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Questions and Answers
What does behavioral segmentation focus on?
What does behavioral segmentation focus on?
Which of the following is NOT a behavioral variable in market segmentation?
Which of the following is NOT a behavioral variable in market segmentation?
What is the primary purpose of market research?
What is the primary purpose of market research?
Which step is usually NOT included in the research process?
Which step is usually NOT included in the research process?
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Which of the following factors does NOT influence consumer behavior?
Which of the following factors does NOT influence consumer behavior?
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What is the first stage of the consumer buying process?
What is the first stage of the consumer buying process?
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In market segmentation, what does 'loyalty status' refer to?
In market segmentation, what does 'loyalty status' refer to?
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What does positioning primarily involve?
What does positioning primarily involve?
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What is the primary goal of relationship marketing?
What is the primary goal of relationship marketing?
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Which of the following is a method used in Customer Relationship Marketing (CRM)?
Which of the following is a method used in Customer Relationship Marketing (CRM)?
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How does the political and legal environment influence marketing?
How does the political and legal environment influence marketing?
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What aspect of society does the social and cultural environment reflect in marketing?
What aspect of society does the social and cultural environment reflect in marketing?
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Which factor is NOT part of the economic environment that affects marketing?
Which factor is NOT part of the economic environment that affects marketing?
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What is a consequence of the technological environment for marketing?
What is a consequence of the technological environment for marketing?
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What do marketing managers aim to achieve by gaining public support for their products in the political environment?
What do marketing managers aim to achieve by gaining public support for their products in the political environment?
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Which of the following is an example of a technological advancement that has affected marketing?
Which of the following is an example of a technological advancement that has affected marketing?
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Automobile companies like Hyundai and Kia specifically target young drivers. What type of market segmentation are they using?
Automobile companies like Hyundai and Kia specifically target young drivers. What type of market segmentation are they using?
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When Simone visits multiple dealerships to test drive her options, which stage of the buying decision process is she in?
When Simone visits multiple dealerships to test drive her options, which stage of the buying decision process is she in?
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What concept is illustrated by Rolex marketers emphasizing status and reputation to justify high prices for their watches?
What concept is illustrated by Rolex marketers emphasizing status and reputation to justify high prices for their watches?
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Which factor is NOT typically associated with demographic segmentation?
Which factor is NOT typically associated with demographic segmentation?
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Which vehicle feature is least likely to influence young drivers positively according to marketing strategies?
Which vehicle feature is least likely to influence young drivers positively according to marketing strategies?
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What buying decision stage involves gathering information from various sources before making a choice?
What buying decision stage involves gathering information from various sources before making a choice?
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Hyundai and Kia's success in attracting entry-level customers can primarily be attributed to which of the following?
Hyundai and Kia's success in attracting entry-level customers can primarily be attributed to which of the following?
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Rolex's marketing strategy leverages what main aspect to appeal to potential buyers?
Rolex's marketing strategy leverages what main aspect to appeal to potential buyers?
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What is the primary focus of a marketing plan?
What is the primary focus of a marketing plan?
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In the context of the marketing mix, which element involves establishing the right method of communication about the product?
In the context of the marketing mix, which element involves establishing the right method of communication about the product?
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What is the marketing concept primarily focused on?
What is the marketing concept primarily focused on?
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Product differentiation primarily aims to achieve which of the following?
Product differentiation primarily aims to achieve which of the following?
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Which formula represents the concept of value in marketing?
Which formula represents the concept of value in marketing?
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Which of the following is NOT classified as a consumer good?
Which of the following is NOT classified as a consumer good?
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Which of the following best describes 'substitute products'?
Which of the following best describes 'substitute products'?
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What type of utility ensures products are available when consumers need them?
What type of utility ensures products are available when consumers need them?
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What is the main role of 'Place' in the marketing mix?
What is the main role of 'Place' in the marketing mix?
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In the context of marketing, what is the primary purpose of market segmentation?
