BMAL 590-Foundations of Marketing
What is a market? - CORRECT ANSWER-The aggregate of all people or organizations
who have a need for, or want, a product or class of products and have the money to pay
for them. It is sometimes used to mean a place, real or virtual, where buyers and sellers
meet to buy or sell goods
Markets may be segmented by characteristics of the buyer
What is the classical marketing concept? - CORRECT ANSWER-A philosophy which
guides the attitude of everyone in a firm to stimulate and satisfy the needs and wants of
every customer
What is a competitive marketing strategy? - CORRECT ANSWER-It involves product
strategy, pricing strategy, integrated marketing communications, channels, and logistics
strategy. It needs to offer value to the target market, that is defined by marketing, so
that the business may focus on those selected markets
5 C's (expanded) - CORRECT ANSWER-Customers: Who are they? What are they
like? Do we want to draw different customers?
Company: What are our strengths and weaknesses? What customer benefits can we
provide?
Context: What is happening in our industry that might reshape our future business?
Collaborators: Can we address our customers' needs while strengthening our business
to business (B2B) partnerships?
Competitors: Who are the competitors we must consider? What are their likely actions
and reactions?
STP (expanded) - CORRECT ANSWER-Segmentation: Customers aren't all the same;
they vary in their preferences, needs, and resources.
Targeting: Attracting some of those customers makes better sense than going after
others.
Positioning: Communicate your benefits clearly to your intended customers.
4 P's (expanded) - CORRECT ANSWER-Product: Will customers want what your
company is prepared to produce?
,Price: Will customers pay what you would like to charge?
Place: Where and how will customers purchase your market offering?
Promotion: What can you tell your customers, or do for them, to entice them to
purchase?
Customer behavior - CORRECT ANSWER-The way customers select, purchase, use,
and dispose of goods, services, ideas, or experiences to satisfy their needs and desires
Business-to-customer (B2C) - CORRECT ANSWER-(Customer involvement: low)
Convenience purchases: Staples (standard, frequently consumed goods such as bread
or gas) and impulse purchases (candy or National Enquirer available near the check-out
stand).
(Customer involvement: moderate) Shopping purchases: Going online to
Citysearch.com to find a restaurant and make reservations when heading out of town.
(Customer involvement: high) Specialty purchases: A new car, fashion shows, an
expensive laptop computer.
Business-to-business (B2B) - CORRECT ANSWER-(Customer involvement: low)
Straight rebuy: You're out of toothpaste and you mindlessly pop a tube of your usual
brand into your basket.
(Customer involvement: moderate) Modified rebuy: You reach for your brand of
toothpaste but you try a new flavor.
(Customer involvement: high) New buy: You're buying teeth whitening strips for the first
time and think what attributes must you consider.
Types of Shopping: Customer Involvement - CORRECT ANSWER-It's not the type of
product or purchase that matters. It's the type of customer behavior (consumer or
business level of involvement) that is relevant and the marketing actions and reactions.
What is marketing? - CORRECT ANSWER-It is involved in designing products that
customers will enjoy, pricing them appropriately, making them available for purchase at
easy points of access in the marketplace, and advertising the products' benefits to the
customers.
5 C's - CORRECT ANSWER-customer, company, context, collaborators, competitors
STP - CORRECT ANSWER-Segmentation, Targeting, Positioning
4 P's - CORRECT ANSWER-Product, Price, Place, Promotion
, How is marketing an exchange relationship? - CORRECT ANSWER-The customer
seeks benefits from the company and expects to pay.
The company offers benefits to its customers and seeks profits.
Why is marketing important? - CORRECT ANSWER-Enriches society, can be
entrepreneurial, expands global presence, strengthens channel relationships
Marketing has evolved from a function to an organization-wide philosophy
The marketing world is a truly customer-oriented and customer-empowered world where
the goal is to build and maintain relationships with the customer
Customer involvement - CORRECT ANSWER-Low customer involvement: Customers
don't care and won't spend time thinking about brands. They will typically be somewhat
price sensitive.
Moderate customer involvement: Some effort is expended prior to purchase to obtain
good value.
High customer involvement: For expensive purchases, brand, uniqueness and quality
matter.
Buying Process - CORRECT ANSWER-The steps consumers go through when buying
a product or service
1. Identify needs/wants
2. Search for alternative solutions
3. Evaluate alternatives
4. Purchase
5. Evaluate post-purchase
Consumer buying - CORRECT ANSWER-People buying something for themselves or
their household
Business customer - CORRECT ANSWER-A business customer is an agent buying
something on behalf of an organization.
