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Which of the following is(are) characteristic of the marketing strategy that would be
appropriate for a firm like Otis Elevator, which sells installations in the business
market?
a. Personal selling is the dominant promotional tool.
b. Trade advertising and direct-mail advertising reinforce personal selling.
c. Price is the central force in marketing strategy.
d. All of the above.
e. (a) and (b) only.
Which of the following are influences on the potential level of sales in a particular
territory?
a. Salesperson characteristics.
b. Competition.
c. Territory characteristics.
d. All of the above.
e. Only (a) and (b).
The microsegmentation of business markets center on characteristics of:
a. buying organizations (e.g., the size).
b. the product application (e.g., end market served).
c. decision-making units (e.g., decision style).
d. the purchasing situation (e.g., types of buying situation).
e. geographic regions (e.g., Midwest).
_____ provides a visual representation of the cause-and-effect relationships among the
components of a company's strategy.
a. A Strategy Map
b. Market Sensing
c. Customer-Linking
d. Building Blocks
The product-oriented sales organization presents which of the following disadvantages?
a. A "critical mass" of demand is required to offset the associated costs.
b. Compared to other ways of organizing the sales force, the salesperson has the
greatest degree of latitude in choosing which products and customers to emphasize.
c. Several salespersons may be required to meet the diverse product requirements of a
single customer.
d. all of the above
e. both (a) and (c)
Individuals actually making the buying decision, whether or not they have the formal
authority to do so, are performing the role of:
a. a user.
b. a gatekeeper.
c. an influencer.
d. a decider.
e. a buyer.
Which of the following are goals of customer relationship management (CRM)?
a. A continuing dialogue with customers.
b. Personalized treatment of the most valuable customers.
c. Achieving customer retention.
d. All of the above.
e. (a) and (c) only.
In formulating advertising messages, the business marketer should:
a. emphasize product and technical specifications.
b. identify general buying criteria of importance to a range of buying center members.
c. use color and illustrations sparingly.
d. both (a) and (b)
e. none of the above
The first stage of the quality movement:
a. centers on conformance to standards or success in meeting specifications.
b. emphasized that quality was more than a technical specialty.
c. examines a firm's quality performance relative to competitors.
d. focuses on market-perceived quality and value versus that of competitors.
When purchasing machine tools for their plants, American Honda is:
a. an original equipment manufacturer.
b. a user.
c. a distributor.
d. an institutional buyer.
e. an upstream supplier.
Those buying decisions that involve a narrow set of choice alternatives, encompass a
moderate amount of both information search and analysis, and concentrate on the
long-term relationship potential of suppliers are called:
a. simple modified rebuy.
b. complex modified rebuy.
c. casual purchases.
d. routine low priority purchases.
e. specialty purchases.
Mary Bronson, purchasing manager for the Los Angeles Tool Company, placed her
quarterly order for supplies from the Gibson Paper Company. Mary has been dealing
with Gibson for many years. What type of problem solving would Mary employ in this
purchase decision?
a. routine problem solving
b. casual problem solving
c. limited problem solving
d. extended problem solving
e. specialized problem solving
_____ represents a business customer's overall assessment of a relationship with a
supplier based on perceptions of benefits received and sacrifices made.
a. Market analysis
b. A value network
c. Customer value
d. Relationship management
e. Relationship quality
Those costs, fixed or variable, that can be traced to a product, customer, or sales
territory (for example, general plant overhead may be indirectly assigned to a product)
are called:
a. direct traceable costs.
b. indirect traceable costs.
c. assignable costs.
d. general costs.
e. administrative overhead.
Some industrial products have been processed before reaching the industrial customer,
but are processed further by this customer before becoming part of the finished product
that you buy. These items are called:
a. component parts.
b. facilitating parts.
c. accessory materials.
d. component materials.
e. accessory parts.
Based on the volume of their purchases, _____ are the most important commercial
customers in the business or industrial market.
a. construction companies
b. manufacturers
c. transportation companies
d. service firms (e.g., hotels)
e. health care facilities
Manufacturers who wish to strengthen the dependence that channel members have on
them could:
a. increase commissions.
b. encourage channel members to carry the firm's full product line.
c. increase promotion to enhance the profitability of channel members.
d. all of the above
e. (b) and (c) only
A business marketer who places the highest priority on achieving control in the channel
of distribution should use:
a. a direct channel.
b. a channel which includes numerous industrial distributors.
c. a channel which includes numerous manufacturers' representatives.
d. a channel which includes numerous commission merchants.
e. an indirect channel.
Value can be defined as the _____ benefits received by a customer firm in exchange for
the price paid for a product offering.
a. economic
b. technical
c. social
d. all of the above
e. (a) and (b) only
Business marketers that define their business markets with a horizon that stretches
beyond the boundaries of the United States to include foreign markets for industrial
goods and services employ:
a. a global market perspective.
b. a target market perspective.
c. a market orientation perspective.
d. an ethnocentric perspective.
Which of the following are advantages of the objective-task method of setting
advertising budgets?
a. Advertising is determinant of results, not a consequence.
b. Easy to use and familiar to management.
c. Must use instinct for identifying proper level of expenditures to reach goals.
d. All of the above.
e. Only (a) and (c).
The members of the organization involved in the business marketing decision-making
process constitute the _____.
a. marketing strategy center.
b. buying center.
c. value network.
d. target market.
e. core business.
