Q&A Hero

Q: In the purchase of a new papermaking machine, what role would the firm's manufacturing superintendent assume in the buying center? a. influencer b. decider c. gatekeeper d. any or all of the above.

Q: Market share analysis is an attempt to determine why actual sales varied from planned sales.

Q: Concerning pricing and the competitive environment, which of the following statements is(are) accurate? a. Competition establishes an upper limit on price. b. Late entrants to the market often enjoy potential cost advantages over the pioneering firm. c. Competitors will be more sensitive toward price reductions that threaten market segments that they deem important. d. all of the above e. (a) and (b) only

Q: Research has isolated certain determinants of new product success in the business market. What factors are most important in determining the success of a new industrial product?

Q: Which of the following represent the three bridge elements that tie together the major components of the business model? a. Customer benefits, configuration, and company boundaries. b. Firm benefits, configuration, and functional boundaries. c. Customer benefits, configuration, and functional boundaries. d. Core strategies, strategic resources, and value networks.

Q: 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.

Q: Although the dividing line between strategy and execution is a bit fuzzy, it is often not difficult to diagnose implementation problems and to distinguish them from strategy deficiencies.

Q: Those costs, fixed or variable, that can be traced to a product, customer, or sales territory (for example, general plant overhead may be indirectly assigned to a product) are called: a. direct traceable costs. b. indirect traceable costs. c. assignable costs. d. general costs. e. administrative overhead.

Q: Successful new product creation is a collective achievement that requires the energy and commitment of multiple functions in the organization. Often, however, managers who represent different functional areas hold sharply different views concerning the course that product development should take. Discuss the source of this conflict.

Q: Common challenges for marketers using the marketing strategy center to manage across business functions include which of the following? a. The fostering of a shared appreciation of other functional units. b. Minimization of interdepartmental conflict. c. Elimination of interdependencies between functional units. d. All of the above. e. Only a and b.

Q: The composition of the buying center: a. evolves during the purchasing process. b. varies from one purchasing situation to another. c. varies from firm to firm. d. All of the above are true. e. (a) and (b) only.

Q: Sales results provide an excellent benchmark against which to measure performance.

Q: Successful pricing strategies are: a. value based. b. proactive. c. profit-driven. d. all of the above. e. only a and c.

Q: Consider this position taken by Tom Peters in Thriving on Chaos: "You must become what I call an executive champion-a nurturer, protector, facilitator, and interference runner for as many energetic champions as you can induce to sally forth." Compare and contrast induced versus autonomous strategic behavior and describe the role that the product champion assumes in new product development.

Q: The members of the organization involved in the business marketing decision-making process constitute the _____. a. marketing strategy center. b. buying center. c. value network. d. target market. e. core business.

Q: Individuals who control the flow of information into the buying center are performing the role of: a. a user. b. a gatekeeper. c. an implementer. d. a decider. e. a buyer.

Q: Warehousing costs fit into an activity-based cost system but advertising costs do not.

Q: If the business marketer's product input assumes an insignificant role in the final product's total cost, demand is likely: a. elastic. b. price sensitive. c. inelastic. d. small.

Q: 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?

Q: The role of marketing at the corporate level of strategy includes which of the following? a. Assess market attractiveness. b. Assess competitive effectiveness. c. Formulate the firm's overall value proposition. d. All of the above. e. Only a and b.

Q: Within the buying center, an individual who has formal authority for selecting a supplier and implementing all procedures connected with securing the product is performing the role of: a. a user. b. a gatekeeper. c. an implementer. d. a decider. e. a buyer.

Q: Under an activity-based cost system, managers must refrain from allocating all expenses to individual units and, instead, separate the expenses and match them to the level of activity that consumes the resources.

Q: The business marketer will find that total revenue will ____ if the price is decreased and demand is price inelastic. a. rise a little b. rise sharply c. remain the same d. fall

Q: Kathleen Eisenhardt argues that in fast-paced high-technology markets, "strategy is a video game." Strategic decision making is often described as a rational and deliberate process but, in turbulent markets, new technology and rapidly-changing customer expectations can upset the established order. Given the unstable state, describe the characteristics that separate winners and losers in high-tech markets.

Q: The three major levels of strategy include which of the following? a. Corporate strategy b. Competitive strategy c. Functional strategy d. All of the above. e. Only a and c.

Q: Within the buying center, individuals who actually make the organizational buying decision, whether or not they have formal authority to do so, are performing the role of: a. a user. b. a gatekeeper. c. an influencer. d. a decider. e. a buyer.

Q: R&D, manufacturing, technical service, and other business functions play fundamental roles in the development and implementation of business marketing strategy.

Q: The price elasticity of demand: a. is not the same at all prices. b. varies by industrial market segment. c. is relatively easy to measure in the industrial market. d. all of the above e. (a) and (b) only

Q: New-product-development efforts for existing businesses or market-development projects for the firm's present products are the outgrowth of____________________strategic initiatives.

