Exam 7: Business Markets and Buying Behavior

Logan Home Builders is in the early stages of a new 185-home development project. Buyers for Logan have contacted you and several other local firms, and provided extensive information about the plumbing fixtures, lighting fixtures, cabinetry, and other items they will need for this project. As the sales and marketing manager for Glow Lighting, how should you respond?

Personal selling plays a much bigger role in consumer markets than in business markets.

Procurement takes place within a formalized framework consisting of budgets, cost projections, and profit considerations.

On your certified organic farm, you grow a variety of herbs and spices, which you then process and package as seasoning mixes for a couple of nearby food product manufacturers. If you wanted to increase revenue by expanding into another market category, which would be your best option?

Come up with a business concept for the B2B market, and describe how you would segment prospective customers for this business. Specifically, which type of segmentation would you use? Which criteria would you use for segmentation, and why?

Which stage of the organizational buying process involves establishing specifications for a needed product?

You work for a uniform manufacturer that sells to police departments, supermarkets, and airlines. For segmentation purposes, its customers are grouped into three categories: government agencies (police), retailers (supermarkets), and service providers (airlines). This is segmentation by _______.

You're the Chief Marketing Officer of SalonCentric, a wholesaler of hair and beauty products sold to licensed beauticians and cosmeticians through brick-and-mortar stores across the United States. You want to increase revenue by expanding into another market category. What is your best option?

Entrepreneurs and small mom-and-pop business owners can't afford to have their own IT departments, but they still need help with setting up, maintaining, and repairing their computer systems on site. That's where you come in! To let people know about your services, you're going to take out a Facebook ad that will go to Facebook users with the following demographic characteristics:

Which of the following is the best example of a typical B2B buyer-seller relationship?

Carlita works for Dell Computers in their outbound call center as an inside sales representative. She primarily focuses on small businesses - those with fewer than 10 employees. Based on Carlita's customers, what type of segmentation is Dell using?

Relationships in consumer markets are often more complex than those in business-to-business markets.

​Paul is the quality-control specialist for a furniture manufacturer. His job is to develop specifications for every potential purchase of wood and fabric. Within the buying center, Paul plays the role of a(n):

Many companies purchase from several vendors, and require bids from each before choosing one among them. A skilled marketer understands the client's ____________ like this, and considers these processes when formulating a marketing proposal.

Chris works for Aon, a large commercial brokerage company that serves as the intermediary between customers who need risk or insurance coverage and firms that provide the coverage - insurance carriers. Since Aon is one of the largest brokerage firms in the world, they utilize ______ segmentation where they divide the business buyers into groups according to their needs. For example, manufacturing firms would have specific requirements for insurance that might be distinct from a public school or university. A municipality such as the city of Chicago would also have a different set of needs that would result in a different mix of insurance coverage.

Buying practices can differ among institutions of the same type.

Texas Instruments produces electronic chips used in a variety of devices, from cell phones to hand calculators. The specifications of the chips change depending on the final product in which they are utilized. The company is most likely to segment its customers based on:

Business market customers may require different levels of product customization, which can have an impact on how an organization segments these customers.

In the automobile industry, suppliers of components and assemblies frequently build plants close to their customers.

Geographic location is one of the criteria considered during demographic segmentation of the business market.