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CHAPTER 7 Business Marketing
This chapter begins with the learning outcome summaries, followed by a set of lesson plans for
you to use to deliver the content in Chapter 7.
• Lecture (for large sections) on page 4
• Company Clips (video) on page 5
• Group Work (for smaller sections) on page 6
Review and Assignments begin on page 7
 Review questions
 Application questions
 Application exercise
 Ethics exercise
 Video Assignment
 Case assignment
Great Ideas for Teaching Marketing from faculty around the country begin on page 16
Chapter 7 ♦ Business Marketing 1

LEARNING OUTCOMES
1 Describe business marketing

Business marketing is the marketing of goods and services to individuals and organizations for purposes other than
personal consumption. Business products include those that are used to manufacture other products, that become part of
other products, that aid in the normal operations of an organization, or that are acquired for resale without any substantial
change in form. The key characteristic distinguishing business products from consumer products is intended use, not
physical characteristics.
2 Describe the role of the Internet in business marketing

The rapid expansion and adoption of the Internet have made business markets more competitive than ever before. The
number of business buyers and sellers using the Internet is rapidly increasing. Firms are seeking new and better ways to
expand markets and sources of supply, increase sales and decrease costs, and better serve customers. With the Internet,
every business in the world is potentially a local competitor..
3 Discuss the role of relationship marketing and strategic alliances in business

marketing
Relationship marketing entails seeking and establishing long-term alliances or partnerships with customers. A strategic
alliance is a cooperative agreement between business firms. Firms form alliances to leverage what they do well by
partnering with others that have complementary skills.
4 Identify the four major categories of business market customers

Producer markets consist of for-profit individuals and organizations that buy products to use in producing other products,
as components of other products, or in facilitating business operations. Reseller markets consist of wholesalers and
retailers that buy finished products to resell for profit. Government markets include federal, state, county, and city
governments that buy goods and services to support their own operations and serve the needs of citizens. Institutional
markets consist of very diverse nonbusiness institutions whose main goals do not include profit.
5 Explain the North American Industry Classification System

The North American Industry Classification System.(NAICS) provides a way to identify, analyze, segment, and target
business and government markets. Organizations can be identified and compared by a numeric code indicating business
sector, subsector, industry group, industry, and industry subdivision. NAICS is a valuable tool for analyzing, segmenting,
and targeting business markets.
6 Explain the major differences between business and consumer markets

In business markets, demand is derived, inelastic, joint, and fluctuating. Purchase volume is much larger than in
consumer markets, customers are fewer in number and more geographically concentrated, and distribution channels are
more direct. Buying is approached more formally using professional purchasing agents, more people are involved in the
buying process, negotiation is more complex, and reciprocity and leasing are more common. And, finally, selling
strategy in business markets normally focuses on personal contact rather than on advertising.
7 Describe the seven types of business goods and services

Business products generally fall into one of the following seven categories, depending on how they are used.
Major equipment includes such capital goods as large or expensive machines, mainframe computers, blast furnaces,
generators, airplanes, and buildings. Such goods are often leased, custom-designed, sold direct, and depreciated over
time. Accessory equipment is generally less expensive, standardized, and shorter-lived than major equipment and
includes items such as power tools, word processors, and fax machines.
Raw materials are unprocessed extractive or agricultural products—such as mineral ore, logs, wheat, vegetables, or
fish—that become part of the final product. Component parts are either finished items ready for assembly or products
2 Chapter 7 ♦ Business Marketing

that need very little processing before they become part of some other product. Examples include spark plugs, tires, and
electric motors. There is also a replacement market for component parts.
Processed materials are used directly in the production of other products, but unlike raw materials, they have had
some processing. They do not retain their original identity in the final product. Examples include sheet metal, lumber,
chemicals, and plastics.
Supplies are inexpensive, standardized, consumable items that do not become part of the product. Examples include
lubricants, detergents, paper towels, pencils, and paper.
Business services are expense items that do not become part of a final product. Businesses retain outside providers to
perform such tasks as advertising, janitorial, legal, maintenance, or other services.
8 Discuss the unique aspects of business buying behavior

Business buying behavior is distinguished by five fundamental characteristics. First, buying is normally undertaken by a
buying center consisting of many people who range widely in authority level. Second, business buyers typically evaluate
alternative products and suppliers based on quality, service, and price—in that order. Third, business buying falls into
three general categories: new buy, modified rebuy, and straight rebuy. Fourth, the ethics of business buyers and sellers
are often scrutinized. Fifth, customer service before, during, and after the sale plays a big role in business purchase
decisions.
TERMS
accessory equipment keiretsu raw materials
business marketing major equipment (installations) reciprocity
business services modified rebuy reintermediation
business-to-business electronic multiplier effect (accelerator relationship commitment
commerce principle) stickiness
business-to-business online new buy straight rebuy
exchange
buying center North American Industry strategic alliance (strategic
component parts Classification System (NAIC) partnership)
derived demand original equipment manufacturers supplies
disintermediation (OEMs) trust
joint demand processed materials

LESSON PLAN FOR LECTURE
Brief Outline and Suggested PowerPoint Slides:
Learning Outcomes and Topics PowerPoint Slides

1 Describe business marketing 1: Business Marketing
1.1 What Is Business Marketing? 2: Learning Outcomes
3: Learning Outcomes
4: What Is Business Marketing?
5: What Is Business Marketing?
6: Business Products
2 Describe the role of the Internet in business marketing 7: Business Marketing on the Internet
2.1 Business Marketing on the Internet 8: Business-to-Business
9: Measuring Online Success
10: Internet Sites for Small Businesses
11: Exhibit 7.2: Evolution of E-Business Initiatives
3 Discuss the role of relationship marketing and strategic 12: Relationship Marketing and Strategic Alliances
alliances in business marketing 13: Relationship Marketing
3.1 Relationship Marketing and Strategic Alliances 14: Strategic Alliances
15: Relationships in Other Cultures
4 Identify the four major categories of business market 16: Major Categories of Business Customers
customers 17: Major Categories of Business Customers
4.1 Major Categories of Business Customers
s
5 Explain the North American Industry Classification 18: North American Industry Classification System
System 19: NAICS
5.1 The North American Industry Classification 20: Example of NAICS Hierarchy
System 21: NAICS
6 Explain the major differences between business and 22: Business versus Consumer Markets
consumer markets 23: Business versus Consumer Markets
6.1 Business versus Consumer Markets 24: Demand in Business Markets
25: Fluctuating Demand
7 Describe the seven types of business goods and services 26: Types of Business Products
7.1 Types of Business Products 27: Types of Business Products
28: Types of Business Goals and Services
29: Intel Buys McAfee
8 Discuss the unique aspects of business buying behavior 30: Business Buying Behavior
8.1 Business Buying Behavior 31: Business Buying Behavior
32: Buying Centers
33: Roles in Buying Centers
34: Evaluative Criteria
35: Buying Situations
36: Customer Service
37: Chapter 7 Videos
Suggested Homework:
• The end of this chapter contains assignments for the Flight 001 video and for the Pantone case.
• The end of each chapter contains numerous questions that can be assigned or used as the basis for longer
investigations into marketing.

LESSON PLAN FOR VIDEO
Company Clips
Segment Summary: Flight 001
Brad John, co-founder of Flight 001, discusses how Flight 001 transitioned to a B2B company. Because Flight 001
sells travel-friendly products, businesses, airlines, and travel agencies are ideal customers who make large, repeated
purchases.
PRE-CLASS PREP FOR YOU: PRE-CLASS PREP FOR YOUR STUDENTS:
• Preview the Company Clips video segment for Chapter • Have students familiarize themselves with the
7. This exercise reviews concepts for LO2 and LO3. following terms and concepts: business marketing, four
• Review your lesson plan. major categories of customers, business versus
• Make sure you have all of the equipment needed to consumer markets, types of business products, and
show the video to the class, including the DVD and a customer service.
way to project the video. • Have students find two travel-supply Web sites, such
as Magellans.com, Skymall.com, Travelsmith.com, or
Traveloasis.com, and list 8-10 categories of travel
supplies that it promotes. What, if anything, does each
site use to market to a specific customer category?
Does the company list partnerships or alliances with
other businesses? Where are they located (online only,
retail space in various U.S. cities, global stores)?
VIDEO REVIEW EXERCISE
ACTIVITY
• Break the class into small groups to consolidate their findings at the travel supply Web sites into
one list. Have one member of each group report its findings.
Warm Up • Ask for a show of hands if they, or their friends or family members, have purchased traveled
supplies online or from a catalog. Ask students to think of one travel supply site or catalog that is
obviously marketed to them or their demographic and how they know that it is.
• Review the definition for relationship marketing.
• Ask students for their best explanation to the following statement from the textbook: “Building
long-term relationships with customers offers companies a way to build competitive advantage
that is hard for competitors to copy.”
In-class • While acknowledging salient points in students’ explanations, write the following points on the
Preview board:
o Loyal customers are profitable = win
o Loyalty earns customer rewards = win
• Review the Company Clips questions with students. They should be prepared to answer them
after viewing the video.
1. In what way does Flight001 rely on corporate orders for promoting the Flight001 products?
Viewing 2. In what ways does Flight 001 seek out business customers? In what ways does it build its
relationships with its business customers?
(Solutions 3. Go to Flight 001’s Web site, www.Flight 001.com. What evidence do you see of its business
below.) partnerships? How does it use its Web site to market itself to businesses?
Take-home-assignment: Have students perform a situational (SWOT) analysis on Flight 001’s

Follow-up business strategy, to be turned in later.
Solutions for Viewing Activities:
1. In what way does Flight001 rely on corporate orders for promoting the Flight001 products?
When a business customer orders customized gifts for their own clients, the logo of Flight001 is displayed on each
product. Also, satisfied corporate customers are often repeat customers, so as their client list grows and changes, the
Flight001 products are promoted more widely.

