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Marketing Chapter 5 Vocab
Terms in this set (40)
The marketing of products and services to companies, governments, or nonprofit organizations for use in the creation of goods and services that they can produce and market to others.
Those manufacturers, wholesalers, retailers, and government agencies that buy products and services for their own use or for resale.
Organizational Buyers are divided into three markets.
Industrial, reseller, government.
Reprocess a product or service they buy before selling it again to the next buyer.
Wholesalers and retailers that buy physical products and resell them again without any reprocessing.
The federal, state, and local agencies that buys products and services for the constituents they serve.
North American Industry Classification Systems (NAICS)
Provides common industry definitions for Canada, Mexico, and the US, which makes it easier to measure economic activity in the three member countries of the NAFTA.
The Standard Industrial Classification (SIC) Systems.
What did the NAICS replace?
The demand for industrial products and services is driven by demand for consumer products and services.
Size of the Order or Purchase
Number of Potential Buyers
Organizational Buying Objectives
Organizational Buying Criteria
What are the Characteristics of Organizational Buying?
Organizational Buying Objective
To increase profit through reducing costs or increasing revenues.
Organizational Buying Criteria Definition
The objective attributes of the supplier's products and services and the capabilities of the supplier itself.
Ability to meet the quality specifications required for the item.
Ability to meet required deliver schedules.
Warranties and claim policies in the event of poor performance.
Past performance on previous contracts.
Production facilities and capability.
Organizational Buying Criteria (7)
Involves the deliberate effort by organizational buyers to build relationships that shape suppliers' products, services, and capabilities to fit a buyer's needs and those of its customers.
An industrial buying practice in which two organizations agree to purchase each other's products and services.
When a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of lowering the cost or increasing the value of products and services delivered to the ultimate consumers.
Organizational Buying Behavior
The decision making process that organizations use to establish the need for products and services and identify, evaluate, and choose among alternative brands and suppliers.
Post Purchase Behavior
Stages in the Organizational Buying Decision/Process
The group of people in an organization that participates in the buying process.
Buying Center is also known as?
5 Roles in the Buying Center
The people in the organization who actually use the product or service.
Affect the buying decisions, usually by helping define the specifications for what is brought.
Have formal authority and responsibility to select the supplier and negotiate the term of the contract.
Have the formal or informal power to select or approve the supplier that receives the contract.
Controls the flow of information in the buying center.
Straight Rebuy, Modified Rebuy, and New Buy
What are the 3 types of buying situations or classes?
Completely new purchase. First time buyer of the product or service.
Routine reorder; Office supplies and maintenance.
Users, influencers, or deciders in the buying center want to change the product specifications, price, delivery schedule, or supplier.
Involves a make-buy decision, an evaluation of whether components and assemblies will be purchased from outside suppliers or built by the company itself.
Involves value analysis, a systematic appraisal of the design, quality, and performance of a product to reduce purchasing costs.
Involves the generation of a bidders list, a list of firms believed to be qualified to supply a given item.
The period from supplier selection to order placement to product delivery can take several weeks or even months, as negotiations regarding price, performance and delivery terms will continue.
Evaluation occurs in the industrial purchase decision process, but is formal and often sophisticated.
ISO 9000 Standards
Standards for registration and certification of a manufacturer's quality management and assurance systems based on an on-site audit of practices and procedures.
Online trading communities that bring together buyers and supplier organizations.
Independent Trading Communities
Acts as a neutral third party and provide Internet Technology trading platform and a centralized market that enable exchanges between buyers and sellers.
Seller puts an item up for sale and would be buyers are invited to bid in competition with each other.
A buyer communicates a need for a product or service and would be suppliers are invited to bid in competition with each other.
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