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?

It solely focuses on buyer behavior Signup and view all the answers

Which statement about market density is correct?

Market density can affect channel structure and strategy Signup and view all the answers

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

It changes frequently due to high mobility. Signup and view all the answers

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

Southeast Asian countries and former Eastern bloc countries Signup and view all the answers

What distinguishes the market geography changes in Southeast Asia?

They are characterized by a high degree of mobility. Signup and view all the answers

How has market geography in Central and Eastern Europe shifted?

It has become a significant focus due to economic developments. Signup and view all the answers

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

It results in frequent market shifts. Signup and view all the answers

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

It cannot be posted on publicly accessible websites. Signup and view all the answers

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

The content is protected from duplication and public posting. Signup and view all the answers

Which of these actions is explicitly forbidden regarding the content?

Posting it on a publicly accessible website. Signup and view all the answers

What is the implication of the restrictions on the content?

It limits access to the material for public use. Signup and view all the answers

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

The content is restricted from being duplicated in any form. Signup and view all the answers

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

Improved distribution task efficiency Signup and view all the answers

Which of the following tasks are facilitated by congested markets?

Negotiation and storage Signup and view all the answers

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

Negotiation processes are often faster Signup and view all the answers

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

They enhance performance efficiency Signup and view all the answers

What might be a drawback of high-density markets?

Potential for congestion-related delays Signup and view all the answers

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

To maximize the amount of merchandise viewed by customers in a short time Signup and view all the answers

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

It is designed to create longer shopping trips. Signup and view all the answers

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

Circular pathways for product viewing Signup and view all the answers

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

It encourages customers to buy from a wider selection. Signup and view all the answers

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

Key items are positioned for maximum visibility and accessibility. Signup and view all the answers

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

By facilitating a smooth flow of customer movement Signup and view all the answers

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

It could overwhelm customers with too many choices. Signup and view all the answers

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

Increased likelihood of discovering new products Signup and view all the answers

What type of purchasing typically involves large quantities?

Self-service Signup and view all the answers

Which of the following contrasts with one-stop shopping?

Buying from several stores Signup and view all the answers

What best describes shopping that demands extensive service?

Large quantity purchases Signup and view all the answers

Impulse buying typically requires which of the following efforts?

Little effort Signup and view all the answers

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

Credit Signup and view all the answers

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

It expends little effort Signup and view all the answers

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

Assistance by salespeople Signup and view all the answers

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

Extensive decision making Signup and view all the answers

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.