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RIT POM CH 7

TermDefinition
Business Marketing Marketing of goods and services for purposes other than personal use
Intended Use Distinguishes B-to-B from consumer marketing
Relationship Marketing (Commitment) A company does everything it can to maintain a business contract with a company
North American Industry Classification System (NAICS) Numbering system used to classify business establishments by their main production process
Derived Demand Demand for business products
Strategic Alliance A cooperative alliance between business firms
Buying Center All the people in a business that get involved in a purchase decision
Major Types of B-to-B customers •Producers <br> •Resellers <br> •Governments <br> •Institutions <br>
Producers Use purchased goods to produce other goods
Resellers Retail business that sells finished goods
Governments organizations that accept bids from other companies for contracts
Institutions Non-Business organizations that seek to achieve goals other than standard business goals. Ex: Schools, Hospitals, Churches
Original Equipment Manufacturers (OEM) Individuals and organizations that buy business goods and incorporate them into their products
Differences Between consumer and business markets •Bus demand is derived, inelastic, joint, and fluctuating<br> •Bus buy large quantities<br> •Bus markets have less customers<br> •Bus have professionally trained purchasing agents<br> •Bus use more than one person in a purchasing dec<br>
Created by: thecrew
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