The use of law firms or advertising agencies by business marketers constitutes what
type of industrial good?
a. Facilitating goods.
b. Entering goods.
c. Foundation goods.
d. Installations.
Which of the following is NOT true of the solutions-centered approach instead of a
product-centered approach?
a. Win by creating and delivering superior customer solutions.
b. Value is created by the firm.
c. Relationship with customer is interaction-based.
d. Quality focus on customer-firm interactions.
e. All of the above are true.
_____ represents the portion of total purchases in a product and service category that a
customer makes from the firm.
a. Share-of-wallet
b. Market share
c. Marketing reach
d. Feedforward control
The warehouse circumvents the need for premium transportation (for example, air
freight) and costly order processing by keeping products readily available in local
markets. Which type of warehousing involves no capital investment and offers the
advantage of flexibility–the firm can increase or decrease its use of space in a given
market?
a. merchant
b. mobile
c. fixed
d. third party
e. private
Which of the following topics must be part of a business firm’s salesperson training
programs?
a. Effective communication skills.
b. Knowledge about the company.
c. Knowledge about the product line.
d. All of the above.
e. Only (a) and (c).
Industrial product lines that are offered only in certain configurations and are produced
in anticipation of orders are called:
a. custom-designed items.
b. services.
c. catalog items.
d. custom-built items.
e. component items.
Some industrial products are created to meet the needs of one or a small group of
customers. Boeing, for example, serves a very defined group of customers with its 747
aircraft model. This is an example of:
a. a proprietary product.
b. a specialty product.
c. a custom-built product.
d. a custom-designed product.
e. a catalog product.
A _____ is a single business or collection of businesses that has a distinct mission, a
responsible manager, its own competitors, and an independent position in the firm.
a. strategic business unit
b. market segment
c. sub-business center
d. divisional organizational scheme
e. sector unit
As a controllable element in the logistics system, ____ triggers the logistics process and
directs the activities necessary to deliver products to customers.
a. order processing
b. customer service
c. production planning
d. inventory management
e. information management
_____ is the integration of business processes from end user through original suppliers
that provides products, services, and information that add value for customers.
a. Customer relationship management
b. Supply chain management
c. Logistics management
d. A marketing plan
e. Order processing
Rather than modifying the firm’s product offerings from country to country, ____
strategy requires a patient, long-term campaign to enter every significant foreign market
while maintaining and leveraging the company’s unique strategic position.
a. a global
b. an exporting
c. a joint venture
d. a licensing
Using this approach, the costs of producing a printed circuit board are determined by
first evaluating the activities required to produce the board and then costing out each of
the activities. This describes:
a. traditional cost accounting.
b. an activity-based cost system.
c. variable cost analysis.
d. direct traceable costing.
e. contribution costing.
Qualitative techniques that can be used for forecasting sales include:
a. market surveys.
b. time series.
c. the Delphi method.
d. single series statistical methods.
e. none of these.
Among technology adopters, these customers make the bulk of technology purchases in
organizations and seek products from a market leader with a proven track record of
providing useful productivity improvements. This describes:
a. technology enthusiasts.
b. visionaries.
c. skeptics.
d. pragmatists.
e. product champions.
New products ideas flow from:
a. top management who know the company’s strengths and weaknesses.
b. salespersons who are close to customer needs.
c. channel members.
d. all of the above.
e. (a) and (b) only.
____ provides the guidelines for company and advertising agency personnel on how the
product is to be “positioned” in the marketplace.
a. The creative strategy statement
b. The objective-task concept
c. Product position
d. Controlled circulation
e. Advertising objectives
Within the buying center, an individual who has formal authority for selecting a
supplier and implementing all procedures connected with securing the product is
performing the role of:
a. a user.
b. a gatekeeper.
c. an implementer.
d. a decider.
e. a buyer.
The buyer’s price sensitivity increases to the degree that:
a. buyers can switch from one supplier to another without incurring additional costs.
b. organizational buyers can easily shop around and assess the relative performance and
price of alternatives.
c. the product represents one for which it is difficult to make price comparisons.
d. all of the above.
e. (a) and (b) only.
Those buying decisions that are of extreme importance to the firm strategically and
financially are referred to as:
a. strategic new task buying decisions
b. strategic modified rebuy decisions
c. judgmental new task decisions
d. lost-for-good decisions
e. complex modified rebuy decisions
Research suggests that successful national account units:
a. have senior management support.
b. have well-defined objectives.
c. have experienced individuals who know how to create effective customer solutions.
d. All of the above.
e. Only (b) and (c).
When the buyer is purchasing a company’s capability in a particular area, such as
maintenance or machine repair, the customer is buying:
a. a catalog item.
b. an industrial service.
c. a custom-designed item.
d. a generic product class.
e. a specialty item.
