Which of the following statements concerning trade shows is(are) accurate?
a. The cost of reaching a prospect at a trade show less than the cost of making a
personal sales call.
b. Over 83 percent of all trade show visitors have some buying authority.
c. The average company participates in 45 trade shows per year.
d. all of the above
e. (a) and (b) only
Which of the following are ambitious strategic priorities being pursued by many chief
procurement officers?
a. Becoming business partners, not just buyers.
b. Developing fewer and deeper relationships with strategic suppliers.
c. Emphasizing more than just price, including a focus on business outcomes, total cost
of ownership, and the development of long-term value creation.
d. All of the above.
e. Only (a) and (c).
Manufacturer reps are most likely used:
a. by large firms.
b. when there is unlimited market potential.
c. to eliminate significant overhead costs.
d. all of the above.
e. (a) and (c) only.
The compensation provided to industrial channel members should reflect:
a. the length of service of the channel member.
b. the nature of the marketing tasks performed by the channel member.
c. the loyalty of the channel member.
d. the amount of market potential available in the territory.
e. all of the above
In the technology adoption life cycle, the main goal of the ____ stage is to develop
value-based strategies targeted to particular end user segments.
a. chasm
b. tornado
c. bowling alley
d. main street
e. end of life
In entering high-risk country-markets, firms can reduce their risk exposure by adopting
low-commitment modes of entry such as:
a. licensing.
b. wholly-owned subsidiaries.
c. contract manufacturing.
d. all of the above
e. (a) and (c) only
_____ is the variable cost of moving products from origin to destination, including any
terminal and accessory charges.
a. Speed of service
b. Transportation cost
c. Cost of service
d. Fixed cost
e. None of the above.
Identify the correct statement(s) concerning differences between induced strategic
behavior and autonomous strategic behavior:
a. Induced behavior will rely on the firm’s current concept of strategy for its rationale
while autonomous behavior necessitates active championing.
b. Autonomous behavior will appear haphazard in nature, when compared to induced
behavior.
c. While induced behavior will normally exhibit a creeping commitment toward a
particular strategy, autonomous behavior can often benefit from existing administrative
mechanisms and commitment.
d. All of the above are correct.
e. Both (a) and (b) are correct.
A lathe manufacturer that offers a line of products in different sizes, with a range of
options (such as different motor sizes) and accessories for different applications is a
producer of:
a. custom-designed items.
b. services.
c. catalog items.
d. custom-built items.
e. proprietary items.
The business market consists of the following three components:
a. commercial enterprises, resellers, and government.
b. manufacturers, institutions, and defense.
c. manufacturers, service organizations, and government.
d. commercial enterprises, service organizations, and government.
e. commercial enterprises, institutions, and government.
Service provided by industrial distributors includes:
a. repair.
b. credit.
c. maintenance.
d. all of the above
e. (b) and (c) only
If a firm provides maintenance and repair services to its installed base of products at a
customer location, then:
a. the service attributes can be evaluated before purchase.
b. the core service demand is inelastic.
c. product usage data can be systematically gathered and used to tailor service offerings
that advance customers’ goals.
d. all of the above.
e. (a) and (b) only.
The ability of an organization to quickly recognize changes in its market and to
anticipate customer responses to marketing programs is referred to as:
a. market research capability.
b. customer-linking capability.
c. competitive intelligence.
d. market-sensing capability.
e. derived demand.
Sales managers use a variety of measures to evaluate salesperson performance. When
the measurement system is behavior-based, the sales manager:
a. employs objective measures to evaluate performance.
b. emphasizes a compensation system with a large incentive component.
c. monitors and directs the activities of salespeople.
d. indirectly supervises salesperson activities.
e. measures the self-esteem of each salesperson.
A _____ consists of individuals who participate in the purchasing decision and share the
goals and risks arising from the decision.
a. buying center
b. target market
c. sales force
d. strategic task force
The final phase of for selecting key accounts:
a. centers on the profit potential of a customer.
b. identifies those customer accounts that have unique support requirements.
c. considers the degree to which the transactions with potential customer will
complement the economies of the seller’s business.
d. none of the above.
When purchasing microprocessors from Intel Corporation to be incorporated into Dell’s
line of personal computers, IBM would be classified as:
a. a user.
b. an original equipment manufacturer (OEM).
c. an institutional buyer.
d. a dealer.
e. a distributor.
Which of the following are reasons why followers into a market often find lower costs
than the pioneer firm?
a. The use of more current production technologies.
b. Experience of suppliers leads to cost reductions.
c. Learning from the pioneer’s mistakes.
d. All of the above.
e. Only (b) and (c).
The standard of quality that means a product would have to have a defect level of no
more than 3.4 parts per million is called:
a. Six Sigma
b. ISO 9000
c. the Big Q
d. none of the above.
Consider some leading-edge consumer product manufacturers like Procter & Gamble,
Gillette, or Coca Cola. What major differences would you expect to find in comparing
the marketing strategy patterns employed by these consumer-products companies to
those of leading business marketing firms such as Intel, 3M, or Dow Chemical? Next,
describe the similarities and differences that emerge when comparing the distinctive
attributes of a leading-edge consumer products marketer to a firm that demonstrates
superb skills serving customers in the business market.
