The benefits of having a trade show exhibit to business marketers include:
a. the ability communicate with a large and interested audience.
b. free publicity.
c. the generation of sales leads.
d. All of the above.
e. Only (a) and (c).
Industrial products and services can be broadly classified as:
a. upstream, downstream, and direct goods.
b. entering, manufactured, and fabricated goods.
c. entering, accessory, and manufactured goods.
d. entering, foundation, and facilitating goods.
e. foundation, accessory, and component goods.
In contrast to “innovative” products, the supply chain for functional products is
designed to:
a. minimize logistics and inventory costs.
b. assure low-cost manufacturing.
c. adapt production capacity to uncertain demand patterns.
d. all of the above
e. (a) and (b) only
Exporting is a viable international entry strategy when the firm:
a. wishes to maintain direct control of the marketing program.
b. lacks the resources to make a significant commitment to the market.
c. wants to form long-term relationships with international customers.
d. all of the above
e. none of the above
Collaborative relationships:
a. are emphasized by buying firms when the purchase is deemed important to the
organization.
b. are emphasized by buyers when the complexity is high.
c. are more likely to involve operational linkages.
d. all of the above
e. (a) and (b) only
A successful implementation of a segmentation strategy requires attention to:
a. how should the sales force be organized.
b. what adaptations will be needed to serve selected international market segments.
c. which media outlets can be used to target advertising at a new segment.
d. all of the above.
e. (b) and (c) only.
The most commonly reported benefits for firms that adopt supply chain management
are:
a. higher profit margins.
b. enhanced cash flow.
c. higher order-to-delivery cycle time.
d. all of the above.
e. (a) and (b) only.
When purchasing manufacturing equipment from General Electric, Chrysler would be
classified as:
a. a user.
b. an original equipment manufacturer (OEM).
c. an institutional buyer.
d. a dealer.
e. a distributor.
Horizontal publications are more effective for business marketers when:
a. their product has applications in only a few industries.
b. many industries are potential users
c. well-defined functions are the principal buying influencers.
d. All of the above.
e. Only (b) and (c).
Supply chain management seeks to achieve which of the following goals?
a. waste reduction
b. unit cost reduction
c. flexible response
d. all of the above
e. (a) and (b) only
All of the following are potential macro bases of business market segmentation except:
a. purchasing strategy.
b. usage rate.
c. size.
d. product application.
e. geographic location.
During the innovative firm’s monopoly period, a _____ is optimal if there is a relatively
high repeat purchase rate for nondurable goods or if a durable good’s demand is
characterized by diffusion.
a. life cycle costing pricing policy
b. skimming policy
c. penetration policy
d. time segmentation policy
e. bid price policy
Which of the following is not one of the criteria for assessing the desirability of a
potential market segment?
a. Measurability
b. Accessibility
c. Responsiveness
d. Substantiality
e. Accountability
Bases of business or organizational market segmentation that center on the
characteristics of the buying organization and the buying situation are broadly
categorized as:
a. macrosegmentation.
b. microsegmentation.
c. economic bases.
d. bottom-up bases.
e. concentration bases.
Which of the following are true of qualitative approaches to sales forecasting?
a. Effectiveness depends on close relationships between customers and suppliers.
b. They are more appropriate for well-established products.
c. It brings users of the forecast into the forecasting process.
d. All of the above.
e. Only (a) and (c).
If consumers are not price sensitive in purchasing a consumer product such as
Smucker’s Jams, a 10% increase in the retail price of strawberry jam because of a 10%
increase in the cost of strawberries from farmers will not affect demand for jam. Thus,
the derived demand indicates that the demand for strawberries is:
a. elastic
b. inelastic
c. unpredictable
d. unknown
e. none of the above
The method of classifying industrial goods into meaningful categories in the business
market centers on this question:
a. How does the industrial good enter the production process and the cost structure of
the firm?
b. How much effort are organizational buyers willing to exert in purchasing this
industrial good?
c. Will organizational buyers purchase this industrial good from a distributor or directly
from a manufacturer?
d. What is the weight and unit value of the industrial good?
e. How many product alternatives are organizational buyers willing to consider before
making a choice?
