Term
|
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
|
Definition
| materials processed only to the point required for handling and distributing, ex iron |
|
|
Term
|
Definition
| materials transformed from raw material ex, steel |
|
|
Term
|
Definition
| parts assembled into the final product w/o further transformations |
|
|
Term
|
Definition
| hand tools, sanders, routers, saws etc. Used to help manufacturing |
|
|
Term
|
Definition
| large equipment used in production process that is expensive |
|
|
Term
|
Definition
| maintenance, repair and operations products |
|
|
Term
|
Definition
| b2b demand for products and services is derived from the demand for the individual customer's demand for the product and service |
|
|
Term
|
Definition
| wide swings in demamd caused by derived demand |
|
|
Term
|
Definition
| the percentage change in sales relative to the percentage change in price. |
|
|
Term
|
Definition
| occurs with products that don't have substitutes, and aren't greatly affected by price |
|
|
Term
|
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
|
Definition
| systems to collect and store data, evaluate performance and suport the development of customized services, communications etc |
|
|
Term
|
Definition
| both parties are keen in maintaining an ongoing exchange |
|
|
Term
|
Definition
| just in time, shipping products to the customer's location at the exact right time |
|
|
Term
|
Definition
| visiting suppliers and check for competency and dedication to quality and other factors (house calls) |
|
|
Term
|
Definition
| safeguarding method where buyers and sellers exchange personnel to provide assurances |
|
|
Term
|
Definition
| safeguarding method where buyer reduces its dependence on the supplier by cultivating relationships with other exchange partners |
|
|
Term
|
Definition
| safeguarding method where you establish means of continuous planning, adjusting and resolving conflict |
|
|
Term
|
Definition
| safeguarding method, bringing a function or technology within the boundary of a firm. hierarchally connecting suppliers with employees |
|
|
Term
|
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
|
Definition
| exchanges safeguarded by ownership or vertical integration |
|
|
Term
|
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
|
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
|
Definition
| buying in larger quantities than are currently needed because the discount is greater than the carrying costs |
|
|
Term
|
Definition
| a method of comparing the benefit function and cost of materials/products to control costs. can be done before or after |
|
|
Term
|
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
|
Definition
| when a company selects one supplier to satisfy all its needs in a given area |
|
|
Term
|
Definition
two part theory about how companies make decisions
1) buy phase
2) buy class |
|
|
Term
|
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
|
Definition
| second part of buy grid model, this is the type of buying decision based on a buyer's experience |
|
|
Term
|
Definition
| products/services never purchased before |
|
|
Term
|
Definition
| automatic purchasing decision |
|
|
Term
|
Definition
the product might be bought again but not automatically
*value analysis can turn a straight rebuy into a modified rebuy |
|
|
Term
|
Definition
| those suppliers whose products arent considered in a straight rebuy - must earn the business |
|
|
Term
|
Definition
| those suppliers whose products are ordered automatically in a straight rebuy |
|
|
Term
|
Definition
| states that people compare products across several attributes/features weighted by importance |
|
|
Term
|
Definition
| designing and managing supply networks to optimize business performance |
|
|
Term
|
Definition
| strategy of attempting to influence demand for products/services made by your company, so your supply chain can be more efficient |
|
|
Term
|
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
|
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
|
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
|
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
|
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
|
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
|
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
|
Definition
| a group of people involved in making decisions at an organization, also called decision-making unit (DMU) |
|
|
Term
|
Definition
| a role in the buying center. starts the purchase process by recognizing need. |
|
|
Term
|
Definition
| a role in the buying center. the person that makes the final decision. |
|
|
Term
|
Definition
| a role in the buying center. they control or set the purchasing budget |
|
|
Term
|
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
|
Definition
| a role in the buying center. individuals who seek to affect decision maker's final decisions. |
|
|
Term
|
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
|
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
|
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
|
Definition
| in the buying centre. premier salespeople that may try to influence the decision in their favor. |
|
|
Term
|
Definition
| the risk that the product may not perform as intended |
|
|
Term
|
Definition
| the risk that the purchase may not meet the approval of an important reference group |
|
|
Term
|
Definition
| states that buyers go through a choice process to arrive at decisions of HOW they will buy, not WHAT will be bought |
|
|
Term
|
Definition
| rewards given by someone else |
|
|
Term
|
Definition
| reward given by yourself ex feelings of satisfaction |
|
|
Term
|
Definition
| the ability to carry out tasks |
|
|
Term
|
Definition
| designed to maximize gain |
|
|
Term
|
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
|
Definition
| the percentage of accounts that continue doing business with the seller each year |
|
|
Term
|
Definition
| active listening and identification with customer concerns, resulting in customer-centred communication and problem solving |
|
|
Term
|
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
|
Definition
| orders the firm's customers from best to worst, based on how much they purchased in tenths. |
|
|
Term
|
Definition
| extracting existing info from a database or data warehouse |
|
|
Term
|
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
|
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
|
Definition
| an estimation tool that uses correlation between demand and any other economic activity to yield a forecast. |
|
|
Term
|
Definition
| the situation; product description, competitive advantage, mission statement, target market |
|
|
Term
|
Definition
|
|
Term
|
Definition
1. Rivalry among firms in the industry
2. Powerful customers
3. Powerful suppliers
4. Threat of substitutes
5. Threat of potential entrants |
|
|
Term
|
Definition
Value Chain.
Primary Activities: inbound logistics, operations, outbound logistics, marketing and sales, service
Support Activities: organization, HR, technology, purchasing |
|
|
Term
|
Definition
| materials, handling, delivery |
|
|
Term
|
Definition
|
|
Term
|
Definition
| order processing, shipping |
|
|
Term
|
Definition
|
|
Term
|
Definition
| customer service, repairs |
|
|
Term
|
Definition
| Execution. Implementation plan, timelines, etc |
|
|
Term
|
Definition
1. Introuction Stage
2. Growth
3. Maturity --> sales level off
4. Decline --> products harvested or deleted |
|
|
