Chapter 3: B2B Marketing Flashcards
Business buyer behaviour
The buying behaviour of organisations that buy goods and services for use in the production of other goods and services that are sold, rented or supplied to others
Business buying process
The decision process by which business buyers determine which goods and services their organisations need to purchase and then find, evaluate and choose among alternative suppliers and brands
Derived demand
Business demand that ultimately comes from the demand for consumer goods
Straight rebuy
A business buying situation in which the buyer routinely reorders something without modifications
Modified rebuy
A business buying situation in which the buyer wants to modify product specifications, prices, terms or suppliers
New task
A business buying situation in which the buyer purchases a product or service for the first time
Buying centre
The decision-making unit of a buying organisation
Users within buying centre
Members of the buying organisation who will actually use the purchased good or service
Influencers within buying centre
People in an organisation’s buying centre who affect the buying decision; they often help define specifications and also provide information for evaluating alternatives
Buyers within buying centre
People in an organisation’s buying centre who make an actual purchase
Deciders within buying centre
People in an organisation’s buying centre who have formal or informal power to select or approve the final suppliers
Gatekeepers within buying centre
People in an organisation’s buying centre who control the flow of information to others
Stages of business buying process
1) Problem recognition
2) General need description
3) Product specification
4) Supplier search
5) Proposal solicitation
6) Supplier selection
7) Order-routine specification
8) Performance review
Problem recognition within business buying process
The first stage of the business buying process, in which someone in the company recognises a problem or need that can be met by acquiring a good or a service.
General need description within business buying process
The stage in the business buying process in which a buyer describes the general characteristics and quantity of a needed item.
Product specification within business buying process
The stage of the business buying process in which the buying organisation decides on and specifies the best technical product characteristics for a needed item.
Supplier search within business buying process
The stage of the business buying process in which the buyer tries to find the best vendors.
Proposal solicitation within business buying process
The stage of the business buying process in which the buyer invites qualified suppliers to submit proposals.
Supplier selection within business buying process
The stage of the business buying process in which the buyer reviews proposals and selects a supplier or suppliers
Order-routine specification within business buying process
The stage of the business buying process in which the buyer writes the final order with the chosen supplier(s), listing the technical specifications, quantity needed, expected time of delivery, return policies and warranties.
Elements of order-routine specification
- Technical specifications
- Quantity needed
- Expected time of delivery
- Return policies
- Warranties
Performance review within business buying process
The stage of the business buying process in which the buyer assesses the performance of the supplier and decides to continue, modify or drop the arrangement.
E-procurement
Purchasing through electronic connections between buyers and sellers - usually online
Institutional markets
Schools, hospitals, nursing homes, prisons and other institutions that provide goods and services to people in their care
Government markets
Governmental units - federal state and local - that purchase or rent goods and services for carrying out the main functions of government
