Chap 6 Flashcards
Business and organizational customers:
Any buyers who buy for resale or to produce other goods and services. There are many different types of organizational customers: Producers of goods and services – Manufactures, farmers, hotels, banks. Intermediaries – Wholesalers and retailers. Government units. Nonprofit organizations
B2B-market:
Business-to-business market
Organizational customers are different:
Organizations buy goods and services that will help them meet the demand for the goods and services that they in turn supply to their markets. A producer buys because it want to earn profit by making and selling goods and services, while a wholesaler or retailer buys products it can profitably resell to customers. Organizations typically focuses on economic factor when they make purchase decisions and are usually less emotional in their buying than final consumers.
Serving customers in international markets:
The basic approaches marketers use to deal with business customers in different parts of the world are much less varied than those required to reach individual customers. This is probably why the shift to a global economy has been so rapid for many firms.
Specification:
A written or electronic description of what the firm wants to buy.
ISO 9000:
Is a way for a supplier to document its quality to producers according to internationally recognized standards.
Purchasing managers:
Buying specialists for their employers.
Multiple buying influence:
Several people play a part in making a purchase decision. Possible buying influences include: Users – Production line workers. Influencers – Engineers, people who help write specifications or supply information for evaluating alternatives. Buyers – The purchasing managers who have the responsibility for working with suppliers and arranging the terms of the sale. Deciders – The people in the organization who have the power to select or approve the supplier. Gatekeepers – People who control the flow of information within the organization, for instance receptionists or purchasing manager.
Buying center:
All the people who participate in or influence a purchase. (Users, buyers, influencers, deciders, gatekeepers)
Vendor analysis:
A formal rating of suppliers on all relevant areas of performance. The purpose isn’t to get the lowest price, but to lower the total cost associated with purchase
Requisition:
A request to buy something.
New-task buying:
Occurs when a customer organization has a new need and wants a great deal of information.
A straight rebuy:
A routine purchase that may have been made many times before. Buyers probably don’t bother looking for new information or new sources of supply.
Modified rebuy:
Is the in-between process where some review of the buying situation is done - though not as much as in new-task buying.
Competitive bid:
The terms of sale offered by the supplier in response to the purchase specifications posted by a buyer.
