Marketing The Core Canadian 4Th Edition Kerin Solutions Manual Full Chapter PDF

5 B2B MARKETING
Marketing The Core Canadian 4th

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

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

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

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

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

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

5-2
KEY TERMS AND CONCEPTS
business marketing North American Industry Classification System (NAICS)
buy classes organizational buyers
buying centre organizational buying behaviour
derived demand reverse auction
e-marketplaces supply partnership
fluctuating demand traditional auction
inelastic demand
MARKETING TIP
For this chapter we look to Sharon Metz, vice president of vertical marketing at Rovi
Corporation for her MARKETING TIP. You may wish to use this at the start of a class, after a
break, or to summarize the material at the end of a session. The quote for this chapter is as
follows:
“In B2B marketing, there may be numerous departments and people involved. When you are
working with so many people, and trying to ensure all needs (especially, the consumers’ needs)
are met, it can take years to get the solution just right.”

5-3
LECTURE NOTES
CHAPTER 5 OPENING VIGNETTE – ROVI CORPORATION
Rovi Corporation is the focus of the opening vignette. It created a recent partnership with
Canadian company, Cogeco Cable Inc. to offer a unique entertainment solutions for its
subscribers. The vignette is summarized as follows:
Rovi Corporation and Its Partnerships: As consumers, we sometimes take for granted the
work that needs to be done in the background to offer end-user services. We are familiar with
companies such as Apple and Best Buy and amazed by their offerings. What we may not realize
is that these companies turn to others for the ability to enhance their products and services for
consumers. Rovi Music provides the back-end support to online stores and social networking
sites. This service, which adds artist biographies and reviews to sites, is offered by Rovi
Corporation to companies such as Apple and Best Buy, enhancing the end-user experience.
Business-to-business marketing is conducted with multi-billion dollar companies, but also with
small to medium-size companies.
B2B Partnership: Technology has enabled businesses to develop efficiencies. These

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

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

5-4
• Senior executives were quoted in the product launch news release. These executives led
teams that were instrumental in the final partnership. What other employees or departments
do you think would be involved in a partnership decision?
Answer: This question requires students to make assumptions regarding the roles that individuals
played in the buying centre at Cogeco Cable. Ron Perotta, vice president of strategic planning at
Cogeco Cable would either be a decider or influencer. Encourage students to review the buying
centre and determine who would play the roles of user, gatekeeper, and buyer.
• Considering the makeup of the buying centre, what roles would the executives in the vignette
play in the purchase decision?
Answer: The individuals in the vignette would represent either influencers and potentially
deciders of their respective companies. Since the magnitude of this decision is large, there would
most likely be a collaborative team approach to make the final decision.
I. THE NATURE AND SIZE OF ORGANIZATIONAL MARKETS
Business marketing is the marketing of products to companies, governments, or not-for-profit

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

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

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

5-5
II. MEASURING INDUSTRIAL, RESELLER, GOVERNMENT AND NON-
PROFIT MARKETS
• The North American Industry Classification System (NAICS) provides common industry
definitions for Canada, Mexico, and the United States, which make easier the measurement
of economic activity in the three member countries of the North American Free Trade
Agreement (NAFTA).
• The NAICS is consistent with the International Standard Industrial Classification of All
Economic Activity, published by the United Nations, to help measure global economic
activity.
• The NAICS groups economic activity to permit studies of market share, demand for goods
and services, competition from imports in domestic markets, and similar studies.
• The NAICS designates industries with a six-digit numerical code.
Ask Yourself
1. Organizational buyers are divided into three different markets. What are they?
Answer: Industrial firms, resellers, and government units.
2. What is the North American Industry Classification System (NAICS)?

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

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

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

5-6
B. Inelastic Demand: Inelastic demand means that regardless of whether there is an
increase or decrease in the price of a B2B product, customers will buy the same
quantity.
C. Fluctuating Demand: Fluctuating demand means that demand for business products
and services fluctuate more than demand for consumer products and services.
D. Size of the Order or Purchase: The size of the purchase in organizational buying is
much larger than that in consumer buying. As a result, most organizations place
purchasing policies or procedures constraints on their buyers, who must often get
competitive bids from at least three prospective suppliers when the order is above a
certain amount.
The size of the order also is important in determining who participates in the
purchase decision and the length of time required to reach a purchase agreement.
E. Number of Potential Buyers: Firms selling consumer products and services try to
reach thousands or millions of individuals or households.
Firms selling to organizations are often restricted to far fewer buyers.
F. Organizational Buying Objectives: For business firms, the buying objective is

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

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

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

5-7
Organizational risk is typically formalized and dealt with in the buying process and
then there is personal risk, which is unstated but remains a huge influencing factor in
organizational buying. For example, a buyer who chooses to deal with the same
trusted supplier for many years is minimizing fear by eliminating organizational risk.
Personal risk is explained by the buyer who chooses not to work with a new supplier
even if that potential supplier’s products offer better value.
I. Buyer-Seller Relationships and Supply Partnerships: Organizational buying is