In the context of marketing, what is the primary purpose of market segmentation?
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Choosing a low-price strategy is primarily concerned with which element of the marketing mix?
Choosing a low-price strategy is primarily concerned with which element of the marketing mix?
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Which category of products is classified as intangible and serves users' needs?
Which category of products is classified as intangible and serves users' needs?
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Brand competition refers to competing products that are:
Brand competition refers to competing products that are:
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Which of the following is NOT a method of promotion?
Which of the following is NOT a method of promotion?
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Which of the following is a key characteristic of business-to-business (B2B) buying behavior?
Which of the following is a key characteristic of business-to-business (B2B) buying behavior?
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What are the four components of the marketing mix?
What are the four components of the marketing mix?
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What is the primary purpose of organizations purchasing goods and services in organizational markets?
What is the primary purpose of organizations purchasing goods and services in organizational markets?
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Which market is characterized by organizations that purchase goods for resale?
Which market is characterized by organizations that purchase goods for resale?
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What distinguishes organizational buyers from consumer buyers?
What distinguishes organizational buyers from consumer buyers?
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What is meant by 'value package' in the context of product features and benefits?
What is meant by 'value package' in the context of product features and benefits?
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What type of consumer products typically includes items that require considerable shopping time to compare and evaluate?
What type of consumer products typically includes items that require considerable shopping time to compare and evaluate?
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Which term refers to a group of similar products intended for the same group of buyers?
Which term refers to a group of similar products intended for the same group of buyers?
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Which of the following is classified as an industrial product?
Which of the following is classified as an industrial product?
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What approach is emphasized in the buyer-seller relationship within organizational buying behavior?
What approach is emphasized in the buyer-seller relationship within organizational buying behavior?
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Study Notes
Business Essentials - Chapter 12
- Chapter 12 focuses on understanding the Canadian business system.
- Learning objectives outline key concepts in marketing, including the external marketing environment, marketing plans, market segmentation, research methods, consumer buying, organizational markets, product development, branding, and packaging.
Marketing
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Marketing concept: The entire firm is focused on profitably serving target customers.
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Delivering Value: Value = Benefits / Costs. Utility is the added value a product provides.
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Types of Utility: Time, Place, Ownership (Possession), and Form.
Goods, Services, and Ideas
- Marketing targets: Consumer goods (products individuals buy), Industrial goods (products businesses use), Services (intangible products fulfilling needs), and Ideas (thoughts/philosophies).
Relationship Marketing
- Focus: Building lasting relationships with customers and suppliers.
- Goal: Customer satisfaction and retention.
- CRM (Customer Relationship Marketing): Organized methods to build strong company-client connections.
Marketing Environment
- External factors: The competitive, economic, political-legal, sociocultural, and technological environments impact marketing strategies.
Political and Legal Environment
- Legislation and government programs can be favorable or unfavorable to marketing.
- Managers try to influence policy by gaining public support, advertising for public awareness, and lobbying political parties.
Social and Cultural Environment
- Reflects societal values, beliefs, and ideas (e.g., growing popularity of organic food).
Economic Environment
- Economic conditions affect spending patterns of businesses and individuals.
- Factors include the Canadian dollar, inflation/deflation, interest rates, and the business cycle.
Technological Environment
- Science and technology lead to new ways of doing everyday tasks, creating new products, and making older ones obsolete.
Competitive Environment
- Brand competition: Similar products competing (e.g., Coke vs. Pepsi).
- Substitute products: Dissimilar products that fulfill the same need (e.g., juice vs. Pepsi).
- International competition: Domestic products competing against foreign brands (e.g., Ford vs. Honda).
Strategy: The Marketing Mix (LO 12.2)
- Marketing Plan: A detailed strategy to gear the marketing mix towards consumer needs and wants.
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Marketing Mix Components:
- Product: A good, service, or idea satisfying buyer needs.
- Price: Choosing the right price to attract consumers and meet profit goals.