2. In what ways does Flight 001 seek out business customers? In what ways does it build its relationships with
its business customers?
Flight001 tries to get and retain orders from businesses that naturally share a market for their travel supplies, such as
hotels and airlines. Flight 001 has a relationship manager who is dedicated to meeting price, delivery, and product
expectations, such as large customized orders, which creates confidence in the company’s reliability and integrity.
3. Go to Flight 001’s Web site, www.Flight 001mag.com. What evidence do you see of its business partnerships?
How does it use its Web site to market itself to businesses?
Students’ responses will vary. Flight 001’s Web site has a banner ad at the top of its site, as well as side-bar
advertising on its home page.
LESSON PLAN FOR GROUP WORK
In most cases, group activities should be completed after some chapter content has been covered, probably in the second
or third session of the chapter coverage. (See “Lesson Plan for Lecture” above.)
• For “Class Activity – Marketing to Distribution Channels,” divide the class into small groups of four or five people.
Provide the information and the questions asked by the class activity
• Applications questions 1, 2, and 8 lend themselves well to group work. For these activities, divide the class into
small groups of four or five people. Each group should read the question and then use their textbooks, or any work
that was completed previously, to perform the exercise. Then each group should discuss or present their work to the
class.
Class Activity – Marketing to Distribution Channels

Ask your students to go to the Internet and locate Web sites that are targeted to business customers. Have them report on
the information available at these Web sites that would be valuable to the business customer. Also have them report on
the types of marketing appeals that are used to attract business customers. Have them evaluate the effectiveness of the
website from a marketing and customer service perspective.

REVIEW AND ASSIGNMENTS FOR CHAPTER 7
REVIEW QUESTIONS
1. Why is relationship or personal selling the best way to promote in business marketing?
In most cases, business selling relies on long-term relationships and repeat buying. Close communication and
ongoing dialog is essential to satisfying the customers.
2. Explain how a marketer could use the Web site http://www.census.gov/eos/www/naics/index.html to better
understand the NAICS system.
There is a link on the top of the NAICS Web page labeled “FAQs” that answers frequently asked questions about
the NAICS, such as “What is NAICS and how is it used?” and “What is the NAICS structure and how many digits
are in a NAICS code?” [http://www.census.gov/eos/www/naics/faqs/faqs.html]
3. How might derived demand affect the manufacturing of an automobile?
The demand for new cars drives the demand for products such as tires, brake linings, windshields, wipers, and more.
In turn, the demand for tires drives a large portion of the demand for rubber. So automobiles, with so many complex
components, drive the demand for a great many products, hence the derived demand.
4. Intel Corporation supplies microprocessors to Compaq for use in their computers. Describe the buying
situation in this relationship, keeping in mind the rapid advancement of technology in this industry.
Students should address some of these points:
The two companies do have a close and long-standing relationship, however the purchases are not simple rebuys.
With the new technology, Compaq and Intel are constantly renegotiating and looking at new products and new
contracts. Compaq has multiple product lines—laptops, desktops, and servers—and requires different chips for the
products in each line. Depending on the power needs of an individual product, Compaq may need medium- or high-
speed, or possibly multiple processors. Hence, the buying center for purchasing from Intel will be very complex.
APPLICATION QUESTIONS
1. As the marketing manager for Huggies diapers made by Kimberly-Clark, you are constantly going head-to-
head with Pampers, produced by rival Procter & Gamble. You are considering unlocking the potential of the
business market to increase your share of the disposable diaper market, but how? Write an outline of several
ways you could transform this quintessentially consumer product into a successful business product as well.
Students’ answers will vary and should identify not only new types of buyers, but new types of promotion and
pricing as well. New packaging may also be required.
2. How could use you use the Web site http://www.btobonline.com to help define a target market and develop a
marketing plan?
This Web site provides some services to organizations that wish to do business with other organizations. Links on
the Web site include: services, resources, finance, tools, media kit, and access to the Business to Business magazine.
To find a potential target market, the first area that potential marketers should use is the resources link. This link
provides a list of various organizations—such as U.S. government agencies, international organizations, and
magazines/newspapers—and provides links to these Web sites. If a company is considering targeting the U.S.
government, for example, it can link to the U.S. government agency Web site and read all about it. That will provide
some information on the needs of the target market and how it goes about accepting bids. The Web site is not very
good at helping companies identify private enterprise target markets, as those would be too numerous to list.
3. Reconsider question 1. How could you use the Internet in your business marketing of Huggies diapers?
Students’ answers will vary but should include ideas for all four Ps.
4. Understanding businesses is the key to business marketing. Publications like Manufacturing Automation,
Computer Weekly, Power Generation Technology & Markets, and Biotech Equipment Update can give you
insights into many business marketing concepts. Research the industrial publications to find an article on a
business marketer that interests you. Write a description of the company using as many concepts from the
chapter as possible. What major category or categories of business market customers does this firm serve?
Students’ answers will vary since they can select any business marketer.
5. What do you have to do to get a government contract? Check out the Web sites http://www.fedbizopps.gov
and http://www.governmentbids.com to find out. Does it seem worth the effort?
Students’ answers will vary.
6. Pick a product and determine its NAICS code. How easy was it to trace the groups and sectors?
Students’ answers will vary depending on the product selected.
7. Your boss has just asked you, the company purchasing manager, to buy new computers for an entire
department. Since you have just recently purchased a new home computer, you are well educated about the
various products available. How will your buying process for the company differ from your recent purchase
for yourself?
As with family purchasing decisions, several people may play a role in the business purchase process. The boss is
the initiator and may be the decider. The coworkers for whom the computers are being purchased will be the users,
and you are the purchaser, but you may also be an influencer. Business buyers evaluate products on quality, service,
and price—in that order. As a consumer, price may be your first priority in a computer purchase, and service may
not even be an issue at all. Since you will be investing a large amount of capital resources in the new computer
system, lengthy negotiations will most likely take place; this does not generally happen with consumer purchases of
computers. Lastly, you may decide to lease the computers. In the business environment it is more critical to stay
abreast of new technologies, necessitating more frequent upgrades than for home use.
8. In small groups brainstorm examples of companies that feature the products in the different business
categories. (Avoid examples already listed in this chapter.) Compile a list of ten specific products and match
up with another group. Have each group take turns naming a product and have the other group identify its
appropriate category. Try to resolve all discrepancies by discussion. It is certainly possible that some
identified products might appropriately fit into more than one category.
Students’ answers will vary widely by group.
9. A colleague of yours has sent you an e-mail seeking your advice as he attempts to sell a new voice-mail system
to a local business. Send him a return e-mail describing the various people who might influence the
customer’s buying decision. Be sure to include suggestions for dealing with the needs of each.
Students’ answers should address some of the following points:
The initiator is the person who first suggests making a purchase. This could be a CEO or an office manager or
someone else. Influencers or evaluators often define specifications for the purchase or provide information for
evaluating options. You need to find out who these people are and make sure you meet their specifications.
Gatekeepers regulate the flow of information about the purchase to the deciders and others.

