QUESTION Name and describe the three categories into which business markets can be classified. What will be an ideal response? ANSWER Answer: (1) geographic segmentation: dividing the market by location; (2) customer-based segmentation: dividing the market by customer characteristics; and (3) product-use-based segmentation: dividing the market by customer use of the product Explanation: (1) […]
QUESTION Define one-to-one marketing. Give a scenario as an example. What will be an ideal response? ANSWER Answer: One-to-one marketing consists of reducing market segmentation to the smallest part—individual customers. Sample scenario: A mail-order company keeps track of the products every customer looks at on its Web site and every product each customer purchases. […]
QUESTION A company that makes baked goods created a new peppermint-chip cookie. Before the firm launched the product nationally, with its other products, it first sold the cookies at five select supermarkets in each of five major cities. What was the company doing? What will be an ideal response? ANSWER Answer: The company was […]
QUESTION Peter is standing on a busy street corner in a major city. He is stopping female pedestrians to ask whether they would be interested in a cell phone that had a cut-out space for earrings, so they didn’t have to press the phone against the earrings when listening, thus making the ear feel uncomfortable. […]
QUESTION What is a new product? What will be an ideal response? ANSWER Answer: A new product is defined as a product that either (1) is a significant improvement over existing products or (2) performs a new function for the consumer. New products may be new to a company but not necessarily to the […]
QUESTION Primary data that companies collect from databases for the purpose of getting accurate customer information to use when making marketing decisions can also be used how? What will be an ideal response? ANSWER Answer: Primary data collected from databases can be used for one-to-one marketing (reducing marketing segmentation to individual customers). Explanation: One-to-one […]
QUESTION What are the advantages and disadvantages of using primary data sources and secondary data sources when conducting market research? What will be an ideal response? ANSWER Answer: Secondary data is cheaper and easier to obtain, but it is open to competitors, may not fit a company’s needs, and may be out of date. […]
QUESTION Which of the following, if true, strengthens the argument for keeping the traditional product line? A) The aging product line is disproportionately taking up management’s time. B) Other companies are keeping their competing product lines intact using promotion tactics and aggressive price cutting. C) A miniscule band of loyal customers still prefers the company’s […]
QUESTION Which factors influencing buying behavior are closely related to the sociocultural forces in the external marketing environment? What will be an ideal response? ANSWER Answer: culture and subculture, and social class Explanation: Sociocultural forces include cultural changes reflecting customs, beliefs, and lifestyles of groups that differ in social class, ethnicity, age, and so […]
QUESTION Which of the following, if true, strengthens the argument for dropping the traditional product line? A) Faced with a shrinking market, competitors are dropping their comparable product lines. B) If sales hold up, the company can harvest the product line by reducing costs associated with the plant and equipment, maintenance, R&D, and advertising. C) […]
