MKTG 3 Notes

MKTG 3 Notes - 1. 2. 3. 4. 5. Organizational Markets and...

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1. Chapter 3 Notes 2. Organizational Markets and Buyer Behavior 3. Demand Characteristics 4. Consumer demand for a product or service is affected by their price and availability and by consumers’ personal tastes and discretionary income. 5. Industrial demand is derived. a. Derived Demand: demand for industrial products and services driven by demand for consumer products and services. i. Example: Demand for paper is based on consumer demand for newspapers, FedEx packages. 6. Size of the Order or Purchase 7. Size is much larger than consumer buying. 8. Dollar value is often in thousands or millions of dollars. 9. When order is so large, buyers must often get competitive bids from different suppliers. 10. Organizational buying is more likely to involve complex negotiations concerning delivery schedules, price, technical specifications, warranties, and claim policies. 11. Reciprocity: an industrial buying practice in which two organizations agree to purchase each other’s products and services. a. Can limit flexibility of buyers in choosing alternative suppliers. 12. Long-term contracts are prevalent. 13. Supply Partnership: relationship between a buyer and supplier that adopt mutually beneficial objectives, policies, and procedures for purpose of lowering cost or increasing product value. 14. The Organizational Buying Process and the Buying Center 15. Organizational Buying Behavior: process by which organizations determine the need for goods and then choose among alternative suppliers. 16.
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This note was uploaded on 05/05/2008 for the course BUAD 307 taught by Professor Morristowns during the Spring '07 term at USC.

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MKTG 3 Notes - 1. 2. 3. 4. 5. Organizational Markets and...

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