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

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

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

Answer: a buyer and its supplier adopt mutually beneficial objectives, policies, and
procedures for the purpose of lowering the cost and/or increasing the value of products and
services delivered to the ultimate consumer
V. THE ORGANIZATIONAL BUYING PROCESS AND BUYING CENTRE
Organizational buying behaviour is the decision-making process that organizations use to

establish the need for products and services and identify, evaluate, and choose among alternative
brands and suppliers:
A. Stages in the Organizational Buying Process
The same five stages consumers use in the buying decision process applies to
organizational purchases: (1) problem recognition, (2) information search,
(3) evaluation of alternatives, (4) purchase decision, (5) post-purchase behaviour.
B. The Buying Centre: A Cross-Functional Group

5-8
• A buying centre consists of people in an organization that participates in the
buying process and share common goals, risks, and knowledge important to
purchase decisions.
• In large multi-store chain resellers, the buying centre is very formal and is called
a buying committee.
• A firm marketing to industrial firms and governmental units must understand the
structure, technical, and business functions represented, and the behaviour of the
buying centre. Need to ask the following questions:
a. Which individuals are in the buying centre for the product or service?
b. What is the relative influence of each member of the group?
c. What are the buying criteria of each member?
d. How does each member of the group perceive the potential supplier, its
products, its services and its salespeople?
1. People in the Buying Centre: The composition of the buying centre depends on
the item being bought. A buyer or purchasing manager is almost always a
member and individuals from other functional areas are included depending on
the purchase.
2. Roles in the Buying Centre: Researchers have identified five specific roles that
one or more individuals can play in a buying centre:
a. Users are people in the organization who actually use the product or service.
b. Influencers affect the buying decision, usually by helping define the
specifications for what is bought.
c. Buyers have formal authority and responsibility to select the supplier and
negotiate the terms of the contract.
d. Deciders have the formal or informal power to select or approve the supplier
that receives the contract.
e. Gatekeepers control the flow of information in the buying centre.
3. Buying Situations and the Buying Centre: The number of people in the buying
centre largely depends on the specific buying situation. There are three types of
buying situations, called buy classes, that vary from the routine reorder to the
completely new purchase:
a. Straight rebuy, where the buyer reorders an existing product or service from
the list of acceptable suppliers.
b. Modified rebuy, where users, influencers, or deciders in the buying centre
want to change the product specifications, price, delivery schedule, or
supplier, although the item purchased is largely the same.
c. New buy, where the firm is a first-time buyer of the product or service. This
involves greater risks, so the buying centre is enlarged to include all who
have a stake in the new buy.

5-9
Ask Yourself
1. What one department is almost always represented by a person in the buying centre?
Answer: Purchasing department.
2. What are the three types of buying situations, or buy classes?

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

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

5-10
Online buying in organizational markets is prominent for three major reasons:
• Organizational buyers depend heavily on timely supplier information that

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

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

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

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

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

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

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

5-11
would-be suppliers become involved, there is a downward pressure on bid prices
for the buyer’s business. The auction ends when a single bidder remains and wins
the business with its lowest price.
Ask Yourself
1. What are e-marketplaces?

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

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

5-12
QUESTIONS AND ANSWERS TO END OF CHAPTER MATERIAL
Hands-on…apply your knowledge
B2B Marketing Assignment
In the opening vignette, Sharon Metz of Rovi Corporation reflects on some of the challenges of
marketing to medium-to-large organization. In particular, for larger purchases and key
partnerships, decisions need to be made by a committee as opposed to an individual. Review the
opening vignette and identify other differences in the Organizational Buying Purchase Decision
Process that need to be considered in B2B Marketing.
Note: These assignments give students the opportunity to apply chapter material to a real-life
example, using the chapter’s opening vignette as a foundation. There are no specific answers, but
students should consider that B2B purchases are normally larger in magnitude and are driven by
the objectives of the organization rather than the individual.
Chapter Vignette…reminder
Strategic partnerships are critical to the success of many businesses. This chapter’s opening
vignette describes how B2B marketing helped build a partnership between Canadian company
Cogeco Cable and U.S. company Rovi Corporation.
At the end of the vignette, consider the question about the numerous individuals involved in a
decision like this partnership. Relate this to the concept of the buying centre and the different roles
of individuals outlined in this chapter.
students should consider all the different roles in a buying centre and try to relate to this situation.
Video Clip…questions
To celebrate its 50th anniversary, Tim Hortons “updated” its first store to a 1964 look. There are
number of other businesses Tim Hortons works with to make this opportunity a reality. Watch the
CONNECT video and answer the following questions:
- Name some of the strategic partners that Tim Hortons worked with to make its anniversary event
special?
- What process do you think Tim Hortons went through to select the different companies needed
to produce the components of the 1964 store?
- How do you think the 1964 clothing was acquired?
students should be able to identify Maple Leaf Sports and Entertainment and suggest potential
other partners in this endeavor. Lead a discussion of how companies go through the process of
choosing potential vendors and strategic partners.
Infographic…data analysis

5-13
Consider the B2B marketing tips regarding social media and doing business in foreign countries
when reviewing the Infographic entitled “One Card Says So Much.” Reviewing recent articles and
reflecting on your knowledge of Canada and other countries, add another fact to this Infographic.
students should brainstorm on ways to make themselves and their business cards stand out in the
working world.