Q: _____ are the methodologies and routines companies use to transform competencies, assets, and other inputs in to value for customers. a. Core competencies b. Core strategies c. Core processes d. Value networks e. Customer interfaces

Q: The environmental forces that influence organizational buying behavior include: a. economic factors. b. political and legal factors. c. technological factors. d. all of the above. e. (a) and (b) only.

Q: Expense-to-sales ratios provide one measure of the efficiency of marketing operations.

Q: From an organizational buyer's perspective, the cost of an industrial good: a. is equal to the seller's price. b. is equal to the seller's price plus order processing costs. c. includes not only the seller's price, but also transportation, installation, order handling, and inventory carrying costs. d. includes the seller's price adjusted for quantity discounts that may be received in the future.

Q: New products developed and designed to meet foreign requirements and targeted at world or nearest-neighbor export markets is enhanced by firms holding an____________________orientation.

Q: _____ are the most tangible requirements for advantage that enable a firm to exercise its capabilities. a. Core competencies b. Strategic assets c. Core processes d. Core strategies e. Customer interfaces

Q: Jim Parker, Purchasing Manager for the Boston Motor Works, is involved in many organizational buying decisions each year. The forces that influence Jim's organizational buying decisions might be broadly classified as: a. economic, organizational, group, and legal. b. group, environmental, individual, and organizational. c. organizational, cultural, environmental, and economic. d. legal, political, organizational, and group. e. organizational, domestic, legal, and international.

Q: The central focus of a marketing audit is on the firm's cost accounting system.

Q: The implementation of supply chain management (SCM) by business marketers requires strong relationships, shared information, common goals aligned with common strategies, and integration between functions and across firms. What are some possible barriers or challenges to successfully implementing SCM given these and other requirements?

Q: Marketing____________________ is the fit between the needs of the project and the firm's resources and skills in marketing.

Q: _____ are the set of skills, systems, and technologies a company uses to create uniquely high value for customers. a. Strategic assets b. Core competencies c. Core processes d. Core strategies e. Customer interfaces

Q: Strategies that would be appropriate for an "out" supplier to follow in dealing with a well-satisfied customer in a straight rebuy situation include: a. attempting to gain a position on the organization's preferred list of suppliers. b. demonstrating to the organization that the potential benefits of reexamining requirements and suppliers exceed the costs of doing so. c. convincing organizational buyers that their purchasing requirements have changed or that the requirements should be interpreted differently. d. all of the above e. (b) and (c) only

Q: One component of the balanced scorecard centers on customer satisfaction while another centers on employee satisfaction.

Q: What is the total-cost approach to developing a logistical system? Explain what variables should be considered when designing and administering a logistical system aimed at utilizing the total-cost approach.

Q: A small number of highly influential and high-volume buying organizations that are consistent early adopters of new technologies that deserve special attention are known as ____________________.

Q: Techniques for differentiating products and services include which of the following? a. Superior service or technical assistance. b. Superior quality. c. Lowest price among competitors. d. All of the above. e. Only a and b.

Q: Strategies that would be appropriate for an "out" supplier to follow when confronting a modified rebuy situation include: a. offering performance guarantees. b. encouraging the organization to sample the firm's offering. c. defining and responding to the organization's problem with the existing supplier. d. all of the above e. (b) and (c) only

Q: The balanced scorecard attempts to keep the sales of a business unit in balance with profit growth.

Q: Since purchasing managers are evaluated and rewarded on the basis of cost savings generated, why are they often willing to overlook the low-price supplier in favor of a higher-priced supplier that offers superior logistical service? Can they justify this on a cost basis?

Q: Disruptive strategies can take two forms: ____________________ disruptions and ____________________.

Q: The element of customer interface that refers to the knowledge captured from customers and the degree to which this information is used to provide enhanced value to the customer is: a. fulfillment and support. b. information and insight. c. relationship dynamics. d. pricing structure.

Q: Upon meeting with a General Electric buyer, a salesperson learned that the G.E. purchasing function is unhappy with the supplier's performance and is openly considering new options. This provides an illustration of: a. a new task buying situation. b. a straight rebuy. c. a modified rebuy. d. extended problem solving. e. value analysis.

Q: The primary responsibility for strategic control typically lies with: a. top management. b. middle management. c. salespeople. d. buying organizations. e. front-line employees.

Q: Rather than waiting for customers in the business market to demand just-in-time (JIT) service, explain how a business marketer could proactively seek out opportunities to assist customers using JIT inventory management as a marketing strategy. To implement such a strategy, what adjustments would be required in the logistical system?

Q: Compared with induced strategic behavior, autonomous or____________________initiatives are more likely to involve a communication process that departs from the regular work flow and the hierarchical decision-making channels.

Q: The element of customer interface that refers to the channels a business marketing firm uses to reach customers and the level of service it provides is: a. fulfillment and support. b. information and insight. c. relationship dynamics. d. pricing structure.

