Marketing the Core 4/e chapter 6

business marketing
the marketing of products and services to firms, governments, or not-for-profit organizations
organizational buyers
manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use or for resale
industrial firms
in some way reprocess a product or service they buy before selling it again to the next buyer
resellers
wholesalers/retailers that buy physical products and resell them again without any reprocessing
government units
the federal, state and local agencies that buy goods and services for the constituents they serve
North American Industry Classification System (NAICS)
Provides common industry definitions for Canada, Mexico, and the US
derived demand
the demand for industrial products/services is driven by (derived from) demand for consumer products/services
Organizational buying criteria
the objective attributes of the suppliers products and services an the capabilities of the supplier itself
supplier development
involves the deliberate effort by organizational buyers to build relationships that shape suppliers’ products, services, and capabilities to fit a buyer’s needs and those of its customers
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/services delivered to the ultimate consumer
sustainable procurement
aims to integrate environmental considerations into all stages of an organization’s buying process with the goal of reducing the impact on human health and the physical environment
organizational buying behavior
the process by which organizations determine the need for goods and then choose among alternative suppliers
buying center
the group of people in an organization who participates in the buying process
buying committee
individuals in the buying center whom share common goals, risks, and knowledge important to purchase decisions
buy classes
3 types of organizational buying situations
new buy
completely new purchase
straight rebuy
routine reorder
modified rebuy
product changes in specifications, price, delivery schedule
e-marketplaces
online trading communities that bring together buyers and supplier organizations
traditional auction
occurs when a seller puts an item up for sale and would be buyers bid in competition with each other
reverse auction
occurs when a buyer communicates a need for something and a would-be supplier bid in competition with each other