marketing ch.6

Question 1

Business Marketing

Answer 1

marketing of stuff to companies/organizations/government

Question 2

Organizational Buyers

Answer 2

Manufacturers, wholesalers, retailers and govt agencies who buy/sell for own use or resale

Question 3

3 Organizational Buyer Markets

Answer 3

industrial, reseller, govt

Question 4

industrial markets

Answer 4

reprocesses a product before selling it

Question 5

reseller markets

Answer 5

wholesalers/retailers who buy physical products and resell without reprocessing

Question 6

Government Markets

Answer 6

government agencies that buy goods/services for the constituents they serve

Question 7

NAICS (North American Industry Classifciation System)

Answer 7

measures markets. Provides definitions. Designates with numerical codes

Question 8

Derived Demand

Answer 8

demand for industrial products and services is derived from demand for consumer products and services

Question 9

Size of organizational buy orders

Answer 9

size is larger –> more money at stak –> constraints and competitive bids

Question 10

Number of potential buyers

Answer 10

firms selling to organizations restricted to fewer buyers. ex.jets

Question 11

Organizational Buying Objectives for business firms

Answer 11

icnrease profits through reducing costs/ increasing revenue

Question 12

Organizational buying objectives for governmnet

Answer 12

usually to meet needs of groups they serve

Question 13

Organizational Buying Criteria

Answer 13

objective attributes of the suppliers products and services as well as capibilities of supplier itself

Question 14

ISO 9000

Answer 14

standards developed by international standards organization for registration/certification of quality mangment and assurance system

Question 15

Supplier development

Answer 15

effort by org. buyers to build relationships that shape suppliers products/services/capabilities to fit buyers needs

Question 16

JIT Manufacturing

Answer 16

reduces the inventory of production part to those to be used within hours or dats

Question 17

Reciprocity

Answer 17

• industrial buying practice where organizations agree to by each other’s good. Legal, but Justice Department disapproves

Question 18

Supply Partnership

Answer 18

• when a buyer and its supplier adopt mutually beneficial objectives, policies and procedures to lower costs or increase value of products.

Question 19

Buying Center

Answer 19

• several people in an organization sharing common goals, risk and knowledge important to purchase decisions.

Question 20

Roles in the Buying Center

Answer 20

Users, influencers, buyers, deciders, gatekeepers

Question 21

Users-

Answer 21

people in the organization who use product

Question 22

Influencers

Answer 22

Influencers- affect buying decisions usually by helping to define specifications

Question 23

Buyers

Answer 23

Buyers- have the formal authority to choose suppliers, negotiate contract

Question 24

DEciders

Answer 24

Deciders formal/informal power to select/approve supplier that receives

Question 25

Gatekeepers

Answer 25

Gatekeepers- control flow of info.

Question 26

buy classes

Answer 26

Buy Classes- three types of buying situations

Question 27

New Buy

Answer 27

New Buy- first time buyer of product/service. Greater risk involved. Buying center therefore enlarged to include all who have stake in new buy

Question 28

Straight reBuy

Answer 28

Straight Rebuy - reordering an existing product/service from list of acceptable suppliers. Small buying center (ex. Office supplies)

Question 29

Modified Rebuy

Answer 29

Modified Rebuy- users/influencers/deciders want to change the product/specs/delivery/supplier. Item purchased largely the same. Larger buying center

Question 30

Organizational buying behavior

Answer 30

- decision making process that orgs use to establish need for products/services and to choose among brands/suppliers

Question 31

Stages in Organizational Buying Process

Answer 31

Stages in Organizational Buying Process- very similar to consumers, but more people, bigger, more formal

Question 32

Make-buy decision

Answer 32

whether components are purchased or produced internally

Question 33

Value Analysis

Answer 33

systematic appraisal of design, quality and performance of a product to reduce purchasing cost.

Question 34

Bidder's list

Answer 34

list of firms qualified to supply. Generated from databank and engineering inputs

Question 35

Post purchase Behavior

Answer 35

supplier performance is monitored, Items examined formally (product acceptance process)

Question 36

Traditional Auction

Answer 36

Seller puts an item up for sale. Buyers invited to bid. | More buyers=more upward pressure on prices

Question 37

Reverse auction

Answer 37

Buyer communicates need. Suppliers make offers Downward pressure on bid prices