Chapter 7 B2B Marketing

Decider

chooses a good or service, although another person may have the formal authority to do so. Identity of decider is most difficult role for salespeople to pinpoint.

Gatekeepers

control information that all buying center members will review. Distribute printed product data or advertisements or decide which salespeople speak to which individual in the buying center.

Remanufacturing

efforts to restore worn-out products to like new condition.

New Task Buying

first-time or unique purchase situations that require considerable effort by decision makers.

Buyer

formal authority to select supplier and implement procedures for securing the good or service. Buyer surrenders this to more influential members of the organization.

Just in Time II JIT II

leads vendors to place representatives at the customer's facility to work as part of integrated, on-site customer-supplier team. Improves control flow of goods.

Derived Demand

linkage between demand for company's output and purchases of resources, such as machinery, components, supplies, and raw materials

Modified Rebuy

purchaser is willing to reevaluate available options.

Global Sourcing

purchasing goods and services from suppliers worldwide.

Straight Rebuy

recurring purchase decision in which a customer reorders a product that has satisfied its needs in the past

Buying Center

encompasses everyone involved in any aspect of its buying activity

Commercial Market

largest segment of business market. Includes all individuals and firms that acquire products to support, directly or indirectly, production of other goods and services.

Resellers

marketing intermediaries that operate in the trade sector

End-Use Application Segmentation

precise way in which business purchaser will use a product. End use may dictate unique specifications for performance, design, and price.

Influencers

affect buying decision by supplying information to guide evaluation of alternatives or setting buying specifications. Typically technical staff. Outside consultants.

Sole Sourcing

buying a firm's entire stock of a product from one suppliers

Vendor Analysis

carries out ongoing evaluation of supplier's performance in categories such as price, back orders, delivery times, liability insurance and attention to special requests. Use checklist to highlight vendors and potential vendors that do not satisfy purchaser's buying requirements.

North American Industry Classification System NAICS

classification used by NAFTA countries to categorize the business marketplace into detailed market segments.took over SIC

B2B Marketing

deals with organizational sales and purchases of goods and services to support production of other products, to facilitate daily company operations, or for resale

Joint Demand

demand for a product that depends on the demand for another product used in combination with it

Inelastic Demand

demand throughout an industry will not change significantly due to a price change

Value Analysis

examines each component of a purchase in attempt to either delete the item or replace it with more cost effective substitute

Trade Industry

includes retailers and wholesalers who operate in this sector. Most resale products or buyers may complete some processing or repackaging before selling the product. Buy products needed to operate business as well.

Offshoring

movement of high-cost jobs from one country to lower-cost overseas locations

Nearshoring

moving jobs to vendors in countries close to the business's home country

Users

people who will actually use the good or service. Influence the purchase decision may range from negligible to extremely important. Initiate actions by requesting products and develop product specifications.

Multiple Sourcing

purchasing from several vendors. Can take a lot of time, but good if one vendor has a shortage.

Category Adviser/Captain

trade industry vendor who develops a comprehensive procurement plan for retail buyers

Merchandisers

trade sector buyers who secure needed products at the best possible prices

Outsourcing

using outside vendors to produce goods and services formerly produced in-house

Reciprocity

a practice of buying from suppliers who are also customers.

Customer Based Segmentation

related approach used in B2B marketplace. Organizational buyers have more precise (and complex) requirements for goods and services than ultimate consumers do. Business products fit narrower market segments than consumers, so firms design business goods and services to meet detailed buyer specifications.

Just in Time JIT

seek to boost efficiency by cutting inventory to absolute minimum levels and by requiring vendors to deliver inputs as production process needs them.

Customer Relationship Management CRM

strategies and tools that reorient an entire organization to focus on satisfying customers (segment customers in terms of stage of relationship between business and customer.

Systems Integration

centralization of the procurement function (one company might use a major supplier or designate a lead division to handle all purchasing)