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Marketing
Q:
For most business marketers, the amount of the promotional budget spent on personal selling far exceeds expenditures on advertising. In addition, it is nearly impossible to evaluate the impact of advertising on industrial sales. Given this situation, should business marketers advertise, and how can they justify advertising if they cannot measure its impact on sales?
Q:
Indirect distribution is appropriate when control of the selling job is necessary to ensure proper implementation of the total product package and to guarantee a quick response to market conditions.
Q:
Among technology adopters, these customers have access to organizational resources and can assume an influential role in giving an innovation a boost during the early stages of market development. However, these customers frequently demand modifications to the product that are difficult for the innovator to provide. This describes:
a. technology enthusiasts.
b. visionaries.
c. skeptics.
d. pragmatists.
e. product champions.
Q:
All of the following are potential micro bases of business market segmentation except:
a. organizational innovativeness.
b. importance of purchase.
c. personal characteristics.
d. structure of decision-making unit.
e. type of buying situation.
Q:
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.
Q:
A business marketer that serves many different market segments would likely use a direct channel.
Q:
Among technology adopters, these customers serve as a gatekeeper to the rest of the technology life cycle and their endorsement is needed for an innovation to get a fair hearing in the organization. However, they do not have access to the resources needed to move an organization toward a large-scale commitment to the new technology. This describes:
a. technology enthusiasts.
b. visionaries.
c. skeptics.
d. pragmatists.
e. product champions.
Q:
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.
Q:
The number of sales leads obtained at a trade show divided by the total number of show visitors with definite plans to buy the exhibitor's product or one similar to it describes the concept of____________________.
Q:
By retaining title to the goods, the business marketer has a higher level of channel control in a rep channel as opposed to a distributor channel.
Q:
NCR offers a set of basic equipment items to retailers that includes numerous accessories and options. The retailer can begin with a simple cash register or checkstand system and later add inventory control systems for the store and ultimately a computer that ties multiple stores in a chain together. This provides an example of:
a. proprietary products.
b. specialty products.
c. custom-built products.
d. custom-designed products.
e. catalog products.
Q:
The microsegmentation of business markets center on characteristics of:
a. buying organizations (e.g., the size).
b. the product application (e.g., end market served).
c. decision-making units (e.g., decision style).
d. the purchasing situation (e.g., types of buying situation).
e. geographic regions (e.g., Midwest).
Q:
Many trade publications are____________________publications, meaning that they offer free subscriptions to selected readers.
Q:
The compensation provided to middlemen should be based on loyalty, length of service, and past years' sales performance.
Q:
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.
Q:
Bases of business or organizational market segmentation that focus on the characteristics of decision-making units are broadly classified as:
a. macrosegmentation.
b. microsegmentation.
c. economic bases.
d. demographic bases.
e. coverage bases.
Q:
The objective-task method for budgeting ad expenditures consists of evaluating the tasks advertising will perform, analyzing the costs, and summing up the____________________to arrive at a final budget.
Q:
There are many situations in business marketing where a direct channel of distribution is not feasible.
Q:
Consider this dilemma: A product manager finds that organizational buyers view a particular product attribute as being both important and differentiating; unfortunately, the firm's brand is viewed as being inferior to competing brands on this attribute. In this situation, an appropriate generic strategy for the product manager to follow would be to:
a. increase the importance of the attribute to customers.
b. increase the difference between the competition and the firm's brand.
c. convert this determinant attribute into a non-determinant one.
d. all of the above
e. (a) and (b)
Q:
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.
Q:
The____________________statement provides guidelines for the company and advertising agency on how to position the product in the marketplace.
Q:
When a manufacturer sells through hundreds of distributors across the U.S., reps may sell and service the distributors.
Q:
If organizational buyers view a particular attribute as being neither important nor differentiating, an appropriate generic strategy for a product manager to follow would be to:
a. increase the importance of the attribute to customers.
b. increase the difference between the competition and the firm's brand.
c. convert this determinant attribute into a non-determinant one.
d. all of the above
e. (a) and (b)
Q:
The business market can be segmented on several bases. Macro bases of segmentation center on:
a. characteristics of the buying situation.
b. characteristics of the buying organization.
c. the nature of the product application.
d. all of the above
e. both (a) and (c)
Q:
The initial stage of developing the business-to-business advertising program entails setting____________________and defining the____________________.
Q:
Manufacturers' representatives sell noncompeting but complementary products.
Q:
St. Louis Capital Equipment Company found that organizational buyers view reliability as being important in the purchase of a machine tool. In turn, research indicates that a new model recently introduced by the firm is viewed by organizational buyers as being superior to competing brands on the reliability dimension. Thus, reliability would be classified as a _____ attribute.
a. primary
b. star
c. dominant
d. determinant
e. focal
Q:
The business market can be segmented on several bases, broadly classified into two major categories:
a. economic and demographic.
b. macro and micro.
c. top-down and bottom-up.
d. concentration and coverage.
e. organizational and end-use application.
Q:
The communications process attempts to take potential buyers sequentially from unawareness of a product to____________________, to brand preference, to conviction that a particular purchase will fulfill their requirements, and ultimately to____________________.
