B2B Test Two Answers

True or False Only after sales are effectively forecasted can a marketing budget be developed.

False

Exporting is a viable international entry strategy when the firm: (Select all that apply.) 1. wishes to maintain direct control of the marketing program. 2. lacks the resources to make a significant commitment to the market. 3. wishes to reach a market with minimal investment of time and/or money. 4. wants to form long-term relationships with international customers.

2. lacks the resources to make a significant commitment to the market. 3. wishes to reach a market with minimal investment of time and/or money.

During the tornado phase of the adoption life cycle, the business marketing strategist should: (Select all that apply.) a. drive to the next lower price point. b. extend distribution channels. c. Add product improvements to fight off competition. d. focus on market segmentation.

A. drive to the next lower price point. B. extend distribution channels.

All business marketing decisions are affected, directly or indirectly, by other functional areas of the company.

True

Common challenges for marketers using the "marketing strategy center" to manage across business functions include which of the following? (Select all that apply.) a. Elimination of interdependencies between functional units. b. The fostering of a shared appreciation of other functional units. c. Gaining group consensus. d. Minimization of interdepartmental conflict.

B. The fostering of a shared appreciation of other functional units. C. Gaining group consensus. D. Minimization of interdepartmental conflict.

In pursuing international entry options, joint ventures often constitute a feasible option because: (Select all that apply.) a. they always provide for equal sharing of control, risk, and profits. b. they may provide for better relationships with local organizations (for example, local authorities) and with customers. c. they may open up market opportunities that neither party to the venture could pursue alone. d. they provide the only path of entry into some foreign markets.

B. they may provide for better relationships with local organizations (for example, local authorities) and with customers. C. they may open up market opportunities that neither party to the venture could pursue alone. D. they provide the only path of entry into some foreign markets.

Which of the following is NOT one of the criteria for assessing the desirability of a potential market segment? a. Accessibility b. Responsiveness c. Accountability d. Measurability e. Substantiality

C. Accountability

Which is considered the most effective B2B online source of lead generation? a. Twitter b. YouTube c. Facebook d. LinkedIn e. Instagram

D. LinkedIn

Industrial firms lack the flexibility of their consumer-goods counterparts in moving into and out of market segments.

True

Which of the following statements is false? Today's competitive B2B environment leaves no room for error. We must delight our customers and look for new ways to exceed their expectations." A key function of today's B2B marketing executive is to convince management to be customer-centric and not product-centric. Today's marketing-driven B2B companies are centered on products first and customers second. B2B brands are not built overnight, so the brand strategy should not be focused on short-term tactics but on long-term goals for sustainable growth.

Today's marketing-driven B2B companies are centered on products first and customers second.

Which of the following is NOT characteristic of the marketing strategy that would be appropriate for a firm like Otis Elevator, which sells installations in the business market? a. Price is the central force in the marketing strategy. b. Trade advertising and direct-mail advertising reinforce personal selling. c. Personal selling is the dominant promotional tool. d. Customer service plays a key role.

a. Price is the central force in the marketing strategy.

This mode of international market participation permits a client to require a complete operational system together with skills sufficient to allow the unassisted maintenance and operation of the system. Once the package agreement is implemented, the system is owned, controlled, and operated by the client. This provides an apt description of: a. a turnkey operation. b. licensing. c. contract manufacturing. d. a joint venture.

a. a turnkey operation.

The strategy map allows the company to describe and illustrate its: (Select all that apply.) a. measurements used to assess performance b. objectives, initiatives & targets c. links between the various components d. past successes and failures

a. measurements used to assess performance b. objectives, initiatives & targets c. links between the various components

As a mode of international market entry, licensing agreements pose the following limitation(s): (Select all that apply) a. the risk of poor quality management or strategy execution. b. licensing agreements include a time limit and additional extensions (beyond the first) may not be readily permitted by the foreign government. c. a firm has less control over a licensee than over its own manufacturing abroad. d. the licensee may become an important competitor in the future.

a. the risk of poor quality management or strategy execution. b. licensing agreements include a time limit and additional extensions (beyond the first) may not be readily permitted by the foreign government. c. a firm has less control over a licensee than over its own manufacturing abroad. d. the licensee may become an important competitor in the future.

The role of marketing at the corporate level of strategy includes which of the following? (Select all that apply.) a. Assess market attractiveness. b. Formulate the firm's overall value proposition. c. Promote customer orientation to management. d. Help develop plans for specific target markets.

a. Assess market attractiveness. b. Formulate the firm's overall value proposition. c. Promote customer orientation to management.

The balanced scorecard uses which of the following perspectives to measure a firm's performance? (Select all that apply.) Selected Answers: a. Internal business processes. b. Customers. c. Financial. d. Learning and growth. e. GDP

a. Internal business processes. b. Customers. c. Financial. d. Learning and growth.

