The dollar volume of transactions in the _________ significantly exceeds that of the ultimate ______ market. correct answers The dollar volume of transactions in the industrial or business market significantly exceeds that of the ultimate consumer market
Why is the dollar volume of transactions ...
MKTG 336 - EXAM 1 || with Complete Solutions.
The dollar volume of transactions in the _________ significantly exceeds that of the ultimate
______ market. correct answers The dollar volume of transactions in the industrial or business
market significantly exceeds that of the ultimate consumer market
Why is the dollar volume of transactions larger in the business market than the consumer
market? correct answers many business to business transactions have to occur first before the
consumer transaction can take place
ex: a business must buy all the components to make a phone before they can even start
assembling it or selling it
Business market is the same as? correct answers Industrial market
can goods be both consumer and business? correct answers yes - think about your cell phone
what factors distinguish consumer from business markets? correct answers the nature of the
customer and how the customer uses the product
- is this for personal use or consumption?
what percentage of business school graduates join firms that compete directly in the b2b market?
correct answers 50%
what are the 3 business market sectors? correct answers commercial enterprises, governmental
organizations, and institutions
what are the three major types of customers in business marketing? correct answers 1-
commercial
2- institutional
3- governmental
who are the commercial customers? who is the most important commercial customer? correct
answers manufacturers, construction companies, professional groups (dentists, doctors), and
resellers (whole-sellers and resellers purchase equipment and supplies to use in their operations)
- manufacturers are the most important commercial customers because they buy A LOT
(purchase more than $1 trillion of goods and services a year)
what is the difference between small business manufacturers and large manufacturing? correct
answers small business manufacturers are few and small between
"this market is a dominant sector but it is difficult to serve" - they are difficult to serve because
the organizational buyer in small firms has different needs
how to astute marketers adjust to market to small manufacturers? give an example correct
answers the adjust to fit the organizational buyer's specific needs
ex: fedex wanted to increase its share in the small shipper market, but they noticed it would be
too expensive to go around and pick all the packages up, so they reached these customers in a
, cost-effective way by encouraging them to bring their packages to conveniently located fed-ex
drop off points
commercial enterprises can be divided into what three categories? correct answers 1 - users
2- organizational equipment manufacturers (OEMs)
3 - dealers and distributors
within commercial enterprises, describe "users" and give an example correct answers users -
"buy industrial products or services to produce other goods or services that are, in turn, sold in
the business or consumer markets"
user customers purchase goods such as computers, automated manufacturing systems to set up or
support the manufacturing process.
ex: ford is a user that purchases machine tools that are not directly part of their trucks, but used
in the production process
what do OEMs do? give an example correct answers original equipment manufacturers purchase
industrial goods to incorporate into other products that it sells in the business or ultimate
consumer market (they are the middle man)
ex: insurance companies will buy aftermarket car parts and try to sell them to you when you get
in a wreck because they are a lot cheaper but you want the parts from the OEM because they are
much better
what do dealers and distributors do? give an example correct answers purchase industrial goods
for resale to users and OEMs
they accumulate, store, and sell a large assortment of goods to industrial users, assuming title to
the goods it purchases
what category generates the greatest volume of purchases of any customer category in the us?
correct answers Government units
what are the three parts to government? correct answers federal, state, and local
how many local governments are there? correct answers over 89,000
within the commercial sector, who are the most important? correct answers manufacturers
because they have the greatest dollar volume
who has the GREATEST VOLUME OF PURCHASES of any customer category in the US?
correct answers governmental sector
when government agencies procure goods and services, what does that mean? correct answers
put them out for bid
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