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B2B Marketing
B2B Midterm Review
102
Marketing
Undergraduate 2
02/27/2014

Additional Marketing Flashcards

 


 

Cards

Term
Business Marketing
Definition
marketing products or services to other companies, institutions, government bodies and other organizations
Term
4 Types of Business Customers
Definition

1. Firms

2. Government

3. Institutions (schools, hospitals etc)

4. Industrial distributors

Term
Raw Materials
Definition
materials processed only to the point required for handling and distributing, ex iron
Term
Manufactured materials
Definition
materials transformed from raw material ex, steel
Term
Component/OEM parts
Definition
parts assembled into the final product w/o further transformations
Term
Accessory equipment
Definition
hand tools, sanders, routers, saws etc. Used to help manufacturing
Term
Capital Equipment
Definition
large equipment used in production process that is expensive
Term
MRO
Definition
maintenance, repair and operations products
Term
Derived demand
Definition
b2b demand for products and services is derived from the demand for the individual customer's demand for the product and service
Term
Volatility
Definition
wide swings in demamd caused by derived demand
Term
Demand Elasticity
Definition
the percentage change in sales relative to the percentage change in price.
Term
inelastic demand
Definition
occurs with products that don't have substitutes, and aren't greatly affected by price
Term
Supply Chain Management
Definition
proactively planning and coordinating the flow of products, services and info among connected firms. Focusing onc reating value to end users
Term
transactional relationships/spot exchanges
Definition
money traded for commodities
Term
CRM
Definition
systems to collect and store data, evaluate performance and suport the development of customized services, communications etc
Term
Strategic partnership
Definition
both parties are keen in maintaining an ongoing exchange
Term
JIT relationship
Definition
just in time, shipping products to the customer's location at the exact right time
Term
Supplier verification
Definition
visiting suppliers and check for competency and dedication to quality and other factors (house calls)
Term
trading places
Definition
safeguarding method where buyers and sellers exchange personnel to provide assurances
Term
Dependence Balancing
Definition
safeguarding method where buyer reduces its dependence on the supplier by cultivating relationships with other exchange partners
Term
relational contracts
Definition
safeguarding method where you establish means of continuous planning, adjusting and resolving conflict
Term
Vertical integration
Definition
safeguarding method, bringing a function or technology within the boundary of a firm. hierarchally connecting suppliers with employees
Term
social relationship
Definition
a trading association that is mostly supported by social bonds and habits
Term
safeguarded relationships
Definition
occurs when contracts, and structural and technical ties bond both parties to the ongoing exchange
Term
Corporate Relationships
Definition
exchanges safeguarded by ownership or vertical integration
Term
Concurrent manufacturing
Definition
suppliers schedule their own manufacturing based on the shipment needs of their customers
Term
electronic data interchange (EDI)
Definition
transmission of electronic data between buyer and seller to order and maintain product inventory
Term
total cost of ownership
Definition
total amount expended in order to own a product (or service)
Term
economic order quantity (EOQ)
Definition
the quantity that minimizes both ordering and storing costs
Term
forward buying
Definition
buying in larger quantities than are currently needed because the discount is greater than the carrying costs
Term
value analysis
Definition
a method of comparing the benefit function and cost of materials/products to control costs. can be done before or after
Term
complexity management
Definition
identifying links among components that raise costs if any changes are made
Term
adverisal purchasing philosophy
Definition
to have several vendors for each product; a traditional way of purchasing.
Term
benefits of adversial purchasing philosophy
Definition

-increases competition for the buyer's business

-lowers prices while increasing level of service

 

Term
Partnership purchasing/preferred supplier systems
Definition
used to maximize the benefits of collabration between buyer and suppliers.
Term
benefits of Partnership purchasing/preferred supplier systems
Definition

-buyers seek out the best suppliers and develop close relationships

-results in fewer suppliers being needed

 

*this type of relationship is most likely for vendors who provide high purchase-volume materials, specialized products, services that require special knowledge or rare materials

Term
Single sourcing
Definition
when a company selects one supplier to satisfy all its needs in a given area
Term
buy grid model
Definition

two part theory about how companies make decisions

1) buy phase

2) buy class

Term
Buy phase model
Definition
first part of the buy grid model, states that people go through phases when making decisions: Problem recogntion, alternative search, alternative evaluation, selecting a solution, evaluate
Term
buy class
Definition
second part of buy grid model, this is the type of buying decision based on a buyer's experience
Term
new buys
Definition
products/services never purchased before
Term
straight rebuys
Definition
automatic purchasing decision
Term
modified rebuy
Definition

the product might be bought again but not automatically

*value analysis can turn a straight rebuy into a modified rebuy

Term
outsuppliers
Definition
those suppliers whose products arent considered in a straight rebuy - must earn the business
Term
in-suppliers
Definition
those suppliers whose products are ordered automatically in a straight rebuy
Term
multiattribute model
Definition
states that people compare products across several attributes/features weighted by importance
Term
strategic sourcing
Definition
designing and managing supply networks to optimize business performance
Term
demand planning
Definition
strategy of attempting to influence demand for products/services made by your company, so your supply chain can be more efficient
Term
outsourcing
Definition
finding another organization to supply the buyer's product/service
Term
Early Supplier Involvement (ESI)
Definition
companies use suppliers to help design new products or processes
Term
Make-or-Buy
Definition
a comparison of the value created internaly versus outsourcing
Term
supplier relationship management (SRM)
Definition
using computers to identify the most valuable suppliers and identify purchasing opportunities
Term
cross functional sourcing teams
Definition
purchasing teams that include members of various functional areas within the firm, and sometimes supplier personnel and customers too
Term
Buying Determinants Theory
Definition

"why buyers buy". describes combined efects of four factors.

