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Define + Lists
Chapter 6
24
Marketing
Undergraduate 4
10/01/2007

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Term
Business Buying Behavior
Definition
The buying behavior of the organizations that buy goods and services for use in other production of other products and services or for a purpose of reselling or renting to others at a profit
Term
Business Buying Process
Definition
The decision process by which business buyers determine which products and services their organizations need to purchase, and then find, evaluate, and choose among alternative suppliers
Term
Derived Demand
Definition
Business demand that ultimately comes for the demand for consumer goods
Term
Supplier Development
Definition
Systematic development of networks of supplier-partners to ensure an appropriate and dependable supply of products and materials that they will use in making their own products or resell others
Term
Straight Rebuy
Definition
Business buying situation in which the buyer routinely reorders something without modifications
Term
Modified Rebuy
Definition
Business buying situation in which the buyer wants to modify the product specifications,price,or suppliers
Term
New Task
Definition
Business buying situation in which the buyer purchases a product or service for the first time
Term
Systems Selling
Definition
Buying a packaged solution to a problem from a single seller, thus avoiding all the separate decisions involved in a complex buying situation
Term
Buying Center
Definition
All the individual and units that participate in the business buying decision process
Term
Users
Definition
Members of the buying organization who will actually use the the purchased product or service
Term
Influencers
Definition
People in an organization's buying center who affect the buying decision; they often help define specifications and also provide information for evaluating alternatives
Term
Buyers
Definition
The people who make an actual purchase
Term
Deciders
Definition
People in the organization's buying center who have formal or informal power to select or approve the final suppliers
Term
Gatekeepers
Definition
People in an organization's buying center who control the flow of information to others
Term
Problem Recognition
Definition
The first stage of the business buying process in which someone in the company recognizes a problem or need that can be met by acquiring a good or service
Term
General Need Description
Definition
The stage in the business buying process in which the company describes the general characteristics and quantity of a needed item
Term
Product Specification
Definition
The stage in the business buying process in which the buying organization decides on and specifies the best technical product characteristics for a needed item
Term
Value Analysis
Definition
An approach to cost reduction in which components are studied carefully to determine if they can be redesigned, standardized, or made less costly methods of production
Term
Supplier Seacrh
Definition
The stage in the business buying process in which the buyer tries to find the best vendors
Term
Proposal Solicitation
Definition
The stage in the business buying process in which the buyer invites qualified suppliers to submit proposals
Term
Supplier Selection
Definition
The stage in the business buying process in which the buyer reviews proposals and chooses a supplier
Term
Performance review
Definition
The stage in the business buying process in which the buyer assesses the performance of the supplier and decides to continue, modify, or drop the arrangement
Term
Institutional Market
Definition
Schools, hospitals, nursing, homes, prisons, and other institutions that provide goods and services to people in their care
Term
Government Market
Definition
Governmental units - federal, state, and local - that purchase or rent goods and services for carrying out the main functions of government
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