chapter 3

Question 1

who are B2B customers

Answer 1

producers, resellers, government agencies, institutions

Question 2

1 producers

Answer 2

buy products and services to manufacture their products or services.

Question 3

2 types of producer buyers

Answer 3

OEM and end users

Question 4

OEM

Answer 4

buyers that purchase goods to use in making their products

raw materials, components, processed materials

Question 5

End Users

Answer 5

buying goods and services to support their own production- not sued in manufacturing their own products
(MRO-Maintenance, repair, and overhaul) paper towels, replacement parts, internet, telephone

Question 6

End user buying situations

Answer 6

capital equipment- major purchases, lifetime operating cost
MRO- cost is low, availability can be critical
Services- internet, telephone, transportation, purchased in a manner similar to capital equipment

Question 7

2 Resellers

Answer 7

buy finished products with the intention to sell them to businesses and consumers

Question 8

what do resellers want?

Answer 8

to maximize ROI

Question 9

3 Government agencies

Answer 9

largest customer for goods and services. need thorough knowledge of the procedures and rules
typically sell to lowest bidders

Question 10

4 Institutions

Answer 10

public and private (churches, schools, hospitals) often have rigid rules/ procedures

Question 11

B2B vs B2C

Answer 11

in B2B there are purchasing gents, buying center, extensive evaluation and negotiations, demand is derived

Question 12

Buying center includes

Answer 12

gatekeeper, purchasing agent, influences, decider, initiator, users

Question 13

types of buying decisions

Answer 13

new buy, modified rebuy, straight rebuy

Question 14

new buy

Answer 14

many people involved, info needed, executive decision makers, long time to decide

Question 15

modified rebuy

Answer 15

few people involved, medium time to decide, info needed, purchasing agent decides

Question 16

straight rebuy

Answer 16

one person involved, little info needed, short time decide, purchasing agent decides

Question 17

derived demand

Answer 17

purchases made by business customers ultimately depend on the demand for the products
(housing market is effected by wood)

Question 18

steps in org buying process

Answer 18

1. recognition of a need
2. definition of the product type needed
3. develpment of detailed specifications
4. search for qualified suppliers
5. acquisition and analysis of proposals
6. evaluation of proposal and selection of a supplier
   7 placing and receiving order
7. evaluation of product performance

Question 19

life cycle costing

Answer 19

method for determining the cost of equipment or supplies over the useful lives proves that a product with higher initial cost will have a lower overall cost

Question 20

value analysis

Answer 20

suppliers and customers work together to reduce cost and sill provide the required level of performance

Question 21

supply chain management (SCM)

Answer 21

A strategy of managing inventory while containing cost. production , supply, inventory, location, transportation, information

Question 22

just in time (JIT)

Answer 22

minimizes the inventory by having frequent deliveries just in time for assembly into the final product

Question 23

material requirement planning system is used for

Answer 23

forecasting sales
developing a production schedule
ordering parts and raw materials with delivery dates

Question 24

SRM- supplier relationship management

Answer 24

strategy where orgs buyers evaluate the relative importance of suppliers and users that determine with who they want to develop partnership with

Question 25

SRM

Answer 25

Annual spend: Amount that is spent with each vendor and for what products
Vendor analysis: Summarizes the benefits and needs satisfied by a supplier
Buyer rates the supplier and its products on following criteria
Price, quality, performance, and on-time delivery

sustainability

Question 26

product evaluation and choice

Answer 26

performance evaluation of characteristics
importance weights
overall evaluation
value offered
supplier selection
(in class car example)

Question 27

Assigned value equation

Answer 27

evaluation/ cost = benefit/cost

Question 28

sales approach

Answer 28

pre approach, approach, needs discovery, sales management, overcoming objectives, confirm commitment, service and followup

Question 29

T.E.D.I

Answer 29

tell me about
explain to me
describe for me
if you could change one thing

Question 30

S..P.I.N

Answer 30

situation, problem, implications, needs payoff

Question 31

overcoming objectives (ROC)

Answer 31

repeat for clarity
overcome the objection
confirm that you’ve answered/ overcome their concerns

Question 32

MRP material requirement planning

Answer 32

forecast sales
develop a production schedule
order parts and raw materials with specific delivery dates

Question 33

Automatic replenshiment

Answer 33

Form of JIT where the supplier manages inventory levels for the customer

Question 34

electronic data interchange

Answer 34

Computer systems that share data across companies
Material requirements planning:
Used to:
Forecast sales
Develop a production schedule
Order parts and raw materials with delivery dates