5-14
QUESTIONS AND ANSWERS TO ON-LINE ACTIVITIES
APPLYING MARKETING CONCEPTS AND PERSPECTIVES
1. Describe the major differences among industrial firms, resellers, and government units
in Canada.
Answer: Industrial firms account for the majority of all organizational buyers. These firms in
some way reprocess a product or service they buy before reselling it. Resellers represent the
second largest group of organizational buyers. These wholesalers and retailers buy physical
products and resell them again without any reprocessing. Government units, the smallest of
the three groups, are federal, state, and local agencies that buy goods and services for the
constituents they serve.
2. Explain how the North American Industry Classification System (NAICS) might be
helpful in understanding industrial, reseller, and government markets, and discuss the
limitations inherent in this system.
Answer: The NAICS groups economic activity to permit studies of market share, demand for
goods and services, import competition in domestic markets, and similar questions. NAICS
contains broad, two-digit categories that signify a sector of the economy. The third digit
designates a subsector while the fourth digit represents an industry group. The fifth digit
designates a specific industry and is the most detailed level at which data are available for the
three countries. The sixth digit is for country-level industries.
Such breakdowns allow one to identify firms within categories and to monitor growth or
decline with industries. The NAICS has two important limitations: (1) large firms engaging
in different activities or providing different products or services are given only one NAICS
code and (2) five-digit national industry codes are not available for all three countries.
3. List and discuss the key characteristics of organizational buying that make it difference
from consumer buying.
Answer: Although the buying processes organizations go through when making a purchase
also apply to consumer buying, there are some key differences. Organizations buy products
and services to help them achieve organizational objectives, namely, to increase profits
through reducing costs or increasing revenues. The buying criteria for organizational buyers
generally focus on three critical factors: (1) ability to meet quality standards, (2) ability to
deliver the product on time, and (3) performance on previous contracts. Furthermore, there
are fewer organizational buyers than consumer buyers, and the size of organizational
purchases tends to be much larger. Organizations often have formal positions and specific
purchasing policies or procedures. Finally, several people typically get involved in an
organizational purchase and the post-purchase evaluation is often more formalized.

5-15
Another random document with
no related content on Scribd:
supply or medical departments is known to have been court
martialed or even censured. Yet I do not hesitate to say that
the summary dismissal from the service, in the beginning, of
two or three quartermasters and commissaries, including the
gentlemen who were the cause of sending thousands of cars to
Tampa without invoices or anything on the outside of them to
indicate their contents, would have saved the lives of
hundreds of our soldiers. Under these circumstances it is most
lamentable to find that the awful experiences which have made
so many homes desolate, and so many of our best young men
invalids, have borne no practical fruit. Both the army
officials and Congress are like the Bourbons, they 'have
learned nothing and forgotten nothing.'"
G. W. Wingate,
What the Beef Scandal Teaches
(Independent, April 6, 1899).
UNITED STATES OF AMERICA: A. D. 1898-1899.

Joint High Commission for settlement of
pending questions with Canada.
See (in this volume)

CANADA: A. D. 1898-1899.
UNITED STATES OF AMERICA: A. D. 1898-1899 (October-October).

Military government of Porto Rico.

PORTO RICO: A. D. 1898-1899 (OCTOBER-OCTOBER).
UNITED STATES OF AMERICA: A. D. 1898-1899 (December-January).

Instructions by the President to General Otis,
Military Governor of the Philippines.
Their proclamation by the latter in a modified form.
The effect.
PHILIPPINE ISLANDS: A. D. 1898-1899 (DECEMBER-JANUARY).
UNITED STATES OF AMERICA: A. D. 1899 (January).

The case of Commissary-General Eagan.
A court-martial, sitting in January, 1899, for the trial of

Commissary-General Eagan, on the charge that he had been
guilty of "conduct unbecoming an officer and a gentleman, and
conduct to the prejudice of good order and military
discipline," in the abusive language that he had applied to
the commanding general of the army, in the course of his
testimony before the Commission to investigate the conduct of
the War Department found the accused officer guilty, and
imposed the inevitable penalty of dismissal from the service,
but recommended executive clemency in his case.
See:
The sentence was commuted by the President to suspension from

rank and duty for six years. This involved no loss of pay,
and, at the end of six years, General Eagan will go on the
retired list.
UNITED STATES OF AMERICA: A. D. 1899 (January).

Appointment of the First Commission to the Philippines.
The President's instructions to the Commissioners.

PHILIPPINE ISLANDS: A. D. 1899 (JANUARY).
UNITED STATES OF AMERICA: A. D. 1899 (January-February).

The Treaty of Peace in the Senate.
Its ratification.
The Treaty of Peace with Spain, signed at Paris December 10,

1898, was sent by the President to the Senate on the 4th of
January, 1899, and held under debate in that body until the
6th of February following. The opposition to it was very
strong, being especially directed against the acquisition of
the Philippine Islands, involving, as that acquisition did,
the embarkation of the Republic in a colonial or imperial
policy, of conquest and of government without the consent of
the governed, which seemed to a great number of thoughtful
people, not only incongruous with its constitution, but a
dangerous violation of the principles on which its republican
polity is founded. But even those most opposed to the
acquisition of the Philippine Islands were reluctant to reopen
the state of war by rejection of the treaty, and directed
their efforts mainly towards the securing of a definite
declaration from Congress of the intention of the government
of the United States to establish independence in the islands.
"Even before the signing of the treaty at Paris, on the 6th of

