Marketing 5: Organizational buying – Flashcards
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business marketing
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the marketing of products and services to firms, governments, or NFP organizations
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organizational buyers
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manufacturers, wholesalers, retailers, and government agencies that buy products and services for their own use or resale
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3 markets in organizational buying
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1. industrial 2. reseller 3. government
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industrial firms
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those firms who reprocess a product or service they buy before selling it again to the next buyer
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resellers
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wholesalers and retailers that buy physical products and resell them again without any reprocessing
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government units
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the federal, state, and local agencies that buy products and services for the constituents they serve
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NAICS
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north american industry classification system - provides common industry definitions for Canada, Mexico, and US
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derived demand
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the demand for industrial products and services is driven by demand for consumer products and services
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organizational buying criteria
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the objective attributes of the supplier's products and services and the capabilities of the supplier itself
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supplier development
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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
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reciprocity
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industrial buying practice in which two organizations agree to purchase each others product's and services
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supply partnership
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exists 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
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sustainable procurement
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"green" organizational buying
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organizational buying behavior
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the process by which organizations determine the need for products and then choose among alternative suppliers
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5 stages of (organizational) buying
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1. problem recognition 2. information search 3. alternative evaluation 4. purchase decision 5. postpurchase behavior
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buying center
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the group of people in an organization that participates in the buying process
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buying committee
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highly formalized buying center
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5 roles in the buying center
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1. users 2. influencers 3. buyers 4. deciders 5. gatekeepers
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buy classes
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1. new buy 2. straight rebuy 3. modified rebuy
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new buy
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an organization is the first time buyer of the product or service
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straight rebuy
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office supplies/maintenance are examples
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modified rebuy
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the buying organization wants to change product specifications, price, delivery schedule, or supplier
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e-marketplace
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online trading communities that bring together buyers and supplier organizations
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traditional auction
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occurs when a seller puts an item up for sale and would-be buyers bid in competition with each other
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reverse auction
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occurs when a buyer communicates a need for something and would-be suppliers bid in competition with each other
