Ch 6

business to business marketing (B2B)

promoting products to companies, governments, or not-for-profit organizations for use in their creation of products

North American Industry Classification System (NAICS)

provides common industry definitions for Canada, Mexico, and the US, which makes it easier to measure economic activity in the 3 member countries of the North American Free Trade Agreement (NAFTA)

derived demand

the demand for industrial products that is driven by demand for consumer products

buying center

group of people in an organization who participate in the buying process, sharing common goals, risks, and knowledge that are important to a purchase decision

buy classes

each of the three types of organizational buying situations: straight rebuy, new buy, and modified rebuy

organizational buying behavior

decision-making process in which organizations establish the need for products and identify, evaluate, and choose among potential suppliers

E-marketplaces

online trading communities that bring together buyers and supplier organizations to enable the real-time exchange of information, money, products, and services; also called e-hubs or B2B exchanges

reverse auction

when a buyer communicates a need for a product online and invites prospective suppliers to bid in competition with each other in an e-marketplace

traditional auction

when a seller puts an item up for sale in an e-marketplace and invites prospective buyers to bid in competition with each other