Marketing Chapter 7
The first two digits of a NAICS code designate the _______.
sector
Levi is a supply chain manager for Moroccan Oil. This company makes hair care products such as shampoo, conditioners, and styling products. He is primarily responsible for purchasing the various ingredients that are used in manufacturing the company's products and must also work collaboratively to determine formulations, pricing, delivery schedules, and payment terms. Levi uses persuasive communication skills to create outcomes that result in lower prices or higher profit margins for Moroccan Oil. It's a complex process that demonstrates how the _______ is a key differentiator between consumer and business firms.
type of negotiations
_______ is a network of interlocking corporate affiliates important in Japan.
Keiretsu
Marketers measure the effectiveness of marketing campaigns through which of the following? (Select three)
--engagement --awareness --conversion
Which of the following is an example of a business product?
Crest selling sample-size toothpaste to a dentist who will distribute the product to his or her patients
According to the _______, an industry classification system, the United States has 860,701 business entities in category "72," which is described as "accommodations and food service." The classification system enables business marketers to analyze, segment, and target markets.
North American Industry Classification System (NAICS)
Which category of business customers include all individuals and firms that acquire products to support, directly or indirectly, the production of other goods and services?
Producers
The goal of content marketing is to ______.
attract and retain a clearly defined audience and drive profitable customer action
Stepan Chemical produces chemicals that are sold to consumer product manufacturers, such as Procter & Gamble, as raw materials in the manufacturing processes to create shampoos and detergents. Stepan's chemicals are known as _______ products.
business
The Florida Citrus Growers organization has been concerned with a recent decline in orders for oranges by companies such as Tropicana that produce orange juice. Orange juice has been purported to have high levels of sugar, and many families are limiting the quantity of fruit juices consumed in their homes. Therefore, the demand for oranges can be classified as _______.
derived
Kalani is a sales representative with Sherwin-Williams, a paint company that markets coatings and materials to contractors, facility managers, and other business accounts. She often uses LinkedIn, a social media platform, to network with other business professionals and to identify individuals who have the job titles such as facility manager, director of operations, and paint contractor in her geographic territory. Like other business-to-business professionals, Kalani is using LinkedIn as a tool to _______.
gather leads and prospect for new customers
The more shared digits companies have, the more ____________ they are.
homogenous
The NAICS is a system for classifying businesses _______.
in North America
A Cintas sales manager in Missouri would like to earn the business of a local college. She knows she must find out who the _______ are in the college because they are the people in the buying center that supply information to guide the evaluation of alternatives.
influencers/evaluators
In the buying center, _______ are people who affect the buying decision by supplying information to guide the evaluation of alternatives or by establishing buying specifications.
influencers/evaluators
On its corporate website, LG states, "We create consumer electronics, appliances, and mobile devices designed to help you connect with those who matter most. Whether that means cooking a nutritious, delicious meal for your family, staying connected on-the-go, sharing your favorite photos, watching a movie with your kids, or creating a clean, comfortable place to celebrate the moments that matter, we'll be there for you every step of the way." The company also highlights its major product categories such as mobile phones, kitchen appliances, televisions, laundry machines, and vacuum cleaners. According to the text, LG would be classified as a(n) _______ type of business customer.
producer
The three criteria business buyers use to evaluate business products include _______.
quality, service, and price
In a _______, the business buyer reorders the same goods or services without looking for new information or investigating other suppliers.
straight rebuy
According to a recent publicity announcement, "Walgreens Boots Alliance Inc. (WBA) and Microsoft Corp. have joined forces to develop new health care delivery models, technology, and retail innovations to advance and improve the future of health care. The companies will combine the power of Microsoft Azure, Microsoft's cloud and AI platform, health care investments, and new retail solutions with WBA's customer reach, convenient locations, outpatient health care services, and industry expertise to make health care delivery more personal, affordable, and accessible for people around the world." This is an example of a _______.
strategic alliance
In the buying center, the decider is _______.
the person who selects a good or service to purchase
Derived demand means _______.
there is a linkage between the demand for a company's output and its purchases of resources
Component parts _______.
are either finished items ready for assembly or products that need very little processing before becoming part of some other product
When considering distribution structure and how business markets and consumer markets differ, business markets have ____________________________________________, while consumer markets have ______________________________.