When motivating channel members, the primary motivating device tends to be:
a. dealer advisory councils.
b. trust.
c. compensation.
d. strong relationships.
e. training.
Important social media to be considered by B2B marketers would be focused on:
a. discussion forums
b. blogs.
c. social networks.
d. wiki
e. all of the above
Achieving the goals of supply chain management requires:
a. information sharing.
b. joint planning.
c. shared technology.
d. shared benefits.
e. all of the above.
Rather than adopting the approach of "one design fits all," the astute marketer matches
the strategy to the product and market conditions that surround a particular relationship.
Which of the following statements is(are) true?
a. It is unwise for marketers to make specialized investments in transactional
relationships.
b. For transactional customers, the salesperson should center primary attention on the
purchasing staff.
c. Transactional customers display less loyalty to a particular supplier and can easily
switch part or all of their purchases from one vendor to another.
d. all of the above
e. (a) and (c) only
Successful implementation of a business segmentation strategy requires attention to
which of the following issues?
a. Adaptations to serve selected international markets.
b. A comprehensive on-line strategy to provide continuous support to customers in the
segments.
c. Organization of the sales force.
d. All of the above.
e. Only (b) and (c).
Strategies that would be appropriate for an "out" supplier to follow when confronting a
modified rebuy situation include:
a. offering performance guarantees.
b. encouraging the organization to sample the firm's offering.
c. defining and responding to the organization's problem with the existing supplier.
d. all of the above
e. (b) and (c) only
A business marketer becomes a preferred supplier to major customers by:
a. developing intimate knowledge of the customers operations.
b. developing a market orientation organization plan.
c. contributing unique value to a customer's business.
d. all of the above.
e. (a) and (c) only.
In evaluating service quality, customers focus on:
a. empathy.
b. responsiveness.
c. assurance.
d. reliability.
e. all of the above
Important dimensions of the new product development process include:
a. technical knowledge.
b. predevelopment proficiency.
c. market knowledge.
d. All of the above.
e. Only a and b.
The ____ of the Balanced Scorecard describes the expected outcomes of strategy, such
as revenue growth or productivity improvements.
a. financial perspective
b. customer perspective
c. internal perspective
d. learning and growth perspective
As the risk associated with an organizational purchase decision increases:
a. buying center participants will be motivated to invest greater effort throughout the
purchase process.
b. product quality becomes more important than price.
c. after-sale service becomes more important than price.
d. all of the above.
e. (a) and (b) only.
Which of the following transactions fall into the business marketing domain?
a. Ford purchasing machine tools for their plants from Cincinnati Milacron.
b. Ford selling their automobiles to the fleet manager at Cincinnati Milacron for use by
the sales force.
c. Ford purchasing power-steering systems from Motorola for use in a particular model.
d. all of the above.
e. (a) and (c) only.
In developing strategic plans, managers who represent the various business functions in
the firm often hold different views concerning the best strategic course. Why?
a. Because different functions are rewarded for different things.
b. Because each function often reflects a unique orientation or thought world.
c. Because some functions are oriented toward short-term objectives while others center
on long-term goals.
d. All of the above.
e. (a) and (c) only.
A pure service, by definition, accompanies the sale of a physical product.
Good implementers struggle and wrestle with their markets and businesses until they
can simply and powerfully express the "back of the envelope ratios necessary to run the
business, regardless of formal control system inadequacies."
Functional strategy centers on how a firm will compete in a given industry and will
position itself against its competitors.
Supply chain management requires Information sharing, shared technologies, and
shared benefits.
Technical and engineering personnel tend to be more important to the organizational
buying process where the rate of technological change is great.
The actual performance by the service provider is of little relevance compared to the
customer's perception of the service.
For high-technology firms, well-recognized executives and competitive actions can
both be drivers of brand attitude change.
The final phase for selecting key accounts centers on the profit potential of a customer.
Strategic____________________focuses on assessing whether the strategy is being
implemented as planned and whether it produces the intended results.
Joint ventures assume a very prominent role in the global strategy of many business
marketing firms like Dow Chemical and Xerox. While offering significant benefits,
joint ventures often fall short of expectations or dissolve. Why?
Answer:
n/a
A large hospital in Chicago recently purchased four top-of-the-line, high-speed copiers
from Xerox. The purchasing department carefully scrutinized the quality, price,
warranties, and service features of several vendors before choosing Xerox. In the words
of Jim Parker, the director of purchasing at the hospital, "it was the quality that gave
Xerox the edge." Describe the role of service quality in this buyer-seller relationship.
What factors may have been involved in shaping Jim Parker's perception of service
quality?
Answer:
n/a
A firm whose products are technically complex and are protected by U.S. patents is a
good candidate for relocating to a rapidly developing economy.
New product ventures require systematic thought.
Salespersons appear to be able to accept authority and direction from a number of
different departments in the organization without a significant negative impact on job
satisfaction.
For collaborative customers, the salesperson not only works with the purchasing staff,
but also with a wide array of managers throughout the organization.
Costs that support a number of activities that cannot be objectively assigned to a
product on the basis of a direct physical relationship are classified
as____________________costs.
Recent research indicates that highly satisfied customers are just as sensitive to price
changes as customers with low to moderate levels of satisfaction.
New products or services that require the end-user and the marketplace to dramatically
change their past behavior, with the promise of gaining equally dramatic new benefits
are known as ____________________ innovations.
The decision whether to use key accounts depends on three factors: profit potential,
learning benefits, and cost drivers associated with customers.
