Chap 7

Question 1

Which of the following statements is true regarding the nature of the business market?

Answer 1

Personal selling plays a bigger role in business markets than consumer markets.

Question 2

When firms in business markets are grouped based on their sales revenues, they are said to be segmented by:

Answer 2

demographic characteristics

Question 3

Dell computers purchases parts and resources for its computers from multiple suppliers that are spread across the world. Practice is known as:

Answer 3

global sourcing.

Question 4

Product characteristics of B2B marketing

Answer 4

Relatively technical in nature
Exact form often variable
Accompanying services very important

Question 5

Promotion - B2B

Answer 5

emphasis on personal selling

Question 6

Distribution - B2B

Answer 6

relatively short, direct channels to market

Question 7

Customer relations - B2B

Answer 7

relatively enduring and complex

Question 8

Decision making process - B2B

Answer 8

diverse group of organization members makes decision

Question 9

Price - B2B

Answer 9

competitive bidding for unique items; list prices for standard items

Question 10

Product characteristics of B2C marketing

Answer 10

Standardized form

Service important but less than B2B

Question 11

Promotion - B2C

Answer 11

Emphasis on advertising

Question 12

Distribution - B2C

Answer 12

Comparatively infrequent contact

Relationship of relatively short duration

Question 13

Decision making process - B2C

Answer 13

individual or household unit makes decision

Question 14

Price - B2C

Answer 14

List prices

Question 15

B2B Marketing Objectives

Answer 15

Organizational sales and purchases of goods and services:

• to support production of other products
• to facilitate daily company operations (telecommunications, security company, cleaning company)
• for resale (products to resale)

Question 16

Components of the Business Market

Answer 16

Commercial market
Trade industries
Government
Public and private institutions (hospital, college, nonprofit)

Question 17

What is a commercial market?

Answer 17

Individuals and firms that acquire products to support, directly or indirectly, production of other goods and services. (largest segment of business market)

Question 18

What is a trade industry market?

Answer 18

retailers and wholesalers that purchase products for resale to others

Question 19

What is a government market?

Answer 19

primary motivation: to provide some form of public benefit

Question 20

What percentage of all internet sales are B2B transactions?

Answer 20

91%

Question 21

How does segmentation help marketers?

Answer 21

To develop a strategy that best suits a particular segments need.

Question 22

What are characteristics of B2B markets?

Answer 22

• geographic market concentration
• size and number of buyers
• the purchase decision process
• buyer-seller relationships

Question 23

What is global sourcing?

Answer 23

purchasing goods and services from suppliers worldwide

Question 24

Organizational buying situations:

Answer 24

Straight rebuy - reoccurring purchase decision
Modified rebuy
New-task rebuy
Reciprocity - buying from suppliers who are also customers

Question 25

What is the Buying Center Concept?

Answer 25

The buying center includes everyone who is involved in some fashion in an organizational buying action.

Question 26

The five buying center roles are:

Answer 26

``` Users Gatekeepers - control the info that all buying center members will review Influencers Deciders Buyers ```