BBM 332: INDUSTRIAL MARKETING

SUPPLIMENTARY EXAM MARKING SCHEME

QUESTION ONE (30 MARKS)
a) Discuss the organization buying process bringing out the details at every stage (14mks)
Student are expected to discuss the following process;
1. Problem Recognition. 2. General Need Description 3. Product Specification 4.
Supplier search 5. The supplier selection process 6. Order routine specification. 7.
Performance review.
Marks allocation: Seven points explained =2 marks each
b) Discuss three benefits of using industrial segmentation in marketing efforts (6mks)
Student expected to discuss the following:
• Improved targeting
• Better customer understanding
• Increased efficiency
• Competitive advantage:
Marks allocation: three points explained =2 marks each
c) Explain the buyer decision process for new products(10mks)
The student is expected to explain situations under which the buyer finds him/herself
when making purchase decisions for new products in the market;
1. Awareness - the consumer/buyer first learn about the new product, but don’t have
enough information.
2. Interest – the consumer is motivated to find for information about the new
product/service that is offered in the market
3. Evaluation – (consideration stage) the consumer considers trying the new product after
gathering enough information about it.
4. Trial – the consumer tries the new product on a small scale to test if the product is
suitable for use.
5. Adoption – the consumer decides if the product has value or not.
Marks allocation: Five points explained =2 marks each

QUESTION TWO (20 MARKS)

a. Explain the three major types of buying situations that a buyer may engage in.(6mks)
Students expected to discuss buying situations that entail; straight rebuy, Modified rebuy
and new task
Marks allocation: Three points explained =2 marks each
 b. Distinguish between business markets and consumer markets (4mks)
Students expected to distinguish the difference between the two terms;
1. Business Market-(2mks) this is when organizations buy products or services either to
manufacture other goods or to resell them to businesses or consumers.
2. Consumer Market – (2mks) this is when products or services are sold for personal
consumption.
c. Discuss the participants one is likely to find in the business buying process (10mks)
Student expected to discuss persons such as;
1. Users - members of the buying organization who will use the product or service.
2. Influencers – they are the people in an organization’s buying centre who affect the
buying decision. They help define specifications and also provide information for
evaluating alternatives
3. Buyers -members of the buying organization who make a purchase
4. Deciders- people in the organization’s buying centre who have formal or informal power
to select or approve the final suppliers.
5. Gatekeepers – people who control the flow of information to others.
Marks allocation: Five points explained =2 marks each

QUESTION THREE (20 MARKS)

a. Explain clearly the various types of industrial customers (10mks)
Students to explain the following; Government customers, users, institutions, Original
equipment manufacturers, cooperative societies, industrial distributors and dealers,
commercial enterprises
Marks allocation: Five points explained =2 marks each
b. Discuss the characteristics of the organization buying process (10mks)
Students expected to discuss five points that include;
 In organizations, many individuals are involved in making buying decisions.
 The organizational buyer is motivated by both rational and quantitative criteria
dominant in organizational decisions; the decision makers are people, subject to many
of the same emotional criteria used in personal purchases.
 Organizational buying decisions frequently involve a range of complex technical
dimensions.
 The organizational decision process frequently spans a considerable time, creating a
significant lag between the marketer's initial contact with the customer and the
purchasing decision.
 Organizations cannot be grouped into precise categories. Each organization has a
characteristic way of functioning and a personality.
Marks allocation: Five points explained =2 marks each
QUESTION FOUR (20 MARKS)
a. Market structures can be classified based on competition levels and nature of markets.
Expound on this statement. (8mks)
Students expected to discuss the types of market structures which entail;
1] Perfect Competition
2] Monopolistic Competition
3] Oligopoly
4] Monopoly
Marks allocation: Four points explained =2 marks each
b. Building a relationship in a highly competitive market requires the need to manage
buyer–seller relationship. Discuss six types of Buyer-Seller relationship (8mks)
Students expected to discuss;
1. Reciprocal Marketing
2. Collaborative Exchange
3. Value-Added Exchanges Value
4. Transactional Exchanges
Marks allocation: Five points explained =2 marks each
c. Discuss any two challenges of industrial segmentation (4mks)

 Cost and time investment

 Limited data availability
 Complexity of industrial markets
 Changing customer needs

Marks allocation: Five points explained =2 marks each

QUESTION FIVE (20 MARKS)
a. There are many different ways that businesses can segment industrial customers. Explain
the types of industrial segmentation (10mks)
Students expected to discuss the following;
• Industry-based segmentation
• Size-based segmentation
• Location-based segmentation
• Purchasing power-based segmentation
• Customer type-based segmentation
Marks allocation: Five points explained =2 marks each
b. What role does the government have towards accelerating industrial development
(10mks)
Students expected to discuss either of;
1. The government must play a major role in education, including providing the basic
skills of literacy and numeracy that are vital in modern industrial labour force.
2. The government may have to play an important role in advancing technology which is
vital to the industrialization process
3. The government must provide the physical infrastructure of industry; transport,
communications and power systems
4. Virtually all governments provide at least some commercial goods and services
through state-owned enterprises
5. The government must take steps to increase the information available to producers and
to protect consumer welfare.
6. Governments also need to regulate to protect welfare through various regulations such
as checking weights and measures, establishing health standards for food and drugs
and air, land and water pollution, requiring product safety standards and product
guarantees and imposing safety standards in the work place
Marks allocation: Five points explained =2 marks each