Marketing The Core Canadian 4th Edition Kerin Solutions Manual 1

5 B2B MARKETING
Marketing The Core Canadian 4th

Edition Kerin Solutions Manual
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PAGE
STUDENT LEARNING OBJECTIVES ................................................................................ 5-2
KEY TERMS, CONCEPTS & MARKETING TIP ............................................................. 5-2
LECTURE NOTES &ANSWERS TO IN-TEXT QUESTIONS
• Opening Vignette – Rovi Corporation ........................................................................... 5-3
• The Nature and Size of Organizational Markets............................................................ 5-4
• Measuring Industrial, Reseller, and Government Markets ............................................ 5-5
• Content Marketing ......................................................................................................... 5-5
• Characteristics of Organizational Buying ...................................................................... 5-5
• The Organizational Buying Process and the Buying Center ......................................... 5-7
Instructor’s Manual to accompany Marketing: The Core, 4th Canadian Edition

5-1
• B2B Market Segmentation ............................................................................................. 5-9
• Online Buying in Organizational Markets ..................................................................... 5-9
QUESTIONS AND ANSWERS TO END OF CHAPTER MATERIAL .......................... 5-12

QUESTIONS AND ANSWERS TO ONLINE ACTIVITIES
• Applying Marketing Concepts and Perspectives ......................................................... 5-14
• Discussion Forum ........................................................................................................ 5-17
• Internet Exercise .......................................................................................................... 5-17
BRING IT TO LIFE
VIDEO – TIM HORTONS TRAVELS BACK TO 1964
• Synopsis and Teaching Suggestions ............................................................................. 5-18
• Video Case – Printout and Worksheets ........................................................................ 5-19
• Answers to Questions ................................................................................................... 5-21
NEWSFLASHES – CONTENT MARKETING / BLACKBERRY / GLOBAL MISHAPS

• Synopsis and Discussion Questions .............................................................................. 5-22
• Newsflashes – Printouts and Worksheets ..................................................................... 5-24
IN-CLASS ACTIVITY – BUYING CENTRE ROLE PLAY

• Instructions, Handout, and Worksheet .......................................................................... 5-27
METRICS ASSIGNMENT
• Calculating Market Shares ............................................................................................ 5-34
STUDENT LEARNING OBJECTIVES
After reading this chapter students should be able to:
• Identify the distinguishing characteristics of industrial, reseller, government, and non-profit

markets.
• Describe the importance of content marketing to B2B marketers
• Explain which key characteristics of organizational buying make the process different from
consumer buying.
• Describe how buying centres and buying situations influence organizational purchasing.
• Outline the process of business segmentation.
• Explain the growing importance of and the approaches to in online buying for industrial,
reseller, and government markets.

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KEY TERMS AND CONCEPTS
business marketing North American Industry Classification System (NAICS)
buy classes organizational buyers
buying centre organizational buying behaviour
derived demand reverse auction
e-marketplaces supply partnership
fluctuating demand traditional auction
inelastic demand
MARKETING TIP
For this chapter we look to Sharon Metz, vice president of vertical marketing at Rovi
Corporation for her MARKETING TIP. You may wish to use this at the start of a class, after a
break, or to summarize the material at the end of a session. The quote for this chapter is as
follows:
“In B2B marketing, there may be numerous departments and people involved. When you are
working with so many people, and trying to ensure all needs (especially, the consumers’ needs)
are met, it can take years to get the solution just right.”

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LECTURE NOTES
CHAPTER 5 OPENING VIGNETTE – ROVI CORPORATION
Rovi Corporation is the focus of the opening vignette. It created a recent partnership with
Canadian company, Cogeco Cable Inc. to offer a unique entertainment solutions for its
subscribers. The vignette is summarized as follows:
Rovi Corporation and Its Partnerships: As consumers, we sometimes take for granted the
work that needs to be done in the background to offer end-user services. We are familiar with
companies such as Apple and Best Buy and amazed by their offerings. What we may not realize
is that these companies turn to others for the ability to enhance their products and services for
consumers. Rovi Music provides the back-end support to online stores and social networking
sites. This service, which adds artist biographies and reviews to sites, is offered by Rovi
Corporation to companies such as Apple and Best Buy, enhancing the end-user experience.
Business-to-business marketing is conducted with multi-billion dollar companies, but also with
small to medium-size companies.
B2B Partnership: Technology has enabled businesses to develop efficiencies. These

efficiencies make items available for purchase by consumers that would have been
unimaginable in the past. As end users, consumers usually do not realize the extent of the
marketing that businesses do with one another to ensure the best products available to them. The
businesses in Canada’s industrial markets, reseller markets, governments, and non-profit
organizations have a number of companies they can choose from to partner with.
Organizational Buying: Although the purchase decision process is similar to that of

consumers, the scope and size of purchase decisions are magnified. This in turn magnifies the
number of people involved in the process as well as the time it takes to complete the purchase.
Sharon Metz, vice president of vertical marketing for Rovi Corporation offers insight into this
process.
The Cogeco Cable Inc. Launch: In 2013, Cogeco Cable Inc. and Rovi Corporation launched
two new interactive applications. Cogeco Remote Cable powered Rovi TV Listings, and
TotalGuide xD allowed Canadian subscribers to find television shows and schedule recordings
from their tablets. The partnership was a win for consumers and the two businesses. Upon the
announcement, executives from both companies shared the excitement of the purchase decision
and what it meant for customers.
Similar to strategies that draw in consumers to make purchases, marketing to businesses requires
a strong digital footprint and social media presence. Companies look to partner with companies
that are innovative and have growing markets. This is extremely important as technology has
enabled more marketing opportunities on a global scale.
Reality Check
As you read Chapter 5, refer back to the opening vignette to answer the following questions:

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• Senior executives were quoted in the product launch news release. These executives led
teams that were instrumental in the final partnership. What other employees or departments
do you think would be involved in a partnership decision?
Answer: This question requires students to make assumptions regarding the roles that individuals
played in the buying centre at Cogeco Cable. Ron Perotta, vice president of strategic planning at
Cogeco Cable would either be a decider or influencer. Encourage students to review the buying
centre and determine who would play the roles of user, gatekeeper, and buyer.
• Considering the makeup of the buying centre, what roles would the executives in the vignette
play in the purchase decision?
Answer: The individuals in the vignette would represent either influencers and potentially
deciders of their respective companies. Since the magnitude of this decision is large, there would
most likely be a collaborative team approach to make the final decision.
I. THE NATURE AND SIZE OF ORGANIZATIONAL MARKETS
Business marketing is the marketing of products to companies, governments, or not-for-profit

organizations for use in the creation of goods and services that they then produce and market to
others.
Organizational buyers are those manufacturers, wholesalers, retailers, and government

agencies that buy goods and services for their own use or for resale. Organizational buyers are
divided into three different markets: industrial, reseller, and government markets.
A. Industrial Markets: Industrial firms in some way reprocess a product or service they
buy before selling it again to the next buyer.
B. Reseller Markets: Resellers are wholesalers and retailers who buy physical products
and resell them again without any reprocessing.
C. Government Markets: Government units are the federal, provincial, regional, and
municipal agencies that buy goods and services for the constituents they serve.
D. Non-Profit Organizations: Non-profit organizations do not have any financial profit

as a goal and seek to provide goods and services for the good of society.