_____ refers to the rate of percentage change in quantity demanded attributable to
change in price.
a. Cost/benefit analysis
b. Customer demand
c. Price elasticity of demand
d. Perceived value
e. Competitive edge
In the production and sale of industrial services, productive capacity is often a
substitute for inventory. In other words, capacity will reflect the level of demand which
the service provider can meet. This is primarily in response to which service
characteristic?
a. perishability
b. lack of ownership
c. nonstandardized output
d. simultaneous production and consumption
e. the extent to which tangible elements dominate intangible elements
For collaborative customers, the business marketer should:
a. invest resources to build operational linkages and information-sharing mechanisms
for the relationship.
b. directly assist customers with planning and strategy development.
c. work with a wide array of managers on strategy and coordination issues.
d. all of the above
e. (a) and (b) only
Which of the following is an element of the customer interface?
a. Relationship dynamics.
b. Core processes.
c. Pricing structure.
d. All of the above.
e. (a) and (c) only.
Organization of the sales force depends on the:
a. nature of the product.
b. the length of the product line.
c. the nature of the buying behavior in each segment.
d. All of the above.
e. Only (a) and (c).
Examples of low-cost probes or experiments in product development include which of
the following?
a. Development of experimental products for new markets.
b. Conducting regular planning sessions on the future.
c. Increase understanding of future customer needs by entering into strategic alliances
with leading-edge customers.
d. All of the above.
e. Only a and b.
In the management of logistical activities, the performance variable(s) of prime interest
(is) are:
a. number of products handled.
b. total distribution costs.
c. inventory movement per warehouse facility.
d. the level of logistical service provided to customers.
e. both (a) and (d)
A common identifiable element in buying centers in all sectors of the industrial market
is:
a. the chief executive officer.
b. the accounting function.
c. the purchasing function.
d. the production function.
e. the engineering function.
_____ is a strategy for competing in fast-changing markets by creating new products at
predictable intervals.
a. Time pacing
b. Patching
c. Routinization
d. Quality function deployment
e. Improvisation
When the marketer emphasizes reductions in staff, overhead, and capital as potential
benefits to the purchaser, this relates to the service characteristic of:
a. variability.
b. perishability.
c. simultaneous production and consumption.
d. intangibility.
e. lack of ownership.
There is a gravitational pull that moves buyers toward the transactional side of the
exchange spectrum because:
a. competitors are continually working to attract the best customers away.
b. customer requirements and expectations keep changing.
c. customers can freely explore new options in real time on the Internet.
d. all of the above
e. (a) and (b) only
Commercial development projects that establish new core products and new core
processes that differ from those of previous generations are referred to as:
a. platform projects.
b. breakthrough projects.
c. research and development projects.
d. derivative projects.
e. none of the above
The composition or functional area representation of the marketing strategy center:
a. is strictly prescribed by the organizational chart.
b. evolves during the strategy development process.
c. varies from one strategy situation to another.
d. all of the above
e. (b) and (c) only
Rather than Ford competing with Honda on a firm-to-firm basis, some experts argue
that the true competitive battle involves Ford’s supply chain versus Honda’s supply
chain. Define the supply chain management concept and relate it to the competitive
rivalry between Ford and Honda.
Answer:
n/a
In the hierarchy of strategies, _____ strategy defines the businesses in which a company
will compete, preferably in a manner that utilizes resources to convert distinctive
competence into competitive advantage.
a. functional
b. corporate
c. business-level
d. product
e. divisional
Dell Computer has been developing closer relationships with its corporate customers by
setting up Web sites on internal company networks. The system enables individual
employees at customer locations to easily order from a pre-approved line of Dell
Computers. Discuss how Dell might use direct e-mail advertising to reach employees at
these companies and reinforce its Web strategy.
Answer:
n/a
A small high-technology firm in Arizona recently developed a new component part that
offers superior advantages over competing products. The component is used in
high-speed production systems and, due to its durable composition, has a useful life of
12 months versus 3 months for competing products. By reducing downtime and
frequent changeovers, the product will offer users a significant improvement in
production efficiency. Of course, the exact savings will vary by market segment. The
two executives, who launched the firm, are divided over the course that should be
followed in pricing the componentone favors a high price for a quick payback while the
other opts for a lower price and a more deliberate approach. Outline the critical issues
that should be examined in setting the price.
