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test 2 study guide marketing

test 2 study guide marketing - Test 2 Study Guide Chapter 6...

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Test 2 Study Guide Chapter 6 Business to business (B2B) marketing -refers to the process of buying and selling goods or services to be used in the production of other goods and services, for consu mption by the buying organization and/or resale by wholesalers and retailers. Therefore, B2B marketing involves manufacturers (e.g., Xerox, IBM, Ford), wholesalers, and service firms (e.g., UPS, Oracle, Accenture) that market goods and services to other businesses but not to the ultimate consumer. Derived demand - the only reason a business is going to buy something is because a consumer demands it. Characteristics of B2B buying - Manufacturers - To make the products they sell to others, manufacturers and producers buy raw materials, components, and parts that allow them to manufacture their own goods. Resellers - are marketing intermediaries that resell manufactured products without significantly altering their form Institutional - Public institutions also engage in B2B relationships to fulfill their needs for capital construction, equipment, supplies (such as copiers and ink to print all those tests), food, and janitorial services. o Institutions are churches, schools, hospitals Government buyers - In most countries, the central government is one of the largest purchasers of goods and services. For example, the U.S. federal government spends about $2.8 trillion annually on procuring goods and services NAICS – North American Investment Classification System o How to classify business by a code Stages in B2B buying o need recognition- the first stage of the B2B buying process, the buying organization recognizes, through either internal or external sources, that it has an unfilled need o product specification- the organization considers alternative solutions and comes up with potential specifications that vendors might use to develop their proposals o RFP process- The request for proposals (RFP) is a common process through which organizations invite alternative vendors or suppliers to bid on supplying their required components or specifications. The purchasing company may simply post its RFP needs on its website, as the Redmond airport did, or work through various B2B web portals or contact potential suppliers directly o Proposal analysis, Vendor Negotiation, and Selection The buying organization, in conjunction with its critical decision makers, evaluates all the proposals it receives in response to its RFP.
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Firms are likely to narrow the process to a few suppliers, often those with which they have existing relationships, and discuss key terms of the sale, such as price, quality, delivery, and financing. Some firms have a policy that requires them to negotiate with several suppliers, particularly if the product or service represents a critical component or aspect of the business. This policy keeps suppliers on their toes; they know that the
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test 2 study guide marketing - Test 2 Study Guide Chapter 6...

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