Principles of marketing/PMKT102/Assessing customer behaviour/Quiz 2

Marketing channels quiz

Indicate whether the following statements are true or false:

• The main types of business customers in Business-to-Business (B2B) markets are: producers, resellers, governments and institutions
  • True
    • Correct. Each of the above provide considerable markets to businesses that sell their products and services. In particular, governments - federal, state, regional and local provide additional (and huge) markets.
  • False
    • Incorrect. Many businesses develop marketing strategies designed to reach these markets. Some businesses, dedicate individual and team resources to each of these groups. For example, Accenture is a consulting services company, that generates significant revenue through sales to federal, state / provincial and local governments, in different countries.
• Business-to-Consumer (B2C) markets have a greater reliance on personal selling.
  • True
    • Incorrect. B2C markets are most cost-effectively reached through advertising (traditional, Internet), web sties and retail channels. Personal selling tends to be more time-consuming and expensive: this cost is usually offset, by higher ticket items (as one would find in B2B markets).
  • False
    • Correct. B2C markets are most easily reached through mass-market media, including advertising, web sites and retailing. As Internet marketing tools and techniques have become more sophisticated, B2C marketers can target smaller groups of consumers and receive real-time data (feedback) for their efforts.
• Business-to-Business (B2B) markets often have fewer customers that account for most of their sales, and are geographically concentrated.
  • True
    • Correct. In B2B marketing, there are often a small number of businesses that account for a company's sales, and they tend to be located in one region, or clustered in several geographic areas.
  • False
    • Incorrect. Geographically-dispersed customers are expensive to service and maintain, for all but the largest companies. For many B2B marketers, they are able to cost-effectively devote resources to one or two specific markets. (i.e., Northeastern US * Canada; and Western US & Canada).