MKT VOCAB TEST 2 - Caitlin McDaniel Marketing Vocab Test 2...

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Caitlin McDaniel Marketing Vocab Test 2 Chapter 6 - business marketing : marketing of goods & services to companies, govts, or not-for-profit orgs for use in the creation of goods/services they can use to produce & market to others. About 12 million business markets, less than individual consumers (300 million) - organizational buyers : those manufacturers, wholesalers, retailers & govt. agencies that buy goods & services for their own use or for resale. - Industrial firms : organizational buyers that in some way reprocesses a product/service that they buy before selling it again to the next buyer. - Resellers: wholesalers/retailers that buy physical products & resell them again without any processing - Government units : federal, state & local agencies that buy goods & services for the constituents they serve. - North American Industry Classification System (NAICS) : provides common industry definitions for Canada, Mexico & the US, which makes easier the measurement of economic activity in the 3 member countries for the North American Free Trade Agreement (NAFTA) - Derived demand : means the demand for industrial products/services is driven by, or derived from, demand for consumer products/services. Example: if you drink a lot of milk, your demand for milk demands a derived demand for the carton, the crate that holds the cartons, the truck, the tires on the truck, the fuel for the truck ,etc. - Organizational buying criteria: the objective attributes of the supplier’s products & services & the capabilities of the supplier itself. - ISO 9000/9001: (standards set by the European Union) consists of standards for registration & certification of a manufacturer’s quality management & assurance system based on an on-site audit of practices & procedures developed by the International Standards Organization (ISO). These standards are met by most companies everywhere. Certification requires company meeting exacting standards in how they produce product/service. These standards force vendors to produce at higher standards, so they counsel product. - Reverse Marketing: involves the deliberate effort by organizational buyers to build relationships that
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shape suppliers’ products, services & capabilities to fit a buyer’s needs & those of it’s customers. Reverse marketing is good for both companies involved. If vendor has a problem, buyer does too (example: Lands End) - Reciprocity: an industrial buying practice in which two organizations agree to purchase each other’s products & services. The government frowns on reciprocity because it inhibits market competition. “I buy your stuff, if you agree to buy mine.” The European Union has a policy of reciprocity. IBM has a strict policy against it. - Supply partnership: exists when a buyer & its supplier adopt mutually beneficial objectives, policies & procedures for the purpose of lowering the costs/increasing the value of products & services delivered to the ultimate consumer. (example: Harley Davidson company buys seats, gas tanks & other pieces from the same company since 1934).
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