MKT 442 Guide

Based on the volume of their purchases, _______ are the most important commercial customers in the business of industrial markets

Manufacturers

Concerning the classification of the customers in the business market, GM is a _________ when purchasing a mainframe computer system from IBM, but is a ________ when purchasing tires from Goodyear.

user, original equipment manufacturer (OEM)

When Armco Steel realizes a drop in the demand for steel as a result of a decline in ultimate consumer demand for automobiles, this illustrates the concept of

 Derived demand

In industries buying investment goods, relatively small fluctuations in demand can lead to large fluctuations in their need for new investment; the accelerator effect refers to the ratio of the demand for capital equipment to the demand for the output of the customer industry. This describes

 accelerator effect

The method of classifying industrial goods into meaningful categories in the business market center on this question:

 How does the industrial good enter the production process and the cost structure of the firm?

A Business Market can be defined as one that

 focuses on organizations as customers

The business market consists of the following three components:

 commercial enterprises, institutions, and government

'the combined market shares of the few largest firms in the market' is called

 concentration ratio

What did the older term “industrial marketing” cater to?

primary and secondary businesses— agricultural and extractive industries, manufacturers with tangible products.

Q10. T/F it is the tertiary sector (service industries) that measure natural income

Q.10 True

What are the three dimension business markets are separated to?

dimension against differences, characteristics expected of a business market, characteristics expected of consumer market

What is a concentration ratio?

combined market shares of the few largest firms in the market

What is unit production?

design and supply of products that are tailored to specific customer requirements

what are characteristics of a mass production company?

Operational efficiency and low-cost base are central to the ability of mass production companies to compete

What is need uncertainty?

difficulties in knowing exactly what or how much to buy

What is market uncertainty?

arises from the degree of choice a buyer perceives among suppliers and the difficulty in choosing between suppliers

Transaction uncertainty?

degree of exposure that the buyer is faced with once a transaction has been agreed