Chapter 1

Question 1

3 B2B Customers

Answer 1

Commercial, Institutional, Governmental

Question 2

Examples of commercial customers

Answer 2

Manufacturers, construction, service firms, transportation companies, wholesalers, retailers

Question 3

Examples of institutional customers

Answer 3

Schools, college, uni, health care, libraries, foundations, art galleries, clinics

Question 4

Examples of governmental customers

Answer 4

Federal, defense, non-defense, state gov, local gov, counties, townships

Question 5

Most important in commercial enterprises?

Answer 5

Manufacturers

Question 6

2 attributes of business markets

Answer 6

Concentrated by size and geographically

Question 7

2 types of government buying

Answer 7

Formal advertising/open bid and negotiated control

Question 8

Explain formal advertising/open bid

Answer 8

solicits bids from appropriate suppliers, for standardized products, lowest bidder wins

Question 9

Explain negotiation control

Answer 9

cannot be differentiated on price alone and few potential suppliers, best product at lowest price

Question 10

What are 2 methods institutions use to purchase?

Answer 10

agent or department

Question 11

What is group purchasing?

Answer 11

cooperative purchasing associations to secure purchasing efficiencies

Question 12

What are 5 advantages of group purchasing?

Answer 12

Lower prices
Improved quality through Testing/supplier selection
Reduced admin costs
Greater competition

Question 13

What is derived demand?

Answer 13

Refers to the direct link between demand for an industrial product and demand for consumer products

Question 14

What is fluctuating demand?

Answer 14

changes in demand patterns and changing buying preferences in consumer market

Question 15

What is the bullwhip effect?

Answer 15

Supply chain phenomenon that describes how small fluctuations in point of sale demand can cause larger fluctuations in demand at distributor, manufacturer, and raw material supplier levels

Question 16

How to counteract bullwhip effect

Answer 16

Improved communication
Information sharing among supply chain partners
Sharing of downstream demand forecasts with upstream partners

Question 17

How can business marketers stimulate demand?

Answer 17

Develop a marketing program that reaches ultimate customer directly

Question 18

Inelastic vs elastic demand

Answer 18

Inelastic : % change in price results in small change in quantity demand

elastic: % change is price results in large change in quantity demand

Question 19

3 types of b2b products/services

Answer 19

entering goods, foundation goods, facilitating goods

Question 20

2 types of entering goods

Answer 20

raw materials: farm/natural

manufactured materials and parts: textiles, sheet steel (processed)

Question 21

2 types of foundation goods

Answer 21

installations: long term investments (building, land rights)

accessory equipment: less expensive and short lived (personal computers, photocopying machine)

Question 22

2 types of facilitating goods

Answer 22

Supplies: paint, cleaning

Service: legal, advertising, maintenance, repair

Question 23

Explain market sensing

Answer 23

How we the organization is equipped to continuously sense changes in its market and anticipate customer responses

Question 24

Explain customer linking

Answer 24

Skills, abilities, and processes an org has developed to create and manage closer customer relationships

Question 25

4 roles in marketer’s DNA

Answer 25

Instigator, Innovator, Integrator, Implementer

Question 26

What are the 3 categories of commercial customers

Answer 26

Users, OEM, Dealers/Distributors

Question 27

Explain users

Answer 27

purchase industrial products or services to help produce other goods or services to sell in business/consumer markets

Question 28

Explain OEM

Answer 28

purchase goods to incorporate into other products and sell in business/consumer market

Question 29

Explain dealers/distributors

Answer 29

purchase goods for resale to users and OEM