The decider is the person who possesses formal or informal power to choose or approve the selection of the supplier
or brand, so this person needs full information on the product. The purchaser is the person who actually negotiates
the purchase, and may be a separate function from the decider.
Vendors need to identify and interact with the true decision makers. Other critical issues are each member’s relative
influence and the evaluative criteria used by each member.
APPLICATION EXERCISE
Purchasing agents are often offered gifts and gratuities. Increasingly, though, companies are restricting the amount and
value of gifts that their purchasing managers can accept from vendors. The idea is that purchasing managers should
consider all qualified vendors during a buying decision instead of only those who pass out great event tickets. This
exercise asks you to consider whether accepting various types of gifts is ethical.
Activities
1. Review the following list of common types of gifts and favors. Put a checkmark next to the items that you think
it would be acceptable for a purchasing manager to receive from a vendor.
Advertising souvenirs Automobiles
Clothing Dinners
Discounts on personal purchases Food and liquor
Golf outings Holiday gifts
Large appliances Loans of money
Lunches Small-value appliances
Tickets (sports, theater, amusement parks, etc.) Trips to vendor plants
Vacation trips
2. Now look at your list of acceptable gifts through various lenses. Would your list change if the purchasing
manager’s buying decision involved a low-cost item (say, pens)? Why or why not? What if the decision
involved a very expensive purchase (like a major installation)?
3. Form a team and compare your lists. Discuss (or debate) any discrepancies.
Purpose: This exercise helps students confront the gray areas in their own ethical perceptions.
Setting It Up: Distribute the checklist above. You can have students work individually, in pairs, or in groups to
complete it. Expect some debate, as differences over what students consider ethical are bound to arise. After students
have had adequate time to determine the gifts they find ethical, show them the grid on the next page. Discuss any
differences in perceptions.

This exercise was inspired by the following Great Idea in Teaching Marketing:
Gregory B. Turner, College of Charleston
STUDENT ETHICS VERSUS PRACTITIONER ETHICS
This exercise can be used during a logistics or ethics segment in a basic Marketing class. The students find it quite
enjoyable and it helps promote student participation in the classroom. I have developed a standard list of gifts and
gratuities that are offered to purchasing agents. This list was developed based on personal research as well as other
current research in this area. I distribute the list along with a scenario that places the students in the roles of purchasing
agents. The students are asked to then indicate the acceptability of the gifts and gratuities to them. The class then
computes the averages and compares the results to previous outcomes of practitioners. The results typically generate
some spirited discussion.
TYPE OF GIFT/FAVOR A B C D E F G H
Advertising Souvenirs 29 19 69 30 54 80 73 92
Automobiles 0 0 — 0 — — 1 1
Clothing 5 0 6 16 0 — 7 3
Dinners 38 10 22 79 8 — 48 70
Discounts on Personal Purchases 11 5 9 18 15 — 11 21
Food & Liquor 31 5 49 40 0 36 30 29
Golf Outings 26 5 2 57 0 — 28 47
Holiday Gifts 27 17 29 56 0 — 43 30
Large Appliances 0 0 — 0 — 2 1 1
Loans of Money 0 0 — 0 — — 1 1
Lunches 47 24 36 93 23 80 68 90
Small Value Appliances 2 5 0 6 0 6 6 6
Tickets (Sports, Theater, etc.) 28 5 13 59 0 42 37 60
Trips to Vendor Plants 39 11 42 48 0 — 31 51
Vacation Trips 0 0 0 2 0 4 2 2
A = 1995 - 1997 NAPM National Meetings (Turner et al. 1998)

B = 1994 State of South Carolina (Turner et al. 1995)
C = 1994 State of Alabama (Turner et al. 1995)
D = 1992 NAPM C-V Region Survey (Turner et al. 1992)
E = 1990 State of Arizona (Forker 1990)
F = 1990 Purchasing World Readers Poll (Modic 1990)
G = 1988 NAPM and Ernst & Whinney Survey (Janson 1988)
H = 1979 NAPM and Illinois Institute of Technology Survey (Anjou 1979)

ETHICS EXERCISE
Cameron Stock, purchasing manager for a sports equipment manufacturer, is responsible for buying $5 million of
supplies every year. He has a preferred list of certified suppliers who are awarded a large percentage of his business.
Cameron has been offered a paid weekend for two in Las Vegas as a Christmas present from a supplier with whom he
has done business for a decade and built a very good relationship.
Questions
1. Would it be legal and ethical for Cameron Stock to accept this gift?
It may be legal to accept the gift in certain states, but it would not be ethical. Although Cameron has built a strong
relationship with the supplier over the years, accepting such a lavish gift would entangle the business and personal
relationships. One alternative might be for Cameron to accompany the supplier on the trip, but to pay his own way.
2. How is this addressed in the AMA Code of Ethics? Go to the AMA Web site at
http://www.marketingpower.com and reread the Code of Ethics. Write a brief paragraph summarizing
where the AMA stands on the issue of supplier gifts.
There is no specific paragraph in the code regarding supplier gifts. There is, however, a rule against exercising
coercion in the marketing channel. The acceptance of the gift could be construed as exercising coercion in the
marketing channel, since the supplier would be implicitly trying to give a reason for Cameron to continue to
purchase parts and materials from him, rather than switching to another supplier, who may offer a lower price, better
terms, and so forth.
VIDEO ASSIGNMENT: Flight 001

1. Brad John, co-founder of Flight 001, says that a corporate order for fifteen globes they received
when they first opened their business was unsolicited, but now they have a one-man department to handle
these kinds of orders. Which of the following would be the most accurate name for that department?
a. Business Marketing c. Consumer Marketing

b. Retail Marketing d. E-Commerce
ANS: A
Business marketing provides goods and services that are bought for use in business rather than for personal
consumption.
2. True or False: If Flight 001 had a corporate client who purchased personalized items from them to
give as holiday gifts, and who was also their supplier for specialized software, a relationship called
reciprocity would be formed between the two companies.
ANS: T
Reciprocity a practice whereby business purchasers choose to buy from their own customers.
3. The Flight 001 employee who handles corporate business orders “bends over backwards” to satisfy
customers, which leads to repeat business by building a _____________________ between the client and
Flight 101.
a. Reseller relationship c. Keiretsu

b. Relationship commitment d. Derived demand
ANS: B

Relationship commitment a firm’s belief that an ongoing relationship with another firm is so important that the
relationship warrants maximum efforts at maintaining it indefinitely.
4. True or False: One reason that Flight 001 has a department to encourage corporate customers and
keep them happy is because of the purchase volume generated by such clients.
ANS: T
Business customers tend to buy in much larger quantities than consumers, so this is certainly a reason why Flight 001
wants to keep its corporate customers.
5. If Flight 001 received an order for personal flight bags from a midwestern university for participants
in a university-sponsored overseas educational excursion, in which of the following category would you
place this business customer?
a. Producer c. Institution
b. Reseller d. Government
ANS: C
Institutional markets consist of very diverse nonbusiness institutions whose main goals do not include profit.
6. John talks about a new, nonpublic part of the company’s Web site specifically for businesses who will
access the site using a password to shop online with Flight 001. This is an example of
_________________________, a method of conducting business that has evolved quickly and grown rapidly
in just a few years.
a. Interlocking corporate affiliates c. Industrial classification
b. Business-oriented social media d. Business-to-business electronic marketing
ANS: D
Business-to-business electronic commerce is the use of the Internet to facilitate the exchange of goods, services, and
information between organizations.
7. To get and retain business from other businesses, such as hotels and airlines, Flight 001 works to
meet price, delivery, and product expectations, which creates __________________, or confidence in the
company’s reliability and integrity.
a. Commitment c. Honesty
b. Trust d. Keiretsu
ANS: B
Trust is the condition that exists when one party has confidence in an exchange partner’s reliability and integrity.
8. When a company returns to Flight 001 year after year to buy a product to use as a gift for their own
best clients, the repeat order would be described as a(n)_________________.
a. Initiator buy c. Straight rebuy
b. New buy d. Modified rebuy
ANS: C
A straight rebuy is a situation in which the purchaser reorders the same goods or services without looking for new
information or investigating other suppliers.
9. Brad John describes a situation in which a young employee of a corporation is given a set budget to
purchase personalized company gifts. In these cases, the client may need to consult with a(n)
_________________ that includes others above her in the company before making a final decision on a
purchase.
a. Evaluative criterion c. Buying center
b. Strategic alliance d. Reciprocity group
ANS: C
A buying center is all those people in an organization who become involved in the purchase decision.
10. Which of the following could be a reason why Flight 001 does not intend to list prices on the
corporate business Web site it is developing?
a. In most cases, businesses are interested c. On-time delivery is more important to
only in quality, not price. business than price.
b. Unlike consumers, businesses already d. Negotiating on price is a common practice in

know what the items cost. business marketing.
ANS: D
Negotiating is common in business marketing. Buyers and sellers negotiate product specifications, delivery dates,
payment terms, and other pricing matters.
CASE ASSIGNMENT: Pantone
This Year’s Color: Honeysuckle

