MKT 201 Chapter 6

New Task

business buying situation in which the buyer purchases a product or service for the first time

Straight Rebuy

business buying situation in which the buyer routinely records something without modifications

Modified Rebuy

business buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers

Derived Demand

business demand that ultimately comes from (derives from) the demand for consumer goods

System Selling (solutions selling)

buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation

Business Buyer Behavior

buying behavior of organizations that buy goods and services that are sold, rented, or supplied to others

Business Buying Process

decision process by which business buyers determine which products and services their organizations need to purchased then find, evaluate, and choose among alternative suppliers and brands

Problem Recognition

first stage in the business buying process in which someone in the company recognizes a problem or need that can be met by acquiring a good or a service

Government Market

government units - federal, state, and local - that purchase or rent goods and services for carrying out the main functions of government

Users

members of the buying organization who will actually use the purchased product or service

Gatekeepers

people in an organization's buying center who control the flow of information to others

Deciders

people in an organization's buying center who have formal or informal power to select or approve the final suppliers

Buyers

people in an organization's buying center who make an actual purchase

Influencers

people in the organization's buying center who affect the buying decision; they often help define specifications and also provide information for evaluating alternatives

E-procurement

purchasing through electronic connections between buyers and sellers (usually online)

Institutional Market

schools, hospitals, nursing homes, prisons, and other institutions that provide goods and services to people in their care

General Need Description

stage in the business buying process in which a buyer describes the general characteristics and quantity of a needed item

Performance Review

stage in the business buying process in which the buyer assesses the performance of the supplier and decides to continue, modify, or drop the arrangement

Proposal Solicitation

stage in the business buying process in which the buyer invites qualified suppliers to submit proposals

Supplier Search

stage in the business buying process in which the buyer tries to find the best vendors

Supplier Selection

stage of the business buying process in which the buyer reviews proposals and selects a supplier or suppliers

Order-Routine Specification

stage of the business buying process in which the buyer writes the final order with the chosen supplier(s), listing the technical specifications, quantity needed, expected time of delivery, return policies, and warranties

Product Specification

stage of the business buying process in which the buying organization decides on and specifies the best technical product characteristics for a needed item

Major Influences on Business Buyers

-Environmental -Organizational -Interpersonal -Individual

Individual Influencers

-age/education -job position -motives -personality -buying style

Environmental Influencers

-economy -supply conditions -technology -politics/regulaiton -competition -culture and customs

Interpersonal Influencers

-influence -expertise -authority -dynamics

Organizational Influencers

-objectives -strategies -structure -systems -procedures

The Business Buying Decision Process

1. Problem Recognition 2. General Need Description 3. Product Specification 4. Supplier Search 5. Proposal Solicitation 6. Supplier Selection 7. Order-Routine Specification 8. Performance Review

Buying Center

all the individuals and units that play a role in the purchase decision-making process

Supplier Development

systematic development of networks of supplier-partners to ensure an appropriate and dependable supply supply of products and materials for use in making products or reselling them to others

B-to-B Digital and Social Media Marketing

using digital and social media marketing approaches to engage business customers and manage customer relationships anywhere, anytime