B2B Marketing - Chapter 2

1. What economic utility do industrial distributors provide to manufacturers?

• Form, Time, Place, and Possession

• Time, Quantity, Cost, and Location

• Creation, Distribution, Promotion, and Service

• Access, Cost, Quality, and Brand

Industrial distributors are particularly useful for reaching:

• Large enterprise customers

• Customers too small to justify direct sales efforts

• Retail chains and large wholesalers

• International markets

What differentiates Value-Added Resellers from typical distributors or wholesalers?

• They focus solely on raw materials.

• They provide unique offering enhancements tailored to customer needs.

• They serve only the OEM market.

• They provide products directly from manufacturers without modifications.

Which of the following is an example of an Original Equipment Manufacturer (OEM)?

• Seagate

• Intel supplying computer manufacturers

• Goodyear purchasing steel

• A raw materials supplier

What characteristic is true for raw materials producers?

• Their products retain their identity when incorporated into customers' products.

• They compete in highly differentiated markets.

• Their products often lose identity once incorporated into the customer’s product.

• They usually operate in monopolistic competition markets.

Which of the following is a key factor for Capital Goods Manufacturers?

• Products lose identity when incorporated.

• The ability to differentiate through promotions.

• Customers expect offerings to include installation and accessories.

• Strong competition in highly fragmented markets.

Accessory equipment suppliers typically:

• Specialize in producing raw materials.

• Provide products that compete directly with OEMs.

• Ensure compatibility with industry standards for the primary offering.

• Sell directly to end consumers without intermediaries.

In a market with pure competition:

• A few large sellers dominate the market.

• One seller has a monopoly over pricing.

• There is little product differentiation, and price is a key factor.

• Branding and promotions play a significant role in differentiation.

What is a key feature of monopolistic competition?

• No single entity can influence the price.

• Only a few competitors dominate the market.

• Many sellers offer differentiated products in terms of quality, features, and style.

• There are significant barriers to entry for new competitors.

What is the "chasm" in the sales growth curve for a new technology?

• A period of rapid market expansion.

• A break between visionary customers and pragmatists.

• A marketing strategy shift aimed at monopolistic competition.

• The point where a dominant supplier emerges.