MKTG 400 Exam questions and
answers graded A+
Business-to-Business Marketing Example - ANS✅✅An industrial pump manufacturer is attempting
to market and sell its products to an oil and gas producer
- Creation of goods and services that can be produced and marketed to others (In this case,
industrial pump wants to sell to a company)
Organizational Buyers - ANS✅✅Manufacturers, Wholesalers, Retailers, and government agencies
that buy goods and services for their own use or resale
Types of Organizational Buyers - ANS✅✅1) Industrial Markets (Firms the reprocess)
2) Reseller Markets (Sells Finished Goods)
- Consist of Wholesalers & Retailers
3) Government Markets (federal, state, local agencies that buy goods and services for the
constituents they serve | Example: NASA, satellites)
Derived Demand - ANS✅✅The Demand for industrial products and services that is driven
by/derived from the demand for consumer products & services
Derived Demand Example - ANS✅✅Ex of a non-derived damnd: Manzer had to sell 10,000 gallons
of excess latex. Naturally, he went to the customer that loved him the most, but he said no because
he was buying for the organization. There wasn't a derived demand!
Ex of derived demand: The more trucks ford produces, the more paint they'll have to buy for the
trucks
Derived Demand Factors - ANS✅✅- Number of Potential Buyers (which is much less | ex: small
amount of truck manufactures)
- Size of order/purchase
Ex: You could buy 4 tires for your Ford F-150 but Ford itself will buy 50,000 tires at a time
Organizational Buying Criteria - ANS✅✅The objective attributes of the supplier's products and
services and capabilities of the supplier itself
,What are the Organizations Buying Objectives? - ANS✅✅- Maintain Profits
- Satisfy women & minority suppliers
- Efficiency
- Environment and Sustainability
What Are The Organizational Buying Criteria's? - ANS✅✅- Price
- Ability to meet quality specifications
- Ability to meet delivery schedules
- Technical capability
- Past performance
- Production facilities and capacity
Supplier Development - ANS✅✅The deliberate effort by organizational buyers to build
relationships that shape suppliers' products, services, and capabilities to fit a buyers' needs and
those of its customers
Supplier Development Example - ANS✅✅Knorr, a Unilever division, co-invests 1 million Euros with
its suppliers and farmers in knowledge and equipment to accelerate the implementation of
sustainable practices.
Reciprocity - ANS✅✅An Industrial buying practice in which two organizations agree to purchase
each other's products and services
- Meaning "I'll scratch your back if you scratch mine"
Supply Partnership - ANS✅✅a relationship that exists when a buyer and its supplier adopt
mutually beneficial objectives, policies, and procedures for the purpose of lowering the cost or
increasing the value of products and services delivered to the ultimate consumer
What is the Goal of 'Supply Partnership'? - ANS✅✅Lower cost or increase the value of products
and services
Supply Partnership Example - ANS✅✅Milsco Manufacturing
, - Produces 3 million seats
- 200 unique variations
- 86-year partnership with Harley-Davidson
- 100 new products every year to meet customers new requirements
Organizational Buying Behavior - ANS✅✅The decision-making process that organizations use to
establish the need for products and services and identify, evaluate, and choose among alternative
brands and suppliers
- Similar to problem decision process
Buying Committee - ANS✅✅Formalized and concrete business (it's there permanently
ex: Sporting KC
Buying Center - ANS✅✅Consists of the group of people in an organization who participate in the
buying process and share common goals, risks, and knowledge important to a purchase decision (not
formalized, comes and goes)
ex: Pop up shop
Roles in the Buying Center - ANS✅✅- Users
- Influencers
- Buyers
- Deciders
- Gatekeepers
Users - ANS✅✅Use product when received
Influencers - ANS✅✅People with technical skills
Buyers - ANS✅✅Disperses the money and has formal authority (The person who handles the
paper work of the actual purchase)
answers graded A+
Business-to-Business Marketing Example - ANS✅✅An industrial pump manufacturer is attempting
to market and sell its products to an oil and gas producer
- Creation of goods and services that can be produced and marketed to others (In this case,
industrial pump wants to sell to a company)
Organizational Buyers - ANS✅✅Manufacturers, Wholesalers, Retailers, and government agencies
that buy goods and services for their own use or resale
Types of Organizational Buyers - ANS✅✅1) Industrial Markets (Firms the reprocess)
2) Reseller Markets (Sells Finished Goods)
- Consist of Wholesalers & Retailers
3) Government Markets (federal, state, local agencies that buy goods and services for the
constituents they serve | Example: NASA, satellites)
Derived Demand - ANS✅✅The Demand for industrial products and services that is driven
by/derived from the demand for consumer products & services
Derived Demand Example - ANS✅✅Ex of a non-derived damnd: Manzer had to sell 10,000 gallons
of excess latex. Naturally, he went to the customer that loved him the most, but he said no because
he was buying for the organization. There wasn't a derived demand!
Ex of derived demand: The more trucks ford produces, the more paint they'll have to buy for the
trucks
Derived Demand Factors - ANS✅✅- Number of Potential Buyers (which is much less | ex: small
amount of truck manufactures)
- Size of order/purchase
Ex: You could buy 4 tires for your Ford F-150 but Ford itself will buy 50,000 tires at a time
Organizational Buying Criteria - ANS✅✅The objective attributes of the supplier's products and
services and capabilities of the supplier itself
,What are the Organizations Buying Objectives? - ANS✅✅- Maintain Profits
- Satisfy women & minority suppliers
- Efficiency
- Environment and Sustainability
What Are The Organizational Buying Criteria's? - ANS✅✅- Price
- Ability to meet quality specifications
- Ability to meet delivery schedules
- Technical capability
- Past performance
- Production facilities and capacity
Supplier Development - ANS✅✅The deliberate effort by organizational buyers to build
relationships that shape suppliers' products, services, and capabilities to fit a buyers' needs and
those of its customers
Supplier Development Example - ANS✅✅Knorr, a Unilever division, co-invests 1 million Euros with
its suppliers and farmers in knowledge and equipment to accelerate the implementation of
sustainable practices.
Reciprocity - ANS✅✅An Industrial buying practice in which two organizations agree to purchase
each other's products and services
- Meaning "I'll scratch your back if you scratch mine"
Supply Partnership - ANS✅✅a relationship that exists when a buyer and its supplier adopt
mutually beneficial objectives, policies, and procedures for the purpose of lowering the cost or
increasing the value of products and services delivered to the ultimate consumer
What is the Goal of 'Supply Partnership'? - ANS✅✅Lower cost or increase the value of products
and services
Supply Partnership Example - ANS✅✅Milsco Manufacturing
, - Produces 3 million seats
- 200 unique variations
- 86-year partnership with Harley-Davidson
- 100 new products every year to meet customers new requirements
Organizational Buying Behavior - ANS✅✅The decision-making process that organizations use to
establish the need for products and services and identify, evaluate, and choose among alternative
brands and suppliers
- Similar to problem decision process
Buying Committee - ANS✅✅Formalized and concrete business (it's there permanently
ex: Sporting KC
Buying Center - ANS✅✅Consists of the group of people in an organization who participate in the
buying process and share common goals, risks, and knowledge important to a purchase decision (not
formalized, comes and goes)
ex: Pop up shop
Roles in the Buying Center - ANS✅✅- Users
- Influencers
- Buyers
- Deciders
- Gatekeepers
Users - ANS✅✅Use product when received
Influencers - ANS✅✅People with technical skills
Buyers - ANS✅✅Disperses the money and has formal authority (The person who handles the
paper work of the actual purchase)
