Chapter 7: Business Marketing

business marketing (industrial marketing)
the marketing of goods and services to individuals and organizations for purposes other than personal consumption
business-to-business electronic commerce
the use of the internet to facilitate the exchange of goods, services, and information between organizations
stickiness
a measure of a Web site’s effectiveness; calculated by multiplying the frequency of visits by the duration of a visit by the number of pages viewed during each visit (site reach)
disintermediation
the elimination of intermediaries such as wholesalers or distributors from a marketing channel
reintermediation
the reintroduction of an intermediary between producers and users
strategic alliance (strategic partnership)
a cooperative agreement between business firms
relationship commitment
a firm’s belief that an ongoing relationship with another firm is so important that the relationship warrants maximum efforts at maintaining it indefinitely
trust
the condition that exists when one party has confidence in an exchange partner’s reliability and integrity
keiretsu
a network of interlocking corporate affiliates
original equipment manufacturers (OEMs)
individuals and organizations that buy business goods and incorporate them into the products they produce for eventual sale to other producers or to consumers
North American Industry Classification System (NAICS)
a detailed numbering system developed by the United States, Canada, and Mexico to classify North American business establishments by their main production processes
derived demand
the demand for business products
joint demand
the demand for two or more items used together in a final product
multiplier effect (accelerator principle)
phenomenon in which a small increase or decrease in consumer demand can produce a much larger change in demand for the facilities and equipment needed to make the consumer product
business-to-to business online exchange
an electronic trading floor that provides companies with integrated links to their customers and suppliers
reciprocity
a practice whereby business purchasers choose to buy from their own customers
major equipment (installations)
capital goods such as large or expensive machines, mainframe computers, blast furnaces, generators, airplanes, and buildings
accessory equipment
goods, such as portable tools and office equipment, that are less expensive and shorter-lived than major equipment
raw materials
unprocessed extractive or agricultural products, such as mineral ore, lumber, wheat, corn, fruits, vegetables, and fish
component parts
either finished items ready for assembly or products taht need very little processing before becoming part of some other product
processed materials
products used directly in manufacturing other products
processed materials
products used directly in manufacturing other products
supplies
consumable items that do not become part of the final product
supplies
consumable items that do not become part of the final product
business services
expense items that do not become part of a final product
buying center
all those people in an organization who become involved in the purchase decision
new buy
a situation requiring the purchase of a product for the first time
modified rebuy
a situation in which the purchaser wants some change in the original good or service
straight rebuy
a situation in which the purchaser reorders the same goods or services without looking for new information or investigating other suppliers