Question 1

Which of the following characteristics of business customers is true?

Accepted Answer

All of the given characteristics are true. Business customers typically make larger purchases, and demand for industrial products is often derived from demand for consumer products. Business relationships tend to be close and long-lasting, as businesses rely on each other for supplies and services.

Question 2

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

All of the given characteristics are associated with the marketing strategy for office supplies. Personal selling is less important for supplies as compared to high unit value products like installations. Office product manufacturers require a wide variety of marketing intermediaries to cover a broad and diverse market adequately. Price may also be critical in the marketing strategy as many office supply items are undifferentiated.

Question 3

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

Accepted Answer

The answer of The distinguishing characteristic(s)of foundation goods is(are)that they:
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Question 4

An implication of relationship marketing is:

Accepted Answer

Relationship marketing emphasizes on building long-term relationships with customers rather than just making a sale. This involves getting to know the customers' needs, preferences, and behavior patterns. A sale is seen as the beginning of the relationship rather than the end result. Relationship marketing aims to build one-to-one relationships with customers, which makes option E the correct answer. Option A is incorrect because sellers require an intimate knowledge of customers' operations under relationship marketing. Option D is also incorrect since only options B and C are correct, not option A.

Question 5

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 distinct needs and preferences of 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 products that have been processed and used as inputs by the industrial customer to create the finished product. They are not yet component parts, which are already assembled parts used in a larger finished product. Accessory materials and parts are typically supplementary items used in the production process, but do not necessarily become part of the final product.

Question 7

The skills required to identify,initiate,develop,and maintain profitable customer relationships describes:

Accepted Answer

Customer management relationship capabilities refer specifically to the skills required to identify, initiate, develop, and maintain profitable customer relationships. Market-sensing capabilities refer more broadly to the ability to understand and respond to changes in the market, but do not necessarily encompass relationship-building skills. Derived demand, supply chain management, and the extended enterprise are related concepts, but do not address the specific question of customer relationship management skills.

Question 8

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

Accepted Answer

Developing intimate knowledge of the customer's operations and contributing unique value to a customer's business are key strategies for becoming a preferred supplier.

Question 9

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

Accepted Answer

Component parts refer to individual pieces that make up a larger product. These parts are typically designed to be easily integrated into another product and require little or no additional processing. For example, a manufacturer may purchase pre-made circuit boards to integrate into their electronic product without requiring additional processing. Therefore, component parts are the best choice for products that can be installed directly into another product.

Question 10

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

Accepted Answer

Companies can demonstrate their market-sensing and customer-linking capabilities by sharing product movement information, jointly planning promotional activities with other channel members, and jointly planning product changes with other channel members. All three options provide opportunities for the company to gather feedback from customers, gain insights into market trends, and work collaboratively with other stakeholders to optimize product performance and customer satisfaction. Therefore, option D is the best choice.

Question 11

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 in the marketing strategy as the installations are sold in the business market. Therefore, option A is correct. Additionally, trade advertising and direct-mail advertising can support personal selling efforts, making options B and E correct. However, price is not typically the central force in the marketing strategy for a B2B firm like Otis Elevator. Therefore, option C is incorrect. Therefore, the best choice is E.

Question 12

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

Accepted Answer

Developing a market oriented organizational plan, understanding customers, and satisfying customers are all necessary for marketers to successfully serve both consumer and business markets. By implementing a market oriented plan, marketers can identify the unique needs and preferences of both markets and tailor their strategies accordingly. Understanding customers and their behaviors in each market can also help marketers create more effective marketing campaigns and product offerings. Additionally, satisfying customers by delivering high-quality products and excellent customer service is key to building loyalty and gaining repeat business in both markets.

Question 13

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

Accepted Answer

A successful business marketing strategy must take into account all three important factors, i.e., the customer, competitor, and company. A comprehensive assessment of these factors enables a business to identify and analyze its strengths, weaknesses, opportunities, and threats (SWOT analysis) and then tailor its marketing strategy accordingly to achieve its business objectives. Therefore, the best choice is D, which includes all of the above factors in the answer.

Question 14

Industrial products and services can be broadly classified as:

Accepted Answer

The answer of Industrial products and services can be broadly...

Question 15

The factors that distinguish business marketing from consumer marketing include:

Accepted Answer

Business marketing and consumer marketing differ in terms of the intended use of the product and the nature of the customer. In business marketing, the products are designed for use by other businesses or organizations, while in consumer marketing, the products are for individual consumers. The nature of the customer also differs, as businesses seek to build long-term relationships with their customers, while consumer marketing often seeks to appeal to the emotional and personal needs of individuals. Promotion is important in both business and consumer marketing, so it is not a distinguishing factor between the two.

Question 16

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

Accepted Answer

Raw materials such as sheet steel are considered an expense item and are assigned to the manufacturing process as part of the cost of goods sold. This cost is directly related to the production process and is expensed as the goods are produced. It is not a fixed cost as it will vary based on the amount of production. It is also not a capital item as it is not considered a long-term asset.

Question 17

The buying motives for major installations center on:

Accepted Answer

Major installations involve significant investments, so the buying motives usually involve a blend of rational and emotional factors. These factors may include economic considerations such as return on investment and projected maintenance costs, as well as emotional factors such as the perceived quality and reliability of the product or service. The initial price and cost are important factors, but they are not the only considerations for major installations.

Question 18

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

Accepted Answer

Functional areas other than marketing, such as finance, operations, and human resources, can have an impact on all aspects of a company's marketing decisions, including product development, pricing, promotion, and distribution. Therefore, all of the above options are affected.

Question 19

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 new high-speed paper machine is a major equipment that is permanently installed in the plant to support the production process. It is, therefore, classified as an installation.

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 those that support production but are not incorporated into the final product. These goods are treated as expense items rather than materials or supplies used in the production process. Foundation goods are a type of raw material that is essential to the production process and becomes part of the finished product. Entering goods are materials and supplies that are used in the production process and become part of the finished product.

Quiz 1: A Business Marketing Perspective