Home > Flashcards > Print Preview
The flashcards below were created by user
on FreezingBlue Flashcards. What would you like to do?
1.Diagram the buyer determinants theory and
describe each of the four major components.
For each component give a B2B example
- 1.Environmental factors- world beyond market tool ex. technology
- 2.Market-influence buyer behavior ex. competitive substitutes for glue
- 3.Organizational-ex.selection of accounting services
- 4.Individual-demographic and psychographic factors ex. age, education
2. Environmental factors can influence B2B buying
behavior. Choose four environmental
factors and give an example of a B2B behavioral choice that is influenced by
- 3.political factors
- 4.social factors
3. Using the case 4.1, outline the buying center
roles of the parties in the case. Develop
your own example as an alternative. Be
sure to cover all of the roles.
- 1.Menon- decision maker
- 2.Caballero- purchasing agent
- 3.Whitaker- controller, influencer
- 4.Sigel- gatekeeper, influencer
4. What are the three dimensions of the buying
center? Describe each.
- 1. time fragmentation- the members that come and go
- 2. vertical- how many layers of management are involved
- horizontal- how many departments are involved
- 3. formalization- degree to which purchasing tasks and roles are defined by written documents desribing procedures and policies
5. Using an example explain how marketers may use
the role theory to improve their marketing efforts in the B2B setting.
Market decision based on it, suck up to the gatekeeper, in general 4p terms varying promotion based on the role
6. What the three major sources of perceived risk in
B2B buying situations? Give an example of each.
- 1. Financial-new product cost and potential for lost revenue if breaks or doesn't perform as advertised
- 2. Performance- sale lost if production line stops when manufacturing equip breaks
- 3. Social- ego risk, ex. purchase may not meet approval of important reference group
7. Outline three approaches to reducing risk in B2B
- 1. buyers gather more information
- -Commercial personal-personal selling, trade
- shows, email
- -Commercial impersonal-ads, websites, direct mail
- -Noncommercial personal- word of mouth
- -Noncommercial impersonal- trade publications
- 2. Remain loyal to present suppliers- always buy from same one, loyalty
- 3.spread the risk to other members of the firm or among suppliers- performance risk is great and benefits of looking around outweigh shipping
8. Give three examples of individual behaviors that
might impact B2B buying.
- 1.behavior choice theory-to decide type of situation they are in
- 2.extrinsic rewards (salary, promotion) and intrinsic rewards (feelings of satisfaction)
- 3.Instrumentality-likelihood if the engage in certain actions they will yield rewards that they want
9. What is CLV and why is it important?
- Customer Lifetime Value- profitability over time of customers corrected for the time value of money
- -important because- good benchmark for the lifetime value of company, will tell different customer groups worth value to your firm, acquisition- gives clear idea of what new customer is worth for the company
10. How would you approach determining CLV?
$ margin, retention rate, discount rate
12. Explain the 80/20 rule within the context of B2B
marketing. What are two implications of
- -about 20% of customers account for 80% of sales
- -caution about which of 80% might be future 20
- -build strong relationships for 20
- -just sell on web or something for 80 instead of personal
13. Give a fairly detailed example of how network
connections can help build account retention and penetration.
- Example- a consulting company that does an
- excellent job for one of the leading hospitals in st. Louis is apt to benefit
- greatly from the client’s influence with hospital admins in Kansas, Chicago, Peoria,
- Evansville and Louisville. Clearly, the value of a customer is more than its
- profit margin impact in the most recent accounting period
14. Explain the concept of data warehousing and what
sort of information should be included.
- -uses centrally managed data from all functional areas of the organization so that it may be accessed and authorized users through personal computers for queries, custom reports, and analysis
- -what info: ex customers: names, addresses, purchase history, dates, amounts, type
15. What is a decile report and why would one be
useful? Give at least three potential
benefits along with a set of column headings you would like on your decile
- -orders the firm's customers from best to worst, on the basis of purchase volume period, summarized by tenths
- 1. keeps manager from thinking about average customer
- 2. shows ingo about best accounts
- 3. show where extra marketing attention should go
- -decile, $ spend, # of customers, % of customers, cumulative of prior 2, average purchases
16. Explain the concept of data mining
-describes the process of using numerous query tools and exploratory techniques to extract info from a database or data warehouse. May be used to direct sales efforts. Put in a search to find certain queries.