Q:
A source of conflict between business marketers and their manufacturers' representatives centers on the size of inventory levels reps maintain.
Q:
Because organizational buyers perceive products as bundles of attributes, the product strategist should examine the attributes that assume a central role in buying decisions. Attributes that are both important and differentiating are called:
a. primary attributes.
b. star attributes.
c. determinant attributes.
d. quality attributes.
e. dominant attributes.
Q:
Which of the following statements concerning business market segmentation is(are) false?
a. In selecting a market segment, the business marketer is also choosing a competitive environment.
b. The cost of research increases if a microlevel of segmentation is required.
c. Compared to their consumer goods counterparts, business marketers can more readily change segmentation strategies, shifting attention from one segment to another.
d. both (a) and (c)
Q:
Recent research indicates that follow-up sales efforts generate higher sales productivity when customers have already seen a company's products at a trade show.
Q:
A business marketer that uses industrial distributors will usually, as a matter of policy, not utilize any manufacturers' representatives.
Q:
All of the following are dimensions relevant to the definition of a product-market except:
a. customer function.
b. technological.
c. customer segment.
d. physical distribution system.
e. value-added system.
Q:
Market segmentation is:
a. more useful to consumer goods marketers than to business marketers.
b. of little value to business marketers that concentrate on the governmental and institutional sectors of the organizational market.
c. difficult to apply in the business market because groups, not individuals, make many purchasing decisions.
d. a useful tool for both business and consumer goods marketers.
e. inappropriate for low market share firms.
Q:
The five primary areas for evaluating advertising are profits generated, markets, motives, messages, and results.
Q:
The industrial distributor takes title to the products sold but rarely maintains an inventory.
Q:
Which of the following dimensions of a product market definition is(are) relevant?
a. the alternative technologies available to satisfy a particular need (technology dimension)
b. the sequence of stages along which competitors serving the market can operate (value-added system dimension)
c. the customer groups that have needs that must be served (customer segment dimension)
d. all of the above
e. (a) and (c) only
Q:
Which of the following statements concerning business market segmentation is(are) true?
a. The decision to enter a particular market segment carries with it significant long-term resource commitments for the industrial firm.
b. In evaluating alternative bases for segmentation, the marketer is attempting to identify good predictors of differences in buyer behavior.
c. Segmentation decisions can be reversed more easily in the business market than in the consumer market.
d. all of the above
e. (a) and (b) only
Q:
The rules of thumb approach to setting advertising budgets is not always effective, but it is commonly used because it is easy to implement and managers are familiar with it.
Q:
Industrial distributors are generally large business firms that cover broad geographical markets.
Q:
_____ represents the place that a product occupies in a particular market; it is found by measuring organizational buyers' perceptions and preferences for a product in relation to its competitors.
a. Product positioning
b. Product anchor
c. Product determinacy
d. Product segment
e. Product attribute
Q:
Concerning segmentation criteria, _____ refers to the degree to which information on the particular buyer characteristic exists or can be obtained.
a. measurability
b. accessibility
c. substantiality
d. responsiveness
e. enforceability
Q:
For many purchasing decisions, advertising alone cannot create product preference.
Q:
Selecting the best channel of distribution to accomplish objectives can be difficult because:
a. the alternatives are so numerous.
b. marketing goals differ.
c. separate channels must often be used concurrently.
d. All of the above.
e. Only a and b.
Q:
A lathe manufacturer that offers a line of products in different sizes, with a range of options (such as different motor sizes) and accessories for different applications is a producer of:
a. custom-designed items.
b. services.
c. catalog items.
d. custom-built items.
e. proprietary items.
Q:
Please identify the three main components of a strong customer-relating capability and how each component helps develop a strong customer-relating capability. How does customer-relating capability lead to a relationship advantage?
Q:
The Internet is more than just an advertising medium for business marketers because it can also help them create value for customers by customizing messages and helping customers search for products.
Q:
When motivating channel members, the primary motivating device tends to be:
a. dealer advisory councils.
b. trust.
c. compensation.
d. strong relationships.
e. training.
Q:
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.
Q:
Large firms tend to make up the majority of the most profitable customers AND of the least profitable customers. What are some of the characteristics that define both high-cost-to-serve and low-cost-to-serve customers? What can business marketers do to manage high and low cost-to-serve customers?
Q:
Even though a publication has a high cost-per-thousand basis, it may in fact be a cost-effective alternative due to a low rate of wasted circulation.
Q:
Channel length decreases:
a. when the purchase becomes more significant.
b. when market or industry concentration increases.
c. when customer potential increases.
d. All of the above.
e. Only a and b.
Q:
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.
Q:
As software manufacturers and consulting organizations diffuse best practices, and the relevant CRM software becomes widely available and economical to use, all competitors will be equally equipped. However, when compared to rivals, some firms will be rewarded by customers with higher rates of customer loyalty and lower rates of defection while others will continue to stumble. In the end, to excel at customer relationship management, a firm requires a customer-relating capability. Describe the central elements of a customer-relating capability and how it can provide a firm with a strong advantage over competitors.
