chapter 5

These flashcards cover key concepts and terminology related to B2B marketing, designed to help students prepare for their exam.

B2B Marketing

Business marketing, also known as business-to-business (B2B), is the marketing of products to organizations such as companies, governments, or non-profit groups.

Derived Demand

Demand for B2B products and services that originates from the demand for consumer products or services.

Initiators

Individuals in an organization who first suggest or recognize the need for a new product or service.

Users

Individuals in an organization who will actually use the purchased product or service.

Influencers

People in an organization who define specifications and provide information for evaluating alternatives during the buying process.

Deciders

Individuals in an organization with the formal or informal power to select or approve the final suppliers.

Buyers

Individuals in an organization who have the formal authority to select the supplier and arrange purchasing terms.

Problem Recognition

The first stage of the organizational buying decision process, where a need or problem is identified.

Information Search

The stage in the organizational buying decision process where the organization searches for and qualifies potential suppliers and solutions.

Organizational Buyers

Manufacturers, wholesalers, retailers, and government and non-profit agencies that buy goods for their own use or for resale.

Industrial Markets

Markets where products or services are reprocessed before being sold again.

Reseller Markets

Markets where businesses buy products and resell them without reprocessing.

Government Markets

Markets consisting of government entities that purchase specialized products or services to fulfill public needs.

Non-Profit Markets

Markets that work with businesses to provide community-enhancing services.

NAICS Codes

North American Industry Classification System codes used to classify and research industries.

Content Marketing

The creation of informative content aimed at promoting a product or enhancing sales within B2B contexts.

Inelastic Demand

A type of demand where changes in price do not significantly affect the quantity demanded.

Fluctuating Demand

Demand that varies based on availability of parts or other variables rather than consumer demand.

Buying Objectives

Goals organizations aim to achieve through purchasing, such as increasing profits or meeting community needs.

Supply Partnership

A mutually beneficial relationship between buyer and supplier aimed at optimizing costs and value.

Buying Centre

A group of individuals in an organization involved in the buying process and decision-making.

Gatekeepers

Individuals who control the flow of information within the buying centre.

New Buy

A buying situation where a firm is purchasing a product for the first time.

Modified Rebuy

A buying situation in which certain parts of the purchase process change but the product remains largely the same.

Straight Rebuy

A buying situation involving reordering an existing product from an accepted supplier.

E-marketplaces

Online platforms that facilitate real-time trade between buyers and suppliers.

Reverse Auction

An auction process where potential suppliers compete by bidding against one another.

Market Segmentation

The process of dividing a market into distinct groups based on various criteria, such as customer type, size, or location.

Buying Decision Process

The series of steps that organizations go through in making purchasing decisions.