December, when the demand of the American commissioners for
cession of the Philippines was known, the opposition expressed
itself in the following resolution, introduced by Senator
Vest, of Missouri:
"Resolved by the Senate and House of Representatives of the

United States of America in Congress assembled. That under the
Constitution of the United States no power is given to the
Federal Government to acquire territory to be held and
governed permanently as colonies. The colonial system of
European nations can not be established under our present
Constitution, but all territory acquired by the Government,
except such small amount as may be necessary for coaling
stations, correction of boundaries, and similar governmental
purposes, must be acquired and governed with the purpose of
ultimately organizing such territory into States suitable for
admission into the Union."
This resolution became the ground of much senatorial debate

during the following weeks. The arguments opposed to it, and
supporting the policy of the administration, are represented
fairly by the following passage from a speech made by Senator
Platt, of Connecticut, on December 16:
{635}
"I propose to maintain that the United States is a nation;

that as a nation it possesses every sovereign power not
reserved in its Constitution to the States or the people; that
the right to acquire territory was not reserved, and is
therefore an inherent sovereign right; that is a right upon
which there is no limitation, and with regard to which there
is no qualification; that in certain instances the right may
be inferred from specific clauses in the Constitution, but
that it exists independent of these clauses; that in the right
to acquire territory is found the right to govern it; and as
the right to acquire is a sovereign and inherent right, the
right to govern is a sovereign right not limited in the
Constitution, and that these propositions are in accordance
with the views of the framers of the Constitution, the
decisions of the Supreme Court, and the legislation of
Congress.
"Mr. President, this is a nation. It has been called by

various names. It has been called a Confederated Republic, a
Federal Union, the Union of States, a league of States, a rope
of sand; but during all the time these names have been applied
to it it has been a nation. It was so understood by the
framers of the Constitution. It was so decided by the great
judges of the Supreme Court in the early days of the
Constitution. It is too late to deny it, and, Mr. President,
it is also too late to admit it, and not have faith in it.
Intellectual assent to the doctrines of Christianity does not
make a man a Christian. It is saving faith that makes the
Christian. And a mere intellectual assent to the doctrine that
we are a nation does not make the true patriot. It is high
time that we come to believe without qualification, to believe
in our hearts, in the exercise of patriotic faith, that the
United States is a nation. When we come to believe that, Mr.
President, many of the doubts and uncertainties which have
troubled men will disappear.
"It is time to be heroic in our faith and to assert all the

power that belongs to the nation as a nation. … The attempt to
shear the United States of a portion of its sovereign power is
an attempt which may well be thoroughly and fully discussed.
In the right to acquire territory is found the right to
govern, and as the right to acquire is sovereign and
unlimited, the right to govern is a sovereign right, and I
maintain is not limited in the Constitution. If I am right in
holding that the power to acquire is the sovereign power
without limitation, I think it must be admitted that the right
to govern is also sovereign and unlimited. But if it is sought
to rest the right to govern upon that clause of the
Constitution which gives Congress the power to dispose of or
make 'all needful rules and regulations' for the government of
the territory of the United States, I submit there is no
limitation there. There is no qualification there."
On the 4th of January the Senate received the treaty from the
President. On the 7th, Senator Mason, of Illinois, introduced
the following resolution, and, subsequently, spoke with
earnestness in its support:
"Whereas all just powers of government are derived from the

consent of the governed: Therefore, be it
"Resolved by the Senate of the United States, That the

Government of the United States of America will not attempt to
govern the people of any other country in the world without
the consent of the people themselves, or subject them by force
to our dominion against their will."
On the 9th an impressive speech was made by Senator Hoar, of
Massachusetts, mainly in reply to Senator Platt. He spoke
partly as follows:
"Mr. President, I am quite sure that no man who will hear or

who will read what I say today will doubt that nothing could
induce me to say it but a commanding sense of public duty. I
think I dislike more than most men to differ from men with
whom I have so long and so constantly agreed. I dislike to
differ from the President, whose election I hailed with such
personal satisfaction and such exulting anticipations for the
Republic. I dislike to differ from so many of my party
associates in this Chamber, with whom I have for so many years
trod the same path and sought the same goal. I am one of those
men who believe that little that is great or good or permanent
for a free people can be accomplished without the
instrumentality of party. And I have believed religiously, and
from my soul, for half a century, in the great doctrines and
principles of the Republican party. I stood in a humble
capacity by its cradle. I do not mean, if I can help it, to
follow its hearse. I am sure I render it a service; I am sure
I help to protect and to prolong the life of that great
organization, if I can say or can do anything to keep it from
forsaking the great principles and doctrines in which alone it
must live or bear no life. I must, in this great crisis,
discharge the trust my beloved Commonwealth has committed to
me according to my sense of duty as I see it. However
unpleasant may be that duty, as Martin Luther said, 'God help
me. I can do no otherwise.'
"I am to speak for my country, for its whole past and for its
whole future. I am to speak to a people whose fate is bound up
in the preservation of our great doctrine of constitutional
liberty. I am to speak for the dead soldier who gave his life
for liberty that his death might set a seal upon his country's
historic glory. I am to speak for the Republican party, all of
whose great traditions are at stake, and all of whose great
achievements are in peril. …
"The question with which we now have to deal is whether