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II. MEASURING INDUSTRIAL, RESELLER, GOVERNMENT AND NON-
PROFIT MARKETS
• The North American Industry Classification System (NAICS) provides common industry
definitions for Canada, Mexico, and the United States, which make easier the measurement
of economic activity in the three member countries of the North American Free Trade
Agreement (NAFTA).
• The NAICS is consistent with the International Standard Industrial Classification of All
Economic Activity, published by the United Nations, to help measure global economic
activity.
• The NAICS groups economic activity to permit studies of market share, demand for goods
and services, competition from imports in domestic markets, and similar studies.
• The NAICS designates industries with a six-digit numerical code.
Ask Yourself
1. Organizational buyers are divided into three different markets. What are they?
Answer: Industrial firms, resellers, and government units.
2. What is the North American Industry Classification System (NAICS)?

Answer: The NAICS provides common industry definitions for Canada, Mexico, and the
United States, which facilitate the measurement of economic activity in the three member
countries of NAFTA.
III. CONTENT MARKETING

Content marketing keeps potential customers engaged by ensuring that relevant and valuable
content is available at various touchpoints. B2B marketers can track usage and views of content
and adjust information accordingly.
IV. CHARACTERISTICS OF ORGANIZATIONAL BUYING

Unique objectives and policies of an organization put special constraints on how it makes
buying decisions. Key characteristics include:
A. Derived Demand: Derived demand means that the demand for industrial products
and services is driven by, or derived from, demand for consumer products and
services.

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B. Inelastic Demand: Inelastic demand means that regardless of whether there is an
increase or decrease in the price of a B2B product, customers will buy the same
quantity.
C. Fluctuating Demand: Fluctuating demand means that demand for business products
and services fluctuate more than demand for consumer products and services.
D. Size of the Order or Purchase: The size of the purchase in organizational buying is
much larger than that in consumer buying. As a result, most organizations place
purchasing policies or procedures constraints on their buyers, who must often get
competitive bids from at least three prospective suppliers when the order is above a
certain amount.
The size of the order also is important in determining who participates in the
purchase decision and the length of time required to reach a purchase agreement.
E. Number of Potential Buyers: Firms selling consumer products and services try to
reach thousands or millions of individuals or households.
Firms selling to organizations are often restricted to far fewer buyers.
F. Organizational Buying Objectives: For business firms, the buying objective is

usually to increase profits through reducing costs or increasing sales.
For not-got-profit firms and government agencies, the objective is usually to meet
the needs of the groups they serve.
G. Organizational Buying Criteria: Organizational buying criteria are the detailed

specifications for the products and services they want to buy and the characteristics
of the suppliers that will supply them. Seven commonly used buying criteria are:
a. Price.
b. Ability to meet the quality specifications required for the item.
c. Ability to meet required delivery schedules.
d. Technical capability.
e. Warranties and claim policies in the event of poor performance.
f. Past performance on previous contracts.
g. Production facilities and capacity.
Reverse marketing involves the deliberate effort by organizational buyers to build

relationships that shape suppliers’ products, services, and capabilities to fit a buyer’s
needs and those of its customers.
H. The Role of Fear in B2B Buyer Behaviour: B2B buying decisions are usually
driven by one emotion—fear. Specifically, B2B buying is all about minimizing fear
by eliminating risk. There are two distinct types of risk.

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Organizational risk is typically formalized and dealt with in the buying process and
then there is personal risk, which is unstated but remains a huge influencing factor in
organizational buying. For example, a buyer who chooses to deal with the same
trusted supplier for many years is minimizing fear by eliminating organizational risk.
Personal risk is explained by the buyer who chooses not to work with a new supplier
even if that potential supplier’s products offer better value.
I. Buyer-Seller Relationships and Supply Partnerships: Organizational buying is

more likely to involve complex and lengthy negotiations concerning delivery
schedules, price, technical specifications, warranties, and claim policies.
Reciprocity is an industrial buying practice in which two organizations agree to

purchase each other’s products and services.
A supply partnership exists when a buyer and its supplier adopt mutually beneficial
objectives, policies, and procedures for the purpose of lowering the cost and/or
increasing the value of products and services delivered to the ultimate consumer.
Ask Yourself
1. What is derived demand?

Answer: Derived demand is demand for industrial products and services that is driven by, or
derived from, demand for consumer products and services.
2. A supply partnership exists when .

Answer: a buyer and its supplier adopt mutually beneficial objectives, policies, and
procedures for the purpose of lowering the cost and/or increasing the value of products and
services delivered to the ultimate consumer
V. THE ORGANIZATIONAL BUYING PROCESS AND BUYING CENTRE
Organizational buying behaviour is 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:
A. Stages in the Organizational Buying Process
The same five stages consumers use in the buying decision process applies to
organizational purchases: (1) problem recognition, (2) information search,
(3) evaluation of alternatives, (4) purchase decision, (5) post-purchase behaviour.
B. The Buying Centre: A Cross-Functional Group

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• A buying centre consists of people in an organization that participates in the
buying process and share common goals, risks, and knowledge important to
purchase decisions.
• In large multi-store chain resellers, the buying centre is very formal and is called
a buying committee.
• A firm marketing to industrial firms and governmental units must understand the
structure, technical, and business functions represented, and the behaviour of the
buying centre. Need to ask the following questions:
a. Which individuals are in the buying centre for the product or service?
b. What is the relative influence of each member of the group?
c. What are the buying criteria of each member?
d. How does each member of the group perceive the potential supplier, its
products, its services and its salespeople?
1. People in the Buying Centre: The composition of the buying centre depends on
the item being bought. A buyer or purchasing manager is almost always a
member and individuals from other functional areas are included depending on
the purchase.
2. Roles in the Buying Centre: Researchers have identified five specific roles that
one or more individuals can play in a buying centre:
a. Users are people in the organization who actually use the product or service.
b. Influencers affect the buying decision, usually by helping define the
specifications for what is bought.
c. Buyers have formal authority and responsibility to select the supplier and
negotiate the terms of the contract.
d. Deciders have the formal or informal power to select or approve the supplier
that receives the contract.
e. Gatekeepers control the flow of information in the buying centre.
3. Buying Situations and the Buying Centre: The number of people in the buying
centre largely depends on the specific buying situation. There are three types of
buying situations, called buy classes, that vary from the routine reorder to the
completely new purchase:
a. Straight rebuy, where the buyer reorders an existing product or service from
the list of acceptable suppliers.
b. Modified rebuy, where users, influencers, or deciders in the buying centre
want to change the product specifications, price, delivery schedule, or
supplier, although the item purchased is largely the same.
c. New buy, where the firm is a first-time buyer of the product or service. This
involves greater risks, so the buying centre is enlarged to include all who
have a stake in the new buy.

