MKTG 350 Worsham Exam #2 With
Complete Solutions
B2B marketing - ANSWER the process of buying and selling goods or services to
be used in the production of other goods and services, for consumption by the
buying organization, or for resale by wholesalers and retailers
Characteristics of B2b marketing - ANSWER involves manufacturers' selling to
wholesalers who then sell the products to the retailers. More complex than B2C
and involve members of the buying and selling organizations
Derived demand - ANSWER the linkage between consumers' demand for a
company's output and its purchase of necessary inputs to manufacture or
assemble that particular output.
Manufacturers - ANSWER buy raw materials, components, and parts that allow
them to make and market their own goods and ancillary services
ex. Volkswagen
Resellers - ANSWER marketing intermediary that resells manufactured products
without significantly altering their form
Wholesalers - ANSWER firms engaged in buying, taking title to, often storing,
and physically handling goods in large quantities
Distributors - ANSWER a type of reseller that resells manufactured products
without significantly altering their form
Institutions - ANSWER include hospitals, educational organizations, and
religious organizations who purchase all kinds of goods and services
Government - ANSWER in most countries, the central government is one of the
largest purchasers of goods and services
NAICS - ANSWER North American Industry Classification System
-uses a 6 digit code
-shows what a store is labeled as
-ex: shoe retailer, restaurant
B2B buying process, Stage 1: Need Recognition - ANSWER organization
recognizes , through either internal or external sources, that it has an unfulfilled
need.
, -sources can be suppliers, salespeople, or competitors
Stage 2: Product Specification - ANSWER how the buying organization
describes what they want the product to look like
Stage 3: Request for Proposals (RFP) Process - ANSWER a process through
which buying organizations invite alternative suppliers to bid on supplying their
required components
Stage 4: Proposal Analysis, Vendor Negotiation, and Selection - ANSWER
usually several vendors are competing against each other for selection. The
buying organization compares which vendor's products they prefer the most
based on experience, price, quality, delivery, and financing
Stage 5: Order Specification - ANSWER the firm places it order and then
receives a detailed description of the goods, prices, delivery dates, and
penalties for noncompliance.
Stage 6: Vendor Performance Assessment Using Metrics - ANSWER a firm's
analysis of their vendor's performance so they can make decisions about future
purchases
The Buying Center - ANSWER the group of people typically responsible for the
buying decisions in large organizations
-initiator
-influencer
-gatekeeper
-user
-buyer
-decision maker
Initiator - ANSWER the person who first suggests buying the particular product
or service
Influencer - ANSWER the person whose views influence other members of the
buying center in making the final decision
Decider/decision maker - ANSWER the person who ultimately determines any
part of or the entire buying decision-whether to buy, what to buy, how to buy, or
where to buy
Buyer - ANSWER the person who handles the paperwork of the actual purchase
User - ANSWER the person who consumes or uses the product or service
Complete Solutions
B2B marketing - ANSWER the process of buying and selling goods or services to
be used in the production of other goods and services