Q: The simple modified rebuy: a. involves a narrow set of choice alternatives. b. centers on a product of minor importance to the firm. c. encompasses little or no information search or analysis. d. all of the above. e. (b) and (c) only.

Q: The ____ of the Balanced Scorecard describes the expected outcomes of strategy, such as revenue growth or productivity improvements. a. financial perspective b. customer perspective c. internal perspective d. learning and growth perspective

Q: The Ford Motor Company's electronic components plant in Lansdale, Pennsylvania produces 124,000 engine controllers, anti-lock brake sensors, and speed-control units a day. Since each product has 400 to 500 parts, managers have to keep track of more than five million individual pieces daily. Lean inventories and quick production changeovers require dependable suppliers. To maintain tight control, Ford issues a monthly report card to suppliers listing quality rejects, conformance with schedule, and overshipments. In the words of the plant manager, "this puts our relationship with them on an objective basis." Describe the particular logistical capabilities that a business marketer must possess to successfully meet the requirements of this highly sophisticated Ford plant. Explore other elements of the business marketing strategy that may be crucial in initiating and sustaining a profitable relationship with this customer.

Q: 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____________________.

Q: Responsibility charting constitutes an approach that can be used to classify decision-making roles and to highlight the multifunctional nature of business marketing decision-making. A manager who is told of the decision when it is made, but may not have been consulted before the decision was approved is performing which of the following roles? a. responsible b. approve c. consult d. implement e. inform

Q: Those buying decisions that involve a narrow set of choice alternatives, encompass a moderate amount of both information search and analysis, and concentrate on the long-term relationship potential of suppliers are called: a. simple modified rebuy. b. complex modified rebuy. c. casual purchases. d. routine low priority purchases. e. specialty purchases.

Q: To be successful, successful business marketing managers: a. must assume an active role in the marketing strategy center. b. must negotiate with other functions. c. must get advanced secondary education. d. All of the above. e. Only (a) and (b).

Q: What are the most commonly reported financial benefits that accrue to firms that excel in supply chain management?

Q: Lead user projects are conducted by cross-functional teams that include four to six managers from marketing and technical departments.

Q: Responsibility charting constitutes an approach that can be used to classify decision-making roles and to highlight the multifunctional nature of business marketing decision-making. A manager who is asked for substantive input before the decision is approved but does not possess veto power is performing which of the following roles? a. responsible b. approve c. consult d. implement e. inform

Q: In choosing a new piece of manufacturing equipment, the buying organization is uncertain of the model or brand to choose, the suitable level of quality, and the appropriate price to pay. This represents which type of buying situation? a. complex modified rebuy decision b. strategic modified rebuy decision c. judgmental new task decision d. strategic new task decision e. lost-for-good decision

Q: Research has shown that which of the following are important implementation skills for marketing managers? a. Organizing. b. Allocating. c. Monitoring. d. All of the above. e. Only (a) and (b).

Q: By reducing waste, compressing time, reducing unit costs, and by demonstrating a flexible response, Dell Computer achieves the four major goals of supply chain management. Briefly describe the meaning and significance of each of these goals to a firm like Dell.

Q: Research has shown that the three factors that drive a firm's new product performance are the quality of the firm's new-product-development process, the resource commitments made to new product development, and the new product strategy.

Q: Cisco and General Electric demonstrate special skills in forging relationships with suppliers and alliance partners. This is an example of: a. a value network. b. relationship dynamics c. a strategic asset. d. a market scope.

Q: Those buying decisions that are of extreme importance to the firm strategically and financially are referred to as: a. strategic new task buying decisions b. strategic modified rebuy decisions c. judgmental new task decisions d. lost-for-good decisions e. complex modified rebuy decisions

Q: The goal of _____ is to describe where the firm is making or losing money in terms of the important segments of its business. a. strategic control b. annual plan control c. efficiency and effectiveness control d. profitability control

Q: 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.

Q: Research has shown that creators of successful product portfolios do not invest in one version of the future but use several low-cost probes to create options.

Q: All of the following are components of a firm's value network except: a. suppliers. b. coalitions. c. strategic alliance partners. d. customers.

Q: Because of the technical complexity of the product, the difficulty of evaluating alternatives, or the unpredictable aspects of dealing with a new supplier, this type of buying decision involves the greatest level of uncertainty. a. complex modified rebuy decision b. strategic modified rebuy decision c. judgmental new task decision d. strategic new task decision e. lost-for-good decision

Q: Examples of product measures for efficiency and effectiveness control include which of the following? a. Sales by market segments. b. Logistics costs by logistics activity by channel. c. New accounts per time period. d. All of the above. e. Only (a) and (c).

Q: SCM requires____________________not only among departments within the organization but also with external partners.

Q: A disruptive innovation targets demanding, high-end customers with better performance than was previously available.

Q: 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.