-relatively short, direct channels/ one set channel -longer channels that may involve producers and wholesalers
Kalani is an account executive with a medical device company that sells sophisticated camera equipment used in surgical procedures such as knee and hip surgery. Therefore, she primarily works with orthopedic surgeons and hospital surgical departments to promote her company's products. Kalani's territory includes five counties in the southwestern part of Tennessee. Kalani can easily visit each customer account once a month to maintain contact. What is the primary difference between business markets and the consumer markets described by Kalani's customer accounts?
Business markets are comprised of fewer customers than consumer markets.
Rodney is an account executive with Canon Business Solutions and works in Cleveland, Ohio. He typically serves accounts located in the downtown business district and specializes in larger businesses such as investment firms, law offices, and banks. His first goal when prospecting for new customers is to introduce himself to the business receptionist and try to gain some information about the type of equipment the company is currently purchasing and where it buys items such as copy machines or printers. However, the receptionists can be tight-lipped and often are not willing to provide any information to Rodney. Which role in the buying center are receptionists performing?
Gatekeepers
Which category of business customers accounts for the largest volume of purchases in the United States?
Governments
Katie is the marketing director for a local office of the Komen Foundation, a non-profit organization that advances research and treatment options for individuals with breast cancer. Katie often makes purchases of supplies, marketing materials, and branded merchandise for events such as the Race for the Cure. Which type of business buyer is the Komen Foundation?
Institution
Cintas is a company that provides business owners with items such as floor mats, cleaning supplies, custom apparel, and fire protection solutions. It is a dominant provider to many industries including category "721191"—the bed-and-breakfast inn category—that, according to the _______, has approximately 18,014 businesses.
North American Industry Classification System (NAICS)
Trevor is a marketing manager for Hormel Foods. He typically works with businesses in the hospitality and institutional markets. He's moving to a new territory and is interested in identifying the market opportunity or potential number of businesses that match his target customer specifications. Which of the following would be the most useful source to assist Trevor in this endeavor?
North American Industry Classification System (NAICS)
Jim Beam White Label bourbon is made from a recipe that is more than 200 years old. The ingredients include corn, rye, barley malt, and natural Kentucky water. The corn, rye, and barley malt arrive at Jim Beam's manufacturing facility in their natural forms as whole grains. These items are fermented using a yeast strain kept alive by Jim Beam since the end of Prohibition. Next, the company distills the mixture twice prior to aging the final product for four years in new, charred, American oak barrels. Some believe it is the best-tasting brand of Kentucky straight bourbon whiskey in the world. According to the text, how would the ingredients of corn, rye, and barley malt be classified?
Raw materials
Christina is a supply chain professional for Panera Bread. She is responsible for negotiating prices for various ingredients such as yeast, flour, spices, and sugar that are utilized in the making of the bread products that are created prior to distribution to company-owned or franchise stores. Christina works with the manufacturing team to schedule product deliveries and to order sufficient quantities to meet the weekly demand schedule. Christina places orders for the needed items based on the projected demand for that week. Which type of buying situation best describes Christina's process?
Straight rebuy
Kendra is a sales representative for Dell Computers. She is primarily responsible for marketing Dell products to buyers in the educational market who will use the equipment as part of their jobs related to teaching or administrative work for the school, district, college, or university. Which of the following individuals would NOT be one of Kendra's potential customers?
Students purchasing computers through the university's technology service
Portable tools and office equipment would be categorized as _______.
accessory equipment
Business products are different from consumer products in that business products _______.
are used to manufacture other goods or services, to help an organization's operations, or resold to consumers
The acquisition of CompuCom allows Office Depot to provide business customers with solutions like an IT Service Desk. The business contacts the service desk through a mobile app or online portal to receive help fixing technology-related issues. The IT Service Desk would be classified as _______.
business services
In a strategic alliance, _______ and _______ are necessary.
commitment; trust
Marc is the owner of Marc's Auto Service, specializing in imported automobiles. He typically orders parts needed to repair customers' cars from NAPA Auto Parts. NAPA can deliver to Marc's business, and if he orders a part by 8 a.m., he usually receives it by lunchtime. Marc appreciates the ability to get exactly the right part for each vehicle's make and model. These items might include oil filters, radiator hoses, belts, or light bulbs. The products Marc orders from NAPA would be classified as _______.
component parts
Supplies are _______.