On December 9, 2010, Pantone, which specializes in color management and professional color standards, made an
important announcement: the color of the year for 2011 would be “honeysuckle.” The announcement was made by the
Pantone Color Institute, Pantone’s color forecasting and consulting division, which under the direction of Leatrice
Eismen scours the globe to determine which emerging color trends will be prominent in the coming year. According to
Eismen, this complex shade of bright pink with a hint of red and orange, or more specifically Pantone 18-2120 TCX,
evokes a sense of summertime. It’s a warm, catchy color, conveying a sense of optimism. Having Pantone’s blessing on
“honeysuckle” and the other colors built into its annual pallet, fashion designers, cosmetic producers, makers of home
furnishings and appliances, and many other style- and image-conscious businesses will begin to plan their product
offerings based on Pantone’s color recommendations.
While the color reports from the Color Institute have become critical reads for product designers and marketers
across many industries, only recently has it developed beyond being a mere service of its parent company. For almost
half a decade, Pantone has literally provided the industry standard on color management across the whole spectrum of
business sectors, from printing to manufacturing to industrial and beyond.
Pantone was founded by Lawrence Herbert in 1963. Herbert, a color-matcher in a New York City print shop, having
no industry-wide standardized method of communicating color beyond verbal descriptions, created a code of 500 colors
that could be produced through formulas for combining inks. Herbert’s color-matching system was adopted by printers,
but it quickly became obvious that this systematic approach to color management could be applied to numerous other
industries as well. Pantone’s products were soon being utilized in cosmetics, fashion, plastics, and many other products.
For many years, the Pantone Matching Systems (PMS) served as the standard in color matching and identification,
with 1,114 solid, codified Pantone colors. Each color in the system is given a name and is shown with its corresponding
ink formula number. The colors are organized in the iconic fan of Pantone color swatches, which caters to many
designers who prefer doing color comparison and selection manually. The PMS color guides are printed using 13 base
colors, selected and licensed by Pantone, plus black and clear white.
Over time, Pantone has developed supplemental color-matching systems for various applications. As many printers
use a four-color CMYK (cyan-magentayellow-black) system for printing, Pantone developed a conversion guide to help
printers reproduce Pantone colors in the CMYK format where possible. It also created the HEXACHROME six-color
printing system and another guide for correlating sRGB (red-green-blue) formulations with various Pantone colors for
digital application. In 2007, Pantone released the Goe system, using ten base colors (four new, six original), which
offered 2,058 color formulations, streamlined the color numbering into a more substantive hierarchy, and included
sRGB-compatible software. In total, Pantone’s products offer over 10,000 unique colors for use in various industries.
Pantone works hard to expand the functionality of its products. For example, Pantone recently created a handheld
gadget called CAPSURE, which can be used to pull color samples from virtually any source. The CAPSURE uses a tri-
directional image-capture system to eliminate color variations from texture and uneven lighting on a given surface and
identify the color with an existing Pantone hue. Pantone also offers an iPhone app that can be used for isolating and
identifying colors in photographs according to the Pantone color systems.
While Pantone offers many different resources to enhance color varieties and applications, its primary service is
simply improving communication across various industries and disciplines. With Pantone’s color systems, a designer can

send Pantone’s color swatches to a manufacturer and the manufacturer will know what color the designer wants and how
to reproduce it. So when it comes to finding the honeysuckle lipstick to match your new honeysuckle sundress, all you
have to do is ask Pantone, and it can give you just the right number.
Sources: Mary Beth Breckenridge, “Vibrant Pink Named 2011’s color of Year,” Seattle Times, January 13, 2011,
http://seattletimes.nwsource.com/html /entertainment/2013914040_honey14.html; Gene Gable, “Pantone 2.0: After
45 Years, the Sequel to PMS,” creativePro Web site, September 5, 2007, www .creativepro.com/article/pantone-2-0-
after-45-years-the-sequel-to-pms-; Tim Stevens, “Pantone’s CAPSURE Tells You What Color Anything Is, Easily
Separates Salmon From Rose,” engadget, October 23, 2010, www.engadget .com/2010/10/23/pantones-capsure-
tells-you-what-color-anything-is-easily -separ; Alyssa Abkowitz, “The colorful world of the Pantone team,”
Fortune, October 16, 2009, http://money.cnn.com/2009/10/15/news/companies /pantone_colors.fortune/index.htm;
Christina Binkley, “The New Hue for 2011,” Wall Street Journal, December 9, 2010,
http://online.wsj.com/article/SB1000142 4052748703296604576005881610036902.html.
Open-ended questions
1. Pantone’s color-management systems were designed in a business environment and are primarily employed
by businesses and entrepreneurs seeking to standardize colors across various production applications. Do you
think Pantone’s systems might have any use for regular consumers, though? If so, how?
Answers and examples will vary. Generally, consumers will most likely be color conscious as well, for instance as they
are shopping for clothes or home furnishings. Do-it-yourself–type consumers particularly might find color-management
systems useful in their projects, such as making sure the fabric they would use to sew a dress matches the color of the
purse they just bought at T.J. Maxx or the paint for their living room matches the color of their new couch.
2. The colors in Pantone’s systems are created from the proprietary formulations for a base set of inks. What
kind of demand do the inks have with the color management systems as a whole?
The demand relationship would be one of derived demand. If businesses don’t adopt the Pantone color system, they
won’t necessarily need the Pantone inks and their specific formulations. Therefore, demand for the inks is “derived
from” the demand for the color system.
Some might also argue for joint demand, as the color system and the ink formulations must be employed together to truly
be effective. However, while the leader in the field, Pantone color-management systems are not an official standard, and
therefore some businesses might attempt to approximate formulations without using the specific Pantone inks.
3. What type of business product is the Pantone Management System?
The management system itself is probably best described as a business service. The system is used to provide a
standardized means of communication between various business parties, as well as with customers. So the system itself
is not an actual part of the final product but provides a service that facilitates interbusiness operations. The Pantone inks
and the formulations used to produce specific colors would probably be component parts—not finished products but also
not raw materials, as they have already received some processing.
Close-ended questions
TRUE/FALSE
1. Pantone’s color-management system is an industrial classification system.
ANS: T PTS: 1 OBJ: LO-5 TOP: AACSB Reflective Thinking

KEY: CB&E Model Product MSC: BLOOMS Level I Knowledge
2. Pantone, like many B2Bs, tries to limit itself to a few industries, in this case color printing.
ANS: F

Pantone’s color system is used by a broad range of businesses, including fashion designers, cosmetic
producers, makers of home furnishings and appliances, and the like.
PTS: 1 OBJ: LO-6 TOP: AACSB Reflective Thinking

KEY: CB&E Model Customer MSC: BLOOMS Level I Knowledge
3. Leatrice Eismen’s choice of Pantone 18-2120 TCX as the color of the year for 2010 has as much to do
with consumer demand as it does with business.
ANS: T PTS: 1 OBJ: LO-6 TOP: AACSB Reflective Thinking

KEY: CB&E Model Customer MSC: BLOOMS Level I Knowledge
4. Pantone recently partnered with Fine Paints of Europe, a high-end paintmaker. Such strategic alliances are
not possible with a business service provider.
ANS: F
Fine Paints of Europe would use Pantone’s research and color formulations and benefit as would Pantone’s
reputation and the licensing of its name. So this would be a strategic alliance.

KEY: CB&E Model Strategy MSC: BLOOMS Level I Knowledge
MULTIPLE CHOICE
1. Which of the following would best describe the Pantone color-management system?
a. a supply
b. color accessory
c. business service
d. a component part, that is, dye
e. none of the above
ANS: C
Pantone provides a service that facilitates interbusiness operations, that is, a way of ensuring uniform color
used in business and business-to-business.

KEY: CB&E Model Product MSC: BLOOMS Level II Comprehension
2. When Pantone announces its color of the year, it serves Pantone in what way?
a. It advertises Pantone’s line of color inks.
b. For Pantone, it is a form of marketing since its intellectual property is its pigment values.
c. It is Pantone’s way of marketing the products of its resellers.
d. The color of the year is a form of reciprocity with the color paint and ink industry.
e. As a multiplier effect given the many potential users of the annual color pick.
ANS: B
The annual color does market a particular color and it also helps those businesses who use the annual color in
their products.

KEY: CB&E Model Strategy MSC: BLOOMS Level II Comprehension
3. In which of the following scenarios does a Pantone color swatch book cease to facilitate business-to-
business marketing?
a. When kitchen remodeler uses it to color coordinate a client’s refrigerator with her Corian
countertop.
b. When the client in a. purchases the same color swatch book and cuts it up to make a color
collage out of it to decorate her new kitchen.
c. When it is an outdated Pantone color swatch book.
d. When the remodeler returns the book to the countertop maker.
e. none of the above
ANS: A
The key characteristic distinguishing business products from consumer products is intended use, not physical
characteristics. In this case, a regular consumer has appropriated a business product and made it into a
consumer good.

KEY: CB&E Model Customer MSC: BLOOMS Level II Comprehension
4. If you worked for Pantone, which method of marketing its services is the least suitable?
a. Web site
b. Fax
c. HTML-formatted e-mail
d. business-to-business online exchange
e. placing bids
ANS: E
Pantone is virtually the only service of its kind and so would not have to market its services in this way, even
to the government.