Models of how buyers make decisions - CORRECT ANSWER-1. Lexicographic method
2. Average method
3. Use attribute importance
Lexicographic method - CORRECT ANSWER-A customer compares brands by the
most important attributes or dimensions. Brands that make the cut on the first dimension
What is a market? - CORRECT ANSWER-The aggregate of all people or organizations
who have a need for, or want, a product or class of products and have the money to pay
for them. It is sometimes used to mean a place, real or virtual, where buyers and sellers
meet to buy or sell goods
Markets may be segmented by characteristics of the buyer
What is the classical marketing concept? - CORRECT ANSWER-A philosophy which
guides the attitude of everyone in a firm to stimulate and satisfy the needs and wants of
every customer
What is a competitive marketing strategy? - CORRECT ANSWER-It involves product
strategy, pricing strategy, integrated marketing communications, channels, and logistics
strategy. It needs to offer value to the target market, that is defined by marketing, so
that the business may focus on those selected markets
5 C's (expanded) - CORRECT ANSWER-Customers: Who are they? What are they
like? Do we want to draw different customers?
Company: What are our strengths and weaknesses? What customer benefits can we
provide?
Context: What is happening in our industry that might reshape our future business?
Collaborators: Can we address our customers' needs while strengthening our business
to business (B2B) partnerships?
Competitors: Who are the competitors we must consider? What are their likely actions
and reactions?
STP (expanded) - CORRECT ANSWER-Segmentation: Customers aren't all the same;
they vary in their preferences, needs, and resources.
Targeting: Attracting some of those customers makes better sense than going after
others.
Positioning: Communicate your benefits clearly to your intended customers.
4 P's (expanded) - CORRECT ANSWER-Product: Will customers want what your
company is prepared to produce?
,Price: Will customers pay what you would like to charge?
Place: Where and how will customers purchase your market offering?
Promotion: What can you tell your customers, or do for them, to entice them to
purchase?
Customer behavior - CORRECT ANSWER-The way customers select, purchase, use,
and dispose of goods, services, ideas, or experiences to satisfy their needs and desires
Business-to-customer (B2C) - CORRECT ANSWER-(Customer involvement: low)
Convenience purchases: Staples (standard, frequently consumed goods such as bread
or gas) and impulse purchases (candy or National Enquirer available near the check-out
stand).
(Customer involvement: moderate) Shopping purchases: Going online to
Citysearch.com to find a restaurant and make reservations when heading out of town.
(Customer involvement: high) Specialty purchases: A new car, fashion shows, an
expensive laptop computer.
Business-to-business (B2B) - CORRECT ANSWER-(Customer involvement: low)
Straight rebuy: You're out of toothpaste and you mindlessly pop a tube of your usual
brand into your basket.
(Customer involvement: moderate) Modified rebuy: You reach for your brand of
toothpaste but you try a new flavor.
(Customer involvement: high) New buy: You're buying teeth whitening strips for the first
time and think what attributes must you consider.
Types of Shopping: Customer Involvement - CORRECT ANSWER-It's not the type of
product or purchase that matters. It's the type of customer behavior (consumer or
business level of involvement) that is relevant and the marketing actions and reactions.
What is marketing? - CORRECT ANSWER-It is involved in designing products that
customers will enjoy, pricing them appropriately, making them available for purchase at
easy points of access in the marketplace, and advertising the products' benefits to the
customers.
5 C's - CORRECT ANSWER-customer, company, context, collaborators, competitors
STP - CORRECT ANSWER-Segmentation, Targeting, Positioning
4 P's - CORRECT ANSWER-Product, Price, Place, Promotion
, How is marketing an exchange relationship? - CORRECT ANSWER-The customer
seeks benefits from the company and expects to pay.
The company offers benefits to its customers and seeks profits.
Why is marketing important? - CORRECT ANSWER-Enriches society, can be
entrepreneurial, expands global presence, strengthens channel relationships
Marketing has evolved from a function to an organization-wide philosophy
The marketing world is a truly customer-oriented and customer-empowered world where
the goal is to build and maintain relationships with the customer
Customer involvement - CORRECT ANSWER-Low customer involvement: Customers
don't care and won't spend time thinking about brands. They will typically be somewhat
price sensitive.
Moderate customer involvement: Some effort is expended prior to purchase to obtain
good value.
High customer involvement: For expensive purchases, brand, uniqueness and quality
matter.
Buying Process - CORRECT ANSWER-The steps consumers go through when buying
a product or service
1. Identify needs/wants
2. Search for alternative solutions
3. Evaluate alternatives
4. Purchase
5. Evaluate post-purchase
Consumer buying - CORRECT ANSWER-People buying something for themselves or
their household
Business customer - CORRECT ANSWER-A business customer is an agent buying
something on behalf of an organization.
Models of how buyers make decisions - CORRECT ANSWER-1. Lexicographic method
2. Average method
3. Use attribute importance
Lexicographic method - CORRECT ANSWER-A customer compares brands by the
most important attributes or dimensions. Brands that make the cut on the first dimension
