Marketing Distribution Quiz
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Questions and Answers

What is the primary task of distribution in the context of marketing?

  • To minimize consumer choices
  • To bridge the gap between production and consumption (correct)
  • To reduce the number of intermediaries involved
  • To increase production costs

Which of the following statements is true regarding direct sales?

  • It requires minimal customer involvement.
  • It is suitable for fragmented customer bases.
  • It typically involves a large, well-defined group of customers. (correct)
  • It avoids personal selling costs completely.

Which type of intermediary takes ownership of the products?

  • Distributor (correct)
  • Retailer (correct)
  • Forwarder
  • Agent

What is a key feature of indirect sales channels?

<p>They cater to standardized and commoditized products. (A)</p> Signup and view all the answers

What defines a franchisee in distribution?

<p>An authorized seller acting under a specific brand name. (B)</p> Signup and view all the answers

What is the primary focus of open innovation?

<p>Involving external actors in the innovation process (A)</p> Signup and view all the answers

Which aspect is essential for maintaining a strong network position?

<p>Understanding and enhancing your own position within the network (D)</p> Signup and view all the answers

How does digitalization impact product development?

<p>Facilitates new processes for managing relationships (A)</p> Signup and view all the answers

What is a key characteristic of B2B relationships in new offering development?

<p>Value derived from relationships with customers and suppliers (A)</p> Signup and view all the answers

What role do partner suppliers play in the innovation process?

<p>They are crucial sources of external expertise and innovation (C)</p> Signup and view all the answers

Which of the following best describes closed innovation?

<p>Innovation conducted within the constraints of the firm (B)</p> Signup and view all the answers

What is a potential benefit of external cooperation in innovation?

<p>Acceleration of the innovation cycle (D)</p> Signup and view all the answers

What is one of the outcomes of technological development in networks?

<p>Greater collaboration with research institutes and competitors (A)</p> Signup and view all the answers

Which category in Kraljic's Matrix is characterized by high business impact and high supply risk/market complexity?

<p>Strategic Products (B)</p> Signup and view all the answers

Which of the following is NOT part of the traditional role of purchasing?

<p>Supplier measurement and improvement activities (C)</p> Signup and view all the answers

What is the first step in the purchase decision process between companies?

<p>Problem/need recognition (C)</p> Signup and view all the answers

In terms of purchase categories, which of the following represents products that have low business impact and high supply risk/market complexity?

<p>Bottleneck Products (A)</p> Signup and view all the answers

Which activity is a focus in the new role of purchasing?

<p>Cost reduction and cost planning (C)</p> Signup and view all the answers

What stage comes after performance evaluation and feedback in the purchase decision process?

<p>Specification of order routine (D)</p> Signup and view all the answers

Which factor does NOT typically influence the purchase decision process?

<p>Supplier reputation (C)</p> Signup and view all the answers

What usually prompts organizations to seek alternatives outside existing supplier relationships?

<p>Dissatisfaction with existing supplies (D)</p> Signup and view all the answers

What type of demand does consumer marketing primarily rely on?

<p>Direct (C)</p> Signup and view all the answers

Which characteristic describes the nature of demand in business marketing?

<p>Greater volatility (A)</p> Signup and view all the answers

What is primarily aimed at increasing long-term shareholder value?

<p>Delivering customer value (D)</p> Signup and view all the answers

How does the elasticity of demand generally compare between consumer marketing and business marketing?

<p>Less elastic in business marketing (D)</p> Signup and view all the answers

What characterizes transactional relationships?

<p>Each transaction is evaluated in isolation (C)</p> Signup and view all the answers

Which definition best describes customer lifetime value?

<p>Net present value of expected profits over the duration of the customer relationship (C)</p> Signup and view all the answers

In consumer marketing, the number of buyers per seller is typically characterized as:

<p>Many (B)</p> Signup and view all the answers

What is a key assumption of the marketing mix approach?

<p>The market is passive and sellers are active (B), Marketers and customers operate separately (C)</p> Signup and view all the answers

Which ethical approach focuses on following codes of conduct?

<p>Deontological Approach (A)</p> Signup and view all the answers

Which statement most accurately represents the nature of customers in business marketing?

<p>Greater volatility than consumer marketing (D), Greater heterogeneity compared to consumer marketing (A)</p> Signup and view all the answers

What is a key goal of relationship value in business?

<p>Creating value for both parties (B)</p> Signup and view all the answers

What is the primary goal of marketing in the context of value co-creation?

<p>Creating value through mutual interaction (A)</p> Signup and view all the answers

Sustainable development is characterized by which of the following?

