Chapter 7: Business-to-Business Marketing

Vocabulary flashcards covering Business-to-Business (B2B) marketing concepts, market participants, the buying process, buying center roles, organizational buying cultures, and buying situations.

Business-to-Business Marketing

The process businesses use to buy or sell goods and services for other businesses to make new goods or to consume.

Manufacturers/Service Providers

B2B market participants that buy raw materials, components, and parts to make their own goods.

Resellers

B2B market participants that focus on buying already made goods to resell to another market without altering products.

Institutions

Businesses or organizations in B2B markets that buy goods for their own consumption.

Government

A B2B market category that purchases goods for a community's consumption.

Need Recognition

Stage 1 of the B2B buying process where an organization recognizes a need that isn't fulfilled.

Product Specification

Stage 2 of the B2B buying process where, after recognizing a need and considering solutions, the business develops specifications to fulfill the need.

RFP Process

Stage 3 of the B2B buying process (Request for Proposals) where organizations invite different suppliers to bid on supplying needed components.

Proposal Analysis, Vendor Negotiation, and Selection

Stage 4 of the B2B buying process where an organization analyzes bidding suppliers and selects the best fit.

Order Specification

Stage 5 of the B2B buying process where the order includes specifications of what is needed and when.

Vendor Performance Assessment Using Metrics

Stage 6 of the B2B buying process where a firm analyzes vendor performance by listing issues, determining key issues, making importance scores, judging performance, and multiplying importance scores by performance ratings to determine an overall score.

Initiator

The person in the buying center who recognizes a need or starts the buying process.

User

The person in the buying center who will use the good or service.

Influencer

The person in the buying center who provides information, expertise, or requirements.

Gatekeeper

The person in the buying center who controls access to information, suppliers, or decision-makers.

Buyer

The person in the buying center who selects the supplier and negotiates or manages the purchasing process.

Decider

The person in the buying center who approves the purchase.

Organizational Culture

The sets of values, traditions, and customs that help guide employees' behavior.

Autocratic Buying Culture

An organizational buying culture where a person makes a decision alone.

Democratic Buying Culture

An organizational buying culture where decisions are made by majority decision.

Consultative Buying Culture

An organizational buying culture where one person makes the decision, but might ask for advice.

Consensus Buying Culture

An organizational buying culture where decisions are made by unanimous decision.

New Buy

A buying situation involving the purchase of a good or service for the first time, where the buyer is likely to have no experience with the item.

Modified Rebuy

A buying situation where the buyer has purchased a similar item before but wants to change some specifications.

Straight Rebuy

A buying situation where the buyer buys additional units of goods that have been bought in the past.