Exam 7: Business Marketing

Unlike consumer product channels of distribution,which usually have one or more intermediaries,channels of distribution for business products are often direct.

A small police department wants to buy a machine with which it can perform alcohol breath tests.It has never had this capability before but feels it is an essential tool as the community grows.The machine costs about $5,000,which is almost 75 percent of the department's entire supply budget.This purchase would be an example of a(n)_____ situation.

Buyers in the business market tend to _____ than buyers in the consumer market.

Claxton Fruitcakes One common Christmas tradition in many households is the Claxton fruitcake.The fruitcake bakery in Claxton,Georgia,makes about 6 million pounds of fruitcake annually and has $12 million in sales.One fruitcake batch weighs 375 pounds.About 70 percent of that weight is fruits and nuts.A single batch is divided into 34 loaf pans that hold 11 pounds each.Loaves are cooked for 100 minutes at 375 degrees.The bakery can cook 6,000 pounds at a time.During the baking season (August-December),the bakery uses a tractor-trailer load of raisins each day.The suggested retail price of a one-pound Claxton fruitcake is $3.69. -Refer to Claxton Fruitcakes.In terms of business-to-business products,the large ovens in which the cakes are baked are examples of:

Discuss the difference between disintermediation and reintermediation.Give an example of a company you are aware of that used these strategies.

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

Cascade Landscaping Service (CLS)has decided to purchase computer-assisted-design (CAD)software for landscape design.Describe the conditions under which each of the three business buying situations would take place.

Which of the following is the best example of a sale that could only take place in the business market?

The U.S.government is:

IBM and Cisco work together to provide banks with the products and services they need to manage their multiple locations.In other words,the two companies have joined in a:

Any firm that purchases goods and services to make a profit by using them to produce other goods is part of the producer segment of the business market.

Claxton Fruitcakes One common Christmas tradition in many households is the Claxton fruitcake.The fruitcake bakery in Claxton,Georgia,makes about 6 million pounds of fruitcake annually and has $12 million in sales.One fruitcake batch weighs 375 pounds.About 70 percent of that weight is fruits and nuts.A single batch is divided into 34 loaf pans that hold 11 pounds each.Loaves are cooked for 100 minutes at 375 degrees.The bakery can cook 6,000 pounds at a time.During the baking season (August-December),the bakery uses a tractor-trailer load of raisins each day.The suggested retail price of a one-pound Claxton fruitcake is $3.69. -Refer to Claxton Fruitcakes.Because demand for raisins to bake into the fruitcakes does not change on the basis of the price fluctuations of dried fruits,Claxton's demand for raisins is an example of _____ demand.

What is reciprocity? Is it illegal or unethical? Why or why not?

Which of the following is the BEST example of an institution market?

A keiretsu is an example of how companies can develop into a network of interlocking corporate affiliates.

Which of the following statements about buying centers is true?

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 Lucent Technologies.AT&T requires its customers to purchase all the necessary technology to run the network.This requires expensive machinery that will be purchased and then depreciated over time.The machinery is classified as:

A particular segment of the business market includes those individuals and organizations that purchase goods and services for the purpose of making a profit.They achieve this goal by using purchased goods and services to make other goods,to become part of other goods,or to facilitate the daily operations of the organization.This group is called the _____ segment of the business market.

What is a buying center? What are some implications of buying centers to the marketing manager?

Imagine you are the research director of a major industrial marketing firm.You need to select an NAICS code that defines the most homogeneous group of companies in a particular group of highly competitive companies .Which of the following codes might you use?