Business marketing Flashcards
The use of the Internet to facilitate h exchange of goods, services, and information between organizations
Business-to-business electronic commerce
The marketing of goods and services to individuals and organizations for purposes other than personal consumption
Business marketing
Three of the most important measures of online success
Recency
Frequency
Monetary value
A measure of a web sites effectiveness; calculated by multiplying frequency of visits by the duration of a visit by the number of pages viewed during each visit
Stickiness
The elimination of intermediaries such as wholesalers or distributors from a marketing channel
Disintermediation
The reintroduction of an intermediary between producers and users
Reintermediation
A cooperative agreement between business firms
Strategic alliance (strategic partnership)
A strategy that entails seeking and establishing ongoing partnerships with customers
Relationship marketing
A firms belief that an ongoing relationship with another firm is so important that the relationship warrants maximum efforts at maintaining it indefinitely
Relationship commitment
a network of interlocking corporate affiliates
Keiretsu
Individuals and organizations that buy business goods and incorporate them into the products they product for eventual sale to other producers or to consumers
Original equipment manufacturers (OEMs)
The business market consists of what four major categories of customers
Producers
Resellers
Governments
Institutions
An industry classification system introduced in 1997 to replace the standard industrial classification system. It is a detailed numbering system developed by the United States, Canada, and Mexico to classify North America business establishments by their main production processes
North American Industry Classification System (NAICS)
Unlike consumer demand, business demand is (4)
Derived, in elastic, joint, and fluctuating
The demand for business products
Derived demand
An increase or decrease in the price of the product will not significantly affect demand for the product
Inelastic demand
The demand for two or more items used together in a final product
Joint demand
Phenomenon in which a small increase or decrease in consumer demand can produce a much larger change in demand for the facilities and equipment needed to make the consumer product
Multiplier effect
Or
Accelerator principle
An electronic trading floor that provided companies with integrated links to their customers and suppliers
Business to business online exchange
A practice where business purchasers choose to buy from their own customers
Reciprocity
Business products generally fall into one of the following seven categories, depending on their use
Major equipment Accessory equipment Raw materials Component parts Processed materials Supplies Business services
capital goods such as large or expensive machines, mainframe computers, blast furnaces, generators, airplanes, and buildings
major equipment (installations)
goods, such as portable tools and office equipment, that are less expensive and shorter-lived than major equipment
accessory equipment
unprocessed extractive or agricultural products, such as mineral ore, lumber, wheat, corn, fruits, vegetables, and fish
raw materials
either finished items ready for assembly or products that need very little processing before becoming part of some other product
component parts
products used directly in manufacturing other products
processed materials
consumable items that do not become part of the final product
supplies
expense items that do not become part of a final product
business services
all those people in an organization who become involved in the purchase decision
buying center
business buyers evaluate products and suppliers against what three important criteria
quality, service, and price
in that order
a situation requiring the purchase of a product for the first time
new buy
a situation in which the purchaser wants some change in the original good or service
modified rebuy
a situation in which the purchaser reorders the same goods or services without looking for new information or investigating other suppliers
straight rebuy
