Bus-To-Bus Marketing Exam #1

Commercial, Institutional, and Governmental B2B customers each employ marketing mix strategies that are entirely similar to one another.

True or False

False

The demand for this class is derived from the need for:

a.         Its time utility

b.         The professor instructing the class

c.         The fact that it is an elective offering

d.         Its place utility

e.         All of the above

e. all of the above

The demand for this class is a function of the professors performance reviews, capacity constraints, and the professors accessibility to his/her students. This demand characteristic is referred to as:

a.         Stimulating demand

b.         Fluctuating demand

c.         Elasticity of demand

d.         Derived demand

e.         None of the above

d. derived demand

Understanding the “elasticity” demand characteristics of your product or service will inform how the B2B marketer establishes pricing strategy.

a. True

b. False

a. True

When I reach out to each of you personally to determine whether you are receiving an academic R.O.I. I am engaging in Customer Linking: will def be on the exam

a. True

b. False

b. false

When a B2b marketer employs a “mystery shopper” in the retail market environment they are focusing on which of the following touchpoint interfaces?

a.         Market sensing

b.         Customer linking

c.         Stimulating demand

d.         Derived demand

e.         None of the above

a. Market Sensing

The feedback gathered and analyzed from “mystery shoppers”, instructor outreach to students, and or employing surveys/polls which provides a window into consumer behavior, resulting in solutions-based strategies is referred to as market sensing and customer linking.

a. True

b. False

a. True

Given that all demand begins with the ultimate consumer we must as B2B marketers meet customers where they are…meaning:

a.         Understanding how customers and therefore the business interfaces make purchase decisions

b.         Understand the “pain” associated with an unmet need or a need that has yet to be recognized

c.         Understand the sources of credible information consumers and therefore their business interfaces search out

d.         Develop marketing mix strategies that align with all participants upstream/downstream in the value-chain

e.         All the above

e. All of the above

Touchpoints are those interactions with any interface that has a direct interaction with current and/or potential customers.

a. True

b. False

a. True

Consumer levels of disposable and discretionary income will have a direct impact on demand for all goods and services.

a. True

b. False

b. False

A purchasing manager may assume the roles of influencer, buyer, gatekeeper and decider.

a. True

b. False

a. True

Technological and engineering personnel tend to be important influencers in the buying process where technological innovation and disruption is great as in ai, data base power center and infrastructure development.

a. True

b. False

a. True

Members of a buying center group are generally always in agreement concerning the criterial when evaluating the merits of competing suppliers.

a. True

b. False

b. False

When developing B2b strategy It is important to first note that identifying which of the following is an indication of recognizing  “pain” experienced:

a.         Selection of order routine

b.         Supplier selection

c.         General description of need

d.         Problem recognition

e. Performance review

d. problem recognition

A performance review should be conducted every 6 months or at the very least once yearly.

a. True

b. False

b. False, it should be quarterly

Performance reviews rarely if ever provide the B2B marketer with an opportunity to present “new” value-added products/services.

a. True

b. False

b. False

Performance reviews should include and also provide an opportunity to:

a.         Review marketing mix strategies that worked (meeting metrics) and why

b.         Review marketing mix strategies that did not work

c.         Listen to all relevant stakeholders regarding the development and implementation of marketing mix strategies

d.         To introduce supplier team members that were/are instrumental in the development and implementation of marketing mix strategies

e. All the above

e. All of the above

Marketing mix strategies require a laser-like focus on creating the six utilities when evaluating the organizational buying process.

a. True

b. False

a. True

When Mr. C presented his first patent design (which was engineering based) to a world class B2B customer he (Mr. C) did not consider that he would be “treading” on a major functional areas influencers Turf…the V.P. of Engineering. Therefore, given the presentation was essentially “toast” before it even began. on exam for sure

a. True

b. False

a. True

B2B marketers/sales representatives must be prepared to encounter organizational thought-worlds as they will or can become barriers to effective communication whether one-on-one, in group buying centers and/or when creating digital messaging.

