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  1. What is business marketing?
    The marketing of goods/services to individuals & organizations for purpose other than personal consumption.
  2. Types of business products are:
    • raw materials
    • processed materials
    • component parts
    • accessory equipment
    • major equipment
    • business services
    • supplies
  3. demand for business product can be:
    • derived - demand for BP results from demand for consumer product
    • inelastic - demand for BP is not affected by the price
    • joint - when mult. items are used together in a final product, demand for one item affects the other
    • fluctuating - demand for BP is more volatile than consumer products (manuf. plants or equipment)
  4. Business customers are:
    • 1. producers
    • 2. resellers
    • 3. governments
    • 4. institutions
  5. What is buying center?
    Is all the persons in an organization that are involved in purchasing decision.
  6. Roles in the Buying Center:
    • initiator - initiates/suggests making a purchase
    • influencer/evaluator - help define specs and provide evaluating options
    • gatekeepers - group members who regulate the flow of information (i.e. purchasing agent determines which vendor gets an appt. with a buyer)
    • decider - has the power to approve or choose the selection
    • purchaser - actually negotiates the purchase (could be president or even the purchasing agent based on the importance of the decision
    • users - members who will actually use the product
  7. Evaluating criteria consists of
    • 1. quality (technical suitability)
    • 2. service ( delivery, installing, maintenance)
    • 3. price
  8. Buying situations:
    • new buy - purchase of a product for the first time (the greatest opportunity for vendors)
    • modified rebuy - buyer wants some changes in the original good/service
    • straight rebuy - vendor preffered, buyer re-orders same goods without looking for new information or investigating other suppliers.
  9. Strategic alliance is...
    ...a cooperative agreement between business firms (strat. partnership)
  10. difference between business and consumer markets?
    • customers (org / individuals)
    • volume (large / small)
    • # of customers (fewer/many)
    • location (concentrated / dispersed)
    • nature of buy (professional / personal)
    • negotiations (complex / simple)
    • promotion (personal selling / advertising)
Card Set:
2012-09-21 01:28:41

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