Marketing 301 Chapter 6 vocab/quizzes

Customer-base segmentation

a business to business market into homogeneous groups based on buyer's product speficiations

Geographic location is considered a demographic basis for segmenting the business market

false

In a B2B market, relationships between for-profit and not-for-profit organizations are not as important as those between two commercial organizations

false

India has emerged as the preferred destination for production offshoring, while China has emerge as the dominant player in services offshoring

false

The biggest distinction between B2B marketing and consumer marketing is the lack of advertising and visibility in the marketplace the company services.

false

outsourcing

using outside vendors to provide goods and services formerly produced in-house

Customer relationship management

Combination of strategies and tools that drives relationship programs, reorienting the entire organizations to a concentrated focus on satisfying customers

Due to the complexity of the buying process and the sheer volume of transactions involved, the distribution channels in the B2B marketplace tend to be longer than those in the consumer market

False

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

False

Commercial Market

Individuals and firms that acquire products to support, directly or indirectly, production of other goods and services.

Resellers

Marketing intermediaries that operate in the trade sector

A firm has decided to purchase hybride delivery vehicles in response to rising gasoline prices. Which step in the business buying process does this illustrate?

Recognizing a problem or opportunity

End-use application

Segmenting a business-to-business market based on how industrial purchasers will use the product

Assume the price of jet fuel rises, but airline continue to purchase the same amount of fuel in order to meet operational needs. As a results, the demand for jet fuel is said to be inelastic

True

Compared to the SIC systems of classifications, the NAICS not only standardizes classsifications among nations, but also provide flexibility for each country to measure its own business activity

True

Systems integration

centralization of the procurement function within an internal division or as a service of an external supplier

joint demand

demand for a product that depends on the demand for another product used in combination with it

Derived demand

demand for a resource that results from demand for the goods and services produced by that resources

Inelastic demand

demand that, throughout an industry, will not change significantly due to price change

A buying center is a basic component of a firm's formal organization structure

false

offshoring

movement of high-wage from one country to lower-cost overseas location

nearshoring

moving jobs to vendors in countries close to the business's home country

A buying center

participants in an organizational buying action

Sole sourcing

purchasing a firm's entire stock of an item from one vendor

global sourcing

purchasing goods and services from suppliers worldwide

Trade industries

retailers or wholesalers that purchase products for resale to others

Category advisor

trade industry vendor who develops a comprehensive procurement plan for a retail buyer

merchandiser

trade sector buyers who secure needed products at the best possible price