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29 Cards in this Set
- Front
- Back
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REAL People REAL Choices
Vicki Holt PPG Industries |
Option 1: do nothing
Option 2: Acquire an independent IGU manufacturer Option 3: Continue to support customers with intercept brand IGU but if they are interested in outsourcing this manufacturing step, invest directly in IGU manufacturing to both support them and provide an alternative to cardinal CHOSE option 3 – success |
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B2B markets
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The group of customers that include manufacturers, wholesalers, retailers, and others
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Organizational markets
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Another name for B2B
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Know the Trend
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CMO = Chief Marketing Officer
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Characteristics that make a difference in business markets (5)
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1. process more complex
2. including multiple buyers 3. the number of customers 4. the size of purchases 5. geographic concentration NOTE: population size is NOT one |
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B2B demand
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Derived demand
Inelastic demand NOTE: business demand is also subject to great fluctuations that is consumer demand |
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Derived demand
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Demand for ALL business organizational products is derived from demand from consumer products
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Inelastic demand
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Demand in which changes in price have little or no effect on the amount demanded
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Types of B2B markets
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Producers
Organizations |
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Producers
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Producers the individuals or orgs that purchase products for use in the production of other goods and services
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Organizations
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Government markets – the federal, state, county, and local governments that buy goods and services to carry out public objectives and to support their operations
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US government spending
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Social security is number 1
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NAICS
(North American industry classification system) |
The numerical coding system that the united states, Canada, and Mexico use to classify firms into detailed categories according to their business
NOTE: NAIC replaced the SIC codes! |
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Know why the NAILS is better than old SIC codes (4)
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Relevance
Consistency International compatibility Adaptability NOTE: cost is NOT one |
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Straight rebuy
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A buying situation in which business buyers make routine purchases that require minimal decision making
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Modified rebuy
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A buying situation classification used by business buyers to categorize a previously made purchase that involves some change and that requires limited decision making
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NEW-Task buy
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A new business to business purchase that is complex or risky and that requires extensive decisions
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The buying center
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The group of people within an organization who participate in a purchasing decision
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Gatekeeper
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The person who controls the flow of information to other members
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Influencer
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Affects the buying decision by dispensing advice or sharing expertise
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The Business buying decision process
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Product specifications
Reciprocity |
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Product specifications
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A written description of the quality, size, weight, and so forth required of a product purchase
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Reciprocity
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A trading partnership in which two firms agree to buy from one another
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Steps in the Business buying process (5)
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Problem recognition
Information search Evaluation of alternatives Product and supplier selection Post purchase evaluation |
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Five emerging business models in offshore outsourcing
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Global delivery
Hybrid Build-operate-transfer Global shared services Multisourcing BASED on the dimensions of geographic location and ownership structure |
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KNOW about outsourcing
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By 2015, as many as 3.3 million US jobs and $ 136 billion could be moved to india, china, and Russia
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Know these concerns with outsourcing
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- high skills wage slide
-companies take all -a blow to GDP growth NOTE: decreased productivity is NOT one |
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Aware
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World sourcing more value creation, outsourcing is lower cost
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B2B eCommerce
Intranet |
An internal computer network that uses internet technology to link company departments, employees, and databases
Icampus |
