Marketing Ch. 6

Front 1

Business-to-Business Marketing

Back 1

The marketing of goods and services that businesses and other organizations buy for purposes other than personal consumption

Front 2

Key Differences in Business vs. Consumer Markets

Back 2

1. Multiple buyers
2. Size of purchases
3. Number of customers
4. Geographic location

Front 3

Derived Demand

Back 3

B2B demand is derived, meaning that it stems directly or indirectly for consumer demand for another good or service

Front 4

Inelastic Demand

Back 4

Changes in price have little or no effect on the amount demanded

Front 5

Fluctuating Demand

Back 5

Small changes in consumer demand create large increases or decreases in business demand. Life expectancy of the product can cause fluctuating demand

Front 6

Joint Demand

Back 6

Demand occurs for two or more goods that are used together to create a product

Front 7

Major Classes of Business Marketplace

Back 7

1. Producers
2. Resellers
3. Organizations

Front 8

Producers

Back 8

Individuals or firms that purchase products for use in the production of other goods and services. The goods purchased may be raw materials, component parts, semi-finished goods, or services

Front 9

Resellers

Back 9

Individuals or firms that buy finished goods for reselling, renting, or leasing. Resellers include wholesalers, distributors, and of course retailers

Front 10

Organizations

Back 10

Market includes all levels of government and not-for-profit institutions. Federal, state, county, and local governments that buy goods and services to carry out public objectives and to support their operations. 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

Front 11

North American Industry Classification System

Back 11

A numerical coding of industries in the United States, Canada, and Mexico. Sectors form the broadest level of the NAICS classification system, and are represented by the first two digits. The six digit U.S. industry code is the most useful for B2B marketers, as this can be used to help identify new B2B customers

Front 12

B2B E-Commerce

Back 12

Internet exchanges between two or more businesses

Front 13

Intranets

Back 13

Link a firms’ departments, employees, and databases. Are generally more secure, as only authorized users can gain access. Because they are internal, transactions are more consistent and conducted under enhanced security than is typically found on Internet based web sites

Front 14

Extranets

Back 14

Allow authorized suppliers, customers, and other outsiders to access the firm’s intranet

Front 15

Private Exchanges

Back 15

Link an invited group of suppliers and partners over the Web

Front 16

Buy Class Framework

Back 16

Identifies the degree of effort a firm needs to collect information and make a business related purchasing decision
Ex: Straight rebuy, Modified rebuy, New-task buy

Front 17

Straight Rebuy

Back 17

Routine purchases of items bought on a regular basis fall within this class. Little time is spent on the decision, as the business merely reorders items from their existing suppliers

Front 18

Modified Rebuy

Back 18

occur when a firm decides to shop around for a new supplier, often because they are looking for a better price, better quality, improved delivery time, or some other improvement. Products that are technological in nature often fall within this category (cell phone service, computers, etc.)

Front 19

New-Task Buy

Back 19

More complex, and both risk and uncertainty are high. Are considered to be those in which the buyer has no previous experience

Front 20

Professional Buyers

Back 20

Trained professional buyers typically carry out buying in business-to-business markets
1. Purchasing agents
2. Procurement officers
3. Directors of materials management

Front 21

Buying Centers

Back 21

Include all people in an organization who participate in a purchasing decision

Front 22

Steps in the Buying Process

Back 22

1. Recognize the problem
2. Search for info
3. Evaluate the alternatives
4. Select the product and supplier
5. Evaluate postpurchase

Front 23

Problem Recognition

Back 23

Actions resulting from problem recognition include initiation of a purchase requisition or request and formation of a buying center, if needed

Front 24

Information Search

Back 24

Searching for information about products and suppliers. As part of this process, the buying center develops product specifications, which are written descriptions of the quality, size, weight, color of the item to be purchased

Front 25

Evaluate the Alternatives

Back 25

Price is a primary consideration. Other factors may be considered, such as extra services or other perks. Customer reference programs, product demos, and presentations can help sell the marketer’s products to firms

Front 26

Single Sourcing

Back 26

Business practice of buying a particular product from only one supplier

Front 27

Multiple Sourcing

Back 27

Buying from several different suppliers

Front 28

Reciprocity

Back 28

Trading partnership in which two firms agree to buy from one another

Front 29

Outsourcing

Back 29

Obtaining vendors to provide goods / services that might otherwise be supplied in-house

Front 30

Crowdsourcing

Back 30

Pulling together expertise from around the globe to work on solving a problem

Front 31

Reverse Marketing

Back 31

Buyers try to find capable suppliers and “sell” their purchase to the suppliers

Front 32

Evaluate Postpurchase

Back 32

Organizational buyers assess whether the performance of the product and the supplier live up to expectations

Front 33

Metrics Used by Organizational Buyers

Back 33

1. Satisfaction
2. Quality
3. Customer engagement
4. Purchase intentions
5. Promptness and effectiveness of problem resolution