MKTG 336 Exam 1 - FLASHCARDS - Chapter 1 (1)

Question 1

According to the book who is the most important commercial customer?

Answer 1

Manufacturers

Question 2

According to the book who is the most important overall customer by purchases?

Answer 2

The government

Question 3

Who serves the largest market of all?

Answer 3

Business marketers

Question 4

True or false: the dollar volume of the business market greatly exceeds the consumer market?

Answer 4

TRUE

Question 5

What is the main difference between business markets and consumer goods markets?

Answer 5

Their audience. Consumer goods are marketed directly to individual consumers for personal use, while business marketing targets other companies or organizations to purchase products for their operations.

Question 6

True or false: business markets and consumer goods markets are similar as both utilize similar marketing principles like market research, product development, pricing strategies, distribution channels, and promotional activities?

Answer 6

TRUE

Question 7

True or false: business marketers serve fewer but larger customers than consumer-products marketers?

Answer 7

TRUE

Question 8

True or false: business market and consumer goods markets are market-driven?

Answer 8

TRUE

Question 9

What are markets for products and services, local to international, bought by businesses, government bodies, and institutions?

Answer 9

Business markets

Question 10

What factors distinguish business marketing from consumer marketing?

Answer 10

The nature of the customer and how that customer uses the product.

Question 11

True or false: Commercial enterprises buy industrial goods to form or facilitate the production process or use as components for other goods and services?

Answer 11

TRUE

Question 12

True or false: Government agencies and private institutions buy industrial goods to maintain and deliver services to their own market: the public?

Answer 12

TRUE

Question 13

What are types of commercial customers?

Answer 13

Manufacturers, construction companies, service firms, transportation companies, selected professional groups (for example, dentists), and resellers (wholesalers and retailers purchasing equipment and supplies to use in their operations).

Question 14

What category of commercial customers buys industrial products or services to produce other goods or services that are, in turn, sold in the business or consumer markets?

Answer 14

Users

Question 15

What category of commercial customers purchase industrial goods to incorporate into other products it sells in the business or ultimate consumer market?

Answer 15

Original Equipment Manufacturers (OEMs)

Question 16

What category of commercial customers accumulates, stores, and sells a large assortment of goods to industrial users, assuming title to the goods it purchases?

Answer 16

Distributors

Question 17

What is the most important commercial enterprise?

Answer 17

Manufacturers

Question 18

True or false: institutional customers are similar to governments?

Answer 18

TRUE

Question 19

True or false: Some institutions are administered by government units while some are privately operated and managed?

Answer 19

TRUE

Question 20

What generates the greatest volume of purchases of any customer category in the U.S?

Answer 20

Government units

Question 21

What are the categories of Industrial goods?

Answer 21

Entering goods, foundation goods, facilitating goods

Question 22

What are examples of entering goods?

Answer 22

Raw materials and manufactured materials and parts

Question 23

What are examples of foundation goods?

Answer 23

Installations and accessory equipment

Question 24

What are examples of facilitating goods?

Answer 24

Supplies and business services

Question 25

What are the Key Imperatives Business Marketing Managers?

Answer 25

1) Demonstrate the Value and Impact of Marketing Expenditures on Firm Value 2) Understand the Customer Decision Journey 3) Engage More Deeply with Customers and Customers’ Customers 4) Align Strategy and Sales 5) Take an Active Role in Shaping the Company’s Innovation Agenda

Question 26

What captures the particular set of benefits or value that a supplier offers to advance the performance of the customer organization?

Answer 26

Value proposition

Question 27

What is it called when customers compare value elements of a firm’s offering with those offered by the next best alternative?

Answer 27

Customer value proposition

Question 28

What are value elements with the same performance characteristics as the next best alternative as part of the value proposition?

Answer 28

Points of parity

Question 29

What are value elements that render the supplier’s offering either superior or inferior to the next best alternative as part of the value proposition?

Answer 29

Points of difference

Question 30

How are long term relationships built in the supply chain?

Answer 30

Long-term relationships are built on trust and demonstrated performance

Question 31

True or false: strategic partnerships require open lines of communication between multiple layers of the buying and selling organizations?

Answer 31

TRUE

Question 32

True or false: B2B customers are organizations (businesses, governments, and institutions)?

Answer 32

TRUE

Question 33

True or false: B2B market transactions (dollar value) significantly exceeds the B2C market?

Answer 33

TRUE

Question 34

True or false: B2B demand is derived from B2C demand?

Answer 34

TRUE

Question 35

True or false: B2B marketing tends to rely more on one-to-one relationships compared to B2C?

Answer 35

TRUE

Question 36

True or false: B2B negotiations may be lengthy?

Answer 36

TRUE