Marketing Chapter 8: Target Markets & Channels
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Questions and Answers

What does market density specifically measure?

  • The effectiveness of marketing strategies
  • The relationship between buyers and sellers
  • The number of buyers per unit of geographical area (correct)
  • The total area of a market
  • How does market density relate to channel structure?

  • It reduces the number of potential buyers
  • It leads to increased competition
  • It illustrates the concept of efficient congestion (correct)
  • It is irrelevant to channel structure
  • Which of the following best defines 'efficient congestion' in relation to market density?

  • A lack of buyers in a given area
  • A condition where buyers are evenly distributed
  • An optimal arrangement of buyer interaction (correct)
  • A scenario with excessive buyers leading to competition
  • Which of the following is NOT a characteristic of market density?

    <p>It solely focuses on buyer behavior (A)</p> Signup and view all the answers

    Which statement about market density is correct?

    <p>Market density can affect channel structure and strategy (C)</p> Signup and view all the answers

    What is a key characteristic of market geography in the U.S.?

    <p>It changes frequently due to high mobility. (A)</p> Signup and view all the answers

    Which regions are identified as key locations for market geography changes globally?

    <p>Southeast Asian countries and former Eastern bloc countries (D)</p> Signup and view all the answers

    What distinguishes the market geography changes in Southeast Asia?

    <p>They are characterized by a high degree of mobility. (A)</p> Signup and view all the answers

    How has market geography in Central and Eastern Europe shifted?

    <p>It has become a significant focus due to economic developments. (C)</p> Signup and view all the answers

    What is a common characteristic of market geography in regions with high mobility?

    <p>It results in frequent market shifts. (D)</p> Signup and view all the answers

    What are the limitations placed on the content regarding its use?

    <p>It cannot be posted on publicly accessible websites. (A)</p> Signup and view all the answers

    Which of the following best describes the restrictions on the content?

    <p>The content is protected from duplication and public posting. (C)</p> Signup and view all the answers

    Which of these actions is explicitly forbidden regarding the content?

    <p>Posting it on a publicly accessible website. (B)</p> Signup and view all the answers

    What is the implication of the restrictions on the content?

    <p>It limits access to the material for public use. (C)</p> Signup and view all the answers

    Which of the following is true about the content's usage?

    <p>The content is restricted from being duplicated in any form. (A)</p> Signup and view all the answers

    What advantage do congested (high-density) markets provide?

    <p>Improved distribution task efficiency (B)</p> Signup and view all the answers

    Which of the following tasks are facilitated by congested markets?

    <p>Negotiation and storage (B)</p> Signup and view all the answers

    In relation to market density, what is a notable effect on negotiation processes?

    <p>Negotiation processes are often faster (B)</p> Signup and view all the answers

    How do high-density markets primarily affect basic distribution tasks?

    <p>They enhance performance efficiency (D)</p> Signup and view all the answers

    What might be a drawback of high-density markets?

    <p>Potential for congestion-related delays (C)</p> Signup and view all the answers

    What is the primary goal of Kohl's racetrack layout?

    <p>To maximize the amount of merchandise viewed by customers in a short time (B)</p> Signup and view all the answers

    Which of the following statements about Kohl's racetrack layout is NOT accurate?

    <p>It is designed to create longer shopping trips. (C)</p> Signup and view all the answers

    Which design element is key to Kohl’s racetrack layout?

    <p>Circular pathways for product viewing (A)</p> Signup and view all the answers

    What effect does the racetrack layout have on customer shopping behavior?

    <p>It encourages customers to buy from a wider selection. (B)</p> Signup and view all the answers

    In what way does the layout of the store influence merchandising strategies?

    <p>Key items are positioned for maximum visibility and accessibility. (C)</p> Signup and view all the answers

    How does Kohl's racetrack layout primarily affect store traffic?

    <p>By facilitating a smooth flow of customer movement (A)</p> Signup and view all the answers

    What is a potential disadvantage of the racetrack layout for some customers?

    <p>It could overwhelm customers with too many choices. (C)</p> Signup and view all the answers

    Which aspect of customer experience is enhanced by the racetrack layout?

    <p>Increased likelihood of discovering new products (A)</p> Signup and view all the answers

    What type of purchasing typically involves large quantities?

    <p>Self-service (D)</p> Signup and view all the answers

    Which of the following contrasts with one-stop shopping?

    <p>Buying from several stores (B)</p> Signup and view all the answers

    What best describes shopping that demands extensive service?

    <p>Large quantity purchases (A)</p> Signup and view all the answers

    Impulse buying typically requires which of the following efforts?

    <p>Little effort (A)</p> Signup and view all the answers

    Which financial method is commonly used in the context of extensive decision making?

    <p>Credit (C)</p> Signup and view all the answers

    What is a characteristic of shopping at home compared to shopping at stores?

    <p>It expends little effort (C)</p> Signup and view all the answers

    Which of the following is a common trait of purchasing in small quantities?

    <p>Assistance by salespeople (C)</p> Signup and view all the answers

    What type of buying is likely associated with expending substantial effort before making a decision?

    <p>Extensive decision making (B)</p> Signup and view all the answers

    Flashcards

    Copyright Restrictions

    Material is protected from unauthorized copying or distribution.

    Publicly Accessible Website

    A website available to the general public.

    Unauthorized Distribution

    Sharing or copying content without permission.