1. environmental

2. market 

3. organizational

4. individual

Term
Environmental factors
Definition

*buying determinants theory*

characteristics of the world beyond market level, includes economy, technology, political and social factors. these all influence buyers.

 

an example is globalization.

Term
Market Factors
Definition

*buying determinants theory*

characteristics of the market that influence buyer behaviour including the number and size of competitors, and the number and size of customers

 

note- the number of competitors is affected by the availability of substitutes.

Term
organizational factors
Definition

*buying determinants theory*

characteristics of the organization that influence buyers including profitability, corporate culture, the size of the company etc.

 

basically the company itself and its characteristics/reputation can influence whether the buyer buys from them.

Term
individual factors
Definition

*buying determinants theory*

demographic and psychographic factors that influence buyers ex age, eduation and the title of the buyer, and their experience in buying

Term
Role Theory
Definition

suggests that people behave within a set of norms or expectations of others due to the role in which they've been placed.

 

ex, teacher acts one way, student acts another

Term
Buying Centre
Definition
a group of people involved in making decisions at an organization, also called decision-making unit (DMU)
Term
Initiator
Definition
a role in the buying center. starts the purchase process by recognizing need.
Term
decision maker
Definition
a role in the buying center. the person that makes the final decision.
Term
controller
Definition
a role in the buying center. they control or set the purchasing budget
Term
purchasing agent
Definition
a role in the buying center. this person actually makes the purchase- places the order. not necessarily a person of power, could just be an assistant
Term
influencers
Definition
a role in the buying center. individuals who seek to affect decision maker's final decisions.
Term
gatekeepers
Definition
a role in the buying center. they control info in and out of the buying group. are critical because they can choose what info to reveal to the decision maker (ie could leave some things out).
Term
time fragmentation
Definition

affects the buying centre. the idea that members come and go - the more people only involved for a short time, the more fragmented the buying centre.

 

**the more fragmented the buying centre, the less time marketers have to influence it**

Term
Vertical dimension of the buying centre
Definition
how many layers of management are involved.
Term
horizontal layer of the buying centre
Definition
how many departments are involved. *wider=more difficult for marketers*
Term
formalization
Definition

affects the buying centre. the degree to which purchasing tasks and roles are defined in written documents.

 

can sometimes lead to unproductiveness due to formal procedures

Term
champions/advocates
Definition
in the buying centre. premier salespeople that may try to influence the decision in their favor.
Term
performance risk
Definition
the risk that the product may not perform as intended
Term
social risk
Definition
the risk that the purchase may not meet the approval of an important reference group
Term
behavior choice theory
Definition
states that buyers go through a choice process to arrive at decisions of HOW they will buy, not WHAT will be bought
Term
extrinsic rewards
Definition
rewards given by someone else
Term
intrinsic rewards
Definition
reward given by yourself ex feelings of satisfaction
Term
self-efficacy
Definition
the ability to carry out tasks
Term
Offensive Strategy
Definition
designed to maximize gain
Term
Defensive Strategy
Definition
designed to minimize loss
Term
4 stages of the Behavior Choice Model
Definition

1. Identify the situation (degree of company- vs self- orientation)

2. Evaluate personal relevance (reward system)

3. Assess action alternatives & requirements

4. Choose behavior strategy

Term
Multiattribute vs Behavior Choice Model (differences)
Definition

- behavior model recognizes intrinsic rewards

- behavior model recognizes that extrinsic rewards are a fuction of the organizations reward systems, NOT a function of the product

 

 

Term
Account retention
Definition
the percentage of accounts that continue doing business with the seller each year
Term
empathic dialogue
Definition
active listening and identification with customer concerns, resulting in customer-centred communication and problem solving
Term
data warehousing
Definition
use of centrally managed data from all functional areas of the organization, formatted to the company's standards, so that it can be accessed by other authorized users
Term
decile report
Definition
orders the firm's customers from best to worst, based on how much they purchased in tenths.
Term
data mining
Definition
extracting existing info from a database or data warehouse
Term
Sugging
Definition
unethical, the use of marketing research as a guise for selling
Term
Standard Industrial Classification (SIC) Codes
Definition
these were used before NAICS
Term
NAICS
Definition
north american industrial classification system. 6 digits. this is a finer-grained approach to classification than SIC was.
Term
Buildup Approach/Factoring
Definition
hard thinking and analysis of how the product fits into the value-added process
Term
Statistical Series
Definition
an estimation tool that uses correlation between demand and any other economic activity to yield a forecast.
Term
SAVE- "S"
Definition
the situation; product description, competitive advantage, mission statement, target market
Term
SAVE- "A"
Definition
Analysis; SWOT, Porters
Term
Porters 5 Forces
Definition

1. Rivalry among firms in the industry

2. Powerful customers

3. Powerful suppliers

4. Threat of substitutes

5. Threat of potential entrants

Term
SAVE- "V"
Definition

Value Chain. 

Primary Activities: inbound logistics, operations, outbound logistics, marketing and sales, service

 

Support Activities: organization, HR, technology, purchasing

Term
Inbound Logistics
Definition
materials, handling, delivery
Term
Operations
Definition
manufacturing, assembly
Term
Outbound logistics
Definition
order processing, shipping
Term
Marketing & Sales
Definition
the 4 p's
Term
Service
Definition
customer service, repairs
Term
SAVE- "E"
Definition
Execution. Implementation plan, timelines, etc
Term
Product Life Cycle
Definition

1. Introuction Stage

2. Growth

3. Maturity --> sales level off

4. Decline --> products harvested or deleted

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