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Exam 2 WSU MARKETING
Chapter 6
21
Marketing
Undergraduate 3
10/14/2008

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Term
Business-to-business (B2B) e-commerce
Definition
– commerce conducted using Internet-based exchanges. Businesses or organizations locate each other’s goods and services via e-commerce forums.
Term
B2B marketing
Definition
The marketing of goods and services to business customers that need them to enable the production of goods and services. A business my purchase goods and services that are:

1) part of the products/services they make and sale (i.e., BMW buying auto engines), or raw materials such as shoe leather
2) resold such as when Ford purchases Nissan cars and puts their namepleate on them. Value-added resellers take a product and modify it for a customer (ie., IT consultants buy software then modify it for resale, such as Protiviti buying SAP software and customizing it for resale
3) in support of their operations (ie., consumables such as copy paper and hand soap)
Term
B2B markets
Definition
The group of customers that include manufacturers, wholesalers, retailers, and other organizations. In comparison to B2C, are characterized as a relatively small # of players, yet a huge $$ amount.
Term
Buy class
Definition
Business purchases are classified as being one of three types. The three classifications are based on the degree of time and effort required to make a decision. The three categories are straight rebuy, modified rebuy, new task buy).
Term
Buying center
Definition
The group of people in an organization who participate in a purchase decision. Can include purchasers, legal, engineering, and other advisors.
Term
Derived demand
Definition
Demand for business or organizational products (tires) caused by demand for consumer goods of services (autos).
Term
Inter-Organizational system
Definition
A private, corporate computer network that links company departments, employees, and databases to suppliers, customers, and others outside the organization. An example is SAP’s Enterprise Resource Planning (ERP sytem).
Term
Government markets
Definition
The federal, state, county, and local governments that buy goods and services to carry out public objectives and to support their operations.
Term
Inelastic demand
Definition
Demand in which changes in price have little or no effect on the amount demanded. A company hopes the demand for their product’s (tires) is relatively inelastic (demand is impervious -uneffected by price changes).
Term
Modified rebuy
Definition
One of the three buying situation classifications used buy business buyers. A previously made purchase that involves some change and that requires limited decision making to deal with the changes is called a modified rebuy.
Term
Multiple sourcing
Definition
The business practice of buying a particular product from several different suppliers. Doing this can keep the price down as companies compete for your business.
Term
New-task buy
Definition
A new business-to-business purchase that is complex or risky and that requires extensive decision making.
Term
Outsourcing
Definition
The business buying process of obtaining outside vendors to provide goods of services that otherwise might be supplied in-house. Examples are outsourcing tax accounting and preparation, or outsourcing legal representation.
Term
Private exchanges
Definition
E-commerce systems that link an invited group of suppliers and partners over the web. These are industry groups organized around the production of, for example, meat, steel, ceramics, etc.
Term
Product specifications
Definition
A written description of the quality, size, weight, and so forth required of a product purchase. When creating an RFP, a business defines the specs they need the requested products/services to meet. The more detailed the specs, the higher the product/service quality will be.
Term
Reciprocity
Definition
A trading partnership in which two firms agree to buy from one another.
Term
Request for Proposal (RFP)
Definition
a company asks suppliers to place bids (proposals) on a job (such as to build a building or provide component parts or services).
Term
Request for Quote (RFQ)
Definition
a company asks suppliers to provide quotes (prices) for needed products
Term
Resellers
Definition
The individuals or organizations that buy finished goods for the purpose of reselling, renting, or leasing to others to make a profit and to maintain their business operations. Could be a value-added reseller, where a company customizes or modifies a product for their customers.
Term
Single sourcing
Definition
The business practices of buying a particular product from only one supplier. This is pretty risky.
Term
Straight rebuy
Definition
A buying situation in which business buyers make routine purchases that require minimal decision making.
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