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27 Cards in this Set
- Front
- Back
definition of business buyer behavior |
the buying behavior of organizations that buy goods and services for use in the production of other products and services or for the purpose of reselling or renting to others for a profit |
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characteristics of business markets |
differ in marketing structure and demand compared to consumer markets fewer but larger customers may be concentrated geographically derived demand, price is inelastic |
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nature of buying unit for biz markets |
biz purchases involve more buyers in decision process purchasing efforts are undertaken by professional buyers |
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types of decisions and decision process for biz markets |
face more complex buying decisions more formalized process buyers and sellers work closely and build long term r/s |
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model of business buyer behavior |
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major types of buying situations for biz buyers |
straight rebuy: reordering without modifications modified rebuy: requires modification to prior purchase new task: first time purchase |
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what is systems selling |
buying a packaged solution to a problem from single seller (convenience) often a key marketing strategy if want to win and hold accounts |
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participants in the buying decision process |
users, influencers, buyers, deciders, gatekeepers |
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environmental influences on biz buyers |
economic trends, supply conditions, technological change, regulatory and political environments, competitive developments, culture and customs |
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organizational influences on biz buyers |
objectives, policies, procedures, organizational structure, systems |
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interpersonal influences on biz buyers |
authority, status, empathy, persuasiveness |
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individual influences on biz buyers |
authority, age, education, job position, personality, risk attitudes |
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stages of the biz buying process |
problem recognition -> general need description -> product specification -> supplier search -> order-routine specification -> performance review |
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steps 1,2,3 of biz buying process |
1: problem recognition 2: general need description 3: product specification - value analysis helps to reduce costs |
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step 4 of biz buying process |
supplier search - supplier development |
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step 5 of biz buying process |
proposal solicitation |
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step 6 of biz buying process |
supplier selection: single sourcing - buying particular product from only one supplier multiple sourcing - buying from several different suppliers reciprocity - trading partnership in which two firms agree to buy from each other |
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more ways of selection of product and supplier |
outsourcing: obtaining vendors to provide goods/services that might otherwise be supplied in-house crowdsourcing; pulling together expertise from around the globe to work on solving a problem reverse marketing: buyers find capable suppliers and "sell" their purchase to suppliers |
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step 7 of biz buying process |
order-routine specification: blanket contracts often used for maintenance, repair and operating items |
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step 8 of biz buying process |
performance review |
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benefits of single sourcing |
when frequent deliveries are needed/specialised products are desired firm often becomes a large customer to supplier, can negotiate for more favorable prices admin costs might also be lower |
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cons of single sourcing |
firm is at mercy of supplier - failure to meet delivery dates could stop production line |
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benefits of multiple sourcing |
protects firm from inventory or delivery problems multiple suppliers keep each other honest in terms of pricing |
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what are institutional markets |
consists of churches, schools, prisons, hospitals, nursing homes and other institutions that provide goods and services to people in their care |
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characteristics of institutional markets |
low budgets, captive patrons, often overlooked in B2B may develop separate divisions and marketing mixes to service institutional markets |
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what are government markets |
government units purchasing or renting goods/services for carrying out main functions of government |
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characteristics of government markets |
many buying units, require suppliers to submit bids, may favor domestic suppliers, extensive paperwork required from suppliers |