Title: 4 Key Terms
Course: Principles of Marketing > Section: Chapter 4

Key Terms

authority

the right to give orders, supervise the work of others, and make certain decisions

B2B buying process

encompasses 8 stages: problem recognition, need description, product specification, supplier search, proposal selection, supplier selection, order-routine specification, performance review

bill of materials

a comprehensive inventory of the raw materials, assemblies, subassemblies, parts, and components

brokers

individuals or businesses that bring buyers and sellers together, usually for a commission

business objectives and goals

achievable outcomes that provide a framework for achieving success

business-to-business (B2B)

a transaction or business conducted between one business and another

buy classes

buying situations that are distinguished on four characteristics: newness to decision makers, number of alternatives to be considered, uncertainty inherent in the buying situation, and the amount of information needed for making a buying decision

buyers

the people in the buying center who handle the paperwork of the actual purchase

buying center

groups of people within organizations who make purchasing decisions

competition

the rivalry between companies selling similar products and services with the goal of achieving revenue, profit and market share growth

deciders

the people in the buying center who ultimately determine any part of the entire buying decision

derived demand

market demand for a good or service that results from a demand for a related good or service

direct demand

the demand for a commodity for direct consumption purposes

economic factors

factors that affect the economy, such as interest rates, tax rates, laws, policies, wages, and government actions

expertise

expert skill or knowledge in a particular field

Foreign Corrupt Practices Act (FCPA)

a US statute that prohibits firms and individuals from paying bribes to foreign officials

gatekeepers

individuals in the buying center who control information and/or access to decision makers and influencers

government markets

purchases made by the governing bodies of nations, states, or communities

influence

the capacity to have an effect on the character, development, or behavior of someone or something

influencers

individuals whose views influence other members of the buying center in making the final decision

initiator

the person in the buying center who first suggests or thinks of the idea of buying the product or service

institutions

organizations, establishments, foundations, societies, or the like devoted to the promotion of a particular cause or program, especially one of a public, educational, or charitable character

modified rebuy

a buying situation in which an individual or organization buys goods that have been purchased previously but changes either the supplier or some element of the previous order

new-task buy

a complex B2B buying situation in which the organization buys a product or service for the first time

personality

the combination of characteristics or qualities that form an individual’s distinctive character

political and legal factors

factors such as the political system, the political situation, and government policies that influence B2B buying decisions

producers

those individuals or businesses who buy raw goods to use in the creation of goods or services

product specifications

a document carrying essential information to keep teams on track when designing and developing a product

resellers

companies or individuals (merchants) that purchase goods or services with the intention of selling, leasing, or renting rather than consuming or using them

retailers

businesses that sell goods to consumers in relatively small quantities for personal consumption

social environment

the values, attitudes, beliefs, wants, and desires of the consuming public

straight rebuys

purchases in which the business customer buys the same goods from the same supplier in the same quantity at the same terms and requires minimal decision making

systems selling

selling a complete solution to a problem or need rather than one or more of the component parts

technology

applications of science, data, engineering, and information for business purposes

users

the people who consume or use the product or service

wholesalers

businesses that typically purchase larger quantities from producers and then resell them to retailers

workforce skills

also called employability skills, the basic skills a person must have to succeed in any workplace