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Ask Yourself
1. What one department is almost always represented by a person in the buying centre?
Answer: Purchasing department.
2. What are the three types of buying situations, or buy classes?

Answer: Straight rebuy, modified rebuy, and new buy.
VI. B2B MARKET SEGMENTATION
Consumer market segmentation places consumers into groups that have common needs and
respond similarly to marketing programs. The process of segmenting business markets divides
markets based on type of customer, size, buying situation, customer location, and benefits
sought.
A. Type of Customer: The NAICS codes discussed earlier provide a useful tool for
identifying business target markets.
B. Size of Customer: Many B2B marketers divide their potential market into large and
small accounts, using separate distribution channels to reach each segment.
C. Type of Buying Situation: B2B marketers can divide their potential market by the three
types of buy classes – new buy, modified rebuy, and straight rebuy.
D. Customer Location: The product manager might segment on the basis of region or
actual location of the potential customer. Firms located in a metropolitan area might
receive a personal sales call, whereas those outside this area might be contacted by
telephone.
E. Benefits Sought: The market may also be segmented on the basis of benefits sought.
Xerox may decide to focus on firms looking for quality products and good customer
service as opposed to those looking simply for lower prices.
VII. ONLINE BUYING IN ORGANIZATIONAL MARKETS

Organizational buyers account for 80% of the total worldwide value of all online transactions.
Online organizational buyers around the world purchased $8 to $10 trillion worth of products
and services in 2010. Organizational buyers in North America will account for about 60% of
these purchases.
A. Prominence of Online Buying in Organizational Markets

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Online buying in organizational markets is prominent for three major reasons:
• Organizational buyers depend heavily on timely supplier information that

describes product availability, technical specifications, application uses, price,
and delivery schedules.
• Internet/Web technology has been shown to substantially reduce buyer order

processing costs.
• Business marketers have found that Internet/Web technology can reduce

marketing costs, particularly sales and advertising expense, and broaden their
potential customer base for many types of products and services.
B. E-Marketplaces: Virtual Organizational Markets
E-marketplaces are online trading communities that bring together buyers and
supplier organizations.
• These online communities go by a variety of names, including portals, exchanges

and e-hubs, and make possible the real-time exchange of information, money,
products, and services.
• E-marketplaces can (1) be independent trading communities or private exchanges

and charge a fee for their service, (2) offer small business an economical way to
expand their customer base, and (3) exist in settings that have one or more of the
following features:
a. Thousands of geographically dispersed buyers and sellers.

b. Frequently changing prices caused by demand and supply fluctuations.
c. Time sensitivity due to perishable offerings and changing technologies.
d. Easily comparable offerings between a variety of suppliers.
• Large companies favour private exchanges that link them with their network of
qualified suppliers and customers. They are not a neutral third party, but
represent the interests of their owners.
C. Online Auctions in Organizational Markets
Many e-marketplaces offer online auctions. Two types are:
• In a traditional auction a seller puts an item up for sale and would-be buyers are
invited to bid in competition with each other. As more would-be buyers become
involved, there is an upward pressure on bid prices. The auction ends when a
single bidder remains and wins the item with its highest price.
• In a reverse auction, a buyer communicates a need for a product or service and

would-be suppliers are invited to bid in competition with each other. As more

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would-be suppliers become involved, there is a downward pressure on bid prices
for the buyer’s business. The auction ends when a single bidder remains and wins
the business with its lowest price.
Ask Yourself
1. What are e-marketplaces?

Answer: E-marketplaces are online trading communities that bring together buyers and
supplier organizations.
2. How do traditional auctions and reverse auctions affect bid prices?

Answer: Traditional auction – upward pressure on bid prices; reverse auction – downward
pressure on bid prices.

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QUESTIONS AND ANSWERS TO END OF CHAPTER MATERIAL
Hands-on…apply your knowledge
B2B Marketing Assignment
In the opening vignette, Sharon Metz of Rovi Corporation reflects on some of the challenges of
marketing to medium-to-large organization. In particular, for larger purchases and key
partnerships, decisions need to be made by a committee as opposed to an individual. Review the
opening vignette and identify other differences in the Organizational Buying Purchase Decision
Process that need to be considered in B2B Marketing.
Note: These assignments give students the opportunity to apply chapter material to a real-life
example, using the chapter’s opening vignette as a foundation. There are no specific answers, but
students should consider that B2B purchases are normally larger in magnitude and are driven by
the objectives of the organization rather than the individual.
Chapter Vignette…reminder
Strategic partnerships are critical to the success of many businesses. This chapter’s opening
vignette describes how B2B marketing helped build a partnership between Canadian company
Cogeco Cable and U.S. company Rovi Corporation.
At the end of the vignette, consider the question about the numerous individuals involved in a
decision like this partnership. Relate this to the concept of the buying centre and the different roles
of individuals outlined in this chapter.
students should consider all the different roles in a buying centre and try to relate to this situation.
Video Clip…questions
To celebrate its 50th anniversary, Tim Hortons “updated” its first store to a 1964 look. There are
number of other businesses Tim Hortons works with to make this opportunity a reality. Watch the
CONNECT video and answer the following questions:
- Name some of the strategic partners that Tim Hortons worked with to make its anniversary event
special?
- What process do you think Tim Hortons went through to select the different companies needed
to produce the components of the 1964 store?
- How do you think the 1964 clothing was acquired?
students should be able to identify Maple Leaf Sports and Entertainment and suggest potential
other partners in this endeavor. Lead a discussion of how companies go through the process of
choosing potential vendors and strategic partners.
Infographic…data analysis

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Consider the B2B marketing tips regarding social media and doing business in foreign countries
when reviewing the Infographic entitled “One Card Says So Much.” Reviewing recent articles and
reflecting on your knowledge of Canada and other countries, add another fact to this Infographic.
students should brainstorm on ways to make themselves and their business cards stand out in the
working world.

