It Is Important That Marketers Understand the Classification of the Business

question 131

Multiple Choice

It is important that marketers understand the classification of the business product they are selling because:

• A) OEM markets often act just like the consumer markets
• B) personal selling is the most important promotional strategy for all business marketing classifications
• C) distribution channels are almost always direct for all business selling
• D) raw materials demonstrate extreme flexibility in pricing
• E) promotion and distribution strategies tend to vary depending upon the classification

---

Definitions:

Capital Goods

Long-lasting goods acquired and used by businesses to produce goods and services and contribute to their productive capacity.

Productive Efficiency

A situation where it's impossible to produce more of one good without producing less of another, utilizing all resources efficiently.

North Korea

A country in East Asia, known for its strict government regime, isolation from most of the international community, and significant human rights concerns.

Command Economy

An economic system where the government controls the production, distribution, and prices of goods and services.