Chapter 6 Business to Business Marketing o B2B marketing process of buying and selling goods or services to be used in the production of other goods and services for consumption by the buying organization and or for resale by wholesalers and retailers o Derived demand the linkage between consumers demand for a company s output and its purchase of necessary inputs to manufacture or assemble that particular output o Resellers marketing intermediaries that resell manufactured products without significantly altering their form o North American Industry Classification System NAICS codes US bureau of the Census categorizes all firms into a hierarchical set of six digit NAICS codes o Request for proposals RFP common process through which buying organization invite alternative suppliers to big on supplying their required components o Buying center can range from employees who have a formal role in purchasing decisions to members of the design team that is specifying the particular equipment or raw material needed to employees who will be suing a new machine that is being ordered o Initiator person who first suggests buying the particular product or service o Influencer the person whose views influence other members of the buying center in making the final decision o Decider the person who ultimately determines any part of or the entire buying decision whether to buy what to buy how to buy or where to buy o Buyer the person who handles the paperwork of the actual purchase o User the person who consumes or uses the product or service o Gatekeeper the person who control information or access or both to decision makers o Organizational culture reflects the set of values traditions and customs that guide its o Autocratic buying center one person makes the decision alone o Democratic buying center majority rules o Consultative buying center one person to make a decision but solicit input from other and influencers employees behavior before doing so o Consensus buying center all member of the team must reach a collective agreement that they can support a particular purchase o New buy a customer purchase a good or service for the first time which means the buying decision is likely to be quite involved because the buyer or the buying organization does not have any experience with the item o Modified rebuy buyer has purchased a similar product in the past but has decided to change some specification such as the desired price quality level customer service level options or so forth o Straight rebuys buyer or buying organization simply buys additional units of products that had previously been purchased o Private exchange when a specific firm invites others to participate in online information exchanges and transactions o English auction goods and services are simply sold to the highest bidder o Reverse auction buyer provides specification to a group of sellers which then big down the price until the buyer accepts a specific bid
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