<p>Fulfilling present needs without compromising future generations' needs (B)</p> Signup and view all the answers

In market segmentation, what is the goal of viewing a heterogeneous market as smaller homogeneous markets?

<p>To better respond to differing product preferences (A)</p> Signup and view all the answers

What is often a misconception about the interaction between sellers and buyers in business marketing?

<p>Buyers are often as active as suppliers (A)</p> Signup and view all the answers

What does responsible corporate social responsibility (CSR) typically incorporate?

<p>Balancing social, environmental, and economic concerns (C)</p> Signup and view all the answers

Which ability relates specifically to the seller's capacity to adapt to varying demand conditions?

<p>Capacity uncertainty (B)</p> Signup and view all the answers

What is a primary question to understand the customer better?

<p>What and why does the customer purchase? (A)</p> Signup and view all the answers

Which of the following sampling methods is classified as non-probability sampling?

<p>Convenience sampling (D)</p> Signup and view all the answers

Which factor is NOT considered when analyzing the market?

<p>Product pricing strategies (D)</p> Signup and view all the answers

What is crucial for a B2B marketing organization to understand in their research?

<p>Direct customers and downstream developments (D)</p> Signup and view all the answers

Which aspect of market information is considered the most important?

<p>Accuracy (B)</p> Signup and view all the answers

In buying behavior, which philosophy contrasts with competition?

<p>Relationship orientation (B)</p> Signup and view all the answers

What type of effect refers to demand influenced by changes in the economy or other underlying factors?

<p>Derived demand (B)</p> Signup and view all the answers

Give the four principles of Business marketing management.

<p>Regard value as the customer Focus on business marketing process Stress doing business across borders of firms -&gt; no isolation accentuate working relationships &amp; business networks</p> Signup and view all the answers

What are the 4 Ps of business marketing?

<p>Place, product, promotion, price</p> Signup and view all the answers

What´s the aim of value co-creation?

<p>Reducing uncertainties through matching abilities. Market is successful, when companies and customers work together to create value for each other.</p> Signup and view all the answers

Which are the four aspects, the IMP Model consists of? (Regarding Interaction process)

<p>short-term exchange episodes, long-term institutionalization and adaptions, atmosphere and environment.</p> Signup and view all the answers

What does the network approach represent?

<p>how different people, tools and actions in a network connect and influence each other.</p> Signup and view all the answers

Name the three substances of business relationships and give a short explanation.

<p>acitivity links - interactions and operations between actors that integrat and align their activities resource ties - how resources are linked, shared or interdependent between actors actor bonds - connection between actors within the network</p> Signup and view all the answers

Do marketing theories need to evolve to adress modern trends like digitalization and sustainability transition?

<p>Wahr (A)</p> Signup and view all the answers

Is marketing strategy different from planing?

<p>Wahr (A)</p> Signup and view all the answers

Name the three main aspects of the relationship spectrum.

<p>Transactional relationships Value adding exchange Collaborative relationships</p> Signup and view all the answers

Which types of value do exist?

<p>Customer value - customer´s overall assessment of the trade-off (A), Customer lifetime value - net present value of expected profits over the duration of the customer relationship (C), Relationship value - Creation of value for both - supplier and customer - key goal of all (D)</p> Signup and view all the answers

Name the four criterias for useful segmentation

<p>Measureable Accessible Sustainable Actionable</p> Signup and view all the answers

Which is no element of the design of offerings?

<p>price (C)</p> Signup and view all the answers

What kinds of Pricing do exist?

<p>Cost-Plus pricing Competitive-Based Pricing Customer-Based pricing Value-bases pricing</p> Signup and view all the answers

Which of the following pricing strategies has a high initial price?

<p>Skimming pricing strategy (B)</p> Signup and view all the answers

What is the purchasing philosophy?

<p>It´s a philosophy that guides managers making purchasing related decisions.</p> Signup and view all the answers

Which is no purchasing orientation?

<p>Market orientation (A)</p> Signup and view all the answers

Which one is no form a multi-tier supply chain?

<p>Mixed (D)</p> Signup and view all the answers

Flashcards

Derived Demand

Demand for business products is driven by the demand for consumer products. For example, if there is a high demand for cars, there will be a high demand for steel, which is used to manufacture cars.

Greater Volatility in Business Demand

The demand for business products is more prone to fluctuations than consumer products due to factors like economic cycles and changes in customer demand.

Less Elastic Business Demand

Business products tend to be less elastic, meaning that changes in price have a smaller impact on demand. This is because businesses often have limited alternatives or need specific products for their operations.

