MKTG Chapter 6 - MKTG Chapter 6 Definitions Business buyer...

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MKTG Chapter 6 Definitions Business buyer behavior – The buying behavior of organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others. It also includes the behavior of retailing and wholesaling firms that acquire goods to resell or rent to others at a profit. Business buying process – The decision process by which business determine which products and services their organizations need to purchase and then find, evaluate, and choose among alternative suppliers and brands. Buyers – People in an organization’s buying center who make an actual purchase. Buyers have formal authority to select the supplier and arrange terms of purchase. Buyers may help shape product specifications, but their major role is in selecting vendors and negotiating. In more complex purchases, buyers might include high-level officers participating in the negotiations. Buying center – All the individuals and units that play a role in the purchase decision making process. Deciders – People in an organization’s buying center who have formal or informal power to select or approve the final suppliers. Deciders have formal or informal power to select or approve the final suppliers. In routine buying, the buyers are often the deciders, or at least the approvers. Derived demand – Business demand that ultimately comes from (derives from) the demand for consumer goods. E-procurement – Purchasing through electronic connections between buyers and sellers- usually online. Gives buyers access to new suppliers, lower purchasing costs, and hastens order processing and delivery. Gatekeepers – People in an organization’s buying center who control the flow of information to others. For example, purchasing agents often have authority to prevent salespersons from seeing users or deciders. Other gatekeepers include technical personnel or even personal secretaries.
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General need description – The stage in the business process in which the buyer describes the general characteristics and the quality needed item. In this phase, the alert business marketer can help the buyers define their needs and provide information about the value of different product characteristics. Government market – Governmental units- federal, state, and local – that purchase or rent goods and services for carrying out the main functions of government. Influencers – People in an organization buying center who affect the buying decision; they often help define specifications and provide information for evaluating alternatives. Technical personnel are particularly important influencers. Institutional market – Schools, hospitals, nursing homes, prisons, and other institutions that provide goods and services to people in their care. These markets can be huge.
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