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