Marketing Chapter 7

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  1. Business-to-business Marketing
    Marketing of those goods and services that business and organizational customers need to produce other goods and services for resale or to support their operations
  2. Organizational Markets
    Another name for business-to-business marketing
  3. What makes business-to-business marketing different from consumer marketing?
    • Multiple Buyers
    • Number of Customers
    • Size of Purchases
    • Geographic Concentration
  4. What is business-to-business demand like?
    • Derived from consumer demand
    • Inelastic
    • Fluctuates due to acceleration principle
    • Joint Demand
  5. Derived Demand
    Demand for business or organizational products derived from demand for consumer goods or services
  6. Inelastic Demand
    Demand where changes in price has little to no effect on the amount demanded (as in business-to-business marketing)
  7. Acceleration Principle (multiplier effect)
    A marketing phenomenon in which a small percentage change in consumer demand can create a large percentage change in business-to-business demand
  8. Joint Demand
    Demand for two or more goods that are used together to create a product - makes it so demand for one good affects demand for the other.
  9. What are the 3 types of business-to-business markets?
    • Producers
    • Resellers
    • Organizations
  10. Producers
    The individuals or organizations that purchase products for use in the production of other goods and services
  11. Resellers
    The individuals or organizations that buy finished goods for the purpose of reselling, renting, or leasing to others to make a profit and to maintain their business operations
  12. Government Markets
    Gov. Markets make up the largest single business and organizational market in the U.S. 

    Federal, state, county and local governments that buy goods and services to carry out public objectives and to support their operations.
  13. Competitive Bids
    A business buying process in which two or more suppliers submit proposals (including price and associated data) for a proposed purchase and the firm providing the better offer gets the bid.
  14. Not-for-Profit Institutions
    The organizations with charitable, educational, community, and other public service goals that buy goods and services to support their functions and to attract and serve their members
  15. NAICS
    North American Industry Classification System. The numerical coding system that the U.S., Canada, and Mexico use to classify firms into detailed categories according to their business activities.
  16. Buy class
    The three classifications of business buying situations that characterizes the degree of time and effort required to make a decision
  17. Straight Rebuy
    A buying situation in which business buyers make routine purchases that require minimal decision making
  18. Modified Rebuy
    A buying situation classification used by business buyers to categorize a previously made purchase that involves some change and that requires limited decision making
  19. New-Task Buy
    A new business-to-business purchase that is complex or risky and that requires extensive decision making
  20. Centralized Purchasing
    A business buying practice in which a single department does the buying for all the company's facilities, giving the purchaser great leverage.
  21. Buying Center
    The group of people in an organization who participate in a purchasing decision
  22. What are the roles in the buying center?
    • Initiator
    • User
    • Gatekeeper
    • Influencer
    • Decider
    • Buyer
  23. Initiator
    A role in the buying center. The initiator first recognizes the need for purchase.
  24. User
    A role in the buying center. The user is the one in actual need of the product
  25. Gatekeeper
    Member of the buying center who controls flow of information to other members
  26. Influencer
    Affects the buying decision by dispensing advice or sharing experience (like an engineer)
  27. Decider
    The member of the buying center who has the power to make the final decision
  28. Buyer
    The person in the buying center who actually executes the purchase and its details
  29. List the steps in the business buying decision process.
    • Problem Recognition
    • Information Search
    • Evaluation of Alternatives
    • Product and Supplier Selection
    • Postpurchase Evalution
  30. Multiple Sourcing
    The business practice of buying a particular product from many suppliers
  31. Reciprocity
    A trading partnership in which two firms agree to buy from one another
  32. Outsourcing
    The business buying process of obtaining outside vendors to provide goods or services that otherwise might be supplied in house
  33. Reverse Marketing
    A business practice in which a buyer firm attempts to identify suppliers who will produce products according to the buyer firm's specifications
  34. Business-to-Business E-Commerce
    Internet exchanges between two or more businesses or organizations
  35. Extranet
    Private, Corporate computer network that links company departments, employees, and databases to suppliers, customers, and others outside the organization
  36. Private exchanges
    Systems that link an invited group of suppliers and partners over the Web
  37. Firewall
    A combination of computer hardware and software that ensure only authorized individuals gain entry into a computer system
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Marketing Chapter 7
2014-02-12 05:44:49

Marketing Chapter 7
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