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QUESTIONS AND ANSWERS TO ON-LINE ACTIVITIES
APPLYING MARKETING CONCEPTS AND PERSPECTIVES
1. Describe the major differences among industrial firms, resellers, and government units
in Canada.
Answer: Industrial firms account for the majority of all organizational buyers. These firms in
some way reprocess a product or service they buy before reselling it. Resellers represent the
second largest group of organizational buyers. These wholesalers and retailers buy physical
products and resell them again without any reprocessing. Government units, the smallest of
the three groups, are federal, state, and local agencies that buy goods and services for the
constituents they serve.
2. Explain how the North American Industry Classification System (NAICS) might be
helpful in understanding industrial, reseller, and government markets, and discuss the
limitations inherent in this system.
Answer: The NAICS groups economic activity to permit studies of market share, demand for
goods and services, import competition in domestic markets, and similar questions. NAICS
contains broad, two-digit categories that signify a sector of the economy. The third digit
designates a subsector while the fourth digit represents an industry group. The fifth digit
designates a specific industry and is the most detailed level at which data are available for the
three countries. The sixth digit is for country-level industries.
Such breakdowns allow one to identify firms within categories and to monitor growth or
decline with industries. The NAICS has two important limitations: (1) large firms engaging
in different activities or providing different products or services are given only one NAICS
code and (2) five-digit national industry codes are not available for all three countries.
3. List and discuss the key characteristics of organizational buying that make it difference
from consumer buying.
Answer: Although the buying processes organizations go through when making a purchase
also apply to consumer buying, there are some key differences. Organizations buy products
and services to help them achieve organizational objectives, namely, to increase profits
through reducing costs or increasing revenues. The buying criteria for organizational buyers
generally focus on three critical factors: (1) ability to meet quality standards, (2) ability to
deliver the product on time, and (3) performance on previous contracts. Furthermore, there
are fewer organizational buyers than consumer buyers, and the size of organizational
purchases tends to be much larger. Organizations often have formal positions and specific
purchasing policies or procedures. Finally, several people typically get involved in an
organizational purchase and the post-purchase evaluation is often more formalized.

5-15
4. What is a buying centre? Describe the roles assumed by people in a buying centre and
what useful questions should be raised to guide any analysis of the structure and
behaviour of a buying centre.
Answers: A buying centre consists of those individuals who participate in the buying
decision and share common goals, risks, and knowledge important to it. Individuals in a
buying centre typically perform one or more of the following roles:
• Users are people in the organization who actually use the product or service.
• Influencers affect the buying decision, usually by helping define the specifications for
what is bought.
• Buyers have formal authority and responsibility to select the supplier and negotiate the
terms of the contract.
• Deciders have the formal or informal power to select or approve the supplier that receives
the contract.
• Gatekeepers control the flow of information in the buying centre.
Four questions should be raised to guide any analysis of the structure and behaviour of a
buying centre:
a. Which individuals are in the buying centre for the product or service?
b. What is the relative influence of each member of the group?
c. What are the buying criteria of each member?
d. How does each member of the group perceive our firm, or products and services, and our
salespeople?
5. Assume you are a food manufacturer and you are trying to sell your line of imported
jams and jellies to a major grocery store chain. Who in the chains buying centre would
you expect to attend a meeting with you, and what would each members concerns be?
Answers: A number of different roles would attend such a meeting and would have different
concerns:
• Users – A delegation or representative of individual store managers may attend and have
concerns about selling your product at their particular location
• Influencers – influencers might be the controller or the accounting representative of the
company. Their concerns would be about terms of sales and credit policies
• Buyers – For a grocery chain there would usually be a head purchaser or team of
purchasing managers who would be concerned about delivery schedules and the ability of
your company to service their needs.
• Deciders – Deciders would also be present at the meeting in the form of a president or
vice president of merchandising. There concerns would be on slightly larger scope; does
your product fit in with the profile of the store and with the other offerings.
• Gatekeepers – A manager or V.P of Supply Chain Management might fulfill this
function. His concerns would be how your company fits into the entire supply chain
profile that services all the stores.

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6. Think about the materials and parts that go into the manufacturing of automobiles.
How does derived demand play a role in this?
Answer: Consumer demand drives the demand for finished cars from the automobile
manufacturer. The result is derived demand to the parts manufacturer from the auto
manufacturer for parts to make those cars.
7. List the ways to segment the business market.
Answer: The process of segmenting business markets divides markets based on type of
customer, size, buying situation, customer location, and benefits sought.

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QUESTIONS AND ANSWERS TO ONLINE ACTIVITIES:
DISCUSSION FORUM
Suppose you and your classmates are a committee in charge of a new business school building
on your campus. You have been assigned the challenge of taking the project from the idea
stage to the completion of the building to the stage where it is ready for classes to be held in
it, and you have been given a budget and a time frame.
1. You decide first to assemble a buying centre. What departments will you involve, and what do
you expect each of the representatives of the various departments to contribute to your project?
2. Draw a flowchart with the purchase process you will undertake, and identify what you will do
at each stage of the process
3. Identify five items you will have to purchase, and determine the type of purchase that each
represents. Make sure that you choose items from all of the buying situations.
4. How can you use e-procurement in your work? (Hint: You may have to do some research.)
Note: These discussions are meant to generate class discussion and a lively debate of issues
raised, as well as a general review of the opening case or concepts discussed within the chapter.
There are no correct or incorrect answers.
QUESTIONS AND ANSWERS TO ONLINE ACTIVITIES:

INTERNET EXERCISE
The North American Industrial Classification System structures industrial sectors into
their component industries. The NAICS can be accessed at http://stds.statcan.gc.ca/naics-
scian/2007/ns-rn-eng.asp?go=1. You have been hired as a market analyst by a textile
company that is looking for opportunities outside its normal business. The vice president of
marketing has asked you to look into the upholstered wood furniture manufacturing
industry to determine its size. She suggests that a good place to start is the NAICS.
1. What is the three-digit industry subsector code for “Furniture and Related Products
Manufacturing”?
Answer: Enter “Furniture and Related Products Manufacturing” in the search box. The answer
337 appears.
2. What is the six-digit Canadian code for “Upholstered Household Furniture

Manufacturing”?
Answer: Click on the number 337 and a new screen appears. Scroll down until you find the
words “Upholstered Household Furniture Manufacturing”. The number 337121 appears next to
the words.

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BRING IT TO LIFE: VIDEO SYNOPSIS & TEACHING SUGGESTIONS
TIM HORTONS TRAVELS BACK TO 1964
Synopsis
In 2014, Tim Hortons remodeled its Toronto Yonge and Dundas Square location into a 1964
store. Actors dressed up in vintage clothing. The store signage was changed and the cups had
logos reminiscent of 1964. This special event was to mark Tim Hortons’ 50th anniversary. A
number of celebrities were also part of the celebration which included free coffee and doughnuts.
Teaching Suggestions
Consider assigning students to propose which departments in Tim Hortons would be involved in
brainstorming the concept of the 50th anniversary celebration. From there, determine what
companies would be needed to provide the vintage signage, clothing and actors. Assume each of
these companies would need to propose their component solution to Tim Hortons and determine
what that buying centre meeting would be like.

