Chapter 6

Question 1

Business-to-Business Marketing

Answer 1

The marketing of products and services to companies for the use in creation of goods and services.

Question 2

Organizational Buyers

Answer 2

Manufacturers, wholesalers, retailers, and government agencies that buy products for their own resale.

Question 3

North American Industry Classification (NAIC)

Answer 3

Common industry definitions for Canada, Mexico, and the US, makes it easier to measure economic activity.

Question 4

Derived Demand

Answer 4

Demand for industrial products that is driven by the demand for consumer products

Question 5

Organizational Buying Criteria

Answer 5

Attributes of the suppliers products and services and the capabilities of the supplier itself.

Question 6

Supplier Development

Answer 6

Deliberate effort by organizational buyers to build relationships that fit buyers needs.

Question 7

Reciprocity

Answer 7

Industrial buying practice in which two organizations agree to purchase each other’s products.

Question 8

Supplier Partnership

Answer 8

A relationship that exists when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of lowering cost or increasing value.

Question 9

Organizational Buying Behavior

Answer 9

Decision making process that organizes use to establish the need for products and services.

Question 10

Buying Center

Answer 10

The group of people in an organization who participate in the buying process and share common goals, risks, and knowledge important to a purchase decision. (People change depending on what is being bought)

Question 11

E-Market Place

Answer 11

Online trading communities that bring together buyers and suppliers organizations to make possible the real time exchange of information, money, products, and services. B2B- Exchange or E-Hubs.

Question 12

Traditional Auction

Answer 12

E-marketplace, online auction in which a seller put an item up for sale and would be buyers are invited to bid in competition with each other.

Question 13

Reverse Auction

Answer 13

An e-marketplace, an online auction in which a buy communicates a need for product or service and would-be suppliers are invited to bid in competition with each other.

Question 14

JCPMedia

Answer 14

Buys 100,000 + tons of paper per year for newspaper inserts and direct mail.

Question 15

Market Characteristics

Answer 15

Demand for industrial products is derived. Few customers with bigger orders.

Question 16

Product of Service Characteristics

Answer 16

Technical in nature and purchased on specifications. Many goods purchased are raw. Emphasis on delivery time, technical assistance, and postsale service.

Question 17

Buying Process Characteristics

Answer 17

Technically qualified and professional buyers who follow policies. Multiple buying influences, reciprocal arrangements, negotiated between buyers. Online buying over internet.

Question 18

Marketing Mix Characteristics

Answer 18

Direct selling to organizational buyers, distribution is important. Advertising technical in nature. Prices often negotiated, evaluated as part of broader seller and product qualities.

Question 19

Organizational Criteria List

Answer 19

Price
Ability to meet quality specifications
Ability to meet delivery schedules
Past performance
Production facilities and capacities

Question 20

Which Stage of the Buying Dicision Process is most different in Consumer Purchase and Organizational Purchase

Answer 20

Postpurchase Behavior

Question 21

Buy Classes

Answer 21

Consist of three types of organizational buying situations, straight rebuy (ordering again), new buy (never bought before), modified rebuy (rebuy buy changed a lil)