Q:
Vertical publications are directed at a specific task, technology, or function whatever the industry.
Q:
_____ is the dynamic process of developing new channels where none existed and modifying existing channels.
a. Channel structure
b. Channel design
c. Channel choice
d. Channel partnering
e. Supply chain management
Q:
Industrial product lines that are created to meet the needs of one or a small group of customers are defined as:
a. custom-built items.
b. catalog items.
c. proprietary items.
d. custom-designed items.
e. component items.
Q:
Gartner Group, a research firm for information technology users, reports that 55 percent of all customer relationship management software projects fail to produce results. Worse yet, one in every five companies report that their CRM initiatives not only had failed to deliver profitable growth but also had damaged long-standing customer relationships. Experts suggest that these problems tend to occur when executives mistake CRM technology for a customer strategy. First, define customer relationship management (the cross-functional process) and describe how CRM technology (the software) allows a firm to provide customized treatment of key customers. Second, describe the central components of a customer relationship management strategy and the way in which CRM technology can support each strategy component.
Q:
Lead efficiency is defined as the number of sales leads obtained at the show divided by the total number of show visitors with definite plans to buy the exhibitor's product or one similar to it.
Q:
Manufacturers' representatives are used:
a. by smaller firms that cannot afford their own sales force.
b. when a manufacturer's market potential is limited.
c. to help reduce overhead costs.
d. All of the above.
e. Only a and c.
Q:
Options for entry into foreign markets range from exporting to global strategies. Explain how commitment, complexity, risk, and control changes as firms move across the spectrum of involvement in international marketing. What factors should firms consider when choosing entry modes?
Q:
Some customers place a high value on supporting services (for example, technical advice and training) and are willing to pay a premium price for this support. Other customers do not value service support and are extremely price sensitive in making product selection decisions. Describe how a business marketer might profitably serve each of these customer segments.
Q:
If a business marketer's product has applications only within a few industries, horizontal publications are a logical choice.
Q:
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
Q:
Rapidly developing economies (RDEs) are having a significant impact on the global economy, both as attractive new markets but also as new competitors for firms in highly developed economies. Explain the three forms of competitive advantage that firms can achieve by moving operations to and marketing in RDEs. What products or services make the most sense to relocate to RDEs?
Q:
To optimize the purchasing strategy, buying firms across industries are beginning to segment the supply base: buyers seek a close relationship for strategic purchases and employ a more distant arm's-length approach in procuring non-strategic items. Describe the resulting implications for firms that are evaluating potential customers to target with relationship marketing strategies.
Q:
Circulation is the most important criterion in the selection of publications.
Q:
Responsibilities for distributors include:
a. making products available.
b. repair.
c. providing service and technical advice.
d. All of the above.
e. Only a and b.
Q:
While the location of the corporate headquarters is less important and may reflect historical factors, a firm must develop a clear home base for competing in each of its strategically distinct businesses. What role does a home base assume in forming a global strategy and what factors should be considered in choosing a location? Under what conditions might a firm create a home base for a different product line in another country?
Q:
Rather than adopting the approach of "one design fits all," the astute marketer matches the strategy to the product and market conditions that surround a particular account. Describe the product and market conditions that support a collaborative relationship? a transactional relationship?
Q:
Although certain mechanical aspects help create awareness and interest in the advertisement, its ultimate success will depend on how well the message is targeted to the benefits sought by the buying influential.
Q:
_____ are generally small, independent businesses serving narrow geographic markets.
a. Distributors
b. Channel partners
c. Manufacturers' representatives
d. Broker houses
e. Field offices
Q:
Rather than modifying the firm's product and service offerings from country to country, a global strategy requires a patient, long-term campaign to enter every significant foreign market while maintaining and leveraging the company's unique strategic positioning. Agree or disagree? Support your position.
Q:
Xerox serves a diverse set of customers in the business market. Customer group A demands a wide variety of services in addition to a perfectly functioning copier. These customers value the relationship with Xerox and are willing to pay a premium for product and service quality. Customer group B wants a quality copier but, most of all, they want a rock bottom price and choose suppliers on that basis. Customer group C demands a quality product and extensive service support but wants all of this for a "rock bottom" price. These customers will freely switch from one supplier to the next. As competition intensifies for Xerox, more customers are moving into this group each month. First, describe how Xerox might develop a portfolio of relationship strategies to meet the needs of such diverse customer groups. Second, some customers in each group are more costly to serve than others. How should such cost differences be reflected in the particular relationship strategies that Xerox follows? Third, what strategies can Xerox follow to increase the switching costs of customers in Group B or Group C?
Q:
Internet marketing costs far less than direct mail marketing.
Q:
What percentage of U.S. Gross Domestic Product is sold through indirect distribution channels?
a. 10%
b. 25%
c. 40%
d. 60%
e. 80%
Q:
Joint ventures assume a very prominent role in the global strategy of many business marketing firms like Dow Chemical and Xerox. While offering significant benefits, joint ventures often fall short of expectations or dissolve. Why?
Q:
____________________ consist of unwritten and largely nonverbalized sets of congruent expectations and assumptions held by the parties to the alliance about each other's prerogatives and obligations.