Congress may conquer and may govern, without their consent and
against their will, a foreign nation, a separate, distinct,
and numerous people, a territory not hereafter to be populated
by Americans, to be formed into American States and to take its
part in fulfilling and executing the purposes for which the
Constitution was framed, whether it may conquer, control, and
govern this people, not for the general welfare, common
defense, more perfect union, more blessed liberty of the
people of the United States, but for some real or fancied
benefit to be conferred against their desire upon the people
so governed or in discharge of some fancied obligation to
them, and not to the people of the United States.
"Now, Mr. President, the question is whether the men who

framed the Constitution, or the people who adopted it, meant
to confer that power among the limited and restrained powers
of the sovereign nation that they were creating. Upon that
question I take issue with my honorable friend from
Connecticut.
{636}
I declare not only that this is not among the express powers
conferred upon the sovereignty they created, that it is not
among the powers necessarily or reasonably or conveniently
implied for the sake of carrying into effect the purposes of
that instrument, but that it is a power which it can be
demonstrated by the whole contemporaneous history and by our
whole history since until within six months they did not mean
should exist—a power that our fathers and their descendants
have ever loathed and abhorred—and that they believed that no
sovereign on earth could rightfully exercise it, and that no
people on earth could rightfully confer it. They not only did
not mean to confer it, but they would have cut off their right
hands, everyone of them, sooner than set them to an instrument
which should confer it. …
"The great contemporaneous exposition of the Constitution is
to be found in the Declaration of Independence. Over every
clause, syllable, and letter of the Constitution the
Declaration of Independence pours its blazing torch-light. The
same men framed it. The same States confirmed it. The same
people pledged their lives, their fortunes, and their sacred
honor to support it. The great characters in the
Constitutional Convention were the great characters of the
Continental Congress. There are undoubtedly, among its burning
and shining truths, one or two which the convention that
adopted it were not prepared themselves at once to put into
practice. But they placed them before their countrymen as an
ideal moral law to which the liberty of the people was to
aspire and to ascend as soon as the nature of existing
conditions would admit. Doubtless slavery was inconsistent
with it, as Jefferson, its great author, has in more than one
place left on record. But at last in the strife of a great
civil war the truth of the Declaration prevailed and the
falsehood of slavery went down, and at last the Constitution
of the United States conformed to the Declaration and it has
become the law of the land, and its great doctrines of liberty
are written upon the American flag wherever the American flag
floats. Who shall haul them down?"
Two days later (January 11) the following resolutions were

introduced by Senator Bacon, of Georgia:

United States of America in Congress assembled,
First, That the Government and people of the United States

have not waged the recent war with Spain for conquest and for
the acquisition of foreign territory, but solely for the
purposes set forth in the resolution of Congress making the
declaration of said war, the acquisition of such small tracts
of land or harbors as may be necessary for governmental
purposes being not deemed inconsistent with the same.
"Second. That in demanding and in receiving the cession of the

Philippine Islands it is not the purpose of the Government of
the United States to secure and maintain dominion over the
same as a part of the territory of the United States, or to
incorporate the inhabitants thereof as citizens of the United
States, or to hold said inhabitants as vassals or subjects of
this Government.
"Third. That whereas at the time of the declaration of war by

the United States against Spain, and prior thereto, the
inhabitants of the Philippine Islands were actively engaged in
a war with Spain to achieve their independence, and whereas
said purpose and the military operations thereunder have not
been abandoned, but are still being actively prosecuted
thereunder, therefore, in recognition of and in obedience to
the vital principle announced in the great declaration that
governments derive 'their just powers from the consent of the
governed,' the Government of the United States recognizes that
the people of the Philippine Islands of a right ought to be
free and independent; that, with this view and to give effect
to the same, the Government of the United States has required
the Government of Spain to relinquish its authority and
government in the Philippine Islands and to withdraw its land
and naval forces from the Philippine Islands and from the
waters thereof.
"Fourth. That the United States hereby disclaim any

disposition or intention to exercise sovereignty,
jurisdiction, or control over said islands, and assert their
determination when an independent government shall have been
duly erected therein entitled to recognition as such, to
transfer to said government, upon terms which shall be
reasonable and just, all rights secured under the cession by
Spain, and to thereupon leave the government and control of
the islands to their people."
On the 13th, Senator McLaurin, of South Carolina, returned to
the question of constitutional power in the government of the
United States to hold territory in a permanently subject
state, and spoke against the view maintained by Senator Platt,
of Connecticut: "To hold," he said, "that there is an inherent
power of sovereignty in the nation, outside of the
Constitution, to do something not authorized by that
instrument is to place this 'inherent sovereignty' above the
Constitution and thus destroy the very foundation upon which
constitutional government rests. Judge Gray in the
Chinese-exclusion case, said: 'The United States are a
sovereign and independent nation, and are invested by the
Constitution with the entire control of international
relations and with all the powers of government necessary to
maintain that control and make it effective.' While holding
that the United States are a sovereign and independent nation,
it will be seen that he also holds that the sovereignty of the
nation is vested by the Constitution; and if so, it can only
be exercised in the mode pointed out in the Constitution and
is controlled by the words of the grant of this sovereignty.
There was no nation of the United States until the adoption of
the Federal Constitution; hence before that time there could
be no sovereignty of the nation. What conferred this
sovereignty? Clearly the States, by and through the Federal
Constitution. If so, then there can be no inherent right of
sovereignty except that conferred by the Constitution.
"The Senator further contends that we are a sovereign nation,