5. Pantone’s handheld CAPSURE device, which can be used to pull color samples from objects, surfaces,
and the like, is one of the company’s __________.
a. major equipment
b. supplies
c. component part
d. accessory equipment
e. business services
ANS: D
The CAPSURE device provides a service in line with Pantone’s color management and it is an accessory
device.

KEY: CB&E Model Product MSC: BLOOMS Level II Comprehension
6. As a company that maintains an industry standard, which of the following is most important in Pantone’s
success.
a. trust
b. strategic alliances
c. relationship commitment
d. keiretsu
e. OEMs
ANS: A
Given the importance of Pantone color-management system, trust is the most important aspect of its success.
Its business customers rely on the integrity of Pantone’s color assurance products.


GREAT IDEAS FOR TEACHING CHAPTER 7
James S. Cleveland, Sage College of Albany
DISCUSSION BOARD TOPICS TO ENCOURAGE PARTICIPATION
Discussion board questions provided to students to encourage them to engage in thinking and writing about the content
of the Principles of Marketing course usually take the form of a provocative statement to which students are asked to
respond. An example of this would be “All PR is good PR.”
Discussion topics such as this one are abstract and often require that the instructor provide an initial reply to show
students what is expected of them in their own replies. For students with limited work experience, this approach may be
quite appropriate. For adult students with extensive experience as employees and consumers, however, the abstract
nature of such topics can be frustrating.
I have developed, therefore, a series of discussion board questions to use with experienced, adult students. These
questions are designed to encourage them to use their experiences as employees and consumers as doorways to better
understand the course material, and to make their own responses more interesting to themselves and to the other students
in the class who will read and comment on them.
Each question has three parts:

1. First, there is a sentence or two from the students’ textbook introducing the topic. By using the text author’s
own words, students are enabled to locate relevant material in the text more easily, the text content is
reinforced, and confusion resulting from use of variant terms or expressions is minimized.
2. Second, there is a reference to text pages the student should review before proceeding. Since the goal of the
exercise is for students to apply the course content to their own experiences, reviewing the content first is
important.
3. Third, there is a request for the student to think about or remember some specific situation in their experience to
which they can apply the text material, and a question or questions for them to address in their reply.
Here are additional such discussion board questions developed for Chapter 7 of MKTG5. Each is written to fit the same
text cited above but could easily be rewritten and revised to fit another text.
Series A
1. The business market consists of four major categories of customers: producers, resellers, government, and
institutions.
2. Review these categories on pages 108–109 of your text and the types of business products on pages 113–115 of
your text.
3. Then describe which category your employer falls into and what sort of products it buys.
Series B
1. Business buyers behave differently from consumers. A buying center includes those persons in an organization
who become involved in the purchase decisions.
2. Review the material on buying centers and the roles in buying centers on pages 115–116 of your text.
3. Then describe how you have been involved in a buying center for your employer and what role or roles you
played.

Elizabeth J. Wilson, Louisiana State University
A DECISION-MAKING EXERCISE FOR BUSINESS MARKETING
This exercise is designed to introduce undergraduate students to decision making in the context of organizational buying.
Several distinctions of organizational buying, compared to consumer buying, can be made by using this exercise. For
example, differences in decision criteria are highlighted, and individual versus group decision making can be
demonstrated.
Procedure
The three decision evaluations represent different product categories in organizational buying—office copiers, accessory
goods that do not become part of the final product; painted sheet metal, component parts; and an industrial boiler system,
major equipment or a capital installation (Lamb, Hair, and McDaniel 1992). Use of these three decisions illustrates the
wide range of products that may be procured by a buyer or purchasing agent.
Each exercise is designed so that there is no right or wrong answer. The “suppliers,” represented by the attribute
combinations, represent a pool of vendors from which the buyer can chose. The display of the nine suppliers is a
fractional factorial design that has each of the four decision variables (price, quality, delivery, service) represented in
orthogonal combinations. The expression of these attributes varies in order to be decision specific. For example, quality
for the boiler system is expressed in terms of pollution control, while quality for copiers is expressed as the number of
features available.
Part A: Individual Evaluation – A helpful class exercise is to have students role-play as organizational buyers to work
through these decisions individually. Students are instructed to read the decision context statement and then examine the
nine “vendors” described by each block. For example, in the copier decision, vendor N offers a copier that is priced at
$3,500, has the A-level feature package (see bottom of decision), requires two hours of maintenance (downtime) per
month, and can be delivered in two weeks. Students then should cross out any vendors that are not acceptable—for
whatever reason. Of the acceptable vendors, students divide 100 points to represent how they want to source the
decision. For example, one copier vendor could be given all 100 points, or the buyer (student) can use a multiple
sourcing strategy by dividing the points among several (50/50, 70/30, 40/40/20, etc.).
At this point, the decision evaluations illustrate the concepts and variables that organizational buyers use in selecting
suppliers. After completing the decision individually, students can be asked to offer their “solutions” to the buying
decision. Since there is no right or wrong way to complete the exercise, students will differ in their solutions. Discussion
of several of their solutions illustrates the concept of trade-offs in buying and the fact that organizational buyers have
different levels of expectations in buying. What is important to one buyer may not be as important to another. In
addition, evaluation of decisions in a systematic, “rational” way is sometimes different from consumer buying (e.g.,
impulse purchases).
Part B: Group Evaluation – The second part of the exercise involves group decision making. Arrange students in
groups of two to four persons and have them evaluate these decisions again, but this time they all must agree on the point
allocations among suppliers. In discussing group solutions, the instructor may ask if there was any conflict and if so, how
it was resolved. If the group’s decision was very different from an individual’s original evaluation, the students may
discuss the dynamics of the decision-making process in how preferences were changed. This part of the exercise
illustrates concepts such as a buying center, roles of members in group decisions, and conflict management and
resolution.
REFERENCE: Charles W. Lamb, Joseph F. Hair, and Carl McDaniel (1992), Principles of Marketing, Cincinnati, OH:
Southwestern Publishing.

BUYING DECISION FOR OFFICE COPIERS
Decision Context: Your firm needs a new copier to supplement current copiers already in place. Moderate volume use
(25,000 copies per month) is expected.
N ____ pts. D ____ pts. J ____ pts.

Price: $3,500 Price: $4,400 Price: $5,000
Feature Package: A Feature Package: C Feature Package: B
Maintenance Hours per Month: Maintenance Hours per Month: Maintenance Hours per Month:
2 hrs. 2 hrs. 2 hrs.
Delivery Lead Time: 2 weeks Delivery Lead Time: Immediate Delivery Lead Time: 6 weeks
C ____ pts. W ____ pts. T ____ pts.

Feature Package: B Feature Package: A Feature Package: C
Delivery Lead Time: Immediate Delivery Lead Time: 6 weeks Delivery Lead Time: 2 weeks
A ____ pts. G ____ pts. L ____ pts.

Feature Package: C Feature Package: B Feature Package: A
Delivery Lead Time: 6 weeks Delivery Lead Time: 2 weeks Delivery Lead Time: Immediate
Feature Package Key:

A. Reduction/Enlargement, 11  17 oversized documents, toner flow control.
B. Package A features plus automatic document feeder, oversized paper tray.
C. Package B features plus document sorter, automatic two-sided copying.

BUYING DECISION FOR PAINTED SHEET METAL
Decision Context: Your firm needs to consider vendors for awarding annual purchase agreements. The contract to supply
the annual requirement of painted sheet metal may be awarded to one of several vendors described below.
L ____ pts. T ____ pts. P ____ pts.

Quality of Paint Work*: 92% Quality of Paint Work*: 95% Quality of Paint Work*: 99%
Lead Time per Order: 8 weeks Lead Time per Order: 8 weeks Lead Time per Order: 8 weeks
In-House Vendor Service In-House Vendor Service In-House Vendor Service
Rating: A+ Rating: A Rating: B
Price per piece: $25 Price per piece: $20 Price per piece: $14
F ____ pts. M ____ pts. S ____ pts.

Rating: A Rating: B Rating: A+
W ____ pts. G ____ pts. B ____ pts.

Rating: B Rating: A+ Rating: A
* Percentage of pieces usable per truckload.

BUYING DECISION FOR AN INDUSTRIAL BOILER SYSTEM
Decision Context: Your company needs a boiler system for a new office building. Evaluate the alternatives in terms
of making recommendations to senior management about which vendor(s) would best meet your company’s needs.
G ____ pts. T ____ pts. P ____ pts.

Pollution Control (% Sulfer Pollution Control (% Sulfer Pollution Control (% Sulfer
retained): retained): retained):
6 hours 8 hrs 12 hours
Price: $750,000 Price: $1,000,000 Price: $1,500,000
Manufacturing and Delivery Manufacturing and Delivery Manufacturing and Delivery
Lead Time: 12 months Lead Time: 6 months Lead Time: 9 months
R ____ pts. J ____ pts. F ____ pts.

