Sample Elasticity of Demand Problems
Lets say that at the original price of $15 per unit, a firm sales 10,000 units. The firm is
forced to raise the price to $17.50 and sales drop by 2000 units. What is the price
elasticity of demand for this product?
Chapter 3 Notes
Understanding the Dynamics of Organizational Buying
Market-driven firms sense market trends and work closely with their customers and vendors.
This is crucial to:
Identify profitable market segments
Locate buying influences within segmen
Chapter 3 Notes (part 2)
Acquisition and Analysis of Proposals
This step occurs only when the buying organization lacks adequate information to make a
Proposals are presented in detail often by a team engineers, users and purchasing agents.
Chapter 2 Notes
Commercial Enterprises consist of:
Approximately 350,000 in the U.S.
The top 10%-or 36,000 firms-employ more
Chapter 2 Notes (Part 2)
To unlock savings and growth opportunities, professional purchasers need to understand not only
total costs but also the value of a good and its service to the firm.
The Total Cost of Ownership considers:
Chapter 1 Notes
Business Marketing or Industrial Marketing are used interchangeably
50% of all business school graduates join firms that directly compete in the business
Because of interest in high-tech markets and the size of industrial markets
Chapter 1 Notes Continued
Professional business marketers act as an integrator between various functional areas
within the company
Functional areas include:
Research & Development (R&D)
Chapter 9 Notes Part 2
Activation of the Strategic Decision Process
a. Induced: Manager defines the market that is in line with the organizations
b. Autonomous: Managers define a market that diverges from the organizations
Nature of Sc
Chapter 13 Notes
Effective supply chain management includes:
1. Integrated computer systems that provide the production schedule and demand
forecasts to all supply chain members.
2. Collaborative program management tools that allow manufacturers and supp
Chapter 8 Notes
A business marketers marketplace identity is established through:
A brand is one of the firms most valuable intangible assets.
Branding has emerged as a priority to marketing executives.
Products are developed
Chapter 9 Notes
Many firms derive their sales and profits from recently introduced products.
From products commercialized within the last 5 years, best-practice firms:
Generate 48% of sales
Generate 45% of profits
But, the risks of product innovation a
Assume that COGS is 75% of sales (which means your profit margin will be 25%)
The first scenario assumes no change occurs, either in reduction in costs or in sales
In scenario 2, you reduce your original costs by 10% through improvements in
B-2-B Exam 1 Study Guide
Business vs. consumer markets; characteristics of Business markets
Who are the customers (3 types) p6
Characteristics of B-2-B markets (13-17); derived demand; demand elasticity, etc.
see Figure 1.4 p 17
Chapter 4 Notes
Well developed relationships give business marketers a significant competitive
advantage. Topics include:
1. Patterns of buyer-seller relationships
2. Factors that influence customer profitability
3. Strategies for designing