Selling: Building Partnerships

Front 1

a buyer who will always allocate only a share to each vendor, never giving one vendor all of the business

Back 1

always-a-share

Front 2

the amount that is spent on each vendor and for what products

Back 2

annual spend

Front 3

a form on just-in-time inventory management where the vendor manages the customer's inventory, and automatically ships and stocks products at the customer's location based on mutually agreed-upon standards

Back 3

automatic replenishment (AR)

Front 4

informal, cross-department group of people involved in a purchase decision

Back 4

buying center

Front 5

major purchases made by a business, such as computer systems, that are used by the business for several years in its operations or production process

Back 5

capital equipment

Front 6

puchase decision process that arises when decisions made early in the process have significant influence on decisions made later in the process

Back 6

creeping commitment

Front 7

buying center members who make the final selection of the product to purchase

Back 7

deciders

Front 8

situation in which the demand for a producer's goods is based on what its customers sell

Back 8

derived demand

Front 9

distribution system that drives inventory to the lowest possible levels, increases the frequency of shipping, and automates ordering and inventory control processes without the problems of stockout and higher costs

Back 9

efficient consumer response

Front 10

computer-to-computer linkages between suppliers and buyers for information sharing about sales, production, shipment, and receipt of products

Back 10

electronic data interchange

Front 11

organizational and/or personal needs that are associated with some type of personal reward and gratification for the person buying the product

Back 11

emotional needs

Front 12

businesses that purchase goods and services to support their own production and operations

Back 12

end users

Front 13

buying center members who influence the buying process by controlling the flow of information and/or limiting the alternatives considered

Back 13

gatekeepers

Front 14

buying center members inside or outside an organization who directly or indirectly influence the buying process

Back 14

influencers

Front 15

the person who starts the buying process

Back 15

initiators

Front 16

planning system for reducing inventory by having frequent deliveries planned just in time for the delivered products to be assembled into the final product

Back 16

just-in-time (JIT) inventory control

Front 17

method for determining the cost of equipment or supplies over their useful life

Back 17

life-cycle costing

Front 18

a buyer who gives all business to one vendor is considered this for all of the out-suppliers, because the buyer has cemented this relationship for a long period of time

Back 18

lost-for-good

Front 19

planning system for reducing inventory levels by forecasting sales, developing a production schedule, and ordering parts and raw materials with specific delivery dates

Back 19

material requirements planning (MRP)

Front 20

purchase decision process associated with a customer who has purchased the product or service in the past but is interested in obtaining additional information

Back 20

modified rebuy

Front 21

minor purchases made by businesses for maintenance and repairs such as towels and pencils

Back 21

MRO supplies

Front 22

purchase decision process associated with the initial purchase of a product or service

Back 22

new task

Front 23

business that purchases goods (components, subassemblies, raw and processed materials) to incorporate into products it manufactures

Back 23

original equipment manufacturer (OEM)

Front 24

firm that buys goods and services to manufacture and sell other goods and services to its customers

Back 24

producers

Front 25

the net profit the reseller makes, expressed as a percentage of sales

Back 25

profit margin

Front 26

system of minimizing order quantities to the lowest level possible while increasing the speed of delivery to drive inventory turnover; accomplished by prepackaging certain combinations of products

Back 26

quick-response system

Front 27

organizational and/or personal needs that are directly related to product performance

Back 27

rational needs

Front 28

businesses, typically distributors or retailers, that purchase products for resale

Back 28

resellers

Front 29

an auction but instead of a seller offering a product and buyers bidding, a buyer offers a contract and sellers bid; prices fall as sellers compete with the sale

Back 29

reverse auctions

Front 30

end-user purchases such as internet and television connections, employment agencies, consultant, and transportation

Back 30

services

Front 31

purchase decision process involving a customer with considerable knowledge gained from having purchased the product or service a number of times

Back 31

supplier relationship management (SRM)

Front 32

the use of technology and statistics to identify important suppliers and opportunities for cost reduction, greater efficiency, and other benefits

Back 32

supplier relationship management (SRM)

Front 33

set of programs undertaken to increase the efficiency of the distribution system that moves products from the producer's facilities to the end user

Back 33

supply chain management (SCM)

Front 34

an account is given to another salesperson because the buyer refuses to deal with the current salesperson

Back 34

turnover

Front 35

members of a buying center that ultimately will use the product purchased

Back 35

users

Front 36

problem-solving approach for reducing the cost of a product while providing the same level of performance

Back 36

value analysis

Front 37

a formal method used by organizational buyers to summarize the benefits and needs satisfied by a supplier

Back 37

vendor analysis

Front 38

commitment of a buyer to a specific supplier because of the supplier's performance

Back 38

vendor loyalty