Chapter #7: Analyzing Business Markets Flashcards
Business market vs. consumer market
Business market: consists of all of the organizations tha acquire goods/services used in production of products/services sold/distributed to others.
B2B (the second B)
B2B example: Marquette buying computers from Apple for its students.
Consumer market: buying and selling to individual buyers instead of businesses.
B2C example: Paige buying a computer from Apple for her own personal use.
User:
the product is used in production of other products (example: an electric timer when making cookies)
OEM (Original Equipment Manufacturer)
the product (electric timer) is incorporated directly into a final consumer product (example: microwave oven)
Distributor:
the product (electric timer) is purchased and resold to users and OEMs. A cooking store sells it to individuals and distributes it.
New Task Buying
Buying something completely new, never bought before. 1st time buyer this means that the greater the risk, the more information they will collect, the longer it takes to make a decision
Modified Rebuy
(think from a B2B perspective) same product but wants to change specifications, prices, delivery and/or other terms. Same thing is bought BUT in a different way.
Straight Rebuy
purchasing department reorders items on a routine basis and nothing changes (ex: office supplies or chemicals)
Initiator
requests something to be purchased
User
They will use the product (User is most time the initiator too)
Influencer
influence the buying decision with information or specifications
Decider
decides product specifications or suppliers
Approver
authorizes decider and buyer
Buyer
has the formal authority to select, buy, and negotiate
Gatekeeper
Controls the flow of information between the two parties. Can keep/relay information from/to important people.