consumable items that do not become part of the final product. Paper and pencils are examples of supplies
McKinsey is a consulting company that offers services to a variety of industries and issue areas. Its website includes a variety of publications such as white papers and case studies that provide readers with a glimpse of McKinsey's capabilities. The case studies and white papers are an example of _______ marketing.
content
Because Office Depot serves both consumer and business-to-business markets, the company employs a Business Solutions Division to serve business customers. On the Business Solutions section of Office Depot's website are infographics and videos geared toward small, medium, and large businesses, educational institutions, government, and healthcare industries. This valuable information presented through Office Depot's website is called _______.
content marketing
Jarrell is the digital marketing manager for Grainger, a company selling tools, fasteners, and other items via its web-based catalog to business customers including manufacturers, automobile dealerships, and automotive service companies. He uses a blog to post case studies showing how customers are using Grainger products and provides a link to the products in the online catalog. He's then able to monitor and measure the _______ rate to identify how many customers actually click on the links, and whether or not a purchase is made. Jarrell enjoys the opportunity to track customer behavior and knows his role makes an important impact to Grainger's revenue and profitability.
conversion
Jaray is a chemist and responsible for new product development in the agriculture division of Syngenta. He is developing a formula for an herbicide that can be used to control weeds but is also natural and has no harmful chemicals. Jaray is seeking to collaborate with his chemical suppliers, including Dow and Stepan, to get samples of their naturally formulated surfactants to use in his herbicide. Ultimately, Jaray will decide which formulation is best and identify the one or two brands that meet Syngenta's specifications. Jaray is performing the role of _______ as a member of the buying center.
decider
Kyrin is the information technology director for the police department in Newburgh, Indiana. She is responsible for purchasing and maintaining all technology-related equipment and services for the department including computers, printers, body cameras, in-car video devices, servers, and networking equipment. She often buys from CDW, a technology-related firm, and appreciates the opportunity to work with dedicated account executives who are experienced in assisting _______ accounts like the police department.
government
Hospitals, colleges and universities, and museums fall into the ______ category of business customers.
institutional
Office Depot recently recognized that when the demand for inkjet printers increases, so does the demand for replacement ink cartridges. This illustrates _______.
joint demand
When the demand for one business product is related to the demand for another business product used in combination with the first item, _______ occurs.
joint demand
Sapporo Brewery, Nissan, Yamaha, and Canon are all Japanese firms that are united under one conglomerate called a _______, defined as a network of interlocking corporate affiliations.
keiretsu
Cintas serves Fidelity Investment offices throughout the United States with first aid cabinets stocked with bandages, ointments, burn care, and single-dose tablets for pain relief. Fidelity can manage its orders through a personalized company website. The office manager at one Fidelity location logs in to the website to request double the number of seasonal allergy tablets compared to the office's usual order size. This is an example of a _______.
modified rebuy
Unprocessed extractive or agricultural products, such as mineral ore, lumber, wheat, and corn would be categorized as ______.
raw materials
CDW is a technology-related firm based in Chicago. The company maintains a dedicated salesforce of account executives who are organized into a variety of divisions to primarily serve their business customers. CDW purchases equipment from manufacturers such as Dell, Asus, and Microsoft that is then sold online or via inbound or outbound telemarketing. CDW is classified as a(n) _______.
reseller
Retailers and wholesalers are part of the _______ category.
reseller
OfficeMax is a retailer that provides consumable products such as paper, pens, boxes, ink cartridges, and envelopes to both consumer and business markets. Business purchasers such as Lincoln Memorial Hospital typically use an intranet, a customized web-based platform to order products needed for the hospital or connected physician office facilities. The type of business products mentioned that are offered by OfficeMax to its business customers are classified as _______.
supplies
The restroom and hygiene solutions that Cintas delivers to some of its accounts would be classified as _______.
supplies
Grubhub, a company providing delivery of restaurant menu options, and YUM! Brands, the corporate owner of Taco Bell and KFC, announced a strategic partnership. Grubhub will be an exclusive national partner to YUM! by providing dedicated support for KFC and Taco Bell. Grubhub will provide branded online delivery channels, logistics, last-mile support for delivery orders, and point-of-sale integration to streamline operations. In addition, KFC, Taco Bell, and Grubhub will engage in joint marketing initiatives that will generate new diners and drive order frequency for existing diners. A key element of the alliance between Grubhub and YUM! Brands will be the level of confidence each partner has about the other partner's reliability and integrity. Thus, maintaining _______ is critical to the success of this strategic alliance.
trust