Exam 7: Analyzing Business Markets

Systems selling is a key industrial marketing strategy in bidding to build large-scale industrial projects. Competition for these projects is fierce. What are the main areas of competition for these project engineering firms?

If you decided to go into the systems contracting business, which of the following categories would constitute your main area of expertise, the service you provide for customers?

What are the three different types of buying situations faced by a typical business buyer?

Which of the following is a form of cheating or undersupply relative to an implicit or explicit contract which usually takes place when buyers cannot easily monitor supplier performance?

The demand for business goods is ultimately derived from the demand for raw materials.

When purchasing disposable surgical gowns, Changi Hospital's vice president of purchasing analyzes whether the hospital should buy disposable gowns or reusable gowns. If the findings favor disposable gowns, then the operating-room administrator compares various competitors' products and prices and makes a choice. Surgeons influence the decision retroactively by reporting their satisfaction with the particular brand. In this situation, the surgeons perform the role of the ________.

Explain the concept of systems contracting.

List the seven roles played by members of a buying center.

E-procurement Web sites are organized around two types of e-hubs. If you were in the advertising business and were seeking to take advantage of e-procurement, what type of e-hub should be constructed by your company?

The ________ consists of all the organizations that acquire goods and services used in the production of other products or services that are sold, rented, or supplied to others.

Why are companies increasingly reducing the number of suppliers?

Business marketers can stimulate problem recognition by ________.

Organizational buying is the decision-making process by which formal organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers.

Value Central has a partnership of high trust and commitment with certain suppliers and gives them access to its sophisticated and detailed daily, individual store-based sales data. In exchange, those suppliers are responsible for managing Value Central's inventory of their products. This relationship is best described as ________.

Business buyers may get new ideas at a trade show, see an ad, or receive a call from a sales representative who offers a better product or a lower price compared to the current in-supplier. These situations spur the ________ stage.

A given percentage increase in consumer demand can lead to a much larger percentage increase in the demand for plant and equipment necessary to produce the additional output. Economists refer to this as ________.

List the seven roles of people in a buying center.

In the business market, small sellers concentrate on reaching as many participants as possible because their chances of success are slim.

With reference to online buying, what are vertical markets? Give an example of a vertical market.

In systems buying, governments often solicits bids from prime contractors. What do prime contractors do?