Factors that favor keeping products or services at home instead of relocating to rapidly developing economies include: (Select all that apply.) a. Market attitude. b. High sensitivity to production location. c. Very high technology content. d. Logistics requirements. e. Protection of intellectual property is critical.

a. Market attitude. b. High sensitivity to production location. c. Very high technology content. d. Logistics requirements. e. Protection of intellectual property is critical.

_____ is a company strategy for competing in fast-changing markets by quickly realigning itself to capture market opportunities faster than the competition. a. Patching b. Time pacing c. Routinization d. Improvisation e. Quality function deployment

a. Patching

For a low-end disruptive innovation strategy to work, which of the following requirements must be met? (Select all that apply.) a. The company must be confident that the product will not take sales away from existing, more profitable products. b. There needs to be customers at the low end of the market who are eager to purchase a "good enough" product for a lower price. c. The company must be certain that the product will not negatively impact its image. d. The company must be able to create a business model to make profits at a discount price.

a. The company must be confident that the product will not take sales away from existing, more profitable products. b. There needs to be customers at the low end of the market who are eager to purchase a "good enough" product for a lower price. c. The company must be certain that the product will not negatively impact its image. d. The company must be able to create a business model to make profits at a discount price.

International firms have traditionally managed operations outside their home country with an approach that permits individual subsidiaries to compete independently in different country-markets. Here each subsidiary resembles a strategic business unit that is expected to contribute earnings and growth to the organization. This describes: a. a multidomestic strategy. b. an export-based strategy. c. a global strategy. d. a coordinated strategy. e. a differentiated strategy.

a. a multidomestic strategy.

The _____ provides managers with a comprehensive system for converting a company's vision and strategy into a tightly connected set of performance measures. a. balanced scorecard b. core business strategy c. financial audit d. customer interface e. value network

a. balanced scorecard

In stage three of the quality movement attention shifts: a. from zero defects in products to zero defections in customers. b. to the conformance to standards or success in meeting specifications. c. to the pursuit of quality that relates to the entire business. d. from product standards to customer specifications.

a. from zero defects in products to zero defections in customers.

Benefits and sacrifices are both considered when assessing customer value. Sacrifices include: (Select all that apply.) a. operations costs. b. utilization costs. c. the purchase price. d. acquisition costs.

a. operations costs. b. utilization costs. c. the purchase price. d. acquisition costs.

Which of the following is NOT a goal of customer relationship management technology (CRM)? a. continuing dialogue with customers. b Assuring that the best practices and procedures are followed. c. Personalized treatment of the most valuable customers. d. Achieving customer retention.

b Assuring that the best practices and procedures are followed.

Buying firms prefer a more collaborative relationship when: a. the purchase is deemed strategically important to the buying organization. b. the market is dynamic. c. there are few alternatives. d. all of these. e. none of these.

d. all of these.

In developing strategic plans, managers who represent the various business functions in the firm often hold different views concerning the best strategic course. Why? a. Because different functions are rewarded for different things. b. All of these. c. Because each function often reflects a unique orientation or thought world. d. Because some functions are oriented toward short-term objectives while others center on long-term goals.

b. All of these.

_____ involves sourcing a product from a producer located in a foreign country for sale there or in other countries. a. A turnkey operation b. Contract manufacturing c. Exporting d. Franchising e. A joint venture

b. Contract manufacturing

_____ are the set of skills, systems, and technologies a company uses to create uniquely high value for customers. a. Strategic assets b. Core competencies c. Core strategies d. Customer interfaces e. Core processes

b. Core competencies

Which of the following are forms of differentiation that can be used by business marketers when developing a value proposition? (Select all that apply.) a. Provide a product comparable to the next best alternative. b. Product innovation. c. Complete customer solutions. d. Lowest total cost.

b. Product innovation. c. Complete customer solutions. d. Lowest total cost.

Concerning the chain of suppliers involved in the creation of a Honda automobile, which of the following does not fall within the business (B2B) marketing domain? a. Direct suppliers of power steering systems purchasing sheet metal from upstream suppliers. b. The president of Honda buying a Honda to drive back and forth to work. c. Organizations purchasing Hondas for their fleet. d. Honda purchasing power steering components from direct suppliers.

b. The president of Honda buying a Honda to drive back and forth to work.

All of the following are components of a firm's value network except: a. suppliers. b. customers. c. coalitions. d. strategic alliance partners.

b. customers.

_____ illuminates exactly what activities are associated with serving a particular customer and how these activities are linked to revenues and the consumption of resources. a. Margin analysis b. Activity-based costing c. Total cost of ownership d. Customer profitability

b. Activity-based costing

Factors that favor relocation of products or services to rapidly developing economies include: (Select all that apply.) a. Low growth potential b. Competitive pressures. c. Standardized manufacturing or service-delivery processes. d. High labor content.

b. Competitive pressures. c. Standardized manufacturing or service-delivery processes. d. High labor content.

