B2B Marketing Exam Recall

Vocabulary flashcards covering core concepts, customer types, demand characteristics, product classifications, buying behaviour, strategic models, segmentation, KAM, and branding from the B2B Marketing exam notes.

Resellers

B2B customers that purchase finished goods and resell them without changing their form, comprising retailers who sell to consumers and wholesalers who sell in bulk.

Producers

B2B customers that buy raw materials, processed materials, and components to manufacture new goods for profit.

Derived Demand

B2B demand that is directly dependent on final consumer demand for the finished end product.

Joint Demand

A demand condition where two or more items are required together to produce a product, such that the absence of one item halts production.

Inelastic Demand (B2B)

A condition in B2B markets where demand remains relatively stable when prices change because purchases are strictly tied to production requirements.

Entering Products

Goods that become an integral part of the finished product, categorized into raw materials (untransformed) and processed materials and parts.

Foundation Products

Capital items, such as installations and accessory equipment, that assist in production, wear out, and undergo depreciation without ever entering the finished product.

Facilitating Products

Operational supplies and services (such as MRO items and business services) that support daily operations without becoming part of the finished product.

MRO Items

Maintenance, Repair, and Operations items (e.g., cleaning supplies, spare parts, and office materials) classified under facilitating products.

Initiators

Buying centre members who first recognise the need for a product or service purchase.

Influencers

Buying centre participants, such as engineers or IT personnel, who supply technical specifications and evaluation criteria.

Gatekeepers

Buying centre members, such as receptionists or purchasing assistants, who control access to decision-makers and the flow of information.

Deciders

Members of the buying centre possessing the formal or ultimate power to make the final supplier or product choice.

Differentiation Strategy

A competitive strategy that makes essentially identical products seem unique, allowing a firm to command premium prices and build customer loyalty.

Low-Cost Strategy

A competitive strategy based on maintaining a low cost structure to quote lower prices than rivals, generating higher profits to reinvest in growth.

Focus Strategy

A competitive strategy where a firm concentrates on dominating a single target market niche with a limited product range, often utilized when resources are insufficient for the mass market.

Pre-emptive Move

A competitive strategy providing first-mover advantage by being the first entity to secure or offer a specific asset or skill.

Synergy

A strategic condition where the whole becomes greater than the sum of the parts through strategic business units (SBUs) sharing R&D, personnel, finance, operations, or distribution.

Cannibalisation

A segment compatibility issue where targeting a new market segment damages or absorbs business from another market segment already served by the firm.

Responsiveness (Segmentation)

A B2B segmentation criterion evaluating whether prospective market segments react differently to elements of the marketing mix to justify customized approaches.

Proprietary / Catalogue Products

Standard products produced in anticipation of orders in fixed configurations without customisation (e.g., MTN prepaid data bundles).

Customer-Built Products

Products assembled on a base platform according to an individual customer's distinct specifications, with production commencing only after order confirmation.

Customer-Designed Products

Products created for distinct customer groups that allow selection from pre-defined features or models, offering a faster and less expensive solution than customer-built options.

Industrial Services

Intangible operational support provided to other businesses, including maintenance, repair, technical consulting, and advisory assistance.

Star (BCG Matrix)

A business unit or product with high market growth and high relative market share that demands heavy capital investment to sustain its position.

Cash Cow (BCG Matrix)

A business unit or product with low market growth and high relative market share that requires low investment while generating stable, strong cash flow.

Problem Child / Question Mark (BCG Matrix)

A business unit or product with high market growth and low relative market share that absorbs high cash reserves and requires targeted investment to avoid becoming a dog.

Dog (BCG Matrix)

A business unit or product characterized by low market growth and low relative market share that depletes corporate resources and is typically phased out.

Interdependence

A key driver of change where increasing competition and business specialization compel organizations to rely on other specialized firms through strategic partnerships within an ecosystem.

Complexity Management (5 C's)

A value dimension in Key Account Management (KAM) where the supplier oversees intricate cross-border logistics to deliver a seamless operational experience for the client.

Synergistic KAM

An advanced stage in the Key Account Management evolution where buyer and seller act as a single entity, sharing information, personnel, and resources to resolve complex challenges.

Decoupling

The formal termination of a Key Account Management partnership at the conclusion of its lifecycle without damaging professional goodwill.

Brand Name

A tangible brand element consisting of spoken words or text that often serves as the central market differentiator.

Logos and Symbols

Visual, non-verbal tangible brand elements (such as the Apple symbol or Nike swoosh) used for immediate corporate identification.

Slogan

A verbal tangible brand element that encapsulates the underlying promise of the brand (e.g., FNB's 'How can we help you?').

Jingle

An audio tune or acoustic signature directly linked to a brand's corporate identity (e.g., Dairybelle).