Pollution Control (% Sulfer Pollution Control (% Sulfer Pollution Control (% Sulfer
B ____ pts. M ____ pts. W ____ pts.

Pollution Control (% Sulfer Pollution Control (%Sulfer Pollution Control (%Sulfer

Richard Turshen, Pace University
BUSINESS DOCUMENT VERSUS ACADEMIC TREATISE
The Dilemma: In order to demonstrate their knowledge of marketing principles on two learning levels—comprehension
and application—students are often asked to prepare a marketing plan for a new product. Traditionally, they are required
to produce a business document and an academic treatise simultaneously within the same written report. This
dichotomous intellectual responsibility not only creates a dilemma for the student relative to preparation, but also for the
instructor relative to evaluation.
The Solution: In order to separate the two distinct requirements, a supplemental reporting component is added to the
assignment; in effect, the plan is subdivided into two sections:
1. A “B” section provides the practical BUSINESS document that explicitly presents the “what and when” of
the strategic plan. Two requisites are prescribed; section B must be capable of standing alone as a
marketing plan, and a visual, graphic communication style needs to employed.
2. An “A” section provides the complimentary theoretical ACADEMIC manual that essentially explains the
“why” behind the strategy decisions presented in section B. Two requisites are prescribed; sources and
derivations of all B section material must be included, and an efficient cross reference system between the
sections needs to be utilized.
Summary: The following comparative summary is supplied to the students:
Business Subdivision Academic Subdivision

Vs.
(Marketing Plan) (Explanatory Manual)
Business presentation for your boss Vs. Academic presentation for your professor
Present the elements of the plan; information, Vs. Present the rationale behind the strategies;
data, and strategy decisions sources, derivations and explanations
Project the plan in terns of what, how, when, Vs. Project the plan in terms of why
where, and who
Specific decisions; the result of thinking Vs. Corresponding rationale; the process of thinking
Conclusion: The tested technique of subdivision avoids the muddled mix of applied strategic marketing decision making
and corresponding theoretical supporting rationale in a single report. Both parties, the student and instructor,
consequently gain a clearer mindset for the preparation and evaluation of the business and academic requirements of the
marketing plan assignment.

Shirine Mafi, Otterbein College
RESEARCHING A CORPORATION
Students are divided into teams of three to five members. Each team works together throughout the quarter. Teams each
select a corporation and research that company for all project assignments. The final project grade is based partially on
peer evaluations.
PROJECT ASSIGNMENT I
Through a 10–12 page paper, students become familiar with the company and the environmental forces that shape the
company and its industry. The report also entails a marketing opportunity analysis.
PROJECT ASSIGNMENT II
Based upon the findings of the marketing opportunity analysis, teams recommend one of the following options and
produce a marketing plan accordingly:
• A new marketing mix targeted to a new market
• A current marketing mix extended to a new target market
• A new or improved product/service targeted to the current market
• A combination of any of these
Each team will produce a marketing plan that includes:

• Customer and competitive situation analysis
• Marketing objectives
• Marketing strategies
• Control/evaluation procedures
Group Presentation: Each team presents its project to the class. All members participate equally. The team not only
presents its findings, but must be able to defend its plan to the class. Use of visual aids is encouraged.
Group Competition: In addition to the instructor’s evaluation, class members vote for the best group presentation. The
winning team members earn bonus points.

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The firing mechanism is of the type known as a continuous pull
mechanism, that is, the mechanism is cocked and fired by the pull on
the lanyard or by downward pressure on the firing handle located at
the right side of the breech.
The recoil system is of the hydro-spring type.
The two parallel steel tubes (the spring cylinders) are fitted into a
frame surmounted by heavy steel rails which form the gun slides
thus forming the cradle. The recoil cylinder is fitted between these
two.
The recoil and counter-recoil piston rods are attached to the gun
lug and recoil with the gun, while the spring cylinders and recoil
cylinder remain stationary.
The recoil is constant, being 70 inches for all elevations. The recoil
cylinder uses hydroline oil as the buffer medium. Throttling is
obtained by three throttling bars running lengthwise of the cylinder
which are of varying height to give a throttling effect with
corresponding slots in the recoil piston. A counter-recoil buffer is
fitted in the piston rod to take up the shock when the springs return
the gun into battery.
The trunnions on the cradle are mounted in bearings formed by a
yoke which swivels in a pintle bearing provided at the front of the
trail.
Traverse is obtained by means of a handwheel and screw
mounted on the left side of the trail which swings the yoke in traverse
carrying the gun with it. A traverse of 70 mils on each side of center
is possible.
The piece is elevated by a double screw type of mechanism. The
upper end is attached to the cradle and so raises and lowers it. The
screw is operated thru gearing by two handwheels one on each side
of the trail from 5° elevation dep. to 15° elevation.
The trail is of the solid type made up of flasks of channel section. It
has housings for the axle and carries the pintle bearing in which the
top carriage or yoke swings. A tool box is provided in the trail. A seat
is provided on each side of the trail for the cannoneers. The lunette
transom is fitted about 27 inches from the rear of the trail and carries
a bearing that fits the limber pintle.
A trail prop is provided for supporting the trail when limbering.
The spade can be released and folded up on the trail when
traveling.
A traveling lock is provided on the trail for locking the gun when
traveling. The piston rod and spring rods must be disconnected
before the gun can be drawn back far enough to lock.
The wheels are 61 × 6 inch with rubber tires and band brakes.
Some older vehicles have steel tires and are fitted with tire brakes.
An armor plate shield is fitted to the carriage for the protection of
the personnel.
The instruments for sighting and laying the piece included a line
sight, a rear sight, a front sight, a panoramic sight and a range
quadrant.
The line sight consists of a conical point as a front sight and a V
notch as a rear sight. These are located on the Jacket of the gun,
and are useful for giving a general direction to the gun.
4.7” Rifle
The sighting is similar to the 3”, 1902.

The rear sight and front sight are used for direct aiming. The rear
sight is a peep sight mounted on a range scale quadrant by a
bracket on right side of the cradle. The front sight is a pair of cross
wires mounted in a ring attached by a bracket on the cradle about 3
ft. ahead of the rear sight.
The range scale quadrant has a socket in which the Standard U.
S. Panoramic sight may be mounted.
For indirect fire the gunner on the left of the carriage lays for
direction only.
On the right side of the cradle is mounted the Range Quadrant
which has in combination with it the Angle of Site Mechanism. For
indirect fire the gunner on the right of the piece lays for range with
this instrument.
Fixed ammunition is used with this gun. Shrapnel and high
explosive shell are used. The base fuzed steel shell and the
shrapnel weigh 60 lbs. The point fuzed steel shell weighs 45 lbs.
Gas shell are also issued identical with the 45 lb. steel shell.
CHAPTER X
THE 155-MM FILLOUX GUN.
WEIGHTS, DIMENSIONS, ETC.

Weight of Gun including breech mechanism 8,795 lbs.
Length 232.87 inches.
155-mm (6.1042
Caliber
inches.)
Muzzle velocity 2,380 ft.-sec.
Rifling, one turn in 2.989. Caliber, right hand uniform.
Weight of projectile 95 lbs.
Maximum range 16,200 meters.
Weight of maximum powder charge 25¼ lbs.
Weight of carriage 11,065 lbs.
Weight of gun and carriage, complete 19,860 lbs.
Diameter of wheels 1,160mm.
Width of track 2,250 mm.
Height of axis of gun 1,482 mm.
Elevation 0 to 35 degrees.
Maximum traverse 60 degrees.
Weight of limber complete 3,190 lbs.
Weight of gun carriage and limber 23,050 lbs.
The distance from center line of carriage
axle to center line of limber axle, 4,500 mm.
approximately
155 M.M. GUN MODEL OF 1918 (FILLOUX)
The gun is of the built-up type and consists of the tube

strengthened by the following jackets and hoops beginning at the
breech end: The breech ring, the jacket, the hoop A, the hoop B, the
clip hoop, the clip hoop set on the hoop B and the muzzle bell. The
length of the gun from the muzzle to the breech base is
approximately 18½ feet.
A recoil lug on the underside of the breech ring provides means of
attaching the recoil and recuperator rods. Hinge lugs for the breech
are also formed on the breech ring. Bronze clips to serve as guides
in the cradle are screwed to the sides of the jackets.
The breechblock is of the interrupted screw type, having four plain
and four threaded sectors. The breech mechanism is of the plastic
obturator type, having the forward mushroom-shaped head of the
breechblock equipped with the asbestos ring, known as the obturator
pad. Upon firing, this ring is compressed and acts as a gas check to
prevent the leakage of powder gases back through the breech. It has
sufficient resiliency to resume its original form after firing. The firing
mechanism is of the French percussion primer type which is
described under “155-mm Schneider howitzer” and is
interchangeable with the guns enumerated therein.
The cradle is a steel forging pivoted by trunnions in the trunnion
bearings of the top carriage. It is bored with three parallel cylinders
for housing the recoil and recuperator mechanism. On its upper side
are slots for the gun slides and the elevating rack is bolted to the
lower side.
The recoil mechanism is of the hydro-pneumatic variable recoil
type. The larger of the three cylindrical bores in the cradle block
contains the recoil mechanism; the two smaller ones, the parts of the
recuperator mechanism.
155 MM GUN CARRIAGE MODEL OF 1918 (FILLOUX)

