Business Marketing Management: B2B Vocabulary Flashcards

Vocabulary flashcards covering core concepts, frameworks, and definitions across Chapters 1 to 4 of Business Marketing Management: B2B.

Business Markets

Markets for products and services, local to international, bought by businesses, government bodies, and institutions for incorporation, consumption, use, or resale.

Commercial Enterprises

Entities including manufacturers, construction companies, service firms, transportation companies, selected professional groups, and resellers that purchase equipment and supplies for their operations.

Formal Advertising

A government buying method where the purchasing unit solicits competitive bids from appropriate suppliers.

Negotiated Contract

A government procurement method used when a product cannot be differentiated on price alone or when there are few potential suppliers.

Derived Demand

The direct link between the demand for an industrial product and the ultimate demand for consumer products.

Bullwhip Effect

A supply chain phenomenon where small fluctuations in point-of-sale demand cause progressively larger fluctuations in demand at the distributor, manufacturer, and raw material supplier levels.

Demand Elasticity

The degree of responsiveness of the quantity demanded of a product or service to a change in its price.

Classifying Business Goods

The division of industrial goods into three broad categories: entering goods, foundation goods, and facilitating goods.

Entering Goods

Industrial products that become part of the final product, consisting of raw materials (farm and natural products) and manufactured materials and parts.

Foundation Goods

Capital assets that affect a buyer's scale of operations, consisting of installations (fixed equipment, buildings) and accessory equipment.

Facilitating Goods

Services and supplies that support organizational operations and do not become part of the finished product, including operating supplies and business advisory services.

Market-Sensing Capability

An organization's capacity to continuously monitor and sense changes in its market and anticipate customer responses to marketing programs.

Customer-Linking Capability

The particular skills, abilities, and processes an organization develops to create and manage close relationships with customers.

Customer Value Proposition

A statement capturing the specific set of benefits a supplier offers to advance the performance of a customer organization through cost savings or enhanced market positioning.

Supply Chain Management

A technique for linking a manufacturer's operations with those of its strategic suppliers, intermediaries, and customers to enhance operational efficiency and effectiveness.

Customer Decision Journey (CDJ)

The complete process an organizational buyer follows prior to, during, and after making a purchase decision.

New-Task Buying Situation

A purchasing scenario in which organizational decision-makers perceive a problem or need as completely different from previous experiences, requiring extensive problem solving.

Straight Rebuy

A recurring buying situation where buyers have substantial experience, require little or no new information, and utilize routine problem solving.

Modified Rebuy

A buying situation where decision-makers feel significant benefits can be derived by re-evaluating options through limited problem solving.

Total Cost of Ownership (TCO)

A financial estimate of all costs associated with a procurement across its lifecycle, including acquisition costs, possession costs, and usage costs.

Reverse Auction

An online procurement event where suppliers bid against each other to offer the lowest price to a single buying firm, often governed by a seller's walk-away price.

Buying Center

A group of individuals within an organization who participate in the purchase decision process and share common risks and goals.

Gatekeepers

Members of a buying center who control the flow of information into the buying organization and regulate access to key decision-makers.

Evaluative Criteria

The specific standards and specifications that organizational buyers use to compare and score alternative products and services.

Collaborative Advantage

The ability of a firm to form effective and rewarding partnerships with other businesses for mutual benefit.

Transactional Exchange

A buyer-seller relationship centered on the timely exchange of basic products for highly competitive market prices with minimal interaction.

Collaborative Exchange

A buyer-seller relationship featuring close information, social, and operational linkages alongside mutual commitments for long-term benefit.

Operational Linkages

The degree to which the systems, procedures, and routines of buying and selling firms are connected to facilitate joint operations.

Activity-Based Costing (ABC)

An accounting framework that illuminates the precise activities required to serve specific customers and links activity resource consumption directly to customer profitability.

Whale Curve

A cumulative profit plot revealing that the top 20% of customers generate approximately 175% of cumulative profits, while the bottom 20% lose roughly 75% of profits.

Customer Relationship Management (CRM)

A cross-functional process designed to sustain continuous dialogue with customers across all contact points, providing personalized treatment to valuable accounts to improve retention.

Customer Portfolio Management

The practice of creating value across a firm's array of customer relationships while balancing desired service levels against individual account profitability.

Service-Profit Chain

A framework demonstrating how internal service quality drives employee satisfaction, retention, customer value, customer loyalty, and ultimate revenue growth and profitability.

Social RM Programs

Relationship marketing initiatives that leverage social engagements and personalized communications to highlight a customer's special status.

Structural RM Programs

Relationship marketing investments that increase customer productivity or efficiency through customized systems or infrastructure that customers could not easily build themselves.

Financial RM Programs

Relationship marketing tactics that offer economic benefits such as special discounts, free shipping, or extended payment terms to increase loyalty.

Relationship Orientation (RO)

An individual customer's underlying desire to engage in a strong, long-term collaborative relationship with a supplier.

North American Industrial Classification System (NAICS)

A numeric classification system used in North America to organize economic sector activity and group business establishments based on their production processes.

Bases for Segmenting Business Markets

A two-stage approach to B2B market segmentation dividing potential markets first into broad macrosegments and then into specific microsegments.

Macrosegmentation

Dividing a business market based on broad organizational traits such as scale of operations, geographic location, procurement structure, and NAICS category.

Microsegmentation

Dividing a business market based on inner decision-making unit characteristics such as evaluative criteria, purchasing strategy, personal traits, and risk tolerance.

Value in Use

A product's economic financial value to a user relative to a specific competitive alternative in a particular application.

Demand Forecasting Methods

Categorized approaches used by business marketers to project future sales volume, divided into qualitative techniques, quantitative techniques, and combined models.

Executive Judgment Method

A qualitative sales forecasting technique that combines and averages the future sales estimates generated by top executives.

Sales Force Composite

A qualitative forecasting approach where salespeople estimate future customer purchases within their specific sales territories.

Delphi Approach

A qualitative forecasting method in which panel expert opinions are compiled into an informed sales consensus via a structured feedback process.

Time-Series Analysis

A quantitative forecasting technique that uses chronologically ordered historical sales data to project future growth trends.

Regression Analysis

A quantitative forecasting method (also called causal analysis) that uses statistical models to measure the historical relationship between sales and independent variables.

Predictive Sales Analytics

Software tools leveraging machine learning algorithms and historical CRM data to project future sales demand and anticipate prospect purchase behavior.