Marketing Strategies and Business Buying Process
42 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the primary focus of complex decision-making in purchasing?

  • Decisions involving large sums of money (correct)
  • Low-risk individual purchases
  • Simple product approvals
  • Spontaneous consumer choices

    • What is a key element included in a purchase order (PO)?

  • Order number and payment details (correct)
  • Product promotion timelines
  • Supplier's marketing strategies
  • Customer feedback analysis

    • Which of the following describes the relationship between a brand and an important customer in the context of purchasing?

  • Brands only care about individual purchases.
  • There is mutual dependency between the brand and the important customer. (correct)
  • Brands are less dependent on important customers.
  • Important customers are independent of brands.

    • Which characteristic distinguishes formalized purchasing decisions?

    <p>Use of detailed product specifications</p> Signup and view all the answers

    What does the term 'incoterms' refer to in the purchasing process?

    <p>Shipping terms and conditions</p> Signup and view all the answers

    What is the process an organization follows when preparing a final order?

    <p>Listing items, tech specifications, and expected delivery time</p> Signup and view all the answers

    Which action is taken during the performance review process in a buying department?

    <p>Contacting users to assess their satisfaction</p> Signup and view all the answers

    What characterizes a straight rebuy in the business buying process?

    <p>Reordering the same product without changes</p> Signup and view all the answers

    What defines a modified rebuy situation?

    <p>Purchasing an item that has additional features or types</p> Signup and view all the answers

    What typically happens if a purchased item is deemed not good enough for a customer?

    <p>A request for a product upgrade</p> Signup and view all the answers

    What primarily characterizes a business market?

    <p>Organizations buying goods to produce other goods or services</p> Signup and view all the answers

    Which of the following is NOT a similarity between business and consumer markets?

    <p>Both require market research</p> Signup and view all the answers

    How does the nature of the buying unit differ between business and consumer markets?

    <p>Business markets often have specialized buying units</p> Signup and view all the answers

    What is a key factor that influences buying decisions in business markets?

    <p>Perceived value in relation to profit</p> Signup and view all the answers

    What typically differentiates the decision process in business markets from that in consumer markets?

    <p>Business markets often require multiple approvals</p> Signup and view all the answers

    What is a common need expressed in business exchanges?

    <p>Economic benefit to enhance value proposition</p> Signup and view all the answers

    Which of the following statements is generally true for consumer markets compared to business markets?

    <p>Consumer markets often respond to trends and emotional factors</p> Signup and view all the answers

    Which of the following best describes the payment structure in business markets?

    <p>Credit terms are frequently negotiated</p> Signup and view all the answers

    What characterizes the demand for rubber in the tire manufacturing industry?

    <p>It shows inelastic behavior, especially in the short term.</p> Signup and view all the answers

    Which factor affects the decision-making process in business purchases?

    <p>Increased participation from multiple decision-makers.</p> Signup and view all the answers

    What is a primary reason why relationship marketing is more effective in business markets?

    <p>Businesses have a greater potential for higher returns on investment.</p> Signup and view all the answers

    Which purchasing strategy is commonly seen in luxury firms?

    <p>Concentration in high-value urban markets.</p> Signup and view all the answers

    What is an example of derived demand in the tire industry?

    <p>Tire manufacturers purchasing rubber based on projected tire sales.</p> Signup and view all the answers

    What does fluctuating demand in industrial markets often result in?

    <p>An accumulation of stock that leads to increased complexity in sales.</p> Signup and view all the answers

    What is a common characteristic of business purchasing compared to consumer purchasing?

    <p>It generally involves a more professional and systematic approach.</p> Signup and view all the answers

    Which of the following is NOT a feature of business purchases?

    <p>Emotionally-driven decisions based on personal preference.</p> Signup and view all the answers

    What triggers problem recognition in a company?

    <p>Both external and internal stimuli</p> Signup and view all the answers

    What is included in the general need description stage?

    <p>Listing characteristics and quantity of the needed item</p> Signup and view all the answers

    Which department is consulted during the general need description phase for checking if the item can be sold?

    <p>Accountancy department</p> Signup and view all the answers

    What is primarily developed during the product specifications stage?

    <p>The needed item's product specifications</p> Signup and view all the answers

    In the supplier search stage, which strategy is most effective?

    <p>A combination of past and new supplier searches</p> Signup and view all the answers

    What is value analysis primarily focused on during the product specifications stage?

    <p>Evaluating cost versus benefits</p> Signup and view all the answers

    What supports the supplier's reliability evaluation process?

    <p>Feedback from previous collaborations</p> Signup and view all the answers

    Which of these is NOT a part of the product specifications process?

    <p>Conducting environmental impact assessments</p> Signup and view all the answers

    Who typically provides information for evaluating alternatives in the business buying process?

    <p>Influencers</p> Signup and view all the answers

    What role does the buyer play in the business buying process?

    <p>They negotiate terms and select vendors.</p> Signup and view all the answers

    Which of the following is a characteristic of gatekeepers in the buying process?

    <p>They filter information and control access to decision-making.</p> Signup and view all the answers

    In a traditional business buying process, who has the final say on whether to make a purchase?

    <p>Deciders</p> Signup and view all the answers

    What is one factor that influences the complexity of the buying process?

    <p>The number of decision participants</p> Signup and view all the answers

    What is primarily the responsibility of users in the buying process?

    <p>Utilize the product or service</p> Signup and view all the answers

    Which group in the business buying process can both formally and informally influence purchasing decisions?

    <p>Buyers</p> Signup and view all the answers

    Which aspect is NOT mentioned as a consideration for the buying decision?

    <p>Cost of marketing</p> Signup and view all the answers

    Study Notes

    Marketing Strategies

    • A marketing strategy involves buying goods and services for use in production, resale, or rental.
    • Business markets have similarities to consumer markets, including needs and psychology of buyers.
    • However, business markets differ in their structure, demand, and size of buyers.
    • Business markets often involve more decision-makers and a more intricate buying process than consumer markets.
    • A business to business (B2B) sale differs in distance between seller and buyer.
    • B2C transactions have a lower degree of dependency on both sides than B2B

    Business Buying Process

    • The business buying process starts with problem recognition and ends with performance review.
    • Businesses analyze needs and specifications, research suppliers, seek proposals, select a supplier, and conduct the order routine and review of performance.
    • The process takes into consideration several participants in the buying procedure such as the users, influencers, buyers, decision-makers, and gatekeepers.

    Influences on Business Buyers

    • Environmental factors, such as economic conditions, technological changes, and political regulations, as well as organizational factors like objectives, policies, procedures, and organizational structure influence business buyers.
    • Interpersonal factors, including authority, status, empathy, and persuasiveness, and individual factors, such as age, income, education, job position, personality, and risk attitudes, also play a significant role.

    Studying That Suits You

    Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

    Quiz Team

    Related Documents

    UNIT 4 Strategic Marketing: Industrial Markets PDF

    Description

    Explore the nuances of marketing strategies and the business buying process in this quiz. Understand how B2B interactions differ from B2C transactions, including the complexities involved in decision-making and supplier selection. Test your knowledge on the key components and steps in these processes.

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser