Marketing, Chapter 5

Marketing to firms, governments, or non-profit organizations.

Manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use or for resale.

These are the federal, provincial, regional, and municipal agencies that buy goods and services for the constituents that they serve.

These in some way reprocess a product or service they buy before selling it again to the next buyer.

These are wholesalers and retailers that buy physical products and sell them again without any reprocessing.

Provides common industry definitions for Canada, Mexico, and the United States.

Demand for industrial products and services driven by demand for consumer products and services.

Demand for products does not change because of increases or decreases in price.

Demand for business products and services that fluctuates more than demand for consumer products and services.

Relationship between a buyer and supplier that adopt mutually beneficial objectives, policies, and procedures.

Process by which organizations determine the need for goods and then choose among alternative suppliers.

Group of people in an organization who participate in the buying process.

Three types of organizational buying situations: straight rebuy, modified rebuy, or new buy.

Here the buyer reorders existing products from the list of acceptiable supplies, likely without checking with anyone else. Example: office supplies.

Here the company buying the product has some experience purchasing; some involvement of other users. Example: laptops, cellphones.

Here the company is buying a product or service for the first time. The buying centre would be large and comprised of people representing different parts of the company.

Online trading communities that bring together buys and supplier organizations.

Occurs when a buyer communicates a need for something and would-be suppliers bid in competition with each other.

These have the formal authority to select the supplier and negotiate the terms of the contract. The purchasing manager probably would perform this rile in the purchase of a computer network.

These have the formal or informal power to select or approve the supplier that receives the contract. These situations are usually important technical purchases, involving someone from R&D, engineering, or quality control.

These control the flow of information in the buying centre. Their role is to help or prevent salespeople from reaching people performing other roles.

These are the four types of organizational buyers.

Purchase characteristics of the business market is that the size of the order is typically much _____.

Purchase characteristics of the business market is that there are _____ potential buyers.

The product or service characteristics found in the business market is such that products are _____ in nature and purchased on the basis of specifications.

The product or service characteristics found in the business market is such that many of the goods purchased are _____ or only semi-finished.

The greatest desire in the business buying process is to _____.

This is the influence that comes from a group of people in an organization who participate in the buying process.

Organizational buyers include all buyers in a nation except _____.

These people affect the buying decision, usually by helping define the specifications for what is bought.