Session:4 Business Markets and Purchasing Behavior
Key Terms
Principles of Marketing | Leadership Development – Micro-Learning Session
Rice University 2020 | Michael Laverty, Colorado State University Global Chris Littel, North Carolina State University| https://openstax.org/details/books/principles-marketing
- authority
- the right to give orders, supervise the work of others, and make certain decisions
- B2B buying process
- encompasses 8 stages: problem recognition, need description, product specification, supplier search, proposal selection, supplier selection, order-routine specification, performance review
- bill of materials
- a comprehensive inventory of the raw materials, assemblies, subassemblies, parts, and components
- brokers
- individuals or businesses that bring buyers and sellers together, usually for a commission
- business objectives and goals
- achievable outcomes that provide a framework for achieving success
- business-to-business (B2B)
- a transaction or business conducted between one business and another
- buy classes
- buying situations that are distinguished on four characteristics: newness to decision makers, number of alternatives to be considered, uncertainty inherent in the buying situation, and the amount of information needed for making a buying decision
- buyers
- the people in the buying center who handle the paperwork of the actual purchase
- buying center
- groups of people within organizations who make purchasing decisions
- competition
- the rivalry between companies selling similar products and services with the goal of achieving revenue, profit and market share growth
- deciders
- the people in the buying center who ultimately determine any part of the entire buying decision
- derived demand
- market demand for a good or service that results from a demand for a related good or service
- direct demand
- the demand for a commodity for direct consumption purposes
- economic factors
- factors that affect the economy, such as interest rates, tax rates, laws, policies, wages, and government actions
- expertise
- expert skill or knowledge in a particular field
- Foreign Corrupt Practices Act (FCPA)
- a US statute that prohibits firms and individuals from paying bribes to foreign officials
- gatekeepers
- individuals in the buying center who control information and/or access to decision makers and influencers
- government markets
- purchases made by the governing bodies of nations, states, or communities
- influence
- the capacity to have an effect on the character, development, or behavior of someone or something
- influencers
- individuals whose views influence other members of the buying center in making the final decision
- initiator
- the person in the buying center who first suggests or thinks of the idea of buying the product or service
- institutions
- organizations, establishments, foundations, societies, or the like devoted to the promotion of a particular cause or program, especially one of a public, educational, or charitable character
- modified rebuy
- a buying situation in which an individual or organization buys goods that have been purchased previously but changes either the supplier or some element of the previous order
- new-task buy
- a complex B2B buying situation in which the organization buys a product or service for the first time
- personality
- the combination of characteristics or qualities that form an individual’s distinctive character
- political and legal factors
- factors such as the political system, the political situation, and government policies that influence B2B buying decisions
- producers
- those individuals or businesses who buy raw goods to use in the creation of goods or services
- product specifications
- a document carrying essential information to keep teams on track when designing and developing a product
- resellers
- companies or individuals (merchants) that purchase goods or services with the intention of selling, leasing, or renting rather than consuming or using them
- retailers
- businesses that sell goods to consumers in relatively small quantities for personal consumption
- social environment
- the values, attitudes, beliefs, wants, and desires of the consuming public
- straight rebuys
- purchases in which the business customer buys the same goods from the same supplier in the same quantity at the same terms and requires minimal decision making
- systems selling
- selling a complete solution to a problem or need rather than one or more of the component parts
- technology
- applications of science, data, engineering, and information for business purposes
- users
- the people who consume or use the product or service
- wholesalers
- businesses that typically purchase larger quantities from producers and then resell them to retailers
- workforce skills
- also called employability skills, the basic skills a person must have to succeed in any workplace