5-19
BRING IT TO LIFE: VIDEO CASE – PRINTOUT
Over 50 years ago, Tim Hortons opened its first restaurants in Hamilton, Ontario. Over the years,
it became an integral part in the lives of many Canadians. In 2006, Tim Hortons went public and
today, it is one of the largest publicly-traded restaurant chains in North America, and the largest
restaurant chain in Canada.
Most standard Tim Hortons locations are open 24 hours drawing clients with its fresh coffee. The
coffee must be served within 20 minutes or it is not served at all. Donuts, muffins and croissants
are available to clients as well.
The company’s co-founder and namesake, Tim Hortons played for the Toronto Maple Leafs for
17 seasons and three partial seasons. He played on four Stanley Cup teams and was a six time
All-Star player. He became partners with Ron Joyce, a former police officer and a franchisee of
Tim Hortons first restaurant.
The company has over 4,000 restaurants and is integrated in the lifestyles of many Canadians.
Tim Hortons is a sponsor of a number of community initiatives including Timbits Minor Sports
and Free Skating.
To celebrate its 50th anniversary, Tim Hortons “updated” its first store to a 1964 look. There are
number of other businesses Tim Hortons works with to make this opportunity a reality. And, the
commemorative online video showcases some of the celebrities and companies that helped make
this celebration a reality.
Questions
1. Name some of the strategic partners that Tim Hortons worked with to make its anniversary
event special?
2. What process do you think Tim Hortons went through to select the different companies needed
to produce the components of the 1964 store?
3. How do you think the 1964 clothing was acquired?

5-20
BRING IT TO LIFE: VIDEO CASE WORKSHEET
Name:
Section:
The video looks at Tim Hortons and its 50th birthday celebration. Please answer the following
questions once you have watched the video and read the case:
1. Name some of the strategic partners that Tim Hortons worked with to make its
anniversary event special?
2. What process do you think Tim Hortons went through to select the different companies
needed to produce the components of the 1964 store?

5-21
BRING IT TO LIFE: VIDEO CASE – ANSWERS TO QUESTIONS
1. Name some of the strategic partners that Tim Hortons worked with to make its
anniversary event special?
Answer:
Other than Maple Leaf Sports Entertainment, students will most likely answer with general
terms like a marketing agency, actors and other suppliers. The important part of this question
is for students to consider how these business partnerships get formed in the first place. How
does the buying centre of one company go about selecting other companies to purchase
services from or work with in the future.
2. What process do you think Tim Hortons went through to select the different companies
needed to produce the components of the 1964 store?
Answer:
There are many different possibilities of how Tim Hortons could have selected the different
companies. Most likely, it worked with a marketing agency to do most of the legwork to find
the other businesses after the initial concept was agreed upon. The important part of this
question is to have students consider how the decision to come up with the 50th anniversary
celebration came about. What were the roles of the individuals in the Tim Hortons buying
centre that would have been involved in the decision making process?
Answer:
If you consider the buying situation is under, this is a new buy. This probably the first time
that Tim Hortons had considered purchasing actors with a 1964 wardrobe. The clothing could
have been custom made or it could have been requisitioned from the entertainment industry.
Regardless, work with students to brainstorm where the clothing came from, but also how the
company that provided the clothing worked with its suppliers to produce them.

5-22
BRING IT TO LIFE: NEWSFLASHES
SYNOPSIS AND DISCUSSION QUESTIONS
Three interesting NewsFlashes are included in this chapter. Discussing these NewsFlashes in
class can bring the material to life for the students in an interesting, relevant, and timely fashion.
They can be used as ice-breakers to launch into a relevant subject. Many of the topics are
interesting to students and may be familiar.
A. COPY THIS CONTENT MARKETING STRATEGY
Businesses of all sizes are learning the importance of listening, rather than preaching, in order to
acquire and retain their customers. Customers using social media are not interested in vague and
impersonalized advertising and sales pitches. They are socially savvy and know how to connect
with one another (more than half of active Twitter users follow at least one company, brand, or
product) and possess little desire to maintain loyalty for a company that does not care for and
accommodate their needs.
In 2013, Xerox was recognized for its content marketing thought leadership as it expanded into
the health care industry. The HealthBiz Decoded website was launched by Xerox and filled with
articles from Xerox subject matter experts and other freelance journalists. The end result is a
digital magazine that hosts videos and infographics to enhance the content.
Questions
1. If you are a new, small B2B company with limited resources, how could content marketing
(including social media) enable your business?
2. How has content marketing leveled the playing field between business marketers and their
customers?
Note: These discussion questions are meant to generate lively in-class discussion and critical
thinking on the chapter material. There are no correct or incorrect answers. The main discussion
should be focused on how the ability to post content online and distribute to a mass audience is
relatively inexpensive. With an effective strategy, small businesses can use their limited
resources to compete for online consumer’s attention.
B. THE VALUE OF INNOVATION AND EMOTIONS
In 2010, RIM (Research in Motion), the maker of the BlackBerry, scored well in many aspects of
the Reputation Institute’s study on corporate brands. The Reputation Institute measures both the
emotional appeal of a brand along with a handful of so-called rational attributes, such as how
consumers perceive the quality of products and services offered by a company. Canadian
consumers ranked RIM as the most innovative company in the study, and rated it first in terms of
its work environment, leadership qualities, and financial performance. As an example of RIM’s
work environment, employees of RIM were loaded onto a bus for a very special evening. The
Waterloo-based tech giant had rented out the Rogers Centre in Toronto and brought in U2 to play
a private concert for its employees.

5-23
RIM lagged in one key area relative to its high marks elsewhere: emotional appeal. Canadians
know in their heads that RIM is a well-run company, but it does not set their hearts atwitter. Tim
Hortons, on the other hand, came first as having the best corporate reputation in the country
because of a high score received for its emotional appeal.
Questions
1. Why do you think that RIM (now known as BlackBerry) scores lower on emotional
appeal than Tim Hortons?
2. What other Canadian company do you think should score high in emotional appeal?
Why?
Note: These discussion questions are meant to generate lively in-class discussion and critical
thinking on the chapter material. There are no correct or incorrect answers. Canadian companies
with high emotional appeal could include Lululemon, Roots, and Canadian Tire. Blackberry may
be considered to have lower emotional appeal as it is technology-based rather than tied to
experiences with friends and community like Tim Hortons.
C. MARKETING MISHAPS IN THE GLOBAL ECONOMY
There is heightened sense of formality in Japanese interaction. When doing business in Japan,
your suitability in respect to conducting business will be assessed during a first meeting, so
always maintain a sense of professionalism.
Some marketing mistakes that have happened in the past include Nike’s release of women’s
leggings in New Zealand that had a pattern that resembled a Samoan tattoo. The international
company did not realize that the tattoo was reserved for men.
Question
1. Can you think of other customs that a businessperson should be aware of in doing business
in other foreign countries?
2. What are some ways you can prepare for meetings or discussions with business people from
other countries?
Note: This discussion question is meant to generate lively in-class discussion and critical
thinking on the chapter material. There is no correct or incorrect answer. Generally, the focus
should be on students doing meaningful research and preparation for future business meetings
and marketing projects.

