What are the differences between business markets and consumer markets?
What will be an ideal response?
Business markets consist of companies involved in business-to-business (B2B) transactions. In business markets,
businesses sell products and services to other businesses, instead of consumers. As a result, business markets differ
from consumer markets in several important areas:
• Fewer Buyers: Business-to-business companies sell their products to fewer buyers than their
business-to-consumer (B2C) counterparts. In fact, some B2B companies target their sales to only one, large buyer,
like General Motors or the U.S. government.
• Larger Orders: B2B orders are generally larger, and worth more than B2C orders. For example, a medical supply
company selling to a hospital might process orders worth hundreds of thousands of dollars, much more than
consumers would spend on such supplies.
• Multiple Sales Calls: B2B salespeople often visit prospects ten times or more to close a major sale. It is rare to find
such a large number of visits for consumer items.
• Longer Sales Cycles: Sales cycles for complex B2B products can take six months or more to close. Sales cycles for
consumer items, even big-ticket items like houses, are rarely longer than 30 days.
• Close Seller–Buyer Relationship: B2B companies that sell to other businesses form a close relationship with their
buyers over many years. Consumers, on the other hand, have a limited involvement with sellers.
• Professional Purchasing Role: Most B2B companies appoint a purchasing agent to manage purchase negotiations
and contracts for the firm. Consumers typically represent themselves.
• Multiple Buying Roles: B2B companies involve multiple people, with multiple roles, in the buying process. Except
for some major decisions, like buying a house, most consumer buying decisions are made alone.
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When an inventory system updates the Inventory account at the time of each sale, this is known as:
a. a perpetual system b. an accrual system c. a periodic system d. a contra-purchase system
Each of the fifty states has a general incorporation statute that stipulates the articles of incorporation to be used in that state
Indicate whether the statement is true or false
Which sentence is expressed correctly?
A) "Promising too much", said Bill Clinton, "can be as cruel as caring too little". B) "Promising too much", said Bill Clinton, "can be as cruel as caring too little." C) "Promising too much," said Bill Clinton, "can be as cruel as caring too little."
Tish, Eastern Division manager, knows that the upcoming year's budget and planning process will be a challenge. For the first time in ten years, the company is changing its budgeting, salary administration, and marketing approach, and a major reorganization will be involved. She expects the managers and staff to resist the planned changes. How might she influence her managers to accept and publicly support the changes?
A. Involve her managers in design and implementation of the budget and planning process. B. Lay down the law, reminding her managers of who is boss. C. Centralize authority and limit empowerment during the changes. D. Remind her managers that she will not have patience or understanding with staff affected by the changes. E. Withhold information from her managers regarding the nature and logic associated with the changes.