and as such have the same inherent right to acquire territory
as England, France, Germany, and Mexico. I controvert that
proposition. The sovereignty of the nation of Great Britain
and the others is vested in the people, and has never been
delegated and limited as in our country. These Governments
enjoy sovereignty in its elementary form.
{637}
What the government wills it may do without considering the
act or its consequences in the light of an organic law of
binding obligation. Our Government is in a very different
position. The Federal Constitution is the embodiment of the
sovereignty of the United States as a nation, and this
sovereignty can only be exercised in accordance with the
powers contained in its provisions. Great Britain can do
anything as a nation in the way of the exercise of
governmental functions. There is nothing to prohibit or
restrict the fullest exercise of her sovereignty as a nation.
Hence there is no analogy, and the sovereignty of the United
States as a nation differs widely from that of Great Britain.
"It is further contended that a sovereign right can not be

limited and that all our Constitution can do is to prescribe
the manner in which it can be exercised. If, as already shown,
the sovereignty of the United States was conferred by the
States through the Federal Constitution, it is clear that, in
conferring the power and prescribing the manner of its
exercise, they did set a limit in the very terms of the
instrument itself. I deny, therefore, that the United States
as a nation has a sovereign, inherent right and control
outside of the grant of such power in the Constitution. This
is not an essential element of nationality so far as our
nation is concerned, although it may be in England or Russia,
where the nationality and sovereignty incident to it are not
created and limited by a written constitution."
On the 14th of January, Mr. Hoar submitted the following:
"Resolved, That the people of the Philippine islands of right

ought to be free and independent; that they are absolved from
all allegiance to the Spanish Crown, and that all political
connection between them and Spain is and ought to be totally
dissolved, and that they have, therefore, full power to do all
acts and things which independent states may of right do; that
it is their right to institute a new government for
themselves, laying its foundation on such principles and
organizing its powers in such form as to them shall seem most
likely to effect their safety and happiness; and that with
these rights the people of the United States do not propose to
interfere."
On the 18th, Mr. Bacon amended his resolutions, given above,

by changing the phrase "an independent government" to "a
stable and independent government," and then spoke upon them
with force, saying, among other things: "The simple fact that
we went to war with Spain did not devolve upon us any
obligation with reference to the Philippine Islands. We went
to war with Spain not for the purpose of correcting all the
evils with which her people were afflicted; we went to war
with Spain not to break the chains of tyranny with which she
might be binding her different colonies: we did not undertake
to be the great universal benefactor and to right all the
wrongs of all the world, or even all the wrongs that Spain
might be inflicting upon any of her people. "We went to war
because a particular colony which she was afflicting lay at
our doors; we went to war because the disorders of that
Government affected the peace of our community and were
injurious to our material interest. We said there was a
condition of affairs which was unbearable and that we would
put an end to it.
"To that extent and to that alone we claimed and avowed the
reason for the declaration of war. So it follows that the mere
declaration of war did not affect in any manner our relations
with the Philippine Islands except to put us in a state of war
with them as a part of the Spanish domain, and in no manner
laid any obligations upon us as to those islands. We were not
charged with the duty of preserving order in Asia. We were not
charged with the obligations of seeing that they had a stable
and orderly government in any part of that hemisphere. No such
duty rested upon us. None such was assumed by us. Therefore
the simple declaration of war did not lay any obligation upon
us as to the Philippine Islands, and I desire that any Senator
will put his finger upon the act which laid us under any
obligations to the Philippine Islands outside of the fact that
in the war which ensued we took those who were the insurgents
in those islands to be our allies and made a common cause with
them.
"Now, Mr. President, all that grows out of that—all that grows
out of the fact of that cooperation and that alliance—is to
impose upon us a single obligation which we must not ignore.
How far does that obligation go? Does it require that we shall
for all time undertake to be the guardians of the Philippine
Islands? Does that particular obligation lay upon us the duty
hereafter, not only now but for years to come, to maintain an
expensive military establishment, to burden our people with
debt, to run the risk of becoming involved in wars in order
that we may keep our hands upon the Philippine Islands and
keep them in proper condition hereafter? I am unable to see
how the obligation growing out of the fact that they were our
allies can possibly be extended to that degree. No Senator has
yet shown any reason why such an obligation rests upon us, and
I venture to say that none which is logical will or can be
shown."
The practical considerations, of circumstance and expediency,

which probably had more influence than those of law or
principle, were strongly urged by Senator Lodge, of
Massachusetts, who said, on the 24th:
"Suppose we ratify the treaty. The islands pass from the

possession of Spain into our possession without committing us
to any policy. I believe we can be trusted as a people to deal
honestly and justly with the islands and their inhabitants
thus given to our care. What our precise policy shall be I do
not know, because I for one am not sufficiently informed as to
the conditions there to be able to say what it will be best to
do, nor, I may add, do I think anyone is. But I believe that
we shall have the wisdom not to attempt to incorporate those
islands with our body politic, or make their inhabitants part
of our citizenship, or set their labor alongside of ours and
within our tariff to compete in any industry with American
workmen. I believe that we shall have the courage not to
depart from those islands fearfully, timidly, and unworthily
and leave them to anarchy among themselves, to the brief and
bloody domination of some self-constituted dictator, and to
the quick conquest of other powers, who will have no such
hesitation as we should feel in crushing them into subjection
by harsh and repressive methods. It is for us to decide the
destiny of the Philippines, not for Europe, and we can do it
alone and without assistance. …
{638}
"During the campaign of last autumn I said in many speeches to