5-24
BRING IT TO LIFE: NEWSFLASH
PRINTOUT AND WORKSHEET
Name:
Section:
COPY THIS CONTENT MARKETING STRATEGY

Web communities have emerged as business enablers for B2B marketing. By creating interactive
and collaborative environments, social media has become the go-to resource for B2B customers,
both to share feedback about companies they are doing business with as well as to monitor
discussions about products and services they are considering. The control of a B2B company’s
brand is rapidly changing from corporate marketing departments to the customer-to-customer
conversations taking place in social media networks. Just as shared positive experiences can
drive new prospects to a business, unmanaged negative comments can spread like wildfire,
incinerating the organization’s hard-earned reputation. Not surprisingly, customers recognize
their growing influence and realize the impact of their praise or, more importantly, their criticism
on a company.
Businesses of all sizes are learning the importance of listening, rather than preaching, in order to
acquire and retain their customers. Customers using social media are not interested in vague and
impersonalized advertising and sales pitches. They are socially savvy and know how to connect
with one another (more than half of active Twitter users follow at least one company, brand, or
product) and possess little desire to maintain loyalty for a company that does not care for and
accommodate their needs.
This new environment creates big challenges but also incredible opportunities for B2B sales.
Sales professionals can no longer completely rely on traditional e-mail and cold-calling
campaigns. The good news is that social media is levelling the playing field for selling to
customers. Sales professionals can now gain timely and relevant insights about their customers
as well as engage at a very deep and personal level—two huge boons to the B2B sales process.
Thanks to social media monitoring and conversation, individuals within the organization have
the ability to champion the identity of their corporate brand.
Social media is just one tactic in content marketing. In 2013, Xerox was recognized for its
content marketing thought leadership as it expanded into the health care industry. The HealthBiz
Decoded website was launched by Xerox and filled with articles from Xerox subject matter
experts and other freelance journalists. The end result is a digital magazine that hosts videos and
infographics to enhance the content. It is a subtle, but effective strategy for Xerox to show it is
not just a copier company; it is a company that is an effective service provider.
Questions
1. If you are a new, small B2B company with limited resources, how could content
marketing (including social media) enable your business?
2. How has content marketing levelled the playing field between business marketers and
their customers?

5-25
Name:
Section:
THE VALUE OF INNOVATION AND EMOTIONS
In 2010, RIM (Research in Motion), the maker of the BlackBerry, scored well in many aspects of
the Reputation Institute’s study on corporate brands. The Reputation Institute measures both the
emotional appeal of a brand along with a handful of so-called rational attributes, such as how
consumers perceive the quality of products and services offered by a company. Canadian
consumers ranked RIM as the most innovative company in the study, and rated it first in terms of
its work environment, leadership qualities, and financial performance. As an example of RIM’s
work environment, employees of RIM were loaded onto a bus for a very special evening. The
Waterloo-based tech giant had rented out the Rogers Centre in Toronto and brought in U2 to play
a private concert for its employees.
RIM lagged in one key area relative to its high marks elsewhere: emotional appeal. Canadians
know in their heads that RIM is a well-run company, but it does not set their hearts atwitter. Tim
Hortons, on the other hand, came first as having the best corporate reputation in the country
because of a high score received for its emotional appeal.
Referring to RIM, Rob Jekielek, a principal consultant with the Reputation Institute, says, “You
really get the feeling that if they were able to create the right emotional appeal in addition to all
the things they do well rationally, they could improve their reputation even more. The attitude
Canadians have toward RIM illustrates a fundamental truth about consumers in this country.
Like others around the world, they are primarily emotional beings. That means a corporation will
find it difficult to build a good reputation if it fails to connect on an emotional level.”
This strategy for emotional appeal may be in play as RIM made a strategic decision in 2013.
Faced with market challenges, RIM officially changed its name to BlackBerry, allowing the
company to associate itself better with the product it produces. The BlackBerry name change
was approved by shareholders, but its full impact among consumers and business customers
remains to be seen. Its next step is to get back to basics, focus on fewer products, and cut costs,
as well as continue to stay true to its signature keypad.
Questions
3. Why do you think that RIM (now known as BlackBerry) scores lower on emotional
appeal than Tim Hortons?
4. What other Canadian company do you think should score high in emotional appeal?
Why?

5-26
Name:
Section:
MARKETING MISHAPS IN THE GLOBAL ECONOMY
There is a heightened sense of formality in Japanese interaction. When doing business in Japan,
your suitability with respect to conducting business will be assessed during a first meeting. It is
important to maintain a sense of professionalism and be aware of the host country’s customs.
Offending a professional from another country could affect your business relationship.
In Japanese society, the bow is used when meeting, when getting attention, to show gratitude, to
express sympathy, or as an apology. When doing business in Japan as a Westerner, you would
not be expected to bow. You will most likely be greeted with a handshake combined with a slight
nod of the head. Introduce yourself with your full name followed by your company name. It is
important to use proper titles when addressing someone, so always establish the position of the
other person.
The exchanging of business cards when doing business in Japan involves a degree of ceremony.
The card is seen to represent the individual, so it should be treated with respect. Before travelling
to Japan, ensure you have ample cards and have one side translated into Japanese. Include your
position within the company on it. Invest in a carry case to store cards and keep this in an easy-
to-access location. When exchanging cards, offer your card with both hands with the Japanese
side up. Ensure that there is no barrier between you and the recipient, such as a table, chair, or
plant. When accepting a card, always use two hands as this shows deference. For Japanese
people, as elsewhere in the Asia-Pacific region, exchanging cards is like shaking hands. If you
are in a formal situation, it is proper to place the card face up on the table in front of you and
refer to it when necessary.
The Japanese like dealing with quiet, sincere, and compromising individuals. Extroverts are seen
as brash and arrogant. Early on in negotiations, remain humble, indirect, and non-threatening.
Silence is considered a virtue. If things go quiet when doing business in a meeting, don’t panic.
Reflection is taking place. Silence may be also be accompanied by the closing of the eyes. Never
interrupt or break the silence.
Some marketing mistakes that have happened in the past include Nike’s release of women’s
leggings in New Zealand that had a pattern that resembled a Samoan tattoo. The international
company did not realize that the tattoo was reserved for men. Nike was made aware of its error
and pulled the product.
Questions
1. Can you think of other customs that a businessperson should be aware of in doing
business in other countries?
2. What are some ways you can prepare for meetings or discussions with business people
from other countries?

5-27
BRING IT TO LIFE: IN-CLASS ACTIVITY
BUYING CENTRE ROLE PLAY – INSTRUCTIONS
Learning Objectives
1. To have students understand the cross-functional nature of the organizational buying process
2. Identify the key roles within the buying centre.
Description of In-Class Activity
Have several students conduct a role-play by assuming different characters to discuss an

organizational purchase of Sprint’s FonPromotions program and then answer two questions.
Organizational buying decisions can be more complex than those for consumers because of the
number of individuals involved and their differing needs and perspectives within the buying
centre. This complexity is particularly evident in a “new buy” situation, such as the one
illustrated. Estimated class time: 20 minutes.
Preparation before Class
• Prepare name cards for each of the characters.
• Set up a table and chairs in front of the classroom for the meeting.
• Become familiar with the following terms which are referred to in this in-class activity:
Buying Centre: The group of people in an organization who participates in the buying
process and share common goals, risks, and knowledge important to a purchase decision.
New Buy: The first-time purchase of a product or service, involving greater potential risk.
Organizational Buying Behaviour: 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.
In-Class Instructions
• Relevant Chapter Content – Prior to conducting this in-class activity, review the area in the
chapter on “The Buying Centre: A Cross-Functional Group.”
•
• In-Class Instructions – Follow the steps below to conduct this activity.
o Recruit students to play the seven characters in the role-play. Seat the characters at a table
in front of the class and give each the corresponding “script.”