17. The book offers two approaches to customer
research. What are they and why would you choose one over the other? Give two examples, one in which each approach would be preferred.
- 1. Focus groups- bring a small group of customers together to discuss a specific topic or issue-stimulate thinking about new products and services and how better to market existing products
- 2. Sample Surveys- questionnaire administered to a representative group of a particular population- very satile approach, measuring more data and numbers, online-quicker and less involved
19. Explain the relationship of NAICS with SIC
- -SIC codes replaced by NAICS
- -SIC made by govt to collect and disseminate meaningful info on different sectors of the economy
- -NAICS established common code in US, CA, and MX based on 6 digits so more distinct
- -help business marketer assess the size of a particular industry for which its product is thought to have particular relevance
20. The text offers five bases for segmentation of
B2B markets. Name them and give a
description of each.
- 1. Industrial Classification Systems- SIC to NAICS
- 2. Company Characteristics- company sales,number of employees and locations
- 3. Buying Processes- sort prospective customers on basis of how they buy
- 4. Benefits Sought- buyers place priorities on specific performance dimensions
- 5. Membership and Media- give marketing attention to different market segments
21. What makes for a good B2B segment?
- 1. identifiable
- 2. accessibility
- 3. substantial
- 4. measurable
23. Diagram product/market growth opportunities and
give an example of each.
Product to Market
- Existing/Existing- market penetration ex. freshens ads
- new/existing- product development ex. opening into new array of products
- existing/new- market development ex.current products taken to new market
- new/new- diversification ex. serve new markets with new products
24. Pick a strategic process from the three
presented in the three parts of Exhibit 6-2 and diagram the major parts.
- -internal self analysis- performance analysis ex.profitability, sales, product quality
- -determinants of strategic options- past and current strategies, strategic problems, strengths, weaknesses
- -strategic strengths, weaknesses, problems, constraints, and questions
25. Explain the SWOT analysis elements in some
- strengths-pockets of excellence in the firm
- weaknesses-include products with poor market positions, lame channels of distribution overseas, old tech, bad cost structure
- opportunities-favorable conditions in firm's task environment
- threats-potential adverse conditions in the firm's environment
26. For a SWOT analysis to be particularly good the
book give four attributes the analysis should posess. List the four and tell why it is important.
- -Honest-strong reputation
- -Broad -
- -Multiple Time Horizons
- -Perceptions are there a lot of substitutes? is usefulness going to be limited?
27. Where should a strategy building process
begin? Give some detail.
- -the mission statement- if it is not right, the strategy won't be right. needs to mesh correctly
- -book says internal (performance, strategic options) and external
28. Draw a conceptual map of competitive positions
for a familiar consumer product.
29. Diagram Porter’s five forces. Give a clear B2B example for a box of your
- 1. Struggles between industry rivals (competition)
- 2. threat of substitutes
- 3. threat of potential entrants
- 4. bargaining power of suppliers- intel supplying dell with processors
- 5. bargaining power of consumers
30. There are six barriers to entry presented in the
book. List five of these and giver an
example of one.
- 1. product differentiation
- 2. economies of scale
- 3. capital requirements
- 4. access to distribution channel
- 5. government policy- licensing requirements
31. The book offers four organizational types. List three and give an attribute of each.
- 1. prospector- likes being first mover
- 2. defender- offers limited range of products
- 3. reactor- likes a well-defined strategy
32. What is market orientation and why is it
- -superior skills of understanding and satisfying customers via
- 1. the systematic gathering of info on customers and competitors, both present and potential
- 2. the systematic analysis of the info for the purpose of developing market knowledge
- 3. the systematic use of such knowledge to guide strategy recognition, understanding, creation, selection, implementation, and modification
33. Diagram the requisites for organizational
learning and give a brief statement of why it is important.
- visionary leadership x target and trajectory x information systems x creative and striving x execution
- -when IMC maketing it shows what it will require
- -investigate how one creates and maintains a learning enterprise