Chapter 7 Vocab - Marketing Management

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

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

a measure of a Web site's effectiveness; calculated by multiplying the frequency of visit by the number of pages viewed during each visit (site reach)

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

the reintroduction of an intermediary between producers and users

a cooperative agreement between business firms

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

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

a network of interlocking corporate affiliates

Producers, Resellers, Governments, Institutions

Individuals and organizations that buy business goods and incorporate them into the products they produce for eventual sale to other producers or to consumers

a detailed numbering system developed by the United States, Canada, and Mexico to classify North American business establishments by their main production processes

Derived, Inelastic, Joint, and Fluctuating

the demand of business products (based on expectations of the future

the demand for two or more items used together in a final product (sales of the two products are directly linked- elastic- compliments)

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

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

More formal- use a purchasing agent
More people involved in decision- team from across org
Negotiating is common
Reciprocity is common
Lease expensive equipment
Personal Selling

a practice whereby business purchasers choose to buy from their own customers

major equipment, accessory equipment, raw materials, component parts, processed materials, supplies, and business services.

capital goods such as large or expensive machines, mainframe computers, blast furnaces, generators, airplanes, and buildings (depreciated not expensed, personal selling used)

goods, such as portable tools and office equipment, that are less expensive and shorter-lived than major equipment (expensed, advertising used most)

unprocessed extractive or agricultural products, such as mineral ore, lumber, wheat, corn, fruits. (large number of small sellers, market sets the price not the seller, personal selling used)

either finished items ready for assembly or products that need very little processing before becoming part of some other product (retain identity after becoming part of the final product (ie tires), replaced several times during life-- so two markets, OEM & Replacement market)

products used directly in manufacturing other products (Ex. sheet metal or treated lumber, --unlike raw, they've had some processing, & --unlike component, they don't retain identity)

Consumable items that do not become part of the final product (ex paper towels and pencils, routinely bought, inexpensive, --3 categories: MRO, maintenance, repair, operating supplies)

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

initiator, influencers/evaluators, gatekeepers, decider, purchaser, users

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

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

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

Buying centers
evaluative criteria (QSP)
buying situations
business ethics
customer service