MKTG 350 Exam 2 || All Answers Are Correct 100%.
Which is bigger in marketing, B2B or B2C? correct answers B2B bigger than B2C
4 types of B2B markets correct answers manufacturers/service providers, resellers, institutions,
government
reasons that businesses buy stuff correct answers 1. have to buy stuff to manufacture
2. have to resell
3. have to have some of these products to run their business
manufacturers only buy products if it is something they will correct answers use along the line
businesses have this type of demand correct answers derived demand--want for a product is
derived from a consumer's need for a good
consumers have this type of demand correct answers direct demand--want a specific product
buy raw materials, components, or parts; manufacture their own goods and ancillary services
correct answers manufacturers and service providers
-raw materials--buy these and transform them into something else (ex: metal, leather,
cotton/fabric)
marketing intermediaries that resell manufactured products without significantly altering their
form correct answers resellers
-ex: wholesalers, distributors, and retailers
-wholesalers, distributors, and retailers are "middle men," are between the manufacturer and
consumer; have to justify their existence every day because people always want to eliminate the
middle man
has to be better, faster, cheaper or else the retailers will buy from the manufacturer correct
answers wholesalers
-has to justify itself more than the other two
-COSTCO started as a wholesaler but now has majority of sales to individuals and families so is
a "warehouse club"
buying a finished product and reselling it to end users, do NOT alter the good in any way correct
answers retailer
hospitals, educational institutions, and religious organizations correct answers institutions
examples of purchases by institutions: correct answers textbooks, capital construction,
equipment, supplies, food, janitorial services
in most countries, government is one of the correct answers largest purchasers of goods and
services
,-local, state, and federal governments
-US gov spends approx 4 trillion annually; department of defense works with cybersecurity firms
government buys differently, have to buy by a correct answers restrictive bidding process
-state has to take the lowest bidder because want to buy from local businesses
B2B buying process correct answers need recognition (can be generated internally or
externally)-->product specification-->RFP process-->proposal analysis, vendor negotiation, and
selection-->order specification-->vendor performance assessment using metrics
7 big differences about business purchases compared to consumer purchases: correct answers 1.
more formal, structured, and methodical steps
2. items are bought in largest quantities
3. use a buying center
4. conduct formal performance evaluations (don't experience cognitive dissonance)
5. personal selling is used extensively
6. vendors are often concentrated geographically
7. exhibit derived demand
types of ways new products are developed: correct answers 1. research and development
2. suppliers may make suggestions (ex: manufacturers recommending iPads)
3. salespeople
4. competitors
5. consumers (ex: used to have to stretch jeans, but customers wanted jeans they could wear
immediately and comfortably)
product specification includes both the correct answers description of and the quality standards
-product specification used by suppliers/vendors to develop proposals
in this stage of the B2B process, vendors or suppliers are invited to bid on supplying required
components and services correct answers request for proposal (RFP) process
-purchasing company may simply post its RFP needs on its website, work through various B2B
web portals, or inform their preferred vendors directly
-federal business opportunities update bids on supplying daily
considerations other than price play a role in correct answers final selection during step 4 of the
B2B process
-delivery date and financing terms are also negotiable
if want to get foot in the door with a business, need to get involved during correct answers step
3! RFP process! need to jump in and bid on it
describe step 5 of B2B process, order specification correct answers -firm places the order with its
preferred supplier (or suppliers)
-the exact details of the purchase are specified, including penalties for noncompliance
-all terms are detailed including payment
, -this step is pretty much the purchase (all of the order specification in writing, could put contract
date to move in to make contractor responsible if building isn't ready in time)
key issues used to evaluate a vendor's performance (step 6) correct answers customer service,
issue resolution, delivery, quality
-formal evaluation important because businesses don't have cognitive dissonance
buying influencer roles correct answers initiator (ex: the person that initiates the idea to buy new
PC computers), influencer (somebody who has the ear of the decision maker, someone the
decision maker trusts), decider (most important!!), buyer (person in the organization who signs
the check, just because they signed the check does NOT mean they made the decision), user (ex:
people using the computers--can be using them for different reasons), gatekeeper (ex: controls
the flow of information throughout the organization, who writes the specifications)
Buying centers are used when the purchase is a correct answers new buy--have never bought it
before, is a big and risky decision, want lots of input so that you do not screw it up
example of buying center roles for a hospital correct answers initiator: doctor
influencer: medical device supplier, pharmacy
decider: hospital
buyer: materials manager
user: patient
gatekeeper: insurance company
types of organizational buying culture correct answers autocratic--one person makes final
decision; see this in the military bc it's faster and more efficient
democratic--people vote and the majority vote wins
consultative--still have one person making the decisions, but they are going to consult with
everyone in the company (ex: thank you but I need to check with all of my people first)
consensus--everyone sits around a table and comes to an agreement; one person disagreeing
means they will not buy the product
there are more jobs in this marketing world than in this one correct answers more in B2B than
B2C
ways to enhance/build B2B relationships: correct answers blogs and social media (LinkedIn,
Twitter, Snapchat)
-builds awareness
-provide search engine results
-educate clients about products and services
-"warm up" a seemingly cold corporate culture
white papers prepared by B2B marketers provide information while not appearing as promotion
types of buying situations correct answers new buy--most likely when purchasing for the first
time, usually quite involved, buying center will probably use all six steps in the buying process
and involve many people in the buying decision
