Marketing 11th Edition Chapter 6

Business Marketing
the marketing of goods and services to companies, governments, or not-for-profit organizations for use in the creation of goods and services that they can produce and market to others
Organizational Buyers
those manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use or for resale
North American Industry Classification System (NAICS)
Provides common industry definitions for Canada, Mexico, and the United States, which makes it easier to measure economic activity in the three memeber countries of the North American Free Trade Agreement (NAFTA)
Derived Demand
the demand for industrial products and services is driven by demand for consumer products and services. ex: demand for pulp and paper products is based on consumer demand for newspapers.
Organized Buying Criteria
the objective attributes of the supplier’s products and services and capabilities of the suppliers itself
ISO 9000
standards for registration and certification of a manufacturer’s quality management and assurance system based on an on-site audit of practices and procedures.
Supplier Development
The deliberate effort by organizational buyers to built relationships that shape suppliers’ products, services, and capabilities to fit a buyer’s needs and those of its customers
Reciprocity
an industrial buying practice in which two organizations agree to purchase each other’s products and services
Supply Partnership
when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of lowering the cost or increasing the value of products and services delivered to the ultimate consumer
Buying Center
All those people in an organization who become involved in the purchase decision
Buy Classes
Three types of buying situations.
1. new buy- organization is a first time buyer
2. Straight Re-buy- reorders an existing product or service from the list of acceptable buyers
3. Modified Rebuy- want to change the product specifications: prices, delivery, schedule, or supplier
Organizational Buying Behavior
the decision process that organizations use to esablish the need for products and services and identify, evaluate, and choose among alternative brands and suppliers.
Make-Buy Decision
An evaluation of whether components and assemblies will be purchased or built by the company itself.
Value Analysis
A systematic appraisal of the design, quality, and performance of a product ot reduce purchasing costs.
Bidders List
a list of firms believed to be qualified to supply a given item
E-Marketplaces
online trading communities
Traditional Auction
a seller puts an item up for sale and buyers are invited to bid in competition with each other. In a traditional auction there is one seller, many buyers, and the price gets larger
Reverse Auction
a buyer communicates a need for product or service and would be suppliers are invited to bid in competition with each other. there are many sellers, one buyer, and the price lowers for the buyer