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Flashcards in Test 2 Deck (14):
1

A business derives its demand for a product form a consumers demand for a finished good consumer demand.

Derived Demand

2

what is the key factor in determining which type of market is underway?

"Who is the end user?"

3

what are three types of B2B markets?

1. resellers
2. institution
3. government
4. Manufacturers/Service Providers

4

-purchase the product from the manufacturer.

reseller

5

Which type of B2B market is considered to be the risk takers?

resellers

6

when a business is buying a product, it becomes a _____________.

B2B product

7

What makes someone a risk taker?

Because they own the product for a period of time before distribution.
-They do not alter the product they just purchase it, mark up the price and sell it again.

8

What are institutions?

Nonprofit, schools, museums, churches (religious organizations)
ex: USC buying light fixtures for classrooms

9

What does the government buy?

Military and national defense

10

>US Government spends $2.1 trillion procuring goods
>State and local governments also make significant purchases
>What dose the government buy? Ex: Military and national defense >Firms specialize in selling to government
>The government has to buy in a certain process. They MUST buy by bid. They post them online.

government

11

>Buy raw materials components, or parts
Ex: Car manufactures buy all the components and transform it into cars (the finish good)
>Manufacture their own goods
Sales people: large role in B2B marketing.
Ex: Trade shows

manufacturers/service providers

12

How does the B2B buying process differ from B2C?

1. More steps involved
2. More formal and structured
3. Items are bought in larger quantities
4. Uses a buying center
5. Use a formal performance evaluation
6. The vendors are often concentrated in a local geographical area.

13

Participants are people responsible for the buying decisions.

buying center

14

What are the steps of B2B buying process?

1. Need Recognition
2. Product Specificiation
3. RFP Process
4. Proposal Analysis, Vendor Negotiation, and Selection
5. Firm places the order
6. Vendor Performance Assessment Using Metrics