internal and external

Front 120

Development of Product Specifications

Back 120

Involves assessing the problem or need and determining what is necessary to resolve or satisfy it

Front 121

Value Analysis

Back 121

An evaluation of each component of a potential purchase

Front 122

Vendor Analysis

Back 122

A formal systematic evaluation of current and potential vendors

Front 123

Multiple Sourcing

Back 123

An organization’s decision to use several suppliers

Front 124

Sole Sourcing

Back 124

An organization’s decision to use only one source

Front 125

Evaluation of Product and Supplier Performance

Back 125

May result in adjustment of product specifications, corrective action from the supplier, or search for a new supplier

Front 126

Influences on the Business Buying Decision Process

Back 126

-Environmental Factors
-Organizational Factors
-Interpersonal Factors
-Individual Factors

Hint 126

None

Front 127

Environmental Factors

Back 127

Competitive and economic forces, political forces, legal forces, technological changes, and sociocultural issues

Front 128

Organizational Factors

Back 128

The company’s objectives, purchasing policies, resources, and the size and composition of the firm’s buying center

Front 129

Interpersonal Factors

Back 129

Relationships among people in the buying center

Front 130

Individual Factors

Back 130

The personal characteristics of participants in the buying center

Front 131

Systems for classifying industrial, commercial, financial, and service organizations

Back 131

-Standard Industrial Classification (SIC)
-North American Industry Classification System (NAICS)

Hint 131

None

Front 132

Identifying Potential Business Customers

Back 132

-Census of Business
-Census of Manufacturers
-County Business Patterns
-Standard & Poor’s Register
-Dun & Bradstreet’s Million Dollar Directory

Hint 132

None

Front 133

Estimating Purchase Potential

Back 133

The size of the purchase potential of business customers may be estimated using a variable in the business classification data that is correlated with size of customer purchases.