MKTG 400 Exam questions and
answers graded A+
North American Industry Classification System (NAICS) - ANS✅✅- provides common industry
definitions for Canada, Mexico, and the United States
- makes it easier to measure economic activity in the three member countries of the North American
Free Trade Agreement (NAFTA)
- permits studies of market share, demand for goods/services, import competition, etc.
- designates industries with a numerical code
Derived Demand - ANS✅✅- demand for industrial products and services that is driven by/derived
from the demand for consumer products and services
Organizational Buying Criteria - ANS✅✅- objective attributes of the supplier's products and
services and the capabilities of the supplier itself
- profit responsibility
Examples: 1. Warranty/claim policies
2. technical capability
3. Price
4. Quality Specifications
5. Delivery Schedules
6. Past Performance
7. Production facilities/capacity
ISO 9000 - ANS✅✅- standards for registration and certification of a manufacturer's quality
management and assurance system
- based on an on-site audit of practices and procedures developed by the International Standards
Organization (ISO)
Supplier Development - ANS✅✅- effort by organizational buyers to build relationships that shape
supplier's products/services/capabilities to fit a customer's needs
Example: John Deere
, Reciprocity - ANS✅✅- two organizations agree to purchase each other's products and services
Supply Partnership - ANS✅✅- relationship that exists when a buyer and it's supplier adopt
mutually beneficial objectives/policies/etc. for the purpose of lowering cost or increasing value of
products/services
Industrial Firms (Buyers) - ANS✅✅- reprocess a product or service they buy before selling it again
to the next buyer
Example: Clothing
Resellers Market - ANS✅✅- Retailers and wholesalers that buy physical products and resell them
again without any reprocessing
- 1. How they make their own buying decisions
- 2. Which products they choose to carry
Government Markets - ANS✅✅- federal, state, local agencies that buy goods and services for the
constituents they serve
Example: NASA, satellites
Organizational Buying Market Characteristics - ANS✅✅- demand for industrial products/services is
derived
- fewer customers exist, but purchase larger orders
Organizational Buying Product/Service Characteristics - ANS✅✅- products/services usually
purchased raw and semi-finished
- heavy emphasis placed on delivery time, technical assistance, post sale service
Organizational Buying Process Characteristics - ANS✅✅- Qualified/professional buyers follow
established purchasing policies and procedures
- objectives and criteria are typically mapped out
- online buying is widespread
Organizational Marketing Mix Characteristics - ANS✅✅- direct selling to organizational buyers is
most important, focus on distribution
answers graded A+
North American Industry Classification System (NAICS) - ANS✅✅- provides common industry
definitions for Canada, Mexico, and the United States
- makes it easier to measure economic activity in the three member countries of the North American
Free Trade Agreement (NAFTA)
- permits studies of market share, demand for goods/services, import competition, etc.
- designates industries with a numerical code
Derived Demand - ANS✅✅- demand for industrial products and services that is driven by/derived
from the demand for consumer products and services
Organizational Buying Criteria - ANS✅✅- objective attributes of the supplier's products and
services and the capabilities of the supplier itself
- profit responsibility
Examples: 1. Warranty/claim policies
2. technical capability
3. Price
4. Quality Specifications
5. Delivery Schedules
6. Past Performance
7. Production facilities/capacity
ISO 9000 - ANS✅✅- standards for registration and certification of a manufacturer's quality
management and assurance system
- based on an on-site audit of practices and procedures developed by the International Standards
Organization (ISO)
Supplier Development - ANS✅✅- effort by organizational buyers to build relationships that shape
supplier's products/services/capabilities to fit a customer's needs
Example: John Deere
, Reciprocity - ANS✅✅- two organizations agree to purchase each other's products and services
Supply Partnership - ANS✅✅- relationship that exists when a buyer and it's supplier adopt
mutually beneficial objectives/policies/etc. for the purpose of lowering cost or increasing value of
products/services
Industrial Firms (Buyers) - ANS✅✅- reprocess a product or service they buy before selling it again
to the next buyer
Example: Clothing
Resellers Market - ANS✅✅- Retailers and wholesalers that buy physical products and resell them
again without any reprocessing
- 1. How they make their own buying decisions
- 2. Which products they choose to carry
Government Markets - ANS✅✅- federal, state, local agencies that buy goods and services for the
constituents they serve
Example: NASA, satellites
Organizational Buying Market Characteristics - ANS✅✅- demand for industrial products/services is
derived
- fewer customers exist, but purchase larger orders
Organizational Buying Product/Service Characteristics - ANS✅✅- products/services usually
purchased raw and semi-finished
- heavy emphasis placed on delivery time, technical assistance, post sale service
Organizational Buying Process Characteristics - ANS✅✅- Qualified/professional buyers follow
established purchasing policies and procedures
- objectives and criteria are typically mapped out
- online buying is widespread
Organizational Marketing Mix Characteristics - ANS✅✅- direct selling to organizational buyers is
most important, focus on distribution