a.  True

b. False

a. True

This B2B model is essential when analyzing and creating the utility-based value proposition that focuses on: acquisition, storage, finance, depreciation, and residual costs is:

a.         Activity-based costing

b.         Information utility model

c.         Organizational buying process model

d.         Total cost of ownership model

e.         All the above

d. Total cost of ownership model

The most “powerful” individual in the early stages of the organizational buying process is:

a.         Influencer

b.         Decider

c.         Gatekeeper

d.         Buyer

e.         None of the above

c. Gatekeeper

In any negotiation it is important to win at all costs.

a.  True

b. False

b. False (2% rule —> represents the person’s dignity & trust)

In any negotiation or conflict situation (business/personal) it would be desirable to leave 2% on “the table” which is representative of one’s dignity.

a. True

b. False

a. True

How can the business-to-business marketer effectively manage and optimize transactional exchanges to enhance operational efficiency, reduce costs, improve the customer experience.

a.         Employ one-on-one marketing at each key touchpoint in order to identify sales and profitability drivers and collaboratively design marketing mix strategies supporting those “drivers”

b.         Identify what role automation and technology innovations can have on transactional customer interactions…such as call center touchpoints

c.         What strategies can be implemented to reduce transaction related costs without compromising quality or efficiency

d.         Use each performance review opportunity to collaborate on each marketing strategies utility

e.         All of the above

e. All of the above

In a collaborative exchange it is unnecessary for companies to share proprietary information or align their goals as each party operates independently.

a. True

b. False

b. False

One of the key benefits of collaborative exchanges in B2B markets is the ability to leverage each companies strengths and expertise to create more competitive products and services.

a. True

b. False

a. True

Effective communication and trust are essential components for the success of collaborative and value-added exchanges in B2B markets.

a. True

b. False

a. True

High switching costs can lead to:

a.         Increased competition in the market

b.         Enhanced bargaining power for buyers

c.         Greater supplier loyalty

d.         Lower customer retention rates

e.         All of the above

e. All of the above

What is one of the primary benefits of Activity Based Costing in B2B enterprises?

a.         Simplifies overall accounting processes

b.         Reduces the need for detailed financial reporting

c.         Provides more accurate product and/or service costing

d.         Eliminates the requirement for cost allocation altogether

e.         None of the above

c. provides more accurate product and/or service costing

Activity Based Costing focuses solely on the allocation of direct costs to products and services.

a. True

b. False

b. False

One of the key variables when discussing switching costs with members of the buying group is your plan to reduce risk and uncertainty before-during and following the “change-over”.

a. True

b. False

a. True

A manufacturing company implementing Activity Based Costing and constructed a Whale Curve to analyze its customer profitability. The Whale Curve reveals that 20% of its customers generate 150% of its profits, while the remaining 80% of customers either break-even or contribute to a loss. Based on this analysis, what strategic actions should the company consider to improve overall profitability?

a.         Strengthen relationships with profitable customers

b.         Reduce costs or increase prices for unprofitable customers

c.         Reallocate resources

d.         Analyze cost drivers and eliminate inefficiencies

e.         All of the above

e. All of the above

Firing a customer in a B2B context is not a decision to be taken lightly however there are occasions when firing a customer may be appropriate such as which one or all of the following:

a.         Consistent unprofitability

b.         Excessive demands as validated by activity-based costing

c.         Non-payment issues

d.         Lack of strategic fit

e. All of the above

e. All of the above

The primary goal of the B2B marketer is to:

a.         Increase client profitability

b.         Increase client market share

c.         Increase client revenue

d.         Decrease client risk and uncertainty associated with client goals

e.         Increase client product and service market penetration

d. Decrease client risk & uncertainty associated with client goals

When making a presentation to a buyer the B2B marketer must not only minimize the risk to the company represented but also to the buyer as they have a personal and professional stake in the decision/

a. True

b. False

a. True

When addressing a buying group, it is necessary to minimize the risk factors for the decision maker only.

a. True

b. False

b. False

It is always best to “run”  systems in tandem when “switching out” complex technologies and/or processes in order to minimize the cost of implementation errors.

a. True

b. False

a. True