    Intellectual Property

    Rights associated with creative works.

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    Material Protection

    Content is safeguarded against prohibited use.

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    Market Geography Changes

    Market geography is constantly shifting, especially in the U.S. and globally.

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    High US Mobility

    People move frequently within the United States, causing market changes.

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    Key Locations

    Southeast Asian and former Eastern bloc countries are becoming significant spots for trade and markets.

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    Global Market Trends

    Global markets are evolving, with some regions becoming prominent trade locations.

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    Market Density

    The number of buyers or potential buyers in a specific geographic area.

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    Efficient Congestion

    A concept relating market density to channel structure.

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    Channel Structure

    The way goods or services are distributed to customers.

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    Geographical Area

    A specific region or location.

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    Potential Buyers

    People who might buy a product or service.

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    Congested Markets

    Markets with high customer density, making it easier and more efficient to distribute goods.

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    Distribution Efficiency

    How effectively a company can get its products to customers, considering factors like transportation, storage, communication, and negotiation.

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    Transportation

    Moving goods from one place to another, which is more efficient in congested markets due to shorter distances and potentially shared resources.

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    Storage

    Storing goods in a way that's cost-effective, easier in congested markets because of greater demand and potential for shared warehouse space.

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    Market Buys: Large Quantities

    When consumers purchase large amounts of a product.

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    Market Buys: Small Quantities

    When consumers purchase small amounts of a product.

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    Market Buys: Self-service

    Consumers select and pay for products without assistance.

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    Market Buys: Assistance by Salespeople

    Consumers rely on salespeople to help them find and choose products.

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    Market Buys: One-stop Shopping

    Consumers purchase everything they need in one location.

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    Market Buys: Buying from Several Stores

    Consumers buy items from multiple shops.

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    Market Buys: Impulse Buying

    Unplanned purchases made on the spot, often influenced by emotions or visual appeal.

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    Market Buys: Extensive Decision Making

    Consumers carefully consider their options before making a purchase.

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    Racetrack Layout

    A store design that encourages customers to see more merchandise in a shorter time, like a racetrack.

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    Maximum Exposure

    Customers are exposed to the most products possible in a store.

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    Shortest Time

    Customers spend less time browsing in a store, but see more products due to the racetrack layout.

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    Implications of Changes

    Changes in factors like market geography or technology can affect businesses and strategies.

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    Market Geography

    The location and distribution of markets and consumers, which can change over time.

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    Study Notes

    Chapter 8: Target Markets and Channel Design Strategy

    • Marketing channels aim to manage firm's distribution systems matching target market needs.
    • Learning objectives cover market variable importance, market analysis frameworks (geography, size, density, behavior), and changes in market behavior.

    Objective 1: Market Variables

    • Target market needs and wants determine channel design.

    Objective 2: Framework for Market Analysis

    • Key elements of market analysis include market geography, market size, market density, and market behavior.
    • These components impact channel design.

    Objective 3: Market Geography

    • Market geography is the location and regional spread of customers.
    • Channel managers need to assess market geography in relation to channel structure for efficient coverage.
    • Data sources include the Bureau of Census (states, regions, counties, towns, etc.) and ZIP codes.
    • Market geography is dynamic, and mobility affects location.

    Locating Markets

    • Channel managers use geographic data (census) and postal ZIP codes to pinpoint target market locations.

    Tracking Changes in Market Geography

    • In the U.S., market geography is dynamic due to high mobility.
    • Globally, Southeast Asia and Eastern Europe are key markets.

    Objective 4: Market Size

    • Market size quantifies the number of buyers (consumer and industrial) in a given market.
    • Bucklin's model for market size needs consideration of specific situations and other relevant variables.

    Objective 5: Market Density

    • Market density is the number of buyers per unit area.
    • Efficient congestion illustrates the relationship between market density and channel structure.
    • High-density (congested) markets improve efficiency in distribution tasks like transportation, storage, and negotiation.
    • The opportunity for achieving high customer access at low cost is higher in dense markets.
    • Manufacturers seek out distributors and retailers in dense markets.

    Objective 6: Market Behavior

    • Market behavior consists of aspects like when buyers purchase, where purchases occur, how they buy, and who initiates buying.

    When the Market Buys

    • Purchasing patterns can be daily, weekly, or seasonal, which affects production and channel member selection.

    Where the Market Buys

    • Shopping locations (types of stores and locations) influence channel management.
    • Understanding where customers purchase products is crucial.
    • Changing trends in customer shopping behavior are a priority for channel managers.

    How the Market Buys

    • Buying preferences include large vs. small quantities purchased, self-service vs. salesperson-aided shopping, and one-stop shopping vs. multiple purchases.
    • Extensive research (decision-making) prior to purchase vs. impulse buying differs in approaches.
    • Cash vs. credit, in-store spending vs. shopping from home.

    Objective 7: Changes in Market Behavior

    • Channel managers need to react to changes in market behavior and predict future trends.
    • Managers must stay informed about changing trends.
    • They need to identify whether changes are temporary or long-term.

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    Description

    This quiz focuses on Chapter 8 of marketing, which explores target markets and channel design strategies. It covers key concepts such as market variables, frameworks for market analysis, and the importance of market geography in distribution strategies. Test your understanding of how these elements interplay to affect marketing channel effectiveness.

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