MKTG Ch.7: Business to Business Marketing – Flashcards

refers to the process of buying and selling goods or services to be used in the production of other goods and services, for consumption of the buying organization and/or resale by wholesalers and retailers

reflects the link between consumers demand for a company's output and the company's purchase of necessary inputs to manufacture or assemble that particular output

(1) Manufacturers/Service Providers (2) Resellers (3) Institutions (4) Government

Manufacturers buy raw materials, components, and parts that allow them to make and market their own goods and ancillary services

marketing intermediaries that resell manufactured products with out significantly altering their from Ex: Wholesalers, distributors, and retailers

Hospitals, educational organizations, and religious organizations, also purchase all kinds of goods and services

the central government in most countries is one of the largest purchasers of goods and services - child support enforcement programs for state and local government agencies

- aligns with a B2C buyer decision process, but is different in many ways due to its need for formality (1) Need Recognition (2) Product Specification (3) RFP Process (4) Proposal Analysis, Vendor Negotiation, and Selection (5) Order Specification (6) Vendor Performance Assessment Using Metrics

the buying organization recognizes, through either internal or external sources, that it has an unfilled need

after recognizing the need and considering alternative solutions, including laptop computers, the school district wrote a list of potential specifications that vendors might use to develop their proposals

common process through which organizations invite alternative vendors or suppliers to bid on supplying their required components or specifications web portal: an internet site whose purpose is to be a major starting point for users when they connect to the web - can provide tremendous cost saving

the buying organization, in conjunction with its critical decision makers, evaluates all the proposals it receives in response to its RFP - Evaluates vendors on the amount of experience they have with the specific product required in the RFP

firm places its order with its preferred supplier (or suppliers) - lays out the specifics of the order

firms analyze their vendor's performance so they can make decisions about their future purchases - analysis is typically more formal and objective

participants can range from employees who have a formal role in purchasing decisions to members of the design team that is specifying the particular equipment or raw material needed to employees who will be using a new machine that is being ordered (1) Initiator: the person who first suggests buying the particular product or service Ex: A doctor (2) Influencer: the person whose views influence other members of the buying center in making the final decision Ex: The Medical Device supplier/Pharmacy (3) decider: the person who ultimately determines any part of the entire buying decision - whether to buy, what to buy, how to buy, where to buy Ex: The Hospital (4) buyer: the person who handles the paperwork of the actual purchase Ex: Hospital's Manager (5) user: the person who consumes or uses the product or service Ex: The Patient (6) gatekeeper: the person who controls information or access, or both, to decision makers and influencers Ex: Insurance Company

reflects the set of values, traditions, and customs that guide its employees' behavior - can have a profound influence on an organization's buying decision (1) autocratic: one person makes the decision alone (2) democratic: majority rules (3) consultative: one person makes the decision, but solicit input from others before doing so (4) consensus: all members of a team must reach a collective agreement that they can support a particular purchase

Three different types: (1) new buys: a customer purchases a good or service for the first time, which means the buying decision is likely to be quite involved because the buyer or the buying organization does not have any experience with the item (2) modified rebuy: the buyer has purchased a similar product in the past but has decided to change some specifications, such as the desired price, quality level, customer service level, options, or so forth (3) straight rebuys: occur when the buyer or buying organization simply buys additional units of products that had previously been purchased