978-1337407588 Chapter 7 Solution Manual Part 2

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Chapter 7: Business Marketing

TRUE/FALSE

1. The main philosophy and practice of marketing is the same whether marketing to a business

organization or a consumer.

PTS: 1 OBJ: LO: 7-6 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

2. Square may face business trouble in the future because they have not bothered to foster a

committed relationship with other businesses.

PTS: 1 OBJ: LO: 7-3 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

3. When in the business of offering devices for monetary transactions, trust is an important

condition in the business relationship.

PTS: 1 OBJ: LO: 7-3 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

4. Square’s main customers are original equipment manufacturers (OEMs).

PTS: 1 OBJ: LO: 7-4 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

5. Square is a provider of both business products and business services.

PTS: 1 OBJ: LO: 7-7 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

MULTIPLE CHOICE

1. Square offers which type of business product?

a. major equipment (installations)

Chapter 7: Business Marketing

b. accessory equipment

c. raw materials

d. component parts

e. processed materials

PTS: 1 OBJ: LO: 7-7 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

2. The release of the new $49 contactless payment and chip reader terminal creates which buying

situation?

a. new buy

b. modified rebuy

c. straight rebuy

PTS: 1 OBJ: LO: 7-8 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

3. Which of the following is NOT an example of business marketing?

a. the sale of a personal computer to a college or university

b. the sale of printers to an office supply store

c. the sale of a Square POS terminal to a coffee shop

d. the sale of a tablet to a college student

PTS: 1 OBJ: LO: 7-1 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

4. Which way do B-to-B companies use the Internet as a sales and promotion platform?

a. to facilitate communication and orders

b. to increase brand awareness

c. for digital marketing, primarily content marketing

d. All of these

e. None of these

Chapter 7: Business Marketing

PTS: 1 OBJ: LO: 7-2 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

5. Many vendors at fairs and conventions use Square POS terminals to accept credit card

payments. If their sales decrease, the demand for the improved POS terminal will also decrease

because of __________ demand.

a. derived

b. inelastic

c. joint

d. fluctuating

PTS: 1 OBJ: LO: 7-6 TOP: AACSB: Reflective Thinking

KEY: CB&E Model: Strategy MSC: BLOOMS: Level I Knowledge

Great Ideas for Teaching Chapter 7

James S. Cleveland, Sage College of Albany

Discussion Board Topics to Encourage Participation

Discussion board questions provided to students to encourage them to engage in thinking and

Discussion topics such as this one are abstract and often require that the instructor provide an

initial reply to show students what is expected of them in their own replies. For students with

I have developed, therefore, a series of discussion board questions to use with experienced, adult

students. These questions are designed to encourage them to use their experiences as employees

Each question has three parts.

Chapter 7: Business Marketing

1. First, there is a sentence or two from the students’ textbooks introducing the topic. By

using the text author’s own words, students are enabled to locate relevant material in the

text more easily, the text content is reinforced, and confusion resulting from the use of

variant terms or expressions is minimized.

2. Second, there is a reference to text pages the student should review before proceeding.

Since the goal of the exercise is for students to apply the course content to their own

experiences, reviewing the content first is important.

3. Third, there is a request for the student to think about or remember a specific situation in

their experience to which they can apply the text material, and a question or questions for

them to address in their reply.

Here are additional similar discussion board questions developed for Chapter 7 of MKTG11.

Each is written to fit the same text cited above but could easily be rewritten and revised to fit

another text.

Series A

1. The business market consists of four major categories of customers: producers, resellers,

government, and institutions.

2. Review these categories in section 7-4 of your text and the types of business products in

section 7-7 of your text.

3. Then describe which category your employer falls into and what sort of products it buys.

Series B

1. Business buyers behave differently from consumers. A buying center includes those

persons in an organization who become involved in the purchase decisions.

2. Review the material on buying centers and the roles in buying centers in section 7-8 of

your text.

3. Then describe how you have been involved in a buying center for your employer and what

role or roles you played.

Elizabeth J. Wilson, Louisiana State University

A Decision-Making Exercise for Business Marketing

This exercise is designed to introduce undergraduate students to decision making in the context

Chapter 7: Business Marketing

Procedure

The three decision evaluations represent different product categories in organizational buying—

office copiers, accessory goods that do not become part of the final product; painted sheet metal,

Each exercise is designed so that there is no right or wrong answer. The “suppliers,” represented

by the attribute combinations, represent a pool of vendors from which the buyer can choose. The

Part A: Individual Evaluation

A helpful class exercise is to have students role-play as organizational buyers to work through

these decisions individually. Students are instructed to read the decision context statement and

then examine the nine “vendors” described by each block. For example, in the copier decision,

At this point, the decision evaluations illustrate the concepts and variables that organizational

buyers use in selecting suppliers. After completing the decision individually, students can be

Part B: Group Evaluation

Chapter 7: Business Marketing

The second part of the exercise involves group decision making. Arrange students in groups of

Reference: Charles W. Lamb, Joseph F. Hair, and Carl McDaniel (1992), Principles of

Marketing, Cincinnati, OH: Southwestern Publishing.

