Chapter 5 Flashcards
Resellers
Marketing intermediaries that resell manufactured products without significantly altering their form
Business-to-business (B2B) Marketing
The process of buying and selling goods or services to be used in the production of other foods and services for consumption by the buying organization, or for resale by wholesalers ad retailers
Derived Demand
The linkage between consumer’s demand for a company’s output and its purchase of necessary inputs to manufacture or assemble that particular output
North American Industry Classification System (NAICS) codes
A classification scheme that categorizes all firms into a hierarchical set of six-digit codes
Request for proposals (RFP)
A process through which buying organizations invite alternative suppliers to bid on supplying their required components
B2B Buying Process
Step 1: Need Recognition
Step 2: Product Specification
Step 3: RFP Process
Step 4: Proposal Analysis and Supplier Selection
Step 5: Order Specification (Purchase)
Step 6: Vendor Performance Assessment Using Metrics
Buying Centre
The group of people typically responsible for the buying decisions in large organizations
Initiator
The buying centre participant who first suggests buying the particular product or service
Influencer
The buying centre participant whose view influence other members of the buying centre in making the final decision
Decider
The buying centre participant who ultimately determines any part of or the entire buying decision - whether to buy, what to buy, how to buy or where to buy
Buyer
The buyer centre participant who handles the paperwork of the actual purchase
User
The person who consumes or uses the product or service purchased by the buying centre
Gatekeeper
The buying centre participant who controls information or access to decision makers and influencers
Organized Culture
Reflects the set of values, traditions, and customs that guides a firm’s employee’s behaviour
Autocratic Buying Centre
A buying centre in which 1 person makes the decision alone, though there may be multiple participants
Democratic Buying Centre
A buying centre in which the majority rules in making decisions
Consultative Buying Centre
A buying centre in which 1 person makes the decision, but he or she solicits input from others before doing so
Consensus Buying Centre
A buying centre in which all members of the team must reach a collective agreement the they cab support a particular purchase
New buy
In a B2B setting, a purchase of a good or service for the 1st time; the buying decision is likely to be quite involved because the buyer or the buying organization does not have any experience with the item
Modified buy
Refers to when the buyer has purchased a similar product in the past but has decided to change some specifications, such as the desired price, quality level, customer service level, and options
Straight buy
Refers to when the buyer or buying organization simply buys additional units of product that had previously been purchased
