Ch. 6 Business Marketing Flashcards
Business to Business (B2B)
marketing the process of matching capabilities between two nonconsumer entities to create value for both organizations and the “customer’s customer”; also referred to as business marketing
Relationship Commitment
a business’s belief that an ongoing relationship with another company is so important that the relationship warrants maximum efforts at maintaining it indefinitely
Derived Demand
demand in the business market that comes from demand in the consumer market
Joint Demand
the demand for two or more items used together in a final product
Multiplier Effect (accelerator principle)
the 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
Reciprocity
a practice where business purchasers choose to buy from their own customers
Business Services
complementary and ancillary actions that companies undertake to meet business customers’ needs
Original Equipment Manufacturers (OEMs)
individuals and organizations that buy business goods and incorporate them into the products that they produce for eventual sale to other producers or to consumers
North American Industry Classification System (NAICS)
an industry classification system developed by the United States, Canada, and Mexico to classify North American business establishments by their main production processes
Buying Centre
all those people in an organization who become involved in the purchase decision
New Task Buy
a situation requiring the purchase of a product for the first time
Modified Rebuy
a situation where the purchaser wants some change in the original good or service
Straight Rebuy
a situation in which the purchaser reorders the same goods or services without looking for new information or new suppliers
