B2b

Question 1

What three components does the business market consist of?

Answer 1

Commercial customers, Institutional customers, Governmental customers

Question 2

What is market sensing capability?

Answer 2

The capability that concerns how well the organization is equipped to continuously sense changes in its market and anticipate customer responses to marketing programs

Question 3

What does it mean that price elasticity of demand is elastic?

Answer 3

Demand is elastic when a given percentage change in price brings about an even larger percentage change in the quantity demanded

Question 4

What does it mean that price elasticity of demand is inelastic?

Answer 4

Demand is inelastic when a given percentage change in price brings about a smaller percentage change in the quantity demanded

Question 5

How do you determine what suppliers fall within the business marketing domain?

Answer 5

Both buyer and seller are businesses (business buying from another business)

Question 6

What does it mean to be a user vs. an original equipment manufacturer (OEM)?

Answer 6

Users purchase industrial products to produce other goods; OEM purchases industrial goods to incorporate into other products

Question 7

What is derived demand?

Answer 7

Refers to the direct link between the demand for an industrial product and the demand for consumer products

Question 8

What is the difference between an installation and accessory equipment?

Answer 8

Installations are major long-term investment items; accessory equipment is generally less expensive and short-lived

Question 9

What are component parts?

Answer 9

They can be installed directly into another product with little or no additional processing

Question 10

What factors distinguish business marketing from consumer marketing?

Answer 10

Intended use of product and intended consumer

Question 11

What does it mean to be market driven?

Answer 11

Matching resources, skills, and capabilities to customer needs that are currently not being served adequately

Question 12

What are examples of new task, modified rebuy, and straight rebuy?

Answer 12

New task: totally different problem; Straight rebuy: continuing requirement; Modified rebuy: re-evaluating alternatives

Question 13

What could an out-supplier do in a modified rebuy situation?

Answer 13

Hold the organization in modified rebuy status, offer performance guarantees

Question 14

What could an in-supplier do in a modified rebuy situation?

Answer 14

Understand needs, move to straight rebuy, remedy customer problems

Question 15

What are environmental forces that influence organizational buying behavior?

Answer 15

Economic outlook, technological change, global trade relations

Question 16

What are the roles in the buying center?

Answer 16

• Users
• Gatekeepers
• Influencers
• Deciders
• Buyer

Question 17

What is a reverse auction?

Answer 17

Process where one buyer invites bids from several prequalified suppliers in a competitive bidding process

Question 18

What are the main elements of Total Cost of Ownership?

Answer 18

Considers the full range of costs associated with the purchase and use of a product over its complete life cycle

Question 19

What are examples of situations that trigger an organizational buying process to start?

Answer 19

• Need for equipment
• Unhappy with current supplier
• Sales presentation
• Advertising

Question 20

What problem solving approach is typically used in a new task buying decision?

Answer 20

Extensive problem-solving

Question 21

What problem solving approach is typically used in a modified rebuy decision?

Answer 21

Limited problem-solving

Question 22

What is the focus in a transactional exchange?

Answer 22

Focuses on the timely exchange of basic products for highly competitive market prices

Question 23

What are operational linkages?

Answer 23

Reflect how much the systems, procedures, and routines of the buying and selling firms have been connected

Question 24

In what situations would buying firms prefer transactional relationships?

Answer 24

When supply market features many alternatives and the purchase decision is not complex

Question 25

In what situations would buying firms prefer more collaborative relationships?

Answer 25

When alternatives are few and the market is dynamic

Question 26

What is the industry bandwidth?

Answer 26

The range of strategies competing firms pursue from transactional to collaborative relationships

Question 27

What is relationship marketing?

Answer 27

Centers on all activities directed toward establishing, developing, and maintaining successful exchanges

Question 28

What are the two types of switching costs when considering switching suppliers?

Answer 28

* Investment * Risk of exposure

Question 29

What are goals of CRM?

Answer 29

* Achieving continuing dialogue with customers * Personalized treatment of valuable customers * Ensuring customer retention * Effectiveness of marketing initiatives

Question 30

What is Activity Based Costing?

Answer 30

Illuminates activities associated with serving a customer and links transaction data with financial information

Question 31

What is a value proposition?

Answer 31

Represents the products, services, ideas, and solutions that advance customer performance goals

Question 32

What are macro bases of segmentation?

Answer 32

* Characteristics of buying organization * Product/service application * Characteristics of purchasing situation

Question 33

What are micro bases of segmentation?

Answer 33

* Criteria important for purchase decision * Purchasing strategies * Structure of decision-making unit * Importance of purchase * Organizational innovativeness * Personal characteristics

Question 34

What does the type of buying situation mean in macro level segmentation?

Answer 34

New task, modified rebuy, and straight rebuy

Question 35

What are personal characteristics used in micro level segmentation?

Answer 35

* Demographics * Decision style * Risk * Confidence * Job responsibility

Question 36

What are qualitative techniques used to forecast sales?

Answer 36

* Executive judgment * Sales force composite * Delphi method

Question 37

When is the Delphi method of forecasting appropriate to use?

Answer 37

Long term forecasting for new products or situations not suited to quantitative analysis

Question 38

What is time series analysis?

Answer 38

Uses historical data ordered chronologically to project sales trends

Question 39

What are causal models?

Answer 39

Identifies factors that have affected past sales and implements them in a mathematical model

Question 40

Explain the different elements of time series analysis.

Answer 40

* Trend * Cycle * Seasonal * Irregular

Question 41

What does the Value in use segmentation criteria focus on?

Answer 41

The product’s economic value to the user relative to a specific alternative

Question 42

What do corporate, business unit, and functional strategies focus on?

Answer 42

* Corporate: overall scope and direction of a firm * Business unit: how a firm competes in a given industry * Functional: efficient resource allocation to support business-level strategy

Question 43

What is a business unit?

Answer 43

A single business or collection of businesses with a distinct mission and responsible manager

Question 44

Explain the different roles in business marketing decision making.

Answer 44

* Responsible * Approve * Consult * Implement * Inform

Question 45

What are the components of a business concept or model?

Answer 45

* Customer interface * Core strategy * Strategic resources * Value network

Question 46

What are elements of the customer interphase?

Answer 46

* Fulfillment and support * Information and insight * Relationship dynamics * Pricing structure

Question 47

What are components of the firm’s value network?

Answer 47

* Suppliers * Strategic alliance partners * Coalitions

Question 48

What is a balanced scorecard?

Answer 48

Provides managers with a comprehensive system for converting a company’s vision and strategy into performance measures

Question 49

What are forms of differentiation used by B2B marketers when developing the value proposition?

Answer 49

* Low total cost * Product innovation and leadership * Complete customer solutions * Lock-in

Question 50

What is a strategy map?

Answer 50

Provides a visual representation of the cause-and-effect relationships among the components of the balanced scorecard

Question 51

What elements do you find under the Customer Perspective in the Balanced Score Card?

Answer 51

* Market share * Customer acquisition * Customer retention * Customer satisfaction * Customer profitability