Module 3 Flashcards
A group of people within an organization who make business purchasing decisions.
Buying Centers
Functional representation that supports a sales person to create a team-selling approach.
Selling Centers
The individual decision maker or group within the customer organization who controls the budget and writes the checks for new product purchases.
Economic Buyer
Someone who makes sure that purchasing rules defined in corporate governance procedures are followed.
Infrastructure Buyer
Someone who influences the buying decision as the person who will actually use the solution after the purchase decision is made.
User Buyer
Individuals who suggest purchasing a product or service for a business
Initiators
Individuals within an organization who actually use the product
Users
Individuals who have experience or expertise that can help improve the buying decision
Influencers
Individuals who will decide if and when one gets access to members of the buying center
Gatekeepers
The person who makes the final purchasing decision
Decision Makers
The people who sign the contract. Focused on the financial aspects of the purchase and how the purchase can positively impact organizational metrics.
Buyers
Persons who are responsible for the management, administration, and supervision of the company’s acquisition programs.
Procurement Officer
Process through which industrial buyers make a purchase decision.
Organizational Buying Process
Someone recognizes that the organization has a need that can be solved by purchasing a good or service. Users often drive this stage, although others can serve the role of initiator.
Recognizing the Need
Usually involves users as well as initiators to put more definition around the type of product or service that will help meet the need.
Defining the Need
People involved in the buying process seek out information about the products they are looking for and the vendors who can supply them.
Search for Suppliers
Qualified suppliers are asked to complete responses to requests for proposals
Bid Analysis
An invitation to submit a bid to supply a good or service.
Request for Proposals (RFP)
RFPs are reviewed and the vendor or vendors selected
Supplier Selection
Order is typically placed electronically and can be one transaction or continuous
Order Placement
Buyer surveys quality and satisfaction levels
Performance Review
A company that purchases parts, products, or ingredients to produce other goods and services to sell to other companies or consumers.
Purchases
A company that buys finished goods to sell, lease, or rent to other companies or consumers.
Resellers
A government agency or nonprofit group that purchases products or services to serve or sell to its constituents.
Organizations
The duplicate purchase of identical goods in the identical amount under the identical terms from the identical supplier.
Straight Rebuy
A business buying situation in which the buyer purchases a product or service for the first time
New Task Purchase
A buying situation in which an individual or organization buys goods that have been purchased previously but changes other element of the previous order.
Modified Rebuy
Limited, ongoing relationships that develop when a buyer continues to purchase a product from a seller out of habit, as long as its needs are met.
Functional Relationships
A situation where the buyer needs extensive expertise from the seller to make a decision
Affiliative Relationships
A partnership in which the buyer and seller commit resources to generate growth for both parties
Strategic Partnership
A formal agreement among companies who want to share resources to create a competitive advantage.
Alliance Agreement
Businesses join to develop a specific product or service.
Joint R&D Agreements
An agreement where companies share resources to market their products together.
Co-marketing Agreements
An investment by one organization in another organization in which the investor firm holds less than 50% of the shares.
Minority Investments
