Burns Marketing Short Essay Questions 2

What is business marketing? What basic type of goods and services are marketed between businesses?
Business marketing is a marketing practice to sell products or services to other companies that resell them. Businesses sell both products and services to meet the needs and desires of diverse consumer groups.
Why do marketers study consumer behavior?
It is crucial to study consumer behavior because they are NOT within the direct control of the marketers. They are NOT directly involved.
Explain the four ways demand in business markets differs from demand in consumer markets?
derived demand – businesses buy products to be used in producing customer’s products
inelastic demand – an increase or decrease in price will NOT affect demand for the product
joint demand – when two or more items are used together in final product
fluctuating demand – the demand of business products tend to be less stable than the decades for consumer products.
To be useful, a segmentation scheme must produce segments that meet four basic criteria. Name and briefly describe each of these four criteria.
substantiality – must be large enough to warrant developing and maintaining a special marketing mix
Identifiability and measurable – must be identifiable and their size measurable
accessibility – must be able to reach members of targeting segments with customized marketing mix.
responsiveness – can be segmented using any criteria that seem logical
Name and describe the three targeting strategies. For each strategy, name one advantage and one disadvantage of using the strategy.
undifferentiated – company more susceptible to competition, but unimaginative product offerings
concentrated – concentration of resources, but segments too small or changing
multisegment – greater financial success, but high costs
Why is developing a global vision important for firms in the US?
to recognize and react to international marketing opportunities but also remain competitive at home.
Assume that you are a global marketing consultant for a US manufacturer of light fixtures and have been asked to name the available options or methods of entry into the global marketplace. Name five methods of entry in the order of high risk/high return to low risk/low return for the lighting company.
direct investment
joint venture
contract manufacturing
licensing and franchising
exporting