Which of the following is not true about business marketers in comparison to consumer marketers

Business Marketing: Business Marketing refers to the sale of either products or services or both by one organization to other organizations that further resell the same or utilize to support their own system.

Consumer Marketing: on the other hand refers to the transaction of goods and services between organizations and potential customers.

The above definitions of business marketing and consumer marketing highlight the difference between the two commonly used terms in marketing [B2B and B2C].Business marketers do not entertain consumers who purchase products and services for their end-use. They deal only with other businesses/firms to sell their products.

In consumer markets, products are sold to consumers either for their own use or use by their family members.

Products in consumer market are further categorized into:

1. Fast Moving Consumer Goods [Abbreviated as FMCG]

Fast moving consumer goods are items that are sold quickly to the end-users generally at nominal costs. Example - Aerated drinks, grocery items and so on.

2. Consumer Durables

Goods that a consumer uses for a considerable amount of time rather than consuming in one use are categorized under Consumer Durables.

Consumer Durables are further categorized into - White Goods and Brown Goods

1. White Goods - [Refrigerators, Microwaves, air conditioners and so on [Majorly all household appliances]
2. Brown Goods - [Television, CD Players, Radio, Game Consoles [Majorly used for entertainment and fun]

3. Soft Goods

Soft goods are products which have a shorter lifecycle and their value decreases after every use.Eg shirts, clothes, shoes.

Examples of Business Marketing [industrial marketing]

Office furniture [Cabinets, desks, workstations, drawers] - End user will not purchase workstations for his own use at home.

Bulk SMS service [utilized by organizations]

In business marketing, marketers deal with lesser number of individuals as compared to consumer marketing where one has to deal with the mass market. Generally a single employee of one organization would be appointed to deal with the concerned employee of the other organization [client]. He does not have to interact with the entire organization.

Organization A sells laptops and desktops to Organization B [A case of B2B marketing].Tom from Organization A has to deal only with either the IT professional or the administration representative.

Organizations dealing with consumers need to interact with every individual who is a potential end-user.

Industrial marketing is more focused as compared to consumer marketing.

Business marketers generally deal with sophisticated employees whereas it is not at all necessary every end user in consumer market would respond to marketers politely. Business buyers generally are educated and well informed. In consumer market, your buyer can be anyone- educated, uneducated, labour and so on. Business marketers themselves need to be well spoken and polished. They must have a pleasing personality and good convincing power.

Business marketers need to be extremely careful about their mode of communication. Emails exchanged with clients should have appropriate subject line. Mails with irrelevant subject line are generally not read by clients. In business marketing, marketers ought to send personalized emails. Bulk SMSes or mass mailers do not work in business marketing. In consumer marketing, products can be promoted through advertising, pamphlets, brochures, hoardings or simply mass mailers.

There are less number of business buyers as compared to individuals who purchase for their own end use.

Authorship/Referencing - About the Author[s]

The article is Written By “Prachi Juneja” and Reviewed By Management Study Guide Content Team. MSG Content Team comprises experienced Faculty Member, Professionals and Subject Matter Experts. We are a ISO 2001:2015 Certified Education Provider. To Know more, click on About Us. The use of this material is free for learning and education purpose. Please reference authorship of content used, including link[s] to ManagementStudyGuide.com and the content page url.

1. When purchasing a high speed packaging machine, Nestlé would be classified as:

1. an original equipment manufacturer.
2. a user.
3. a distributor.
4. a dealer.
5. an institutional buyer.

2. When Tata Steel notices a drop in the demand for steel as a result of a decline in ultimate consumer demand for automobiles, this illustrates the concept of:

1. derived demand.
2. connector demand.
3. linked demand.
4. reflection demand.
5. evoked demand.

Answer:

a. derived demand.

3. Which of the following would be classified as entering goods?

1. operating supplies
2. maintenance and repair items
3. component materials
4. both [a] and [c]
5. none of the above

Answer:

d. both [a] and [c]

4. Douglas Jackson is a salesperson for Quality Surgical Products. To achieve success in selling medical supplies, Doug may have to:

1. satisfy the requirements of the hospital administrator.
2. meet the requirements and specifications of the professional staff [doctors and nurses].
3. satisfy the requirements of the purchasing manager.
4. all of the above.
5. [a] and [c] only.