the people of my State that I could never assent to hand those
islands back to Spain; that I wanted no subject races and no
vassal States; but that we had by the fortunes of war assumed
a great responsibility in the Philippines; that we ought to
meet it, and that we ought to give to those people an
opportunity for freedom, for peace, and for self-government;
that we ought to protect them from the rapacity of other
nations and seek to uplift those whom we had freed. From those
views I have never swerved, and I believed then, as I believe
now, that they met with the approbation of an overwhelming
majority of the people of Massachusetts. …
"Take now the other alternative. Suppose we reject the treaty

or strike out the clause relating to the Philippines. That
will hand the islands back to Spain; and I cannot conceive
that any American should be willing to do that. Suppose we
reject the treaty: what follows? Let us look at it
practically. We continue the state of war, and every sensible
man in the country, every business interest, desires the
re-establishment of peace in law as well as in fact. At the
same time we repudiate the President and his action before the
whole world, and the repudiation of the President in such a
matter as this is, to my mind, the humiliation of the United
States in the eyes of civilized mankind and brands us a people
incapable of great affairs or of taking rank where we belong,
as one of the greatest of the great world powers.
"The President cannot be sent back across the Atlantic in the

person of his commissioners, hat in hand, to say to Spain,
with bated breath, 'I am here in obedience to the mandate of a
minority of one-third of the Senate to tell you that we have
been too victorious, and that you have yielded us too much,
and that I am very sorry that I took the Philippines from
you.' I do not think that any American President would do
that, or that any American would wish him to."
Senator Harris, of Kansas, submitted the following on the 3d

of February:
"Resolved by the Senate of the United States of America, That

the United States hereby disclaim any disposition or intention
to exercise permanent sovereignty, jurisdiction, or control
over the Philippine Islands, and assert their determination,
when a stable and independent government shall have been
erected therein entitled to recognition as such, to transfer
to said government, upon terms which shall be reasonable and
just, all rights secured under the cession by Spain, and to
thereupon leave the government and control of the islands to
their people."
The following was offered on the 27th of January by Senator

Sullivan, of Mississippi:
"Resolved, That the ratification of the pending treaty of

peace with Spain shall in no wise determine the policy to be
pursued by the United States in regard to the Philippines, nor
shall it commit this Government to a colonial policy; nor is
it intended to embarrass the establishment of a stable,
independent government by the people of those islands whenever
conditions make such a proceeding hopeful of successful and
desirable results."
On the same day a joint resolution was proposed by Senator

Lindsay, of Kentucky:

United States of America in Congress assembled, That the
acquisition by the United States, through conquest, treaty, or
otherwise, of territory, carries with it no constitutional
obligation to admit said territory, or any portion thereof,
into the Federal Union as a State or States.
"Section 2.
That it is against the policy, traditions, and interests of
the American people to admit states erected out of other than
North American territory into our union of American States.
"Section 3.
That the United States accept from Spain the cession of the
Philippine Islands with the hope that the people of those
islands will demonstrate their capacity to establish and
maintain a stable government, capable of enforcing law and
order at home and of discharging the international obligations
resting on separate and independent States, and with no
expectation of permanently holding those islands as colonies
or provinces after they shall demonstrate their capacity for
self-government, the United States to be the judge of such
capacity."
None of the resolutions given above obtained favorable

consideration in the Senate. On the 6th of February the treaty
was ratified, by one vote in excess of the two-thirds which
the constitution requires. It received 57 votes against 27, or
61 against 29 if account be taken of senators absent and
paired. Of the supporters of the treaty, 42 were Republicans;
of its opponents, 24 were Democrats. It was signed by
President McKinley on the 10th of February, and by the Queen
of Spain on the 17th of March.
After the ratification of the treaty, the Senate, by 26 votes

against 22, adopted the following resolution, offered by Mr.
McEnery of Louisiana:
"Resolved, That by the ratification of the treaty of peace

with Spain it is not intended to incorporate the inhabitants
of the Philippine islands into citizenship of the United
States, nor is it intended to permanently annex said islands
as an integral part of the territory of the United States. But
it is the intention of the United States to establish on said
islands a government suitable to the wants and conditions of
the inhabitants of said islands, to prepare them for local
self-government, and in due time to make such disposition of
said islands as will best promote the interests of the
citizens of the United States and the inhabitants of said
islands."
Congressional Record,
December 6, 1898—February 6, 1899.
UNITED STATES OF AMERICA: A. D. 1899 (January-November).

Attack on Americans at Manila by Aguinaldo's forces.
Continued hostilities.
Progress of American conquest.

PHILIPPINE ISLANDS: A. D. 1899 (JANUARY-NOVEMBER).
UNITED STATES OF AMERICA: A. D. 1899 (March).

Appointment of the Isthmian Canal Commission.

