Term
| Ultimate User(consumer) (Customers) |
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Definition
| Products/services are everyday purchases that individuals make. Person buying product/service does so for their own use. The decision to buy is made by an individual or couple. Marketing efforts are designed to apeal, inform, and stimulate these individuals. When sales taxes must be paid for the purchase of an item/service, consumer pays this tax. |
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Term
| Industrial Markets (Customers) |
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Definition
| Companies that purchase a product/service for own use or to incorporate product/service for sale then the company is subject to pay sales tax. If the product is incorporated into their product/service for sale, then company is subject to pay sales tax. If product is not incorporated into their product they market then it is tax exempt. |
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Term
| Government Purchases (Customers) |
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Definition
| All governmental entities purchase goods/services. These include small items such as office supplies to major military purchases. Company supplying product does not pay any sales tax for the items or materials they purchase which go into the product being sold to the government. |
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Term
| Industrial Markets (Organizational Buyers) |
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Definition
| Some way manufactures or reprocess a product/service before selling it again to the next buyer. |
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Term
| Reseller Markets (Organizational Buyers) |
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Definition
| Buy physical products and resell them again without any reprocessing. These markets include wholesalers and retailers. Wholesale buys from the manufacturer and then distributes this product to the retailer who ultimately sells it to the end user. |
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Term
| Government Markets (Organizational Buyers) |
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Definition
| Purchase products/services for use in government activities. |
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Term
| Global Organizational Markets (Organizational Buyers) |
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Definition
| Include industrial, reseller, and government. Majority of world traded involves exchange relationships throughout the world. This means that products sold in a foreign market include items manufactured in foreign markets. |
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Term
| Derived Demand (Characteristics of Organizational Buying) |
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Definition
| the demand for inducstrial products/services is driven by, or derived from, demand for consumer products/services. |
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Term
| Size of the Purchase (Characteristics of Organizational Buying) |
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Definition
| Typically much larger than that of consumer purchases. |
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Term
| Organizational buying objectives (Characteristics of Organizational Buying) |
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Definition
| have SINGULAR purpose which is to achieve the objectives of the organization. |
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Term
Organizational Buying Criteria (Characteristics of Organizational Buying)
List of 7 |
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Definition
objective attributes of a supplier's product/services and the capabilities of the supplier itself which include
1. Price
2. Ability to meet quality specifications
3. Ability to meet delivery schedules
4. Technically capabilities
5. Warranties and claim policies
6. Past performance
7. Production facilities and Capacity |
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Term
| Buyer-seller Relationships (Characteristics of Organizational Buying) |
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Definition
| involves negotiations concerning technical specifications, delivery, schedules. |
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Term
| The Buying Center (Characteristics of Organizational Buying) |
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Definition
| involves several people to help in the buying decision. |
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Term
| Make or Buy (Organizational Buying Process) |
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Definition
| Experts from the buyer and seller usally meet to discuss and review purchasing requirements. Industrial buyers are confronted with this decision. These decisions involve capabilities, capacity, and ability to meet schedule. Also based on cost, time, quality. |
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Term
| Value Analysis (Organizational Buying Process) |
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Definition
| Systematic appraisal of the design, quality, and performance of a product to reduce purchasing costs. Ex. Drawing product of an inch, and see if it's okay. |
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Term
| Organizational Buying in Organizational Markets |
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Definition
| Online Buying by far exceeds the transactions of consumers in number of transactions, size and purchasing volume. |
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