Advertising objectives are typically stated in terms of:
a. sales goals.
b. profit goals.
c. cost constraints.
d. communication goals.
e. market share goals.
Which of the following is NOT a step in the product-positioning process?
a. Identify the relative set of competitive products.
b. Determine the product’s current position versus competing offerings.
c. Develop an evoked or consideration set of possible positions.
d. Examine the fit between preferences of segments and the current product position.
In the classification of distributors, _____ focus on one line or on a few related lines.
a. general-line distributors
b. specialists
c. combination houses
d. brokers
Generally, manufacturers’ reps:
a. take title to the products handled.
b. are restricted to a limited geographical area.
c. hold inventory.
d. provide customers with prompt delivery.
e. all of the above
_____ represents a business customer’s overall assessment of the utility of a relationship
with a supplier based on the benefits received and sacrifices made.
a. Core benefits
b. Add-on benefits
c. Customer value
d. Relationship commitment
e. Total cost analysis
The Total Cost of Ownership
a. Includes all costs associated with the product and its delivery
b. Is used by buyers to determine what they should spend on an item
c. Considers the full range of costs associated with the purchase and use of a product or
service over its complete life cycle
d. Is an accounting concept that buyer’s use to compare the value of competing
offerings
e. None of the above.
In designing advertising strategy, the business marketer should first:
a. determine the size of the advertising budget.
b. select appropriate media sources.
c. determine advertising objectives.
d. develop a series of responsive messages.
e. forecast sales.
The type of development project that centers on incremental product enhancements (for
example, new feature), incremental process improvements (for example, a lower-cost
manufacturing process), or incremental changes in both dimensions is referred to as a:
a. platform project.
b. breakthrough project.
c. research and development project.
d. derivative project.
e. none of the above
The overall objectives of the strategy that sets a course of direction and defines a set of
performance criteria that will be used to measure progress is called the:
a. business mission.
b. product scope.
c. market scope.
d. basis for differentiation.
Buying firms prefer a more collaborative relationship when:
a. the purchase is deemed strategically important to the buying organization.
b. the market is dynamic.
c. there are few alternatives.
d. all of the above
e. (a) and (c) only
An e-mail list can be created by:
a. offering an e-mail alert service.
b. asking for e-mail addresses in direct mail campaigns.
c. collecting e-mail addresses at trade shows.
d. all of the above.
e. (b) and (c) only.
Possis Medical invests a significant proportion of their promotional budget in trade
shows. Management, however, wonders whether they are getting the proper return on
this sizeable investment. Propose a set of guidelines that the firm might use in designing
a more effective trade show communications strategy and in evaluating trade show
performance.
Answer:
n/a
An outcome-based sales force control system involves less direct field supervision of
salesperson activities and uses____________________measures to
evaluate____________________and a compensation system with a large incentive
component.
The importance of the business marketer’s product as an input into the total cost of the
end product influences demand elasticity. If the business marketer’s product has an
insignificant effect on cost, demand is likely to be inelastic.
Lowest total cost and product innovation are two forms of differentiation that can be
uses by business marketers when developing a value proposition.
The more labor-intensive the service, the less uniform will be the output.
When challenged by an aggressive competitor, the immediate thought that comes to
mind for many managers is to fight back and match the price cut. However, because
price wars can be quite costly, experts suggest that a more systematic process should be
followed. Describe the factors that a strategist should consider before matching a price
cut by a rival.
Answer:
n/a
Organizational buyers tend to associate high price with high quality.
The extent to which the business concept is common to competitors on dimensions
shared by the customer is a factor than can determine the potential profit of a business
concept.
In order to effectively use a solutions perspective, business marketers need to define
their unique capabilities and determine how to use them to help customers reduce costs,
increase responsiveness, or improve quality.
The first stage of the Organizational Buying Process involves:
Because demand in business markets is derived from consumer markets, business must
carefully monitor demand patterns and changing consumer buying preferences. Because
of these changes, the demand for many industrial products can be described as:
Illustrate how a business marketing manager might use a responsibility chart to pinpoint
the roles that diverse functional specialists must perform in the implementation of
marketing strategy.
Answer:
n/a
The underlying premise of SCM is that waste reduction and enhanced supply chain
performance come only when there is both intrafirm and interfirm functional
integration, sharing and cooperation.
Channel____________________refers to the number of channel levels, the number and
types of intermediaries and the linkages among channel members.
Having a relationship orientation is critical to developing a customer-relating capability.
Improvisation involves activities in which the design and execution of actions approach
convergence with each other in time.
The “compatibility” of a cross-functional working relationship can be defined as the
common ground or shared goals that can unite managers who represent different
functional areas.