BUSINESS TO BUSINESS MARKETING (BMK3202) Notes - Vocabulary Flashcards

Key terms and concepts from the lecture notes on B2B marketing to help with exam review.

B2B Marketing (Business-to-Business Marketing)

Marketing of products and services to business organizations (manufacturers, government, education, hospitals, distributors, etc.), not to individual consumers.

Industrial Marketing

An interchangeable term for B2B marketing; focuses on business buyers and organizational needs.

Marketing Concept (B2B)

Premise that success comes from defining a target market's needs and modifying offerings to satisfy them better than competitors.

Target Market

A defined group of organizations a firm aims to serve with its offerings.

Derived Demand

Demand for industrial goods that arises from the demand for final consumer goods.

Joint Demand

Demand for two or more products used together to create a final product.

Cross Elasticity Demand

Measures how the demand for one product changes with price changes of another (positive for substitutes, negative for complements).

Inelastic Demand

Demand that changes little when price changes; often for essential inputs.

Fluctuating Demand

Demand that is highly variable due to shifts in end-user demand, seasonality, or cycles.

7Ps of Marketing

Product, Price, Place, Promotion, People, Process, Physical Evidence; extended mix used in B2B/services.

Raw Materials

Entering Goods derived from natural sources used with minimal processing in production.

Manufactured Materials & Parts

Entering Goods that have undergone extensive processing; components may require further processing.

Component Materials

Entering Goods requiring additional processing before assembly.

Component Parts

Entering Goods that typically do not require further processing.

Capital Items

Long-term investments used in producing goods/services; depreciated over time.

Installations

Major long-term capital investments like buildings and fixed equipment.

Accessory Equipment

Less expensive, short-lived equipment not part of fixed plant.

Facilitating Products

Supplies and services that support ongoing operations (maintenance, advisory, logistics).

Supply Chain

System through which inputs are obtained, products produced, and goods delivered to customers.

Distribution Channel

Path through which goods move from producers to end users, often via intermediaries.

Marketing Intermediaries

Organizations that assist in moving goods from producers to end users.

Agents and Brokers

Intermediaries who facilitate transactions, do not own goods, typically paid by commission.

Industrial Distributors

Independent wholesalers who buy from manufacturers and sell to industrial users; may provide technical support.

Wholesalers

Firms that sell finished goods to retailers, manufacturers, and institutions; provide storage and fulfillment.

Exclusive Distributors

Distributors given sole rights to market a product in a defined region; long-term commitments.

Online B2B Marketplaces

Digital platforms (e.g., Alibaba) enabling B2B trading with pricing transparency and supplier reviews.

Bulk Breaking

distributors buy in large quantities and break into smaller lots for resellers or end-users.

Inventory Management

Holding, replenishment, and tracking of stock to balance supply and demand.

Market Coverage

Extending geographic and customer reach through the distribution network.

Customer Support and Service

Technical assistance, demos, installation, maintenance, returns; sustains relationships.

Sales and Promotion

Local advertising, sales reps, and promotions to generate leads and close deals.

Risk Bearing

Distributors assume financial risk from unsold stock, damage, or currency fluctuations.

Credit Provision

Offering credit terms to buyers to ease cash flow and encourage purchases.

Market Intelligence

Feedback on customer preferences, competition, and product performance to inform strategy.

Market Segmentation

Dividing a broad B2B market into smaller, homogeneous subgroups.

Firmographic Segmentation

Segmentation by company characteristics: industry, size, revenue, ownership.

Geographic Segmentation

Segmentation by location: region, country, city; considers local conditions.

Technographic Segmentation

Segmentation by technology stack and digital maturity of a business.

Behavioral Segmentation

Segmentation by buying patterns, usage, decision processes, and engagement.

Needs-Based Segmentation

Segmentation by the business problems or needs the product solves.

Buying Center (DMU)

Group of individuals in an organization involved in purchase decisions.

Users

Individuals who will use the product; influence, evaluate, and provide post-purchase feedback.

Influencers

Technical experts who shape decisions and specify requirements.

Buyers

Individuals who manage the formal procurement process (RFQs/RFPs).

Deciders

People with formal authority to approve the purchase; may override others.

Gatekeepers

Control information flow to decision-makers and manage access to suppliers.

Initiators

First to recognize a need and start the buying process.

Problem Recognition

Stage where an organization identifies a need for a product or service.

General Need Description

Describe broad requirements (quantity, quality, budget) without specifying brands.

Product Specification

Detailed description of required product/service, including technical criteria.

Supplier Search

Process of finding potential suppliers who meet specifications and capacity.

Proposal Solicitation

Requesting bids or proposals (RFQ/RFP) from shortlisted suppliers.

Supplier Selection

Evaluation of proposals to choose the best-fit supplier, considering TCO.

Order-Routine Specification

Finalizing the purchase order with exact quantities, delivery, and terms.

Performance Review

Post-purchase evaluation of supplier performance and product effectiveness.

Environmental Factors

External influences such as economy, demand, tech, politics, globalization, regulation.

Organisational Factors

Internal factors like objectives, structure, policies, finances, and culture.

Interpersonal Factors

Dynamics among buying center members, including power, conflict, and trust.

Individual Factors

Personal characteristics and motivations of decision-makers (age, education, risk attitude).