Question 1

The cost of raw materials such as sheet steel is treated as:

Accepted Answer

Raw materials like sheet steel are considered expense items that are directly assigned to the manufacturing process as part of the cost of goods sold.

Question 2

Acco Brands (formerly Mead Paper Company) recently purchased a new high-speed paper machine for one of their plants. The new machine is used in manufacturing a special grade of paper at a rate of over 1500 feet per minute. This product would be classified as:

Accepted Answer

The answer of Acco Brands (formerly Mead Paper Company) recently...

Question 3

Companies can demonstrate market-sensing and customer-linking capabilities by:

Accepted Answer

Companies can demonstrate market-sensing and customer-linking capabilities through a combination of activities, including sharing product movement information, jointly planning promotional activities, and jointly planning product changes with other channel members.

Question 4

A business marketer becomes a preferred supplier to major customers by:

Accepted Answer

A business marketer becomes a preferred supplier by both understanding the customer's operations intimately and providing unique value, which helps in tailoring solutions that meet specific customer needs effectively.

Question 5

Marketers who want to serve both consumer and business market sectors should:

Accepted Answer

Marketers need to develop a market-oriented plan, understand customers, and satisfy them to effectively serve both consumer and business markets.

Question 6

Some industrial products have been processed before reaching the industrial customer, but are processed further by this customer before becoming part of the finished product that you buy. These items are called:

Accepted Answer

Component materials are industrial products that have been processed but require further processing by the industrial customer before they become part of the finished product.

Question 7

When purchasing microprocessors from Intel Corporation to be incorporated into Dell's line of personal computers, IBM would be classified as:

Accepted Answer

IBM would be classified as an original equipment manufacturer (OEM) because they incorporate Intel's microprocessors into their own products, such as personal computers.

Question 8

With little or no additional processing, ____ can be installed directly into another product.

Accepted Answer

Component parts can be installed directly into another product with little or no additional processing, as they are often designed to fit into a larger assembly.

Question 9

When AK Steel (formerly Armco Steel) realizes a drop in the demand for steel as a result of a decline in ultimate consumer demand for automobiles, this illustrates the concept of:

Accepted Answer

Derived demand refers to the demand for a good or service that results from the demand for another good or service. In this case, the demand for steel is derived from the demand for automobiles.

Question 10

Which of the following is(are) characteristic of the marketing strategy that would be appropriate for a firm like Otis Elevator, which sells installations in the business market?

Accepted Answer

For a firm like Otis Elevator, personal selling is crucial due to the complex and high-value nature of installations, and trade advertising and direct-mail advertising support this by reinforcing the sales message.

Question 11

When purchasing manufacturing equipment from General Electric, Chrysler would be classified as:

Accepted Answer

Chrysler is the end user of the manufacturing equipment purchased from General Electric.

Question 12

Bond Office Products manufactures a diverse array of office supplies and serves the business market. Which of the following characteristics is (are) associated with the marketing strategy for this category of goods?

Accepted Answer

The marketing strategy for office supplies typically involves less emphasis on personal selling due to lower unit value, a need for diverse distribution channels to reach a broad market, and a focus on price competitiveness due to the undifferentiated nature of many products.

Question 13

Business marketing strategy must be based on an assessment of the:

Accepted Answer

A comprehensive business marketing strategy should consider the customer, competitor, and company to effectively position itself in the market.

Question 14

When companies want to sell products to consumer and business markets, they have to:

Accepted Answer

Companies need to reorient their business strategies to effectively address the different needs and characteristics of consumer and business markets.

Question 15

The method of classifying industrial goods into meaningful categories in the business market centers on this question:

Accepted Answer

The classification of industrial goods is based on how they enter the production process and affect the cost structure, as this determines their role and importance in the business market.

Question 16

The buying motives for major installations center on:

Accepted Answer

Major installations are typically significant investments, so the buying motives often involve a blend of rational factors, such as cost and efficiency, and emotional factors, such as brand reputation and perceived value.

Question 17

Industrial products and services can be broadly classified as:

Accepted Answer

Industrial products and services are typically classified into entering goods, foundation goods, and facilitating goods. Entering goods are raw materials and components that are incorporated into the final product. Foundation goods are capital items that aid in the production process, such as machinery. Facilitating goods are services and supplies that assist in the production process but do not become part of the final product.

Question 18

The distinguishing characteristic(s) of foundation goods is(are) that they:

Accepted Answer

Foundation goods are capital items used in the production process but do not become part of the finished product.

Question 19

Functional areas other than marketing directly or indirectly affect which of the following ?

Accepted Answer

Functional areas such as finance, operations, and human resources can influence all aspects of marketing decisions, including product, price, promotion, and distribution.

Question 20

Which type of goods are treated as an expense item because they do not enter the production process or become part of the finished product?

Accepted Answer

Facilitating goods are treated as an expense item because they do not enter the production process or become part of the finished product; they assist in the production process.

Quiz 1: A Business Marketing Perspective