Exam 7: Business Marketing

Individual producers of raw materials have great flexibility in pricing their products.

Businesses that buy finished goods and sell them for a profit are called:

Which of the following is the best example of a modified-rebuy situation?

Which type of business product represents goods,such as portable tools and office equipment,that are less expensive and shorter-lived than major equipment?

The three most important evaluative criteria for business-to-business purchases are quality,price,and:

Since GE began accepting bids via the Internet,the length of the bidding process in GE's lighting division has been reduced from 21 days to 10.Since requesting the bids is easier,purchasing agents approach more potential vendors.The ability to locate more vendors has lowered the cost of goods by 5 to 15 percent.GE's experience illustrates:

A university is considering the purchase of a Web-based course delivery system due to increased demand for online courses and degrees.Since the school has not offered online courses before,what type of buying situation does this represent for the school?

Business marketing does NOT include goods and services that:

Assume you are the vice-president of marketing in a medium-sized company that includes the following departments: marketing,finance,purchasing,data processing,and production.The sales force manager has mentioned to you that one of the salespersons thought a Web-based salesforce automation service would help the sales force become more efficient.The sales manager requests that this service be purchased.Illustrate the six buying decision roles that would take place for the purchase of this service.

The Federal Aviation Administration has been struggling for several years with antiquated systems,and all it takes is a single failure on one piece of the system to shut down the entire air-traffic control system for several hours,resulting in significant snarls at major airports.The most recent failure occurred in the FAA's core telecommunications network,called the Federal Telecommunications Infrastructure (FTI),which is managed by Harris Corporation.Marc Raimondi,a spokesperson for Harris Corporation,said,"The FTI system has proven to be one of the most reliable and secure communications networks operating within the civilian government." Snafus like this have been happening with alarming frequency,prompting Congress to demand the FAA and its contractors to do more to prevent these malfunctions.The problem is that the FAA has been using a patchwork approach by updating with modern hardware and software on old systems instead of a complete overhaul of the system.The FAA's next generation of modernization will rely on satellite-based networks instead of phone lines and data cables.The FAA is waiting for White House approval on whether it will have the funds to take this next step. -Refer to Federal Aviation Administration.The company that wins the contract to develop the satellite-based system for the FAA will have to purchase satellites and mainframe computers for this system.These types of products are best described as which type of business product?

In the early 2000s,Levi Strauss invested millions of dollars to develop a website on which they could sell jeans directly to consumers.However,the effort was unsuccessful and the company switched course,announcing that jeans would be sold only through its retailer partners.This is an example of:

One way processed materials differ from component parts is that processed materials:

Apple iTunes has sold over five billion downloads.Without iTunes the demand for the Apple iPod line of products would be small.Without the musicians there would be no iTunes.A condition of _____ demand exists.

Baseball Dirt Dirt is not dirt when it comes to baseball fields.About two-thirds of the pro baseball fields got their dirt from a dirt farm in New Jersey called Partac Peat.The company markets a secret mix for the infield (resilient),the warning track (extra crunchy),and the pitcher's mounds (firm).Mounds come in red,brown,orange,and gray colors.Roger Bossard,the White Sox head groundskeeper,scouted nationwide for dirt before settling on the mix provided by Partac Peat.(He uses sand under the grassy areas of the playing field. ) -Refer to Baseball Dirt.An increase in the price of Partac Peat's dirt will not affect the demand for the product because many groundskeepers believe there is no substitute for the product.Thus,demand for Partac Peat's secret mix is:

Rock-Tenn Rock-Tenn produces packaging products.They make cartons that will hold a dozen Dunkin' Donuts,waffle fries for Chik-fil-A,Gillette razors,Haagen -Daz ice cream,express mail envelopes for FedEx and much more.Rock-Tenn business fluctuates depending on consumer demand.As plastic products become more expensive companies turn to cardboard and paper to package their products. -Refer to Rock-Tenn.Rock-Tenn makes paper products for companies to use in their product and service offerings.As demand for their products increased due to rising plastic prices,Rock-Tenn had to acquire other plants and equipment to help in its business.This is an example of the:

Purchasing contracts are commonly used in which type of buying situations?

Baseball Dirt Dirt is not dirt when it comes to baseball fields.About two-thirds of the pro baseball fields got their dirt from a dirt farm in New Jersey called Partac Peat.The company markets a secret mix for the infield (resilient),the warning track (extra crunchy),and the pitcher's mounds (firm).Mounds come in red,brown,orange,and gray colors.Roger Bossard,the White Sox head groundskeeper,scouted nationwide for dirt before settling on the mix provided by Partac Peat.(He uses sand under the grassy areas of the playing field. ) -Refer to Baseball Dirt.Because Partac Peat is a business product,the primary promotional method used for its sale is:

If Ford purchased the same number of brakes from NUCAP on a regular basis,it would be participating in a straight rebuy.

As a result of the _____,a small increase or decrease in consumer demand can produce a much larger change in demand for the facilities and equipment needed to manufacture the consumer product.

Products such as parking garages,mainframe computers,privately owned office buildings,and street-cleaning equipment are depreciated over time rather than expensed in the year they are purchased.These are classified as: