Marketing Ch. 6 Vocab

Front 1

bidder's list
pg. 150

Back 1

a list of the firms believed to be qualified to supply a given item.
-generated from the company's purchasing databank as well as from engineering inputs

Front 2

business marketing
pg. 138

Back 2

is the marketing of goods and services to companies, governments, or not-for-profit organizations for use in the creation of goods and services that they can produce and market to others.

Front 3

buy classes
pg. 146

Back 3

three types of buying situations
-routine reorder
-straight rebuy
-new buy

Front 4

buying center
pg. 145

Back 4

the individuals in this group share common goals, risks, and knowledge important to a purchase decision.

Front 5

derived demand
pg. 141

Back 5

the demand for industrial products and services is driven by, or derived from, demand for consumer products and services.

ex: the demand for Weyerhaeuser's pulp and paper products is based on consumer demand for newspapers, FedEx packages, and disposable diapers

Front 6

e-marketplaces
pg. 151

Back 6

online trading communities, that bring together buyers and supplier organizations.

Front 7

ISO 9000
pg. 143

Back 7

standards, developed by the International Standards Organization (ISO) in Geneva, Switzerland, refer to standards for registration and certification of a manufacturer's quality management and assurance system based on an on-site audit of practices and procedures.

Front 8

make-buy decision
pg. 148

Back 8

an evaluation of whether components and assemblies will be purchased from outside suppliers or built by the company itself
-after a contract is won, project personnel must often make a make-buy decision

Front 9

North American Industry Classification System (NAICS)
pg. 139

Back 9

provides common industry definitions for Canada, Mexico, and the United States, which makes it easier to measure economic activity in the three member countries of the North American Free Trade Agreement (NAFTA).

Front 10

Organizational buyers
pg. 138

Back 10

are those manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use or for resale.

Front 11

Organizational buying behavior
pg. 148

Back 11

is 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.

Front 12

Organizational buying criteria
pg. 143

Back 12

are the objective attributes of the supplier's products and services and the capabilities of the supplier itself.

Front 13

reciprocity
pg. 144

Back 13

is an industrial buying practice in which two organizations agree to purchase each others products and services.

Front 14

reverse auction
pg. 153

Back 14

works in the opposite direction from a traditional auction. In a reverse auction a buyer communicates a need for a product or service and would-be suppliers are invited to bid in competition with each other

Front 15

Supplier development
pg. 143

Back 15

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.

Front 16

Supply partnership
pg. 144

Back 16

exists 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 consumer.

Front 17

Traditional auction
pg. 153

Back 17

a seller puts an item up for sale and would-be buyers are invited to bid in competition with each other.

Front 18

Value analysis
pg. 149

Back 18

a systematic appraisal of the design, quality, and performance of a product to reduce purchasing costs.