Reverse Elasticity in Business Marketing

In business marketing, the price of a product can sometimes increase demand, especially if it signals higher quality or prestige for businesses.

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Marketing Mix Approach

The marketing mix approach to business marketing focuses on the four Ps: product, price, promotion, and place. It emphasizes the seller's role in influencing the buyer's decision.

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Interaction & Network Approach

The interaction & network approach recognizes that both sellers and buyers are active participants in creating value. It focuses on collaboration and joint problem-solving rather than a one-sided transaction.

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Value Co-creation

Value co-creation occurs when businesses and customers collaborate to create value for each other by aligning their capabilities and addressing each other's uncertainties.

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IMP Model

The IMP Model emphasizes the dynamic and long-term nature of buyer-seller relationships in business marketing. It focuses on understanding the interactions and evolving needs of both parties over time.

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Distribution

The process of moving goods from the producer to the consumer, bridging the gap between production and consumption.

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Indirect Sales

A method of selling products through one or more intermediaries, typically used for fragmented customers or standardized products.

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Direct Sales

A method of selling products directly to the consumer, often used for large, well-defined customer groups or complex offerings.

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Intermediaries

Individuals or organizations that act as intermediaries between producers and consumers, facilitating the distribution of goods.

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Franchisee

A type of intermediary that obtains rights from a principal company to conduct business under its name and brand.

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Customer Lifetime Value

The total value a customer brings to a business over the course of their relationship, calculated by considering the net present value of expected profits.

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Relationship Value

The perceived difference between the benefits received and sacrifices made by a customer, including relationship-related aspects.

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Sustainable Development

A business strategy that aims to meet the needs of the present without compromising the ability of future generations to meet their own needs.

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Green Corporate Social Responsibility

The practice of companies integrating social and environmental concerns into their business operations and interactions with stakeholders.

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Utilitarianism

An ethical approach that focuses on evaluating the consequences of actions, prioritizing choices that result in the greatest good for the greatest number of stakeholders.

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Segmentation

A framework for analyzing a market by dividing it into distinct groups based on shared characteristics and preferences, allowing companies to tailor marketing strategies to specific segments.

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Deontological Approach

An ethical approach that emphasizes following rules and codes of conduct, regardless of potential consequences.

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Virtue Ethics

An ethical approach that focuses on developing good character traits and habits, emphasizing moral virtues like honesty, fairness, and compassion.

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Kraljic's Matrix

A tool for analyzing which products are most important to the company and how difficult they are to procure.

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Strategic Products

Products that are both important to your business and difficult to procure from other suppliers. Require careful management.

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Bottleneck Products

Products that are very important to your business, but are easy to procure from other suppliers. Good opportunities for cost reductions.

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Leverage Products

Products that are not critical to your business, but there are many suppliers. Opportunities to negotiate price.

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Non-Critical Products

Products that are not critical to your business and are easy to procure from other suppliers. Simple purchasing process.

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Purchase Decision Process

The process of determining whether to use an existing supplier or to search for a new one.

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Evolution of Procurement Role

Traditional procurement focus on administrative tasks, while the new role emphasizes cost reduction, supplier improvement, and strategies.

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Product and Supplier Evaluation

Often influenced by factors like quality, price, and availability.

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Volatility of Business Demand

Business product demand fluctuates more than consumer goods due to economic cycles and customer changes. This is because demand in business markets is often derived from consumer demand.

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Resource leveraging

When a business uses its existing capabilities or resources to create new products or services.

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Network position analysis

A strategic analysis examining how a company's connections and relationships influence their competitive advantage.

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Closed Innovation

A company's internal innovation process in which ideas and development stay within the organization.

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Open Innovation

A company's innovation process that actively includes external parties (suppliers, customers, research institutions) in the creation of new offerings.

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B2B relationships in new offering development

The development of new offerings can involve partners and collaborators.

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More open concept generation in innovation today

The shift from closed to open innovation emphasizes collaboration and external expertise.

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Partner collaboration in product development

Involves choosing partners for product development based on their specific expertise and capabilities.

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IoT and digitalization impact on supplier relationships

Changes in technology, such as IoT and digitalization, transform how companies work with suppliers in product development.

