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Chapter 6

MKTG 300 Chapter Notes - Chapter 6: E-Procurement, Extranet, Reverse Auction

Course Code
MKTG 300
O'' Neal Carlton

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Marketing 300: Chapter 6 Notes
Abbreviations: - change; comp - company; mktg - marketing; g/s - goods & services; p/s - products & services
Business Buyer Behavior → buy g/s for use in the production of other p/s that are sold, rented, or supplied to others
(includes retailing & wholesaling firms that acquire goods to resell or rent to others at a profit)
Business Buying Process → business buyers determine which p/s their org needs to purchase & then find,
evaluate, and choose among alternative suppliers and brands (longer & more formalized)
Business-to-Business (B-to-B) marketers → must understand business markets & buyer behavior
Business markets characteristics:
Huge - far fewer, but far larger buyers & larger transactions
Formal, sophisticated, negotiated transactions, complex, repetitive
Inelastic demand (price changes doesn’t change demand) with fluctuating demand
Interdependency connected w/ partnerships, derived & fluctuating demand, supplier development
Buying center driven by same factors as B2C market: people
For every 1 B2C transaction, there is 1 or more B2B transactions (stuck w inventory -big problem)
Buyer & seller are more dependent on each other - help customers during all stages of buying process
Derived Demand → business demand that ultimately comes from the demand for consumer goods
Business purchase involves more decision participants & more professional purchasing effort - involves large
sums of $, complex technical & economic considerations & interactions among people at many levels
Supplier Development → systematic development of networks of supplier-partners to ensure an appropriate &
dependable supply of products & materials for use in making products or reselling them to others
Straight Rebuy → situation where buyer routinely reorders something w/o any modifications (In Supplier)
Makes fewest decisions in straight rebuy & most in new task
Modified Rebuy → situation where buyer wants to modify product specifications, prices, terms, or supplier (In)
“In” suppliers feel nervous/pressured, while “out” suppliers see opportunity to gain new business
New Task → situation where buyer purchases a product or service for the first time (Out Supplier)
Greatest opportunity & challenge: want to reach as many buying influences & provide help & info
Systems Selling (Solutions Selling) → buying a packaged solution to a problem from a single seller, thus avoiding
all the separate decisions involved in a complex buying situation (mktg strategy for winning & holding accounts)
Buying Organization → buying center (interpersonal & individual influencers) & buying decision process
Buying Center → all the individuals that play a role in purchase decision-making process (decision-making unit)
5 roles: users, influencers, buyers, deciders, gatekeepers
Not a fixed & formally identified unit, but a set of buying roles assumed by diff ppl for diff purchases
Users → ppl who will actually use the purchased p/s; initiate buying proposal & help define product specifications
Not king; thrown over the wall; have little say in process
Influencers → help define specifications & provide info for evaluating alternatives (everyone else; technical ppl)
Buyers → people who make an actual purchase; have formal authority to select supplier & negotiate (CFO)
Deciders → ppl who have a formal or informal power to select or approve the final suppliers (CEO, manager)
Gatekeepers → control the flow of information to others; authority to prevent salesppl from seeing users/deciders
(keeps you from CFO & CEO so they can make unbiased decisions)
The Environment
Marketing Other
Buyer Response
Product or Service
Supplier Choice
Order Quantities
Delivery Terms & Times
Service Terms
The Buying Organization
The Buying
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