bidder's list
a list of firms believed to be qualified to supply a given item
business marketing
the marketing of goods and services to companies, governments, or not-for-profit organizations for use in the creation of goods and services that they can produce and market to others
buy classes
consists of three types of organizational buying situations: straight rebuy, new buy, and modified rebuy
buying center
the group of people in an organization who participate in the buying process and share common goals, risks, and knowledge important to a purchase decision.
derived demand
the demand for industrial products and services is driven by, or derived from, demand for consumer products and services
e-marketplaces
online trading communities that bring together buyers and supplier organizations to make possible the real time exchange of information, money, products and services. Also, called B2B exchanges or e-hubs
ISO 9000
standard for registration and certification of manufacturer's quality management and assurance system based on an on-site audit of practices and procedures developed by the International Standards Organization (ISO)
make-buy decisions
an evaluation of whether components and assemblies will be purchase from outside suppliers or built by the company itself
North American Industry Classification System (NAICS)
a detailed numbering system developed by the United States, Canada, and Mexico to classify North American business establishments by their main production processes
Organizational buyers
those manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use or for resale
Organizational buying behavior
the decision-making process that organizations use to establish the need for products and services and identify, evaluate, and choose among alternative brands and suppliers.
Organizational buying criteria
the objective attributes of the supplier's products and services and the capabilities of the supplier itself
reciprocity
an industrial buying practice in which two organizations agree to purchase each other's products and services
reverse auction
in an e-marketplace, it is an online auction in which a buyer communicates a need for a product or service and would-be suppliers are invited to bid in competition with each other
supplier development
the deliberate efforts by organizations buyer to build relationships that shape suppliers' products, services and capabilities to fit the buyer's needs and those of its customers
supply partnership
buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of lowering the cost or increasing the value of products and services delivered to the ultimate consumer., a relationship that exists when a buyer and it
traditional auction
in an e-marketplace, it is an online auction in which a seller puts an item up for sell and would-be buyers are invited to bid in competition with each other
value analysis
a systematic appraisal of the design, quality, and performance of a product to reduce purchasing costs
Organizational Buyer Markets
1. Industrial Market 2. Reseller 3. Government
Industrial Market
7.2 million firms in industrial or business market; often reprocess a product or service before selling it; Physical goods make up 25% of market and Services make up 75%
Reseller Market
wholesalers and resellers that buy physical products and resell them again without reprocessing. in the US there are about 2 million resellers and 430,000 wholesalers
Government Market
federal, state, and local government agencies that buy goods and services for the constituents they serve. about 89,500 in the US
Global Market
Largest exporting organizations focus on organizational buyers. Capital equipment and industrial supplies account for 46% of US product exports
NAICS
North American Industry Classification System provides common industry definitions for Canada, Mexico and the US which makes it easier to measure economic activity in the members of NAFTA
NAFTA
North American Free Trade Agreement, Trade agreement , North American Free Trade Agreement; allows open trade with US, Mexico, and Canada
NAICS coding system
six-digit system; first 2 digits represent sector, 3rd digit represents subsector, 4th represents industry group, 5th designates a specific industry and is the most detailed level at which comparable data is available for Canada, Mexico and the US, 6th di
NAPCS
North American Product Classification System, provides a classification system for for products and services across North America
Key Characteristics of Organization Buying
Market Characteristics, Product or Service Characteristics, Buying Process Characteristics, Marketing Mix Characteristics
Marketing Characteristics
Demand for industrial products and services is derived, Few customers typically exist and their purchase orders are large
Product or service Characteristics
Products or services are technical in nature and purchased on the basis of specifications; many goods purchased are raw and semi-finished; Heavy emphasis is placed on delivery time, technical asistance, and postsale service
Buying Process Characteristics
Technically qualified and professional buyers follow established purchasing policies and procedures; Buying objectives and criteria are typically spelled out, as are procedures for evaluating sellers and their products; There are multiple buying influence
Marketing Mix Characteristics
Direct Selling to organizational buyers is the rule and distribution is very important; Advertising and other forms of promotion are technical in nature; Price is often negotiated, evaluated as part of broader seller and product or service qualities, and