Marketing Exam 3
Marketplace by Industry
Marketplaces focused on a specific industry or led by an industry leader.
Supply Chain Disruption
Occurs when raw materials, production, or distribution is interrupted (e.g., Fritos shortage due to strikes and raw material shortages).
Private Industrial Network
One company integrates suppliers, manufacturers, distributors, and retailers into a single network to optimize efficiency.
Net Marketplace
Online platform connecting buyers and sellers to transact goods or services.
Public Marketplace
Open to any business or consumer (e.g., Grainger).
What is another name for a private industrial network?
PTX
Seller Risks in Auctions
Payment fraud, identity verification issues, time and effort monitoring auctions, shipping responsibilities.
How are private industrial networks typically owned compared to exchanges?
Private industrial networks are usually owned collectively by major firms, while exchanges are created by a single sponsoring company.
Examples of Private Industrial Networks
Procter & Gamble, IBM, Walmart, Coca-Cola, Nike.
Which platform refers to itself as the front page of the Internet?
Private Marketplace
Restricted to approved companies with background checks, financial analysis, or credit evaluation.
What is the last step in the procurement process?
Sending a remittance payment.
Who typically owns automated order entry systems?
Show goods from a single seller
Drawbacks of Private Industrial Networks
Some companies may resist due to loss of control.
Manufacturing Diversification
Spreading production across multiple regions to reduce risk, similar to financial portfolio diversification.
Just-in-Time (JIT) Inventory
Strategy where materials arrive exactly when needed to minimize inventory costs.
Benefits of Private Industrial Networks
Streamlined communication, coordinated supply chain, efficiency in procurement and logistics.
Which of the following has not been purchased or invested in by a wealthy individual with ties to the technology industry?
The New Yorker
Which statement about e-sports is not true?
The e-sport audience is predominantly composed of females between the ages of 21 and 34.
The most popular professional social network for business connections.
What is disintermediation?
The removal of intermediaries from a supply chain, or 'cutting out the middlemen' in connection with a transaction or a series of transactions.
B2B Procurement Process
The steps a business takes to acquire products or services from another business.
What is the essential characteristic of net marketplaces?
They bring hundreds to thousands of suppliers into a single Internet-based environment to conduct trade.
Does the video game industry account for the second highest amount of U.S. media revenues?
True
True or False: Private industrial networks are usually owned collectively by the major firms participating in the network.
True
Online Auction Disadvantages / Risks for Buyers
Trust issues with vendors, product authenticity, potential loss if item isn't delivered.
What is channel conflict?
When retailers of products must compete on price and currency of inventory with the manufacturers of those products.
What is omnichannel retailing?
A retail strategy that includes both physical stores and an extensive online presence, such as Kohl's with Amazon returns.
Interest-Based Network
A social network based on hobbies or personal interests (e.g., niche lumberjack communities).
Sponsored Community
A social network created or maintained by a business or trade organization to engage users and monitor trends (e.g., Hallmark online community).
Practice Network / Community
A social network focused on professional skills, such as developer networks like DevPost, Mozilla Stack, Meta, and Slack.
Social Networks
A structure of people who share similar affinities, characteristics, or interests and interact with each other.
Portal
A website or platform that aggregates services, content, and information in one place for easier access.
Online Auction Advantages for Buyers
Access to unique items, price comparison, convenience of bidding tools (max bid, automatic bidding).
What is transaction brokering?
Acting as a 'middleman' or intermediary to facilitate a transaction.
Adaptive Supply Chain
Adjusting sourcing and production locations to minimize risk (e.g., Apple moving production from China to India).
Apple iPhone Manufacturing
Almost 97% done in China; company diversifying production to other Asian countries due to geopolitical risks.
Which company was sued by the Justice Department for violating antitrust laws in connection with e-books?
Apple
Etsy
Auction site specializing in handmade or craft items.
Which accounting statement provides details on the assets and liabilities of a company?
Balance Sheet
B2B Perspective
Businesses face raw material shortages, manufacturing delays, and logistical challenges that trickle down to consumers.
Marketplace Pricing Options
Catalog pricing, auction-style bidding, RFP/RFB processes.
Benefits of Portals
Centralized access, data collection for businesses, increased customer loyalty, potential for cross-selling.
What percentage of all B2B commerce does B2B e-commerce account for?
Close to half
Google Cloud
Cloud provider that integrates well with Google products.
Microsoft Azure
Cloud service integrating well with Microsoft Office 365 products.
Auction Psychology
Competition can lead to overbidding and regret if losing an auction; buyers may get emotionally attached to 'winning.'
Cloud Computing
Delivery of computing services (servers, storage, databases, networking, software) over the internet.
Digital Products vs Physical Products
Digital products may be delivered electronically; physical products require shipping, customs, and logistics management.
What did EDI begin as?
Document automation
What primarily serves businesses that buy indirect goods on a spot purchasing basis?
E-distributor
Which entities primarily serve horizontal markets?
E-distributors and e-procurement net marketplaces
OL (Online Portal)
Early internet portal offering news, email, and web guidance.
Example Steps (Procurement)
Employee requests software → Manager approves → Purchasing department issues purchase order → Vendor fulfills order → Invoice matches order → Payment processed.
Safety Stock / Safety Inventory
Extra inventory kept to protect against supply chain disruptions.
What does fintech stand for?
Financial technology.
Benefits of Cloud in B2B
Flexibility, scalability, integration with business tools, cost efficiency.
Vertical Portal
Focused on a specific industry or niche (e.g., Robinhood, Charles Schwab).
Horizontal Portal
General-purpose portal covering multiple areas of interest (e.g., YouTube, ESPN).
Supply Chain Risk in Tech
High dependency on one country or region can create vulnerability to political, labor, or economic disruptions.
Other Cloud Providers
IBM Cloud, Oracle Cloud, Alibaba Cloud.
What is referred to as the merger of media enterprises into powerful, synergistic combinations that can cross-market content on many different platforms?
Industry convergence
Which aspect is not part of content convergence?
Language
Amazon Web Services (AWS)
Largest cloud provider with extensive global presence.
Differences from B2C Procurement
Longer process, multiple stakeholders, legal review, contracts, electronic or physical delivery, international considerations.
eBay
Major auction site with first-mover advantage and brand awareness.
