27 terms

MRKT 321 Chapter 4

STUDY
PLAY

Terms in this set (...)

Producers
-products included in manufacturing
-services to support the manufacturing operation
OEM purchasers
goods to use in making their products
End users
goods and services to support their own production and operations
Capital Equipment
items are major purchases such as mainframe computers and machine tools
MRO Supplies
include paper towels and replacement parts for machinery
Resellers
finished products or services with the intention to resell them
Profit Margin
how much a reseller makes on each sale
Turnover
how quickly an item sells, and how much effort it takes to sell
Government Agencies
goods and services valued at more than $1 trillion annually
Institutions
different needs and buying processes (hospitals, universities, etc.)
Consumers
products and services for use by themselves or by their families (some products we might not put forth a lot of effort)
Complexity of the Organizational Buying Process
-purchasing agents
-evaluations and negotiations
-Complexity is increasing
Derived vs. Direct Demand
comes from customer's customers
Steps in the Buying Process
choices to attend a university related to the 8 steps in the organizational buying process
Creeping Commitment
-narrowing range of alternatives
-critical that salespeople be involved in the initial steps
New Tasks
a customer purchases a product or service for the first time
Straight Rebuys
a customer buys the same product from the original source
Modified Rebuys
the customer has purchased the product in the past but is looking for new information
Who Makes the Buying Decision?
-Users
-Initiators
-Influencers
-Gatekeepers
-Deciders
Economic Criteria
life cycle costing (total cost of ownership)
Quality Criteria
-What are organizational buyers looking for?
Service Criteria
Value analysis
Types of Needs
-Financial Security
-Self esteem
-Recognition
Risk Reduction
-Collect additional information
-Develop supplier loyalty
-Spread the risk
Supply Chain Management
-Logistics
-Managing inventory while controlling costs
-Just in time inventory control system
-Material requirements planning
-Automatic replenishmnet
-Electronic data interchange
Supplier Relationship Management
-identify the annual spend
-summarize the benefits and needs satisfied by a supplier
The Internet and Business-to-Business Selling
-Extranets
-Support for salespeople rather than replacement
-Reverse auctions