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Study Notes

Business Marketing & Purchasing - Summary

  • Business networks connect sellers and buyers (marketing/purchasing management) through relationships.
  • Principles of business marketing management include valuing customers, focusing on business processes, and emphasizing working relationships across borders.
  • Business market processes involve market sensing, managing market offerings, gaining new business, understanding firms as customers, creating value, delivering value, and sustaining value, reseller partnerships, and managing customers.
  • Six areas for business marketing and purchasing are identified: Area 1 (seller), Area 2 (marketing strategy), Area 3 (buyer), Area 4 (buying behavior), Area 5 (interaction between buyer & seller), and Area 6 (development of new offerings).

Business vs. Consumer Markets

  • Dimensions such as demand, volatility of demand, elasticity, nature of customers, markets, fragmentation, complexity, and numbers differ between business and consumer markets.
  • Business markets are characterized by more complex, larger, and diverse relationships, while consumer markets are typically simpler and smaller.

Approaches to Business Marketing & Purchasing

  • Marketing mix approach (4Ps): product, price, promotion, and place.

Value Co-Creation

  • Matching seller and buyer uncertainties and abilities is essential for value co-creation.
  • Mismatched abilities can hinder successful co-creation.

Interaction Process

  • Short-term exchanges involve product/service exchanges, financial transactions, and social interactions.
  • The IMP model considers product/service exchanges, atmospheres, power/dependence, cooperation, closeness, and expectations
  • Long-term interactions involve institutionalization and adjustments in processes.

Business Relationship Strategies

  • Rational planning, resource-based, and relationships/networks are among the strategical approaches to business marketing.
  • Value-added exchanges focus on increasing relational focus and building strategies. Transactional exchanges are characterized by efficiency and focus on immediate transactions.

Defining Value

  • Customer value is the trade-off between sacrifices (what is given up) and benefits (what is received).
  • Customer lifetime value (CLTV) is the expected total profit or revenue over a customer’s entire relationship with a company.
  • Relationship value reflects the difference between benefits and sacrifices, including relationships.

Corporate Social Responsibility

  • Sustainability is crucial for ethical approaches and responsible business practices—embracing environmental and social concerns.

Segmentation

  • Viewing a heterogeneous market as smaller homogeneous segments (e.g., macro segmentation).
  • Macro segmentation (large-scale analysis) identifies broad market segments, while micro segmentation (fine-level analysis) provides more detailed breakdowns of customers.
  • Segmentation benefits include improved market understanding and strategic management.

Methods for Understanding Buyers

  • Market research in business-to-business (B2B) markets is crucial. Methods include analysis of conditions, customer profiles, industry analysis, and competitor analysis. B2B market research often involves understanding how customers may not always be aware of the upstream and downstream aspects of the purchase decision process and how this may influence their own individual needs.
  • Types of sampling methods for research include probability sampling and non-probability sampling (e.g., simple random, stratified, cluster/multistage sampling). Direct interaction with customers is vital.

Buying Behavior

  • Buyer philosophy/orientation & competition vs. relationship are key considerations.
  • In purchasing decisions, price can be reduced through competition or relationship development.

Purchasing Orientations

  • Buying orientation focuses on reducing prices, and purchasing decisions are based on price reductions.
  • Procurement orientation emphasizes strategic buying, leveraging external resources, and improving overall quality/costs.
  • Supply management orientation emphasizes relationship building, maximizing supplier cooperation, and avoiding risks.

Purchase Decision Process

  • Understanding buying processes is necessary to design effective marketing strategies. The purchase decision process involves problem recognition, determining product specifications, identifying possible suppliers, evaluating and selecting suppliers, negotiating purchasing agreements, evaluating vendor performance, and performance feedback.

Interaction Between Buyer & Seller

  • An important aspect of B2B markets is studying interactions between buyers and sellers.
  • Context or relationships have a major role to play in B2B interactions.

Selling Process & Communication

  • A combination approach for selling and communicating with customers via marketing and personal selling is important, and understanding customer needs is vital.
  • Using a mix of communication channels, such as digital media, gives companies the most success for meeting goals.

Direct & Indirect Marketing

  • Direct marketing involves interactions between the seller and buyer, and can encompass face-to-face or remote contacts.
  • Indirect marketing involves intermediaries to bridge the gap between sellers and buyers.
  • Communication, both direct and indirect, can take place in person, digitally, and through a blend of methods.

Network Positions & Development of New Offerings

  • Analyzing network positions helps identify opportunities.
  • Technological developments in networks and collaboration with external actors are key for developing new product offerings.

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Business Marketing & Purchasing - Summary PDF

Description

Test your knowledge on the distribution aspect of marketing. This quiz covers essential concepts such as direct sales, types of intermediaries, and the role of franchisees in distribution. Challenge yourself and see how well you understand marketing distribution strategies!

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