5-28
o While the role-playing students are reviewing the scripts, give the following background
and then introduce the characters:
“You are about to see a glimpse inside FarNorth, Inc., a successful manufacturer of golf
accessories (bags, apparel, gloves, etc.) for men and women that are sold to golf pro
shops, golf superstores, and sporting goods stores in Canada. FarNorth’s management
has asked Lisa Ludwig, the sales representative for Sprint FonPromotions, to present a
proposal for a marketing program to stimulate sales and motivate the firm’s sales people.
However, Sprint FonPromotions, which costs $100,000, is more than what was budgeted
for advertising and sales promotion for the current fiscal year. Before we listen in to the
conversation between Lisa and the co-workers that constitute FarNorth’s buying centre
for marketing programs, let me introduce you to our cast:”
Character Job Title Role in FarNorth’s Buying Centre

Lisa Ludwig Sales Representative, Sprint SUPPLIER: Sprint FonPromotions
Carol Woods President and CEO, FarNorth INFLUENCER
Lynn Tan VP - Marketing, FarNorth DECIDER/INFLUENCER
Sam Hawthorne Purchasing Manager, FarNorth GATEKEEPER/BUYER/INFLUENCER
Neil Vanathan Sales Manager, FarNorth USER/INFLUENCER
Thor Sandholm Advertising Manager, FarNorth USER/INFLUENCER
Basil Winters Finance Manager, FarNorth INFLUENCER
o Introduce the cast and his/her job title and role in the FarNorth buying centre.
o Have the students read the buying centre role-play script in front of the class.
o When finished with the role-play, say: “So we now leave FarNorth’s marketing
promotions buying centre. Let’s discuss what we’ve observed by answering some
questions.”
o Ask students the questions below to facilitate the buying centre discussion:
Question 1: Who do you feel is the key buying influence for this decision? Why?
Answer: Lynn Tan (VP – Marketing) and Thor Sandholm (Advertising Manager) are
probably the key buying centre constituents for this decision. They raise the most
questions that require answers before a decision can be made. Neil Vanathan (Sales
Manager) is also a key player since he is directly responsible for implementing the
program. The CEO, Carol Woods, appears to seek Lynn’s approval for going ahead with
the program.
Question 2: What are the marketing challenges that face Lisa Ludwig or any business-to-
business sales person with a buying centre such as this?
Answer: One of the biggest challenges for a business-to-business sales person is to

determine the people who constitute the organization’s buying centre and what roles they

5-29
play. Different roles are concerned about different issues. It is a challenge to attempt to
address all of these different needs at the same time. Sales people need to prepare,
research, and learn about a potential customer’s buying centre participants in order to
effectively meet their needs and generate the sales they desire.
• Handout – Distribute the handout and worksheet for students to complete.
• Evaluation – Collect the worksheets from this activity for evaluation purposes

5-30
BUYING CENTRE ROLE PLAY – HANDOUT
Character Job Title Role in FarNorth’s Buying Centre

Lisa Ludwig Sales Representative, Sprint SUPPLIER: Sprint FonPromotions
Carol Woods President and CEO, FarNorth INFLUENCER
Lynn Tan VP - Marketing, FarNorth DECIDER/INFLUENCER
Sam Hawthorne Purchasing Manager, FarNorth GATEKEEPER/BUYER/INFLUENCER
Neil Vanathan Sales Manager, FarNorth USER/INFLUENCER
Thor Sandholm Advertising Manager, FarNorth USER/INFLUENCER
Basil Winters Finance Manager, FarNorth INFLUENCER
Script: Buying Centre Role-Play
Lisa: In summary, the Sprint FonPromotions program, with its Sprint Prepaid Business Card
and Prepaid Phone Card, would accomplish the following marketing objectives for
FarNorth:
• First, to build brand awareness among customers and prospects, the Sprint Prepaid
Business Card looks like your regular business card but offers 20-minutes of free
domestic long-distance calls. On the front of the card is your sales person’s contact
information. On the back are the telephone and ID numbers that allows your
customers and prospects to make their free calls. The Sprint Prepaid Business Card
encourages these customers and prospects to think of you and the free long distance
minutes they receive every time they view your unique business card.
• Second, to generate excitement and motivate sales people and other FarNorth
employees, the Sprint Prepaid Phone Card can be used to create an interactive
sweepstakes. Each would receive a free, 30-minute Sprint Prepaid Phone Card.
On the card would be a toll-free number that employees would use to enter the
contest. Participants then enter a six-digit number of their choice, and if it matched
the winning numbers, they instantly win a prize ranging from a weekend
get-a-way to a free Sprint Prepaid Phone Card.
Sam: Thank you for your presentation, Lisa. I’m sure that there are a few questions.
Lynn: Yes, Sam. Lisa, have those sales improvement figures been verified by an independent
agency? I can’t believe that we would see those increases in our situation.
Lisa: Yes, they have Lynn. That information is in Appendix II of the sales proposal, which
you each have in front of you. However, according to a recent study from one of our
clients that you may contact, sales increased by 10 percent over the six-month
promotional period.

5-31
Neil: What about procedures? Our sales people haven’t had any experience with this type of
promotional program and we’re very busy at the moment. What level of support or
training does Sprint provide?
Lynn: We can’t afford time for training. This is the prime selling season for our golf
accessories.
Thor: We have already made our media buys for the season. We’re going to have to increase
our budget to…
Basil: Wait a minute! You want more money for advertising? Can’t you just reallocate from
one budget category to another?
Thor: Not really. We have signed contracts with our advertising agency so our budget is
basically spent for this selling season. Increasing our budget for this Spring
FonPromotions program could sufficiently increase sales to cover any increase we need if
Lisa’s projections are on target.
Basil: But that’s a lot of money. Can’t you defer some advertising until the next fiscal year?
Lynn: That could be difficult given our marketing plan, Basil.
Thor: Marketing has very ambitious goals for this year, Basil. Not spending the already
allocated funds on advertising could have very serious implications on this year’s sales.
Neil: Well, if we did implement Lisa’s program, it could increase sales from new and existing
customers since they and our employees would be even more motivated.
Sam: Excuse me, but are there more questions for Lisa concerning the specifics of the Sprint
FonPromotions program?
Lisa: I’d like to answer Neil’s question about procedures. I would work closely with Lynn,
Neil, and Thor to customize the design of the program. We have 2 customer service reps
(one for marketing that would train your sales people and one for data processing that
would interface with your data processing people) that would help you implement the
program. We would manage the reporting of all sales activity. You would receive daily
sales updates by region, channel member, etc. via our link to FarNorth’s intranet.
Basil: Do you have any “canned” or turnkey programs? Any programs that have already been
developed for other clients that we could reuse with only minor modifications?
Thor: [Thor gives Basil a dirty look.]
Lisa: I think that you would be interested in the financial projections that I’ve prepared. At
your current sales rates, the Sprint FonPromotions program would pay for itself in less
than 9 months.

