In a(n) ____ environment, the service employees are physically present while customers are involved ...

Answer to #1

C

Answer to #2

Many segmentation approaches are traditional in the sense that firms have used them successfully for decades. Many of today's most successful firms use these tried-and-true approaches. Some organizations actually use more than one type of segmentation, depending on the brand, product, or market in question.

 Mass Marketing-Mass marketing involves no segmentation whatsoever. Companies aim mass-marketing campaigns at the total (whole) market for a particular product. Companies that adopt mass marketing take an undifferentiated approach that assumes that all customers in the market have similar needs and wants that can be reasonably satisfied with a single marketing program. Mass marketing works best when the needs of an entire market are relatively homogeneous. Mass marketing is also advantageous in terms of production efficiency and lower marketing costs. However, the strategy is inherently risky. By offering a standard product to all customers, the organization becomes vulnerable to competitors that offer specialized products that better match customers' needs. In industries where barriers to entry are low, mass marketing runs the risk of being seen as too generic. This situation is very inviting for competitors who use more targeted approaches. Mass marketing is also very risky in global markets where even global brands like Coca-Cola must be adapted to match local tastes and customs.
 Differentiated Marketing-Most firms use some form of market segmentation by (1 ) dividing the total market into groups of customers having relatively common or homogeneous needs and (2 ) attempting to develop a marketing program that appeals to one or more of these groups. Within the differentiated approach, there are two options: the multisegment approach and the market concentration approach. Firms using the multisegment approach seek to attract buyers in more than one market segment by offering a variety of products that appeal to different needs. Firms using this option can increase their share of the market by responding to the heterogeneous needs of different segments. The multisegment approach is the most widely used segmentation strategy in medium- to large-sized firms. It is extremely common in packaged goods and grocery products. Firms using the market concentration approach focus on a single market segment. These firms often find it most efficient to seek a maximum share in one segment of the market. The main advantage of market concentration is specialization because it allows the firm to focus all its resources toward understanding and serving a single segment. Specialization is also the major disadvantage of this approach. By putting all of its eggs in one basket, the firm can be vulnerable to changes in its market segment, such as economic downturns and demographic shifts.
 Niche Marketing-Some companies narrow the market concentration approach even more and focus their marketing efforts on one small, well-defined market segment, or niche, that has a unique, specific set of needs. Customers in niche markets will typically pay higher prices for products that match their specialized needs. The key to successful niche marketing is to understand and meet the needs of target customers so completely that, despite the small size of the niche, the firm's substantial share makes the segment highly profitable. An attractive market niche is one that has growth and profit potential but is not so appealing that it attracts competitors.

Answer to #3

C

Answer to #4

C

Answer to #5

C

Answer to #6

Business markets differ from consumer markets in important ways. One of the most important differences involves the consumption of the purchased products. Consumers buy products for their personal use or consumption. In contrast, organizational buyers purchase products for use in their operations. These uses can be direct, as in acquiring raw materials to produce finished goods; or indirect, as in buying office supplies or leasing cars for salespeople. There are four types of business markets: commercial markets, reseller markets, government markets, and institutional markets. These markets differ from consumer markets in at least four major ways.

 The Buying Center-The first key difference relates to the role of the buying center-the group of people responsible for making purchase decisions. In consumer markets, the buying center is fairly straightforward: The adult head-of-household tends to make most major purchase decisions for the family, with input and assistance from children and other family members as applicable. In an organization, however, the buying center tends to be much more complex and difficult to identify, in part because it may include three distinct groups of people-economic buyers, technical buyers, and users-each of which may have its own agenda and unique needs that affect the buying decision.
 Hard and Soft Costs-The second difference between business and consumer markets involves the significance of hard and soft costs. Consumers and organizations both consider hard costs, which include monetary price and associated purchase costs such as shipping and installation. Organizations, however, must also consider soft costs, such as downtime, opportunity costs, and human resource costs associated with the compatibility of systems, in the buying decision.
 Reciprocity-The third key difference involves the existence of reciprocal buying relationships. With consumer purchases, the opportunity for buying and selling is usually a one-way street: The marketer sells and the consumer buys. Business marketing, however, is more often a two-way street, with each firm marketing products that the other firm buys.
 Mutual Dependence-Finally, in business markets, the buyer and seller are more likely to be dependent on one another. For consumer-marketer relationships, this level of dependence tends to be low. If a store is out of a product or a firm goes out of business, customers simply switch to another source to meet their needs. Likewise, the loss of a particular customer through brand switching, relocation, or death is unfortunate for a company but not in itself particularly damaging. The only real exception to this norm is when consumers are loyal to a brand or merchant. This is not the case in business markets where sole-source or limited-source buying may leave an organization's operations severely distressed when a supplier shuts down or cannot deliver. The same is true for the loss of a customer. The selling firm has invested significantly in the client relationship, often modifying products and altering information or other systems central to the organization.