ch. 6 notes
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This 3 page Class Notes was uploaded by Katherine Ann Turnbull on Monday September 28, 2015. The Class Notes belongs to MKG 300 at Ball State University taught by Dr. Rodney Davis in Fall 2015. Since its upload, it has received 83 views. For similar materials see Principles of Marketing in Business at Ball State University.
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Date Created: 09/28/15
MKG 300 exam two study guide Ch 6 0 Business and organizational customers are buyers who buy for resale or to produce other goods and services different types include o Producers of goods and services 0 Wholesalers and retailers intermediaries 0 Government units 0 Nonprofit organizations 0 Organizational customers business to business or B2B 0 Purchasing speci cations organizational buyers use a written or electronic description of what the firm wants to buy 0 ISO 9000 a way for suppliers to document their quality procedures according to internationally recognized standards Assures a customer that the supplier has effective quality checks in place without the customer having to conduct its own costly and time consuming audit 0 Purchasing managers buying specialists for their employers who handle and ensure that purchases are handled sensibly 0 Multiple buying in uence means that several people play a part in the making a purchase decision Possible buying in uences include 0 Users productions line workers or their supervisors 0 In uencers 0 Buyers O Deciders the people in the organizations that have the power to select or approve the supplier O Gatekeepers people who control the ow of information within the organization 0 Buying center all the people who participate in or in uence a purchase in a organization 0 Vendor analysis used by firms to consider all factors relevant to a purchase decision Vendor analysis is a formal rating of suppliers on all relevant areas of performance Requisition a request to buy something Usually completed by the purchasing managers and is frequently handled online New task buying occurs when a customer organization has a new need and wants a great deal of information before purchasing to meet their new need Often starts with a user who becomes aware of a need Straight rebuy a routine repurchase that may have been made many times before from B2B Buyers here more than likely don t need new information 0 Example a company buys a certain amount and type of toilet paper every month from the same supplier Modified rebuy some review is done in the buying situation but not as much as in new task buying Supplier needs to educate buyers about their needs and present the advantages and disadvantages of the seller s products White papers reports designed to help buyers make decisions about a particular topic or product They often advocate a seller s solution and help establish a firm as a leader Competitive bid the terms of sale offered by the supplier in response to the purchase specifications posted by a buyer Sometimes in the B2B market buyers will ask for this because it will state quality dependability and delivery schedules Five key dimensions that help characterize most buyer seller relationships 0 Cooperation buyer and seller work together to achieve both mutual and individual objectives 0 Information sharing exchange of data new product designs etc 0 Operational linkages direct ties between the internal operations of the buyer and seller firms ongoing coordination of activities between the firms 39 Just in time delivery reliably getting products there just before the customer needs them 0 Legal bonds contracts between the buyer and seller 39 Negotiated contract buying contracts that allow for changes in the agreements 0 Relationship specific adaptations involve changes in a firms product or procedures that are unique to the needs or capabilities of a relationship partner Outsource contracting with an outside firm to produce goods or services rather than to produce them internally Usually this occurs to cut costs Knowing the size number geographic location and buying procedures of manufacturers service firms retailers wholesalers and governments help marketing managers to segment markets ID targets and create more effective marketing mixes NAICS Codes North American industry classification system gives codes for groups of firms in similar lines of business Each code is specific to the number of establishments sales volumes and the number of employees broken down by geographic areas The government market is the largest customer group in the US About 30 of the GDP in the US is spent by government units Foreign corrupt practices act passed by the US congress in 1977 prohibits US firms from paying bribes to foreign officials