5-32
Carol: I find these projections in Appendix II very compelling, Lisa. What do you think about
the program, Lynn? Given our current sales figures, we could project the impact of the
purchase. Sam, could you develop a cost-benefit analysis of the program based on Lisa’s
projections?
[End of the Role-Play]

5-33
BUYING CENTRE ROLE PLAY – WORKSHEET
Name:
Section:
1. Who do you feel is the key buying influence for this decision? Why?
2. What are the marketing challenges that face Lisa Ludwig or any business-to-business
sales person with a buying centre such as this?

5-34
BRING IT TO LIFE: METRICS ASSIGNMENT
CALCULATING MARKET SHARES – HANDOUT
Name:
Section:
A company’s market share shows how the company’s sales are doing relative to the industry that
it is in. So, for example, a company’s sales can be increasing from year to year but not keeping
up with the industry sales.
The formula to calculate market share is to divide the company’s sales by the industry sales. The
answer is expressed as a percentage.
Year Company A sales in units Industry sales in units Market share of Company A
2012 100 1000 ?
2013 110 1400 ?
2014 115 1600 ?
2015 117 1670 ?
1. Calculate the market shares for Company A from years 2012 to 2015.
2. As you can see from the chart above, Company A’s sales increase from year to year.
After you of calculated the market shares of Company A for years 2012 to 2015, can you
make the same assertion that Company A is in a good position?

5-35
BRING IT TO LIFE: METRICS ASSIGNMENT
CALCULATING MARKET SHARES – ANSWERS
Year Company A sales in units Industry sales in units Market share of Company A
2012 100 1000 10%
2013 110 1400 7.9%
2014 115 1600 7.2%
2015 117 1670 7%
1. Calculate the market shares for Company A from years 2012 to 2015.
The answers to the market shares for Company A are listed in the above table. As you can see,
Company A’s market share is decreasing every year from 2012 to 2015. If Company A only had
available to it its own sales, it could come to the conclusion that it is doing well because its sales
are increasing every year from 2012 to 2015. This conclusion is incorrect because it does not
take in consideration how the industry is growing. Once we obtain the industry figures, we are in
a position to calculate market shares.
2. As you can see from the chart above, Company A’s sales increase from year to year.
After you of calculated the market shares of Company A for years 2012 to 2015, can you
make the same assertion that company A is in a good position?
Company A is not in a good position because its market share is decreasing from year to year. It
is not keeping up with the market. Even though its sales are increasing from year to year, the
industry sales are increasing at a greater rate. The decreases in market share show that company
A’s sales are not keeping up with the industry sales.

5-36

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5 B2B MARKETING

Marketing The Core Canadian 4th

Test Bank: https://testbankpack.com/p/test-bank-for-marketing-the-

Instructor’s Manual to accompany Marketing: The Core, 4th Canadian Edition

QUESTIONS AND ANSWERS TO END OF CHAPTER MATERIAL .......................... 5-12

NEWSFLASHES – CONTENT MARKETING / BLACKBERRY / GLOBAL MISHAPS

IN-CLASS ACTIVITY – BUYING CENTRE ROLE PLAY

• Identify the distinguishing characteristics of industrial, reseller, government, and non-profit

Instructor’s Manual to accompany Marketing: The Core, 4th Canadian Edition

Instructor’s Manual to accompany Marketing: The Core, 4th Canadian Edition

B2B Partnership: Technology has enabled businesses to develop efficiencies. These

Organizational Buying: Although the purchase decision process is similar to that of

Instructor’s Manual to accompany Marketing: The Core, 4th Canadian Edition

I. THE NATURE AND SIZE OF ORGANIZATIONAL MARKETS

Business marketing is the marketing of products to companies, governments, or not-for-profit

Organizational buyers are those manufacturers, wholesalers, retailers, and government

D. Non-Profit Organizations: Non-profit organizations do not have any financial profit

Instructor’s Manual to accompany Marketing: The Core, 4th Canadian Edition

• The NAICS designates industries with a six-digit numerical code.

2. What is the North American Industry Classification System (NAICS)?

III. CONTENT MARKETING

IV. CHARACTERISTICS OF ORGANIZATIONAL BUYING

Instructor’s Manual to accompany Marketing: The Core, 4th Canadian Edition

Firms selling to organizations are often restricted to far fewer buyers.

F. Organizational Buying Objectives: For business firms, the buying objective is

G. Organizational Buying Criteria: Organizational buying criteria are the detailed

Reverse marketing involves the deliberate effort by organizational buyers to build

Instructor’s Manual to accompany Marketing: The Core, 4th Canadian Edition

I. Buyer-Seller Relationships and Supply Partnerships: Organizational buying is

Reciprocity is an industrial buying practice in which two organizations agree to

1. What is derived demand?

2. A supply partnership exists when .

V. THE ORGANIZATIONAL BUYING PROCESS AND BUYING CENTRE

Organizational buying behaviour is the decision-making process that organizations use to

A. Stages in the Organizational Buying Process

B. The Buying Centre: A Cross-Functional Group

Instructor’s Manual to accompany Marketing: The Core, 4th Canadian Edition

Instructor’s Manual to accompany Marketing: The Core, 4th Canadian Edition

2. What are the three types of buying situations, or buy classes?

VI. B2B MARKET SEGMENTATION

VII. ONLINE BUYING IN ORGANIZATIONAL MARKETS

A. Prominence of Online Buying in Organizational Markets

Instructor’s Manual to accompany Marketing: The Core, 4th Canadian Edition

• Organizational buyers depend heavily on timely supplier information that

• Internet/Web technology has been shown to substantially reduce buyer order

• Business marketers have found that Internet/Web technology can reduce

B. E-Marketplaces: Virtual Organizational Markets

• These online communities go by a variety of names, including portals, exchanges

• E-marketplaces can (1) be independent trading communities or private exchanges

a. Thousands of geographically dispersed buyers and sellers.

C. Online Auctions in Organizational Markets

Many e-marketplaces offer online auctions. Two types are:

• In a reverse auction, a buyer communicates a need for a product or service and

Instructor’s Manual to accompany Marketing: The Core, 4th Canadian Edition

1. What are e-marketplaces?

2. How do traditional auctions and reverse auctions affect bid prices?

Instructor’s Manual to accompany Marketing: The Core, 4th Canadian Edition