LONGITUDINAL SECTION IN BATTERY
The recoil mechanism consists of a piston and piston rod and a

counter rod. The piston rod is connected to the breech lug and,
therefore, recoils with the gun. Grooves of variable depth are milled
along the length of the counter rod, controlling the flow of oil through
the ports of the piston during the recoil. This counter rod assembles
within the bore of the piston rod. It does not move longitudinally, but
rotates. The amount of this rotation changes the area of the orifices
through which the oil can pass. Its rotation is accomplished as the
gun is elevated by means of an arm and gear sectors in such a
manner as to shorten the recoil as the gun elevates.
A replenisher or gravity tank is provided in connection with the
recoil cylinder which assures the recoil cylinder being full at all times
and also takes care of any expansion of the oil due to heating. Its
capacity is about 17 quarts.
The recuperator mechanism consists of two connected cylinders,
one containing the piston and piston rod which are attached to the
breech lug, while the other contains a mushroom valve and a
diaphragm. The diaphragm separates the oil contained in the first
cylinder and part of the second cylinder from the high pressure air
which compels the return of the gun into battery after recoil. Normally
a small amount of oil must be between the valve and diaphragm.
Oleonapth is the liquid used in this recoil mechanism. The amount of
oil in the recoil and recuperator mechanism is shown by an indicator
so that it can always be seen whether or not they need filling.
The top carriage is a large steel casting mounted on the bottom
carriage on which it pivots to traverse the piece.
The handwheels and mechanism for both elevating and traversing,
are mounted on the top carriage. The tipping parts are carried on the
trunnions of the top carriage.
Belleville Springs carry the weight of the gun when traversing, but
on firing the springs compress and the firing stresses are taken on
the bearing surfaces between the top and bottom carriages.
The bottom carriage is a large steel casting suspended from the
axle (in traveling position) by a heavy multiple leaf spring. It supports
the top carriage, houses the axle and provides hinge connections for
the trail. When firing the axle is unshackled from the left spring and
the bottom carriage bears directly on the axle.
Traversing is accomplished by turning the top carriage which
pivots on the bottom carriage. This is done by means of a rack and
train of gears which are operated by the handwheel on the left side
of the carriage. A traverse of 60 degrees, 30 degrees right and 30
degrees left, is possible.
Elevating is accomplished by a rack on the cradle operated
through gears by the handwheel located on the gear box at the left of
the top carriage. Elevations from 0 degrees to 35 degrees can be
obtained.
The trail is of the split type and consists of steel plate beams of
box section. Locks are pivoted at the forward end of the trails for
securing them in the open position. When closed together they are
clamped and attached to the limber. A traveling lock is provided on
the trail for retaining the gun in retracted position.
Two types of spade are pivoted, one for soft and one for hard
ground. When traveling the spades are always removed from the
trail.
The wheels are of cast steel, each wheel having two solid rubber
tires.
Wheel shoes for traveling over soft ground are provided, which
assemble over the rubber tires. They consist of twelve plates for
each wheel which give a broad bearing surface under the wheel. The
wheels are equipped with band brakes.
The sighting equipment is exactly the same as that described with
the 155-mm Schneider howitzer.
The ammunition used is of the separate loading type. Either
shrapnel or high explosive steel shell is used, as well as gas shells
and other special ammunition. The projectile weighs 95 lbs. The
propelling charge of smokeless powder is a sectionalized charge
made up of two sections; a base charge and one smaller increment.
The weight of the charge is 25 lbs.
The fuzes commonly used are the 31 sec. combination fuse for
use with shrapnel and combining time and percussion elements: the
point detonating fuse Mark IV used with the steel high explosive shell
and the mark III point detonating fuze used with gas shell.
155-MM. HOWITZER CARRIAGE, MODEL OF 1918 (SCHNEIDER). TRAVELING

POSITION.
155-MM. HOWITZER CARRIAGE, MODEL OF 1918 (SCHNEIDER). RIGHT SIDE
VIEW.
CHAPTER XI
THE 155 HOWITZER, MODEL 1918
THE HOWITZER.
Weights and Dimensions.
Material Alloy steel.
Weight (including breech mechanism) 1,248 kg.—2,745 lbs.
Caliber 155-mm.—6.1 inch.
Total length 2,332-mm.—91.8 inch.
Length of bore 2,177-mm.—85.7 inch.
Length of rifled portion of bore 737-mm.—68.4 inch.
Rifling
Number of grooves 48.
Width of grooves 7.145-mm.—0.2813 inch.
Depth of grooves 1-mm.—0.03937 inch.
Width of lands 3-mm.—0.1181 inch.
Twist, right hand, uniform, one turn
in 25.586 cal.
Powder chamber:
Diameter 158.75-mm.—6.25 inch.
Length 339.85-mm.—13.38 inch.
6,965.75 cu. in.—425 cu.
Volume
in.
Obturation Pad.
Firing mechanism Percussion.
General Description.
The 155-mm howitzer, Model of 1918 (Schneider) is of the hydro-
pneumatic long recoil type, which may be used for direct fire, but
was specially designed for siege fire. On account of its high
trajectory it is able to direct shells on targets inaccessible to standard
6-inch howitzers of limited elevation.
This howitzer has given satisfactory results in service and has
proven to be more superior than guns of similar caliber. It has a
muzzle velocity of 1,480 foot-seconds and attains a maximum range
of 12,600 yards, the projectile weighing about 95 pounds.
A maximum rate of fire of four or five rounds per minute may be
attained, but heating as well as difficulty of preparing and
transporting the ammunition by the gun crew renders such rate
impossible for more than a few minutes. However, the normal rate of
fire is two per minute and may be loaded at any degree of elevation.
The howitzer is mounted on a sleigh and rigidly secured by means
of a breech key and the holding down band. The sleigh contains the
recoil and recuperator mechanisms which permits long recoil and
insures stability at low elevations. When the gun is fired the sleigh
recoils on bronze slides on the cradle, which is a U-shaped steel
plate and rests in the trunnion bearings of the trail.
This howitzer may be elevated from 0 degrees to 42 degrees by
means of the elevating mechanism. The traverse is 52.2 mils right
and left, the carriage sliding on the axle and pivoting on the spade,
which prevents the carriage recoiling when the gun is fired. The
customary shield protects the gunners from flying shrapnel and
fragments.
155 M.M. HOWITZER
MODEL OF 1918
(SCHNEIDER)
In traveling position the howitzer is retracted and locked to the

cradle, the cradle locked to the trail, the spade revolved and secured
to the bottom of the trail. The lower end of trail rests on the carriage
limber, which is used to carry the proportionate share of the load of
the howitzer and carriage in traveling position. The limber is
equipped with a connecting pole for motor traction. The carriage and
limber wheels are rubber tired and considered able to negotiate any
roads suitable for field artillery.
Howitzer Description.
The howitzer, consists of a tube and jacket. The jacket is shrunk
over, approximately, the rear half of the tube and screwed to it by a
short thread near the rear end of the tube. The rear end of the tube
is prepared for the reception of the breechblock. On the right of the
jacket at its rear are two lugs which receive the hinge pintle of the
operation lever. A flat seat with two transverse slots is machined on
the top of the jacket at the rear end for receiving the counterweight.
The counterweight is securely fastened to the jacket by six screws,
and two lugs which engage the slots in the jacket. The bridle is fitted
to the underside of the jacket near the rear end and held in place by
four screws. The breech key passes through the bridle and holds the
howitzer in its seat on the sleigh. On the underside of the jacket just
forward of the bridle seat are seven square threads which engage
corresponding threads on the sleigh. A holding-down band which
encircles the jacket at its forward end also secures the howitzer to
the sleigh.
On the top surface of the counterweight are two nickel silver
leveling plates.
Vertical and horizontal axis lines are cut on the breech and muzzle
faces. A line showing the actual center of gravity with the breech
mechanism in place is cut on the upper side of the jacket marked C.
of G. The name and model of the howitzer are stamped on the left
side of the jacket just below the counterweight. The name of the
manufacturer, year of manufacture, serial number of the howitzer
and the weight of the howitzer, including the breech mechanism, are
stamped on the muzzle face.
155 M.M. HOWITZER MODEL OF 1918
(SCHNEIDER)
BREECH MECHANISM ASSEMBLY
155 M.M. HOWITZER MODEL OF 1918
(SCHNEIDER)
BREECH MECHANISM ASSEMBLY
The breech mechanism is of the plastic obturator, interrupted

