Chapter 6 Flashcards
Business-to-Business Marketing
The marketing of products and services to companies for the use in creation of goods and services.
Organizational Buyers
Manufacturers, wholesalers, retailers, and government agencies that buy products for their own resale.
North American Industry Classification (NAIC)
Common industry definitions for Canada, Mexico, and the US, makes it easier to measure economic activity.
Derived Demand
Demand for industrial products that is driven by the demand for consumer products
Organizational Buying Criteria
Attributes of the suppliers products and services and the capabilities of the supplier itself.
Supplier Development
Deliberate effort by organizational buyers to build relationships that fit buyers needs.
Reciprocity
Industrial buying practice in which two organizations agree to purchase each other’s products.
Supplier Partnership
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.
Organizational Buying Behavior
Decision making process that organizes use to establish the need for products and services.
Buying Center
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)
E-Market Place
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.
Traditional Auction
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.
Reverse Auction
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.
JCPMedia
Buys 100,000 + tons of paper per year for newspaper inserts and direct mail.
Market Characteristics
Demand for industrial products is derived. Few customers with bigger orders.
Product of Service Characteristics
Technical in nature and purchased on specifications. Many goods purchased are raw. Emphasis on delivery time, technical assistance, and postsale service.
Buying Process Characteristics
Technically qualified and professional buyers who follow policies. Multiple buying influences, reciprocal arrangements, negotiated between buyers. Online buying over internet.
Marketing Mix Characteristics
Direct selling to organizational buyers, distribution is important. Advertising technical in nature. Prices often negotiated, evaluated as part of broader seller and product qualities.
Organizational Criteria List
Price
Ability to meet quality specifications
Ability to meet delivery schedules
Past performance
Production facilities and capacities
Which Stage of the Buying Dicision Process is most different in Consumer Purchase and Organizational Purchase
Postpurchase Behavior
Buy Classes
Consist of three types of organizational buying situations, straight rebuy (ordering again), new buy (never bought before), modified rebuy (rebuy buy changed a lil)