Answer:
n/a
An Arizona-based high-technology firm, Three Five Systems, produces component
parts that are sold to cellular phone manufacturers as well as a diverse set of customers
across several different industry sectors. The firm uses a corporate sales force for large
customers, like Motorola, and relies on a mix of manufacturers’ reps and/or industrial
distributors to serve small and medium-sized customers.
The top management team at Three Five Systems would like you to conduct an audit of
the firm’s channel strategy. These executives are concerned that rapidly-changing
customer needs have created important gaps in the firm’s market coverage and market
offerings. Describe the specific steps that you would follow in conducting this audit and
highlight the particular questions that you would emphasize in the assessment.
Answer:
n/a
Multinational firms have traditionally managed operations outside their home country
with ____________________ that permit individual subsidiaries to compete
independently in their home country markets.
The need for a global strategy is determined by the nature of international competition
in a particular industry.
Describe the factors that appear to influence the salesperson’s satisfaction with the job
and the work environment.
Answer:
n/a
An emerging high-technology firm develops and sells a line of electronic software
products and services that enable businesses to engage in business-to-business
communications and transactions with suppliers and customers. The firm’s products and
services are used by retailers such as Wal-Mart, manufacturers like Pillsbury, apparel
firms like New Balance Athletic Shoes, and insurance firms and others. The firm needs
your assistance in segmenting this vast potential market that includes most types of
businesses.
First, suggest possible bases of segmentation that the high-tech firm might use in
isolating potential clusters or segments of customers. Next, provide a set of guidelines
that the firm might follow in evaluating whether or not a particular base of
segmentation provides an appropriate market and strategic fit for the firm.
Answer:
n/a
For supply chain management, functional products typically have predictable demand
patterns while innovative products do not.
Once a firm implements an Activity-Based Costing approach, and plots cumulative
profitability against customers, a striking pattern emerges that is known as:
If the business marketer’s product input plays an insignificant role in the final product’s
total cost, demand is likely elastic.
The greatest level of uncertainty confronts firms in judgmental new task situations
because of the technical complexity of the product and the difficulty of evaluating the
alternatives.
____________________involves sourcing a product from a producer located in a
foreign country for sale there or in other countries.
The two most common forces that divide participants during the strategy formulation
process are turf issues and different thought-worlds.
Research indicates that the most significant and profitable innovations that many
leading-edge firms have introduced in the past decade emerged from an informal
championing effort rather than from a highly-structured planning system. What
implications does this raise for structuring the new product development process, for
motivating and rewarding employees, and for nurturing creativity and risk-taking?
Answer:
n/a
Boeing, AT&T, and 3M are among the corporations that have adopted centralized
procurement. Other large corporations may find that a decentralized procurement
structure constitutes a better fit for their operations. First, which factors are conducive
to the development of a centralized procurement function? Second, what adjustments
must be made in business marketing strategy to reach the centralized purchasing unit?
Answer:
n/a
Arguments over profit-sharing and management styles are common problems
experienced in exporting.
An organization member who creates, defines, or adopts an idea for an innovation and
is willing to assume significant risk to successfully implement the innovation is known
as a____________________.
A cross-functional process for achieving a continuing dialogue with customers, with
personalized treatment of the most valuable customers and ensuring customer retention
and the effectiveness of marketing initiatives is known as:
The four perspectives used in the balanced scorecard to measure performance are
financial, customer, internal business processes, and learning and growth.
Effective segmentation often begins with the analysis of macrolevel bases of
segmentation, and then continues with the identification of microsegments within each
potential macrosegment using microlevel bases of segmentation. However,
segmentation can effectively end after considering only macrolevel variables. Please
provide an illustration of a situation where only macrolevel bases are used to identify
market segments and what variables or issues business marketers should use to
determine whether macrosegmentation alone is enough for effective organizational
market segmentation.
Answer:
n/a