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BUS 466 - Ch. 3
Ch. 3
26
Marketing
Undergraduate 4
12/06/2012

Additional Marketing Flashcards

 


 

Cards

Term

 

END USER

Definition
When producers buy goods and services to support their own production and operations
Term
CAPITAL EQUIPMENT
Definition
Items that are major purchases such as mainframe computers and machine tools that the producer uses for a number of years.
 
End users. 
Term
Maintenance, Repair, and Operating Supplies (MROS)
Definition

Paper towels and replacement parts for machinery. 

 

End users

Term
OEM
Definition
Original equimpment manufacturers - they purchase goods (ie raw and processed materials) to use in making their own products. 
Term
Producers
Definition
Buy products and services to manufacture and sell their products and services to cusotmers. Products are included in manufacturing.
Term
Derived demand
Definition

Means that purchases made by these customers depend on the demand for their products. 

 

Sales to resellers and OEMs

Term
Resellers
Definition
Buy finished products or services with the intention to resell
Term
Profit Margin
Definition
How much a reseller makes on each sale
Term
Turnover
Definition
How quickly an item sells and how much effort it takes to sell
Term
8 Steps in the Buying Process
Definition
  1. Recognition of need
  2. Definition of the product type needed
  3. Development of detailed specifications
  4. Search for qualified suppliers
  5. Acquisition and analysis of proposals
  6. Evaluation of proposals and selection of a supplier
  7. Placing and receiving the order
  8. Evaluation of product performance
Term
CREEPING COMMITMENT
Definition

A customer becomes increasingly committed to a particular course of action while going through the steps in the buying process

 

As decisions are made at each step, the range of alternatives narrows; the customer becomes more and more committed to a specific course of action and even to a specific vendor

 

critical that salespeople be involved in initial steps

Term
New tasks
Definition
a customer purchases a product or service for the first time
Term
Straight rebuys
Definition
A customer buys the same product from the original source
Term
Modified rebuys
Definition
The customer has purchased the product in the past but is looking for new information
Term
Buying center
Definition
informal, cross-department group of people involved in new task and modified rebuy decisions
Term
Role of users in the buying process
Definition
Manufacturing personnel for OEM products and capital equipment. Typicalluy do not make the ultimate purchase decision, however they have influence in the early and late stages of the buying process
Term
Role of initiators in the buying process
Definition

The person who starts the buying process - usually because of a user's dissatisfaction with a product currently used.

 

Can often be a user.

Term
Role of influencers in the buying process
Definition
People inside or outside the organization who directly or indirectly provide information during the buying process. (ie economic or technical influencer)
Term
Role of gatekeepers in the buying process
Definition

Control the flow of information and may limit the alternatives considered. This can be quality control or service departments who determine qualified suppliers.

 

Purchasing agents often play this role.

Term
Role of deciders in the buying process
Definition

Make the final choice. 

Can be a purchasing agent in the case of straight rebuys. In new task purchases, several people usually make the decision.

Term
What are the organizational factors influencing the buying decision?
Definition
  • Economic criteria
  • Quality criteria
  • Service criteria
Term
What are the individual factors influencing organizational buying decisions?
Definition
  • Needs of buying center members
    • Financial security, self-esteem, recognition
    • Risk reduction
  • Personal risks
  • Personal needs
Term
Life-cycle costing
Definition
total cost of ownership, method for determining the cost of equipment or supplies over their useful lives.
Term
Supply Chain Management
Definition
  • Logistics
  • Managing inventory while controlling costs
  • Just in time inventory control system
  • Automatic replenishment
  • Electronic data interchange
Term
Electronic Data Interchange
Definition
computer systems that share data across companies.
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