Buying Decision for Office Copiers

Decision Context: Your firm needs a new copier to supplement current copiers already in place.

Moderate volume use (25,000 copies per month) is expected.

N ____ pts. D ____ pts. J ____ pts.

Price: $3,500 Price: $4,400 Price: $5,000

Feature Package: A Feature Package: C Feature Package: B

C ____ pts. W ____ pts. T ____ pts.

Price: $3,500 Price: $4,400 Price: $5,000

Feature Package: B Feature Package: A Feature Package: C

A ____ pts. G ____ pts. L ____ pts.

Price: $3,500 Price: $4,400 Price: $5,000

Feature Package: C Feature Package: B Feature Package: A

Chapter 7: Business Marketing

Feature Package Key:

A. Reduction/Enlargement, 11  17 oversized documents, toner flow control

B. Package A features plus automatic document feeder, oversized paper tray.

C. Package B features plus document sorter, automatic two-sided copying.

Buying Decision for Painted Sheet Metal

Decision Context: Your firm needs to consider vendors for awarding annual purchase

agreements. The contract to supply the annual requirement of painted sheet metal may be

awarded to one of several vendors described below.

L ____ pts. T ____ pts. P ____ pts.

Quality of Paint Work*:

92%

Quality of Paint Work*:

95%

Quality of Paint Work*:

99%

F ____ pts. M ____ pts. S ____ pts.

Quality of Paint Work*:

92%

Quality of Paint Work*:

95%

Quality of Paint Work*:

99%

W ____ pts. G ____ pts. B ____ pts.

Quality of Paint Work*:

92%

Quality of Paint Work*:

95%

Quality of Paint Work*:

99%

* Percentage of pieces usable per truckload.

Chapter 7: Business Marketing

BUYING DECISION FOR AN INDUSTRIAL BOILER SYSTEM

Decision Context: Your company needs a boiler system for a new office building. Evaluate the

alternatives in terms of making recommendations to senior management about which vendor(s)

would best meet your company’s needs.

G ____ pts. T ____ pts. P ____ pts.

Pollution Control (% Sulfur

retained):

Pollution Control (% Sulfur

retained):

Pollution Control (% Sulfur

retained):

R ____ pts. J ____ pts. F ____ pts.

Pollution Control (% Sulfur

retained):

Pollution Control (% Sulfur

retained):

Pollution Control (% Sulfur

retained):

B ____ pts. M ____ pts. W ____ pts.

Pollution Control (% Sulfur

retained):

Pollution Control (%Sulfur

retained):

Pollution Control (%Sulfur

retained):

Richard Turshen, Pace University

Business Document versus Academic Treatise

The Dilemma: In order to demonstrate their knowledge of marketing principles on two learning

Chapter 7: Business Marketing

The Solution: In order to separate the two distinct requirements, a supplemental reporting

component is added to the assignment; in effect, the plan is subdivided into two sections.

1. A “B” section provides the practical business document that explicitly presents the “what

2. An “A” section provides the complementary theoretical academic manual that essentially

Summary: The following comparative summary is supplied to the students:

Business Subdivision

(Marketing Plan) vs. Academic Subdivision

(Explanatory Manual)

Business presentation for your boss vs. Academic presentation for your professor

Conclusion: The tested technique of subdivision avoids the muddled mix of applied strategic

marketing decision making and the corresponding theoretical supporting rationale in a single

Shirine Mafi, Otterbein College

Researching a Corporation

Students are divided into teams of three to five members. Each team works together throughout

Chapter 7: Business Marketing

Project Assignment I

Through a 10- to 12-page paper, students become familiar with the company and the

Project Assignment II

Based upon the findings of the marketing opportunity analysis, teams recommend one of the

options given below and produce a marketing plan accordingly.

A new marketing mix targeted to a new market

Each team will produce a marketing plan that includes the options given below.

Customer and competitive situation analysis

Group Presentation: Each team presents its project to the class. All members participate

Group Competition: In addition to the instructor’s evaluation, class members vote for the best