Answer:

d. all of the above.

5. The NAICS is:

1. a standard industrial classification system.
2. the North American equivalent of NACE.
3. used for segmenting B2B markets.
4. all of the above.

Answer:

d. all of the above.

6. Organizational buyers do not have well-defined criteria that can be applied to the procurement
problem in:

1. modified rebuy situations.
2. new task buying situations.
3. straight rebuy situations.
4. purchasing expensive accessory equipment.

Answer:

b. new task buying situations.

7. Strategies that would be appropriate for an “out” supplier to follow when confronting a modified rebuy situation include:

1. offering performance guarantees.
2. encouraging the organization to sample the firm’s offering.
3. defining and responding to the organization’s problem with the existing supplier.
4. all of the above.
5. [b] and [c] only.

Answer:

d. all of the above.

8. Sales forces that frequently encounter this type of buying situation provide the following sketch:
“The buying center is large, slow to decide, uncertain about its needs and the appropriateness of the
possible solutions, more concerned about finding a good solution than getting a low price, more
influenced by technical personnel, less influenced by purchasing agents.” This describes a:

1. capital equipment purchase.
2. new task.
3. straight rebuy.
4. modified rebuy.
5. none of the above

9. Within the buying centre, individuals who actually make the organizational buying decision, whether or
not they have formal authority to do so, are performing the role of:

a user.

a gatekeeper.

an influencer.

a decider.

a buyer

10. A common identifiable element in buying centres in all sectors of the industrial market is:

1. the chief executive officer.
2. the accounting function.
3. the purchasing function.
4. the production function.
5. the engineering function.

Answer:

c. the purchasing function.

11. Transactional exchange features very close:

1. information linkages.
2. social linkages.
3. operational linkages.
4. all of the above.
5. none of the above.

Answer:

e. none of the above.

12. Ongoing transactions in the business market where the customer and the supplier focus only on
the timely exchange of standard products at competitive prices could be described as:

1. transactional exchange.
2. a partnership.
3. collaborative exchange.
4. a strategic alliance.
5. a joint venture.

Answer:

a. transactional exchange.

13. Buying firms prefer a more collaborative relationship when:

1. the purchase is deemed strategically important to the buying organization.
2. the market is dynamic.
3. there are few alternatives.
4. all of the above.
5. [a] and [c] only.

Answer:

d. all of the above.

14. Which of the following statements concerning business market segmentation is [are] true?

1. The decision to enter a particular market segment carries with it significant long-term resource commitments for the industrial firm.
2. In evaluating alternative bases for segmentation, the marketer is attempting to identify good predictors of differences in buyer behaviour.
3. Segmentation decisions can be reversed more easily in the business market than in the consumer market.
4. All of the above
5. [a] and [b] only.

Answer:

e. [a] and [b] only.

15. NACE is an acronym for:

1. National Association of Chimney Engineers.
2. National Association of Colleges and Employers.
3. Nomenclature générale des activités Économiques dans les Communautés européennes.
4. National Association of Catering Executives.
5. All of the above.

Answer:

e. All of the above.

16. Which of the following is NOT a method of differentiating B2B marketing from B2C marketing?

1. market structure
2. derived demand
3. buying behaviour
4. demand concentration
5. product type

17. A particular industrial customer might be properly classified as a user by somebusiness marketers
and an original equipment manufacturer by other business marketers.

1. True
2. False

18. A purchasing manager could assume the roles of buyer, gatekeeper, and influencerin the buying centre.

1. True
2. False

19. The marketing task appropriate for the straight rebuy situation depends on whether the marketer is
an “in” or an “out” supplier.

1. True
2. False

20. Buying firms prefer a transactional relationship when there are few alternatives and the complexity of purchase is high.

1. True
2. False

Which of the following is true about business marketers in comparison to consumer marketer?

What is the difference between the consumer market and the business market?

When compared to the consumer market the business to business market the consumer market is quizlet?

When compared to consumer purchases business purchases are usually less complex True or false?