screw type having four plain sectors and four threaded sectors. The
block can be loaded with one-eighth of a turn. Two of the plain
sectors are relieved to permit the breechblock to enter the breech
recess. The breechblock is screwed into the block carrier and rides
on the hub of the latter.
The block carrier is hinged to the right side of the jacket by means
of the pintle hinge of the operating lever.
The pintle hinge is fitted at the lower end with an operating lever
collar and detent. The dead weight of the breech is carried by the
block carrier hinge plate.
The block is rotated by means of a rack which engages teeth cut
in the upper surface of the block at its rear end. The rack is actuated
by a lug on the under side of the operating lever which engages a
slot in the rack. The rack is located in the inside face of the block
carrier. When the breech is tightly closed this lock bears against the
breech face of the howitzer and is forced back against the rack lock
spring leaving the rack free to move. As the breech starts to open
the rack lock is forced up by its spring and locks the rack, preventing
further rotary motion of the breechblock.
The operating lever is provided with an operating lever handle
which is kept in its raised position by the operating lever handle
spring. When the breech is closed and locked the lower portion of
the operating lever handle engages the block carrier lever catch.
When the breech is fully open the operating lever latch which
extends through the operating lever, engages the operating lever
catch and holds the breech in that position.
155-MM HOWITZER MODEL OF 1918

(SCHNEIDER)
FIRING MECHANISM
The obturator spindle is of the mushroom head type. It passes
through the center of the breechblock and is screwed into the front
end of the firing mechanism housing, which fits into the hub of the
block carrier. The obturator spindle is prevented from turning by the
firing mechanism housing key spring. A vent for the passage of the
primer flame is drilled through the center of the obturator spindle.
The obturator spindle bushing is screwed into the front end of the
obturator spindle and the obturator spindle plug into the rear end—
the latter forming a chamber for the primer.
The obturator spindle spring bears against the firing mechanism
housing and the breechblock, keeping the head of the obturator
spindle tightly against the gas check pad. The gas check pad or
plastic obturator is composed of a mixture of one part asbestos and
three parts nonfluid oil, contained in a canvas covering. The pad is
protected by the front, rear and small split rings. A steel filling-in disk
is placed between the gas check pad and the breechblock.
The firing mechanism housing is provided with a firing
mechanism safety plunger which is forced by the firing mechanism
safety plunger spring against the inside circumference of a circular
boss on the face of the breechblock. When the breechblock is
rotated to its locked position, the plunger slips into a notch in the
boss and permits the entrance of the firing mechanism block. When
the breech is unlocked the lower end of the firing mechanism safety
plunger extends into the firing mechanism housing and obstructs the
entrance of the firing mechanism block. This safety device makes it
impossible to unlock the breech while the firing mechanism block is
in place or to insert the firing mechanism block while the breech is
unlocked.
The firing mechanism block is provided with a handle, and screws
into the firing mechanism housing. The primer seat plug is screwed
into the front end of the firing mechanism block and is provided with
a notch into which the primer is inserted. The firing pin guide is
located just back of the primer seat plug and forms a guide for the
firing pin as well as a bearing for the firing pin spring. The firing pin
housing is screwed into the rear end of the firing mechanism block
and held in place by the firing pin housing holding screw. The firing
pin passes through the firing pin housing and the firing pin guide and
is forced to the rear by the firing pin spring. The firing mechanism
block is provided with a flange at its outer edge in which a slot is cut
to receive a projection on the front of the percussion hammer. This
prevents the hammer from striking the firing pin when the firing
mechanism block is not screwed home. The firing mechanism block
latch is located on the outer face of the block carrier and prevents
the firing mechanism block from being unscrewed accidentally.
The firing mechanism block is interchangeable with the firing
mechanism blocks used on the following cannon:
155-mm. gun, model of 1918 (Filloux).
8-inch howitzer, model of 1917 (Vickers Mark VI and VIII½).
240-mm. howitzer, model of 1918 (Schneider).
The percussion hammer is carried by the percussion hammer
operating shaft which is journaled in the percussion hammer
operating shaft housing. This housing is secured to the breech face
by means of a dove tail projection which fits into a slot, cut across
the entire breech face just below the breech opening. The
percussion hammer operating shaft is fitted with a lever at its right
end which receives the blow of the firing mechanism striker when the
lanyard is pulled. The percussion hammer shaft plunger and spring
are located in the percussion hammer operating shaft housing to the
left of the hammer. When the breech is open the plunger is forced up
by its spring, thereby causing a projection on the plunger to engage
in a recess in the operating shaft, locking the shaft so that the
hammer cannot be operated. When the breech is closed the
underside of the block carrier strikes on the beveled head of the
shaft plunger, forcing it down and thus unlocking the mechanism.
The percussion hammer lock bolt is screwed to the face of the
carrier to the left of the percussion hammer. Its function is to lock the
hammer in the traveling position when the howitzer is not in use.
Operation of the Breech Mechanism. When the breech is closed
and locked, the threaded portions of the breechblock mesh with the
threads in the breech recess. The operating lever is held by the

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Chapter 7 ♦ Business Marketing 1

1 Describe business marketing

2 Describe the role of the Internet in business marketing

3 Discuss the role of relationship marketing and strategic alliances in business

4 Identify the four major categories of business market customers

5 Explain the North American Industry Classification System

6 Explain the major differences between business and consumer markets

7 Describe the seven types of business goods and services

2 Chapter 7 ♦ Business Marketing

8 Discuss the unique aspects of business buying behavior

Chapter 7 ♦ Business Marketing 3

Learning Outcomes and Topics PowerPoint Slides

4 Chapter 7 ♦ Business Marketing

Take-home-assignment: Have students perform a situational (SWOT) analysis on Flight 001’s

Solutions for Viewing Activities:

Chapter 7 ♦ Business Marketing 5

LESSON PLAN FOR GROUP WORK

Class Activity – Marketing to Distribution Channels

6 Chapter 7 ♦ Business Marketing

3. How might derived demand affect the manufacturing of an automobile?

Students should address some of these points:

Students’ answers will vary.

Students’ answers will vary depending on the product selected.

Students’ answers will vary widely by group.

Students’ answers should address some of the following points:

8 Chapter 7 ♦ Business Marketing

Chapter 7 ♦ Business Marketing 9

Gregory B. Turner, College of Charleston

STUDENT ETHICS VERSUS PRACTITIONER ETHICS

A = 1995 - 1997 NAPM National Meetings (Turner et al. 1998)

10 Chapter 7 ♦ Business Marketing

VIDEO ASSIGNMENT: Flight 001

a. Business Marketing c. Consumer Marketing

a. Reseller relationship c. Keiretsu

Chapter 7 ♦ Business Marketing 11

b. Unlike consumers, businesses already d. Negotiating on price is a common practice in

CASE ASSIGNMENT: Pantone

This Year’s Color: Honeysuckle

Chapter 7 ♦ Business Marketing 13

3. What type of business product is the Pantone Management System?

1. Pantone’s color-management system is an industrial classification system.

ANS: T PTS: 1 OBJ: LO-5 TOP: AACSB Reflective Thinking

14 Chapter 7 ♦ Business Marketing

PTS: 1 OBJ: LO-6 TOP: AACSB Reflective Thinking

ANS: T PTS: 1 OBJ: LO-6 TOP: AACSB Reflective Thinking

PTS: 1 OBJ: LO-3 TOP: AACSB Reflective Thinking

PTS: 1 OBJ: LO-7 TOP: AACSB Reflective Thinking

PTS: 1 OBJ: LO-6 TOP: AACSB Reflective Thinking

PTS: 1 OBJ: LO-1 TOP: AACSB Reflective Thinking

PTS: 1 OBJ: LO-4 TOP: AACSB Reflective Thinking

PTS: 1 OBJ: LO-7 TOP: AACSB Reflective Thinking

PTS: 1 OBJ: LO-7 TOP: AACSB Reflective Thinking

Chapter 7 ♦ Business Marketing 17

DISCUSSION BOARD TOPICS TO ENCOURAGE PARTICIPATION

Each question has three parts:

18 Chapter 7 ♦ Business Marketing

A DECISION-MAKING EXERCISE FOR BUSINESS MARKETING

Chapter 7 ♦ Business Marketing 19

N ____ pts. D ____ pts. J ____ pts.

C ____ pts. W ____ pts. T ____ pts.

A ____ pts. G ____ pts. L ____ pts.

Feature Package Key:

N pts. D pts. J pts.

C pts. W pts. T pts.

A pts. G pts. L pts.

L pts. T pts. P pts.

F pts. M pts. S pts.

W pts. G pts. B pts.

G pts. T pts. P pts.

R pts. J pts. F pts.

B pts. M pts. W pts.