Ch 6. Business-to-Business (B2B) Marketing

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Business-to-business marketing
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Organizational sales and purchases of goods and services to support production of other products, to facilitate daily company operations, or for resale.
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Commercial Market
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Individuals and first that acquire products to support, directly or indirectly, production of other goods and services.
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Trade Industries
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Retailers or wholesalers that purchase products for resale to others.
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Resellers
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marketing intermediaries that operate in the trade sector.
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Customer-based segmentation
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Dividing a business-to-business market into homogeneous groups based on buyer’s product specifications.
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North American Industry Classification System (NAICS)
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Classification used by FAFTA countries to categorize the business marketplace into detailed market segments.
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End-use Application Segmentation
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Segmenting a business-to-business market based on how industrial purchasers will use the product
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Customer relationship Mangement (CRM)
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Combination of strategies and tools that drives relationship programs, reorienting the entire organization to a concentrated forces on satisfying customers.
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Global Sourcing
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Purchasing goods and services from suppliers worldwide.
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Derived Demand
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Demand for a resource that results from demand for the goods and services produced by that resource.
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Joint Demand
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Demand for aproduct that depends on the demand for another product used in combination with it.
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Inelastic Demand
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Demand that, throughout an industry, will not change significantly due to a price change.
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Just-in-time (JIT)/ JIT II
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Inventory practices that seek to boost efficiency by cutting inventories to absolute minimum levels.
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Sole sourcing
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Purchasing a firm’s entire stock of an item from just one vendor.
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Offshoring
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movement of high-wage jobs from one country to lower-cost overseas locations.
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Nearshoring
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Moving jobs to vendors in countries close to the business’s home country.
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outsourcing
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Using outside vendors to provide goods and services formerly produced in-house.
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Multiple Sourcing
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purchasing from several vendors
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Merchandisers
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Trade sector buyers who secure needed products at the best possible prices.
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Systems Integration
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Centralization of the procurement function within an internal division or as a service of an external supplier.
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Category Advisor (Category Captain)
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Trade industry vendor who develops a comprehensive procurement plan for a retail buyer.
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Straight Rebuy
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Recurring purchase decision in which a customer repurchases a good or service that has performed satisfactorily in the past.
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Modified Rebuy
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Situation in which a purchaser is willing to reevaluate available options for repurchasing a good or service
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New-task Buying
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First-time or unique purchase situation that requires considerable effort by decsion makers.
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Reciprocity
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Buying from suppliers who are also customers
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Value analysis
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Systematic study of the components of a purchase to determine the most cost-effective approach
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Vendor analysis
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Assessment of supplier performance such as price, back orders, timely delivery, and attention to special requests
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Buying Center
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Participants in a n organizational buying decision
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User
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Individual or group that actually uses a business good or service
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Gatekeeper
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Person who controls the information that all buying center members will review.
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Influencer
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Typically, technical staff such as engineers who affect the buying decision by supplying information to guide evaluation of alternatives or by setting buying specifications.
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Decider
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Person who chooses a good or service although another person may have the formal authority to complete the sale.
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Buyer
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Person who has the formal authority to select a supplier and to implement the procedures for securing a good or service.
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Remanufacturing
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Efforts to restore older products to like-new condition.

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