Answer:
n/a
When a business marketer determines whether a buyer is employing a new task,
modified rebuy or straight rebuy decision-making process, what macrolevel
segmentation variable is being used?
a. Type of buying situation.
b. Structure of procurement.
c. Geographical location.
d. End market being served.
The cost of raw materials such as sheet steel is treated as:
a. an expense item which is depreciated over time.
b. a capital item which is depreciated over time.
c. a fixed cost.
d. an expense item which is assigned to the manufacturing process.
e. none of the above.
Marketing activities directed toward establishing, developing, and maintaining
successful exchanges with customers is:
a. relationship marketing.
b. global marketing.
c. cross-functional marketing.
d. supply chain management.
Albany Products found that the sales of one of their most important products is
logically related to new construction expenditures. If the firm can forecast future values
of this variable, which forecasting technique would appear to be most appropriate?
a. time series
b. regression
c. Delphi method
d. trend extension
e. none of the above
Which dimension of the product market definition involves the benefits that are
provided to satisfy the needs of the organizational buyers?
a. Customer function.
b. Technological.
c. Customer segment.
d. Value-added system.
Which of the following statements is false in regard to brand attitude for
high-technology firms?
a. The appointment of a well-recognized executive officer who introduced a new
strategy increases
b. Brand attitude is independent of competitive actions.
c. Changes in brand attitude have been shown to be associated with stock market
performance.
d. Investments in building brand attitude for high-technology firms increases the firm’s
value.
An emerging development in performing the logistics process is the utilization of
third-party logistics firms. Third-party logistics firms can:
a. perform the warehousing function.
b. perform the transportation function.
c. perform the entire logistics process from production scheduling to delivery of
finished goods to the customer.
d. all of the above.
e. (a) and (b) only.
A recent poll asked distributors which business strategies would have the largest impact
on them in the future. The top two factors were:
a. collaboration with supply chain partners.
b. new information technologies.
c. the increase in general-line distributors
d. (a) and (b) only.
e. (b) and (c) only.
Companies can demonstrate market-sensing and customer-linking capabilities by:
a. sharing product movement information.
b. jointly planning promotional activities with other channel members.
c. jointly planning product changes with other channel members.
d. all of the above.
e. (a) and (b) only.
Differences between goods and services include:
a. intangibility.
b. variability.
c. profitability.
d. All of the above.
e. Only a and b.
Bond Office Products manufactures a diverse array of office supplies and serves the
business market. Which of the following characteristics is (are) associated with the
marketing strategy for this category of goods?
a. Personal selling is less important for supplies than it is for other categories of goods
having a higher unit value, such as installations.
b. the company requires a wide variety of marketing middlemen to cover the broad and
diverse market adequately.
c. Price may be critical in the marketing strategy because many office supply items are
undifferentiated.
d. All of the above are true.
e. (a) and (c) only
As an industrial customer, Ford Motor Company would be classified as:
a. a user.
b. an original equipment manufacturer (OEM).
c. a user in purchasing some products, an OEM in purchasing other products.
d. a producer of facilitating goods.
The _____ component of a time series reflects intermediate-term, regularly recurring,
upswings and downswings of data around the long-term general direction of the data.
a. trend
b. cycle
c. seasonal
d. irregular
Business marketers should base their pricing decisions primarily on cost and
competitive considerations.
A large consumer goods company recently entered the business market with a new
product with broad industrial application. They are in the process of determining the
appropriate price for the product. Discuss the role of costs in determining price and
indicate some of the key cost considerations that must be evaluated in setting price.
Answer:
n/a
Some customers place a high value on supporting services (for example, technical
advice and training) and are willing to pay a premium price for this support. Other
customers do not value service support and are extremely price sensitive in making
product selection decisions. Describe how a business marketer might profitably serve
each of these customer segments.
Answer:
n/a
The objective-task method for budgeting ad expenditures consists of evaluating the
tasks advertising will perform, analyzing the costs, and summing up
the____________________to arrive at a final budget.
A firm that sells sophisticated equipment to paper manufacturers (for example, Mead
Corporation) learned that the same technology may have important potential in the
lucrative food-processing industry. Potential customers here would include firms such
as General Foods and Sarah Lee. Suggest several critical issues that this firm should
address before embarking on this new strategy course.
Answer:
n/a
The concept of market segmentation is more applicable to consumer-goods marketers
than to business marketers.
Due to downturns in the economy, the demand for many consumer products tends to
fluctuate more than the demand for industrial products.
Problems often plague joint ventures and, as a result, many of them fall short of
expectations or are disbanded.
The____________________determines how the firm chooses to compete.
The ____________________, or trade-off, approach to logistical management
guarantees to minimize total logistical costs in the firm and within the channel.
Product championing refers to the process of creating or adopting an idea for an
innovation and actively creating momentum for the project.
For many purchasing decisions, advertising alone cannot create product preference.
____________________ is a set of brand assets and liabilities linked to a brand, its
name, and symbol that add to or subtract from the value provided by a product or
service and/or to that firm’s customers.
A marketing strategy that works well for selling entering goods should be equally
successful for facilitating goods.
IBM is reorganizing its marketing and sales operations into 14 worldwide industry
groups such as banking, retail, and insurance. In moving away from an organization
based on geography, IBM hopes to eliminate turf wars and make itself more responsive
to customers. Explain the cost/benefit trade-offs of a market-centered sales
organization. What is the nature of the turf wars that plague firms that are organized
around products or geographical territories?
Answer:
n/a