Marketing Chapter 6

business marketing

the marketing of goofs and services to individuals and organizations for purposes other than personal consumption

business-to-business electronic commerce

the use of the internet to facilitate the exchange of goods, services, and information between organizations

stickiness

a measure of a web site's effectiveness; calculated by multiplying the frequency of visits times the duration of a visit times the numbers of pages viewed during each visit (site reach)

disintermediation

the elimination of intermediaries such as wholesalers or distributors from a marketing channel

strategic alliance (strategic partnership)

a cooperative agreement between business firms

relationship committment

a firm's belief that an ongoing relationship with another firm is so important that the relationship warrants maximum efforts at maintaining it indefinitely

trust

the condition that exists when one party has confidence in an exchange partner's reliability and integrity

keiretsu

a network of interlocking corporate affiliates

original equipment manufacturers (OEMs)

individuals and organizations that buy business goods and incorporate them into the products that they produce for eventual sale to another producer or to consumers

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

derived demand

the demand for business products

joint demand

the demand for two or more items used together in a final product

multiplier effect (accelerator principle)

phenomenon in which a small increase or decrease in consumer demand can product a much larger change in demand for the facilities and equipment needed to make the consumer product

business-to-business online exchange

an electronic trading floor that provides companies with integrated links to their customers and suppliers

reciprocity

the practice of business purchasers choosing to buy from their own customers

major equipment (installations)

capital goods such as large or expensive machines, mainframe computers, blast furnaces, generators, airplanes, and buildings

accessory equipment

goods, such as portable tools and office equipment, that are less expensive and shorter-lived than major equipment

raw materials

unprocessed extractive or agricultural products, such as mineral ore, timber, wheat, corn, fruits, vegetables, and fish

component parts

either finished items ready for assembly or products that need very little processing before becoming part of some other product

processed materials

products used directly in manufacturing other products

supplies

consumable items that do not become part of the final product

business services

expense items that do not become part of the final product

buying center

all those persons in an organization who become involved in the purchase decision

new buy

a situation requiring the purchase of a product for the first time

modified rebuy

a situation where the purchaser wants some change in the original good or service

straight rebuy

a situation in which the purchaser reorders the same goods or services without looking for new information or investigating other suppliers