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Marketing Ch_6
Business-to-Business (B2B) Marketing
| Question | Answer |
|---|---|
| Business to Business Marketing | organizational sales and purchases of goods and services to support production of other products, to facilitate daily company operations, or for resale |
| Products in B2B | Relatively technical in nature; exact form often variable; accompanying services very important |
| Promotion in B2B | Emphasis on personal selling |
| Distribution in B2B | Relatively short, direct channels to market |
| Customer Relations in B2B | Relatively enduring and more complex |
| Decision-making Process in B2B | Diverse group of organization members makes decision |
| Price in B2B | Competitive bidding for unique items; list prices for standard items |
| Commercial Market | Individuals and firms that acquire products to support, directly or indirectly, production of other goods and services |
| Trade Industries | Retailers or wholesalers that purchase products for resale to others |
| Reseller | Marketing intermediaries that operate in the trade sector |
| Customer-based Segmentation | Dividing a business-to-business market into homogeneous groups based on buyers' product specifications |
| North American Industry Classification System (NAICS) | Classification used by NAFTA countries to categorize the business marketplace into detailed market segments |
| End-use application segmentation | segmenting a business-to-business market based on how industrial purchasers will use the product |
| Charecteristics of the B2B Market | (1)geographic market concentration (2)the sizes and number of buyers (3)the purchase decision process (4) buyer-seller relationships |
| Global Sourcing | Purchasing goods and services from suppliers worldwide |
| Derived Demand | refers to the linkage between demand for a company's output and its purchases of resources such as machinery, components, supplies and raw materials |
| Joint Demand | results when the demand for one business product is related to the demand for another business product used in combination with the first item |
| Inelastic Demand | means that demand through an industry will not change significantly due to a price change |
| Just in Time | Inventory policies seek to boost efficiency by cutting inventories to absolute minimum levels and by requiring vendors to deliver inputs as the production process needs them |
| Sole Sourcing | buying a firm's entire stock of a product from just one supplier |
| Offshoring | Movement of high-wage jobs from one country to lower-cost overseas locations |
| Nearshoring | Moving jobs to countries close to the businesses home country |
| Outsourcing | Using outside vendors to provide goods and services formerly produced in-house. |
| Influences on Purchase Decisions in B2B | Environmental factors, Organizational factors, Interpersonal Factors, and the role of the Professional Buyer. |
| Multiple Sourcing | Purchasing from several vendors |
| Merchandisers | Professional buyers who secure needed products at the best possible prices |
| Systems Integration | Centralization of the procurement function |
| category adviser | The vendor responsible for dealing with all of the suppliers for a project and for presenting the entire package to the buyer |
| Stage 1: Model of the Organizational Buying Process | Anticipate or recognize a problem/need/opportunity and general solution |
| Stage 2: Model of the Organizational Buying Process | Determine the characteristics and quantity of a needed good or service |
| Stage 3: Model of the Organizational Buying Process | Describe Characteristics and the quantity of a needed good or service |
| Stage 4: Model of the Organizational Buying Process | Search for and Qualify Potential Sources |
| Stage 5: Model of the Organizational Buying Process | Acquire and Analyze Proposals |
| Stage 6: Model of the Organizational Buying Process | Evaluate Proposals and Select Suppliers |
| Stage 7: Model of the Organizational Buying Process | Select an Order Routine |
| Stage 8: Model of the Organizational Buying Process | Obtain Feedback and Evaluate Performance |
| Straight Rebuy | a recurring purchase decision in which a customer reorders a product that has satisfied needs in the past |
| Modified Rebuy | a purchaser is willing to reevaluate available options. Buyers may see some advantage in looking at alternative offerings within their established purchasing guidelines |
| New-task Rebuy | first-time or unique purchase situations that require considerable effort by the decision makers |
| Reciprocity | a practice of buying from suppliers who are also customers |
| Value analysis | examines each component of a purchase in an attempt to either delete the item or replace it with a more cost-effective substitute |
| Vendor Analysis | carries out an ongoing evaluation of a supplier's performance in categories such as price, EDI capability, back orders, delivery times, liability insurances, and attention to special requests |
| Buying center | participants in an organizational buying action |
| USers | people who will actually use the good or service |
| Gatekeepres | control the information that all buying center members will review |
| Influencers | affect the buying decisions by supplying information to guide evaluation of alternatives or by setting buying specifications |
| Decider | chooses a good or service, although another person may have the formal authority to do so. |
| Buyer | has the formal authority to select a supplier and to implement the procedures for securing the good or service |
| remanufacturing | efforts to restore worn-out products to like-new condition -- can be an important marketing strategy in a nation that cannot afford to buy new products |
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