CANAL, INTEROCEANIC: A. D. 1889-1899.
UNITED STATES OF AMERICA: A. D. 1899 (May).
Modification of Civil Service Rules by President McKinley.

CIVIL SERVICE REFORM: A. D. 1899.
UNITED STATES OF AMERICA: A. D. 1899 (May-July).

Representation in the Peace Conference at The Hague.

PEACE CONFERENCE.
UNITED STATES OF AMERICA: A. D. 1899 (June-October).

Arbitration and settlement of the Venezuela boundary question.

VENEZUELA: A. D. 1896-1899.
{639}
UNITED STATES OF AMERICA: A. D. 1899 (July).

Cabinet change.
General Russel A. Alger resigned his place in the President's

Cabinet as Secretary of War, in July, and was succeeded by the
Honorable Elihu Root, of New York.
UNITED STATES OF AMERICA: A. D. 1899 (July).

Provisional government established in the island of Negros.

PHILIPPINE ISLANDS: A. D. 1899 (MARCH-JULY).
UNITED STATES OF AMERICA: A. D. 1899 (October).

Report of conditions in Cuba by the Military Governor.
CUBA: A. D. 1898-1899 (DECEMBER-OCTOBER).
UNITED STATES OF AMERICA: A. D. 1899 (October).

Modus Vivendi fixing provisional boundary line between Alaska
and Canada.

ALASKA BOUNDARY QUESTION.
UNITED STATES OF AMERICA: A. D. 1899 (November).

Death of Vice-President Hobart.
Honorable Garret A. Hobart, Vice-President of the United

States, died November 21. Under the Act provided for this
contingency, the Secretary of State then became the successor
to the President, in the event of the death of the latter
before the expiration of his term.
UNITED STATES OF AMERICA: A. D. 1899 (November).

Re-arrangement of affairs in the Samoan Islands.
Acquisition of the eastern group, with Pago Pago harbor.

SAMOAN ISLANDS.
UNITED STATES OF AMERICA: A. D. 1899-1900 (September-February).

Arrangement with European Powers of the commercial policy
of the "open-door" in China.

CHINA: A. D. 1899-1900 (SEPTEMBER-FEBRUARY).
UNITED STATES OF AMERICA: A. D. 1899-1900 (November-

November).
Continued military operations in the Philippines.
PHILIPPINE ISLANDS: A. D. 1899-1900.

Reciprocity arrangements under the Dingley Tariff Act,
not ratified by the Senate.
The Dingley Tariff Act, which became law on the 24th of July,
1897, authorized the making of tariff concessions to other
countries on terms of reciprocity, if negotiated within two
years from the above date. At the expiration of two years,
such conventions of reciprocity had been arranged with France
and Portugal, and with Great Britain for her West Indian
colonies of Jamaica, Barbadoes, Trinidad, Bermuda, and British
Guiana. With France, a preliminary treaty signed in May, 1898,
was superseded in July, 1899, by one of broader scope, which
opens the French markets to an extensive list of American
commodities at the minimum rates of the French tariff, and
cuts the American tariff from 5 to 20 per cent. on many French
products, not inclusive of sparkling wines. In the treaty with
Portugal, the reduction of American duties on wines is more
general. The reciprocal reduction on American products extends
to many agricultural and mineral products. The reciprocal
agreement with the British West Indies covers sugar, fruits,
garden products, coffee and asphalt, on one side, and flour,
meat, cotton goods, agricultural machinery, oils, etc., on the
other.
None of these treaties was acted upon by the United States

Senate during the session of 1899-1900, and it became
necessary to extend the time for their ratification, which was
done. Some additional reciprocity agreements were then
negotiated, of which the following statement was made by the
President in his Message to Congress, December 3, 1900:
"Since my last communication to the Congress on this subject

special commercial agreements under the third section of the

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5 B2B MARKETING

Marketing The Core Canadian 4th

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

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

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

NEWSFLASHES – CONTENT MARKETING / BLACKBERRY / GLOBAL MISHAPS

IN-CLASS ACTIVITY – BUYING CENTRE ROLE PLAY

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

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

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

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

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

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

I. THE NATURE AND SIZE OF ORGANIZATIONAL MARKETS

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

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

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

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

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

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

III. CONTENT MARKETING

IV. CHARACTERISTICS OF ORGANIZATIONAL BUYING

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

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

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

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

Reverse marketing involves the deliberate effort by organizational buyers to build

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

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

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

1. What is derived demand?

2. A supply partnership exists when .

V. THE ORGANIZATIONAL BUYING PROCESS AND BUYING CENTRE

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

A. Stages in the Organizational Buying Process

B. The Buying Centre: A Cross-Functional Group

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

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

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

VI. B2B MARKET SEGMENTATION

VII. ONLINE BUYING IN ORGANIZATIONAL MARKETS

A. Prominence of Online Buying in Organizational Markets

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

• Organizational buyers depend heavily on timely supplier information that

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

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

B. E-Marketplaces: Virtual Organizational Markets

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

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

a. Thousands of geographically dispersed buyers and sellers.

C. Online Auctions in Organizational Markets

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

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

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

1. What are e-marketplaces?

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

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

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

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

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

UNITED STATES OF AMERICA: A. D. 1898-1899.

See (in this volume)

UNITED STATES OF AMERICA: A. D. 1898-1899 (October-October).