- Place (Distribution): Getting the product from producer to buyer (physical transportation, warehousing, inventory).
- Promotion: Communicating product information (e.g., advertising, personal selling, sales promotions, public relations, direct marketing).
Product Differentiation
- Creating a product with a unique image to attract consumers.
- Adapting existing products to respond to trends or improve offerings.
Target Marketing and Market Segmentation (LO 12.3)
- Target Market: A group of potential customers with similar wants and needs.
- Market Segmentation: Dividing the consumer market into categories.
- Positioning: The process of fixing, adapting, and communicating the nature of the product in the consumer's mind.
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Segmentation Variables:
- Geographic (area of residence).
- Geo-Demographic (combining geographic and demographic traits).
- Demographic (age, income, family size, ethnicity, religion, education, marital status, gender, occupation, language).
- Psychographic (lifestyles, opinions, interests, attitudes).
- Behavioral (knowledge, use, response to products, benefits sought, usage rate, occasion for use, loyalty status, user status).
Market Research (LO 12.4)
- Focus: A systematic study of consumer needs, focusing on marketing mix elements.
- Objective: Leads to more effective marketing and accurate segmentation for effectiveness.
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Research Process Steps:
- Study the Current Situation
- Select a Research Method (e.g., focus group, survey, observation, experimentation)
- Collect Data (secondary and primary data)
- Analyze Data
- Prepare Report and Recommendations
Understanding Consumer Behaviour (LO 12.5)
- Studying the process of purchase and consumption.
- Influenced by: Psychological factors, personal factors, social factors, and cultural factors.
- Consumer Buying Process: Problem/need recognition, information seeking, evaluation of alternatives, purchase decision, and post-purchase evaluation.
Organizational Marketing and Buying Behaviour (LO 12.6)
- Organizational Markets: Organizations purchasing goods for use in producing other goods and services.
- Categories: Industrial Market, Reseller Market, Government and Institutional Market.
Organizational Buying Behaviour
- Buyers differ in their professional, specialist, and expert roles.
- Buyer-seller relationships emphasize personal selling by trained representatives understanding the specific needs to each customer.
What Is a Product? (LO 12.7)
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Product Features and Benefits: Consumers buy based on function and benefits, tangibles and intangibles (image/reputation).
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Value Package: A bundle of value-adding attributes, including reasonable cost.
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Consumer Products: Convenience goods and Services; Shopping goods and services; Specialty goods.
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Industrial Products: Production items, Expense Items, and Capital items.
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Product Mix: The group of products a company has for sale.
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Product Line: A group of similar products intended for similar buyers.
Developing New Products (LO 12.8)
- New Product Development: Needed for expansion and survival, expensive and risky, long-term horizon.
- Product Life Cycle: Limited profit-producing time (months, years, or decades).
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Seven-Step Development Process:
- Product ideas
- Screening
- Concept testing
- Business analysis
- Prototype development
- Product and market testing
- Commercialization.
- Extending Product Life Cycle: Product extension (globally marketed), Product adaptation (modified for foreign markets), and Reintroduction (old products in new markets).
Identifying Products (LO 12.8)
- Branding: Using symbols to communicate product qualities. Brand equity adds value beyond basic functions.
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Gaining Brand Awareness:
- Product placements, Buzz Marketing, and Viral marketing & Social Networking.
- Types of Brand Names: National, Private, Generic, and Licensed.
- Packaging: The physical container.
- Labelling: Identifies name, contents, and benefits; must align with consumer packaging and labeling laws.
Quick Check Questions (LO 12.1-12.8)
- These pages contain multiple-choice questions assessing student comprehension of the chapter's concepts. Answers are provided to these questions in the text.
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Description
This quiz covers Chapter 12 of Business Essentials, which delves into the Canadian business system and key marketing concepts. Explore essential topics such as the marketing environment, market segmentation, and the value of relationship marketing. Enhance your understanding of how businesses successfully serve their target customers.
