MOS2320 Second Half Notes

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Management and Organizational Studies
Management and Organizational Studies 2320A/B
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Chapter 7Business buyer behaviour refers to the buying behaviour of the organizations that buy goods and services for use in production of other products and services that are sold rented or supplied to others Business buying process is the process where business buyers determine which products and services are needed to purchase and then find evaluate and choose among alternative suppliers and brandsDerived demand refers to business demand that ultimately comes from derives from the demand for consumer goodsSupplier development is the systematic development of networks of supplierpartners to ensure an appropriate and dependable supply of products and materials that they will use in making their own products or resellStraight rebuy is a business buying situation in which the buyer routinely reorders something without any modificationsModified rebuy is a business buying situation in which the buyer wants to modify product specifications prices terms or suppliersNew task is a business buying situation in which the buyer purchases a product or service for the first timeBuying centre is all of the individuals and units that participate in the business decisionmaking processUsersInfluencersBuyersDecidersGatekeepersThe buying Process Problem recognition occurs when someone in the company recognizes a problem or needInternal stimuliNeed for new product or production equipmentExternal stimuliIdea from a trade show or advertisingGeneral need description describes the characteristics and quantity of the needed itemProduct specification describes the technical criteriaSupplier search is the stage of the business buying process in which the buyer tries to find the best vendorsOrderroutine specifications is the final order with the chosen supplier and lists all of the specifications and terms of the purchasePerformance review involves a critique of supplier performance to the purchase terms and the decision to continue modify or drop the arrangementReverse auctions involve putting a purchasing request online and inviting suppliers to bid for the businessTrading exchanges are where companies work collectively to facilitate the trading processCompany buying sites can be set up to post buying needs and invite bids negotiate terms and place ordersExtranet links can create direct procurement accounts with suppliersCh 9 Products Services and BrandsBuilding Customer ValueOctober2411245 PMLululemon uses four pillars as the keys to success for creating the experienceoThe design and delivery of innovative athletic apparel its culture and training of employees cool stores that resonate with both its guests and the community and strong authentic community relationsCustomers are passionate about the brand and they share that passion with others1What Is A ProductProduct anything that can be offered to a market for attention acquisition use or consumption that might satisfy a want or needoInclude services events persons places organizations ideas or mixes of theseServices any activity or benefit that one party can offer to another that is essentially intangible and does not result in the ownership of anythingProducts Services and ExperiencesProduct is a key element in the overall market offeringThe offer may consist of a pure tangible good soap toothpaste or saltno services accompanying the productPure Servicesthe offer consists primarily of a serviceTo differentiate their offers beyond simply making products and delivering services they are creating and managing customer experiences with their brands or companyBook called Climbing Mount EverestoIn 2009 the campaign was recognized as one of the best library marketing campaigns in the world by the International Federation of Library AssociationsLevels of Product and ServicesProduct planners need to think about products and services on three levelsoEach level adds more customer valueoCore Customer Value the most basic level addresses the question What is the buyer really buyingoActual Product the second level turns the core benefit into an actual productoAugmented Product product planners build an augmented product around the core benefit and actual product by offering additional consumer services and benefitsWhen developing products marketers first must identify the core customer value that consumers seek from the productMust then design the actual product and find ways to augment it to create this customer valueProduct and Service ClassificationsConsumer ProductsoConsumer Products a product bought by final consumers for personal consumptionInclude convenience products shopping products specialty products and unsought productsoConvenience Products a consumer product that customers usually buy frequently immediately and with a minimum comparison and buying effortoShopping Product a consumer product that the customer in the process of selection and purchase usually compares on such bases as suitability quality price and styleoSpecialty Product a consumer product with unique characteristics or brand identification for which a significant group of buyers is willing to make a special purchase effortoUnsought Products a consumer product that the consumer either does not know about or knows about but does not normally think of buyingBusiness ProductsoBusiness Products a product bought by individuals and organizations for further processing or for use in conducting a businessDistinction between a consumer product and a business product is based on the purposefor which the product is boughtThe three groups of business products and services include materials and parts capital items and supplies and servicesoMaterials and Parts include raw materials and manufactured materials and partsPrice and service are the major marketing factors branding and advertising tend to be less importantoCapital Items are business products that aid in the buyers production or operations including installations and accessory equipmentoSupplies and services are the final group of business productsSupplies are the convenience products of the business field because they are usually purchased with a minimum of effort or comparisonOrganizations Persons Places and Ideas
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