MK 201 Chapter Notes - Chapter 5: North American Industry Classification System, Global Industrial, Sustainable Procurement
17 Oct 2016
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MK201 CH 5
Understanding Organizations as Customers
The Nature and size of Organizational Markets
Business Marketing – the arketig or produts ad series to fir, go’t, or ot-for-profit
organization
Organizational Buyers – aufaturers, holesalers, retailers, ad go’t ageies that uy
products and services for their use of resale. That are divided into 3 markets:
1) Industrial – reprocess a product or service they buy before selling it again to the next
buyer
2) Reseller – wholesalers and retailers that buy physical products and resell them again
without any reprocessing
3) Government – Federal, state, local agencies that buy goods and services for the
constituent they serve
Measuring Domestic and Global Industrial, Reseller, and Government Markets
North American Industry Classification System (NAICS) – provides common industry definitions
of Canada, Mexico, and the united states
- Design to facilitate the measurement of global economic activity
Characteristics of Organizational Buying
Derived Demand – the demand for industrial products and services is driven by demand for
consumer products and services
Organizational buying criteria – the ojetie attriutes of the supplier’s produt ad series
and the capabilities of the supplier itself. It requires them to:
1) Price
2) Ability to meet the quality specifications required for the item
3) Ability to meet required delivery schedule
4) Technical Capability
5) Warranties and Claim policies in the event of poor performance
6) Past performance on pervious contracts
7) Production facilities and capacity
Reciprocity – an industrial buying practice in which two organizations agree to purchase each
other’s produts ad serie
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Business marketing the (cid:373)arketi(cid:374)g or produ(cid:272)ts a(cid:374)d ser(cid:448)i(cid:272)es to fir(cid:373), go(cid:448)"t, or (cid:374)ot-for-profit organization. Organizational buyers (cid:373)a(cid:374)ufa(cid:272)turers, (cid:449)holesalers, retailers, a(cid:374)d go(cid:448)"t age(cid:374)(cid:272)ies that (cid:271)uy products and services for their use of resale. Measuring domestic and global industrial, reseller, and government markets. North american industry classification system (naics) provides common industry definitions of canada, mexico, and the united states. Design to facilitate the measurement of global economic activity. Derived demand the demand for industrial products and services is driven by demand for consumer products and services. Organizational buying criteria the o(cid:271)je(cid:272)ti(cid:448)e attri(cid:271)utes of the supplier"s produ(cid:272)t a(cid:374)d ser(cid:448)i(cid:272)es and the capabilities of the supplier itself. Reciprocity an industrial buying practice in which two organizations agree to purchase each other"s produ(cid:272)ts a(cid:374)d ser(cid:448)i(cid:272)e. Supply partnership when a buyer and its supplier adopt mutually beneficial objectives policies, and procedures for the purpose of lowering the cost or increasing the value of products and services delivered to the ultimate consumer.
