Chapter 4: Business, Government, and Institutional Buying Flashcards Preview

Marketing 5410: Marketing Management > Chapter 4: Business, Government, and Institutional Buying > Flashcards

Flashcards in Chapter 4: Business, Government, and Institutional Buying Deck (14):
1

Business-to-Business (B2B) Marketing

Marketing products and services to producers, intermediaries, government agencies, and other institutions rather than to consumers.

2

Buyers

In buying centers, the persons who have formal authority and responsibility to select the supplier and negotiate the terms of the contract.

3

Buying Center

An organizational group formed from different departments which has the responsibility to evaluate and select products for purchase. Different members of the group may play different roles in the process.

4

Deciders

In a buying center, individuals who have the formal and informal power to select or approve the supplier that receives the contract. For routinely purchased products, the decider is likely to be the buyer but for more complex products, the decider could come from R&D, engineering, or quality control.

5

Gatekeepers

The people who control the flow of information to a buying center.

6

Influencers

In buying centers, the people who affect the buying decision usually by helping define the specifications for what is needed.

7

Initiators

In buying centers, the people who start the buying process by recognizing a need or a problem in the organization.

8

Modified Rebuy

A type of organizational purchase that involves the consideration of a limited number of alternatives before making a selection.

9

NAICS

The North American Industry Classification System which provides information about the number of establishments, sales volume, and number of employees in each industry broken down by geographic area.

10

New Task Purchase

A type of organizational purchase that involves an extensive search for information and a formal decision process.

11

Sole Sourcing

Organizational purchasing in which all of a type of product are obtained form a single supplier.

12

Straight Rebuy

A type of organizational purchase that involves routinely reordering a product from the same supplier that it had been purchased from in the past.

13

Users

In a buying center, the people in the organization that actually use the product to be purchased.

14

Vendor Analysis

The process by which organizational buyers rate each potential supplier on various performance measures such as product quality, on-time delivery, price, payment terms, and use of modern technology.