In contrasting induced strategic behavior with autonomous strategic behavior, which of the following statements is/are correct? (Select all that apply.) a. None of these are accurate. b. Induced behavior corresponds to deliberate strategies while autonomous behavior gives rise to emergent strategies. c. Autonomous behavior stems from the organization's existing concept of strategy while induced behavior will eventually be integrated into the firm's concept of strategy. d. While autonomous behavior will initially rely on an informal network of support, induced behavior will draw support from formal organizational channels.

b. Induced behavior corresponds to deliberate strategies while autonomous behavior gives rise to emergent strategies. d. While autonomous behavior will initially rely on an informal network of support, induced behavior will draw support from formal organizational channels.

So, what matters most? A buyer looks for: A. Core benefits B. Add-on benefits C. Trust D. Attention to reducing customer cost E. Price Which would be the MOST appropriate order of importance? a. A B C D E b. B A E C D c. B A C D E d. A B E D C

c. B A C D E

_____ is a company strategy for competing in fast-changing markets by carefully managing transitions between current and future projects. a. Routinization b. Quality-function deployment c. Time pacing d. Patching e. Improvisation

c. Time pacing

Concerning the management of product innovation, which of the following statements is incorrect? The successful management of product innovation: a. should lead to a stream of attractive products. b. requires the firm to take risks. c. is properly characterized as a rational, deliberate, and analytical process. d. is vital to the long-term health of an industrial company.

c. is properly characterized as a rational, deliberate, and analytical process.

Which sales forecasting approach is effective when intimate knowledge of customer plans is important? a. Delphi method b. time series c. sales force composite d. causal analysis e. executive judgment

c. sales force composite

A _____ is a single business or collection of businesses that has a distinct mission, a responsible manager, its own competitors, and an independent position in the firm. a. divisional organizational scheme b. sector unit c. strategic business unit d. market segment e. sub-business center

c. strategic business unit

A _____ targets demanding, high-end customers with better performance than what was previously available. a. none of these b. disruptive innovation c. sustaining innovation d. new to market innovation

c. sustaining innovation

In the hierarchy of strategies, a _____ strategy defines the businesses in which a company will compete, preferably in a manner that utilizes resources to convert distinctive competencies into competitive advantage. a. Business-level b. Functional c. Corporate d. Divisional e. Product

c. Corporate

During the bowling alley phase of the technology adoption life cycle, the business marketing strategist should: a. extend distribution channels. b. drive to the next lower price point. c. focus on market segmentation. d. Add product improvements to fight off competition.

c. focus on market segmentation.

In the technology adoption life cycle, the gap between visionaries and pragmatists where sales often drop significantly is called: a. the early market. b. main street. c. the chasm. d. the bowling alley. e. the end of life.

c. the chasm.

Which of the following is NOT a reason to write a marketing plan? a. Assures that everyone is committed. b. Serves as a reference for the success offuture activities. c. Allows entry into the marketplace with awareness. d. All of these are reasons to write a marketing plan. e. Provides a basis for comparison of actual and expected performance.

d. All of these are reasons to write a marketing plan.

Quality standards set by the Geneva-based International Standards Organization are referred to as: a. the Big Q b. none of the these c. Six Sigma d. ISO 9000

d. ISO 9000

Cisco and General Electric demonstrate special skills in forging relationships with suppliers and alliance partners. This is an example of: a. relationship dynamics. b. a strategic asset. c. a market scope. d. a value network.

d. a value network.

When a firm seeks competitive advantage with strategic choices that are highly integrated across countries (for example, a standardized core product that requires minimal local adaptation across country markets), this describes: a. a differentiated strategy. b. a coordinated strategy. c. a multidomestic strategy. d. a global strategy. e. an export-based strategy.

d. a global strategy.

The business market can be segmented on several bases, broadly classified into two major categories: a. concentration and coverage. b. top-down and bottom-up. c. organizational and end-use application. d. macro and micro. e. economic and demographic. economic and demographic.

d. macro and micro.

Which of the following modes of international market entry provides for greater potential returns and a greater degree of control over operations? a. contract manufacturing b. exporting c. licensing d. wholly-owned subsidiaries e. franchising

d. wholly-owned subsidiaries

_____ represents the place that a product occupies in a particular market. It is found by measuring organizational buyers' perceptions and preferences for a product in relation to its competitors. a. Product anchor b. Product determinant c. Product segment d. Product attribute e. Product position

e. Product position

In the hierarchy of strategies, a _____ strategy centers on how a firm will compete in a given industry and will position itself against its competitors. a. corporate b. product c. divisional d. functional e. business-level

e. business-level

TRANSACTIONAL exchanges feature very close: a. information linkages. b. social linkages. c. operational linkages. d. all of these. e.none of these.

e.none of these.

True or False If a customer is not profitable, the best thing to do is to get rid of them (fire them).

false

True or False The whale curve of cumulative probability demonstrates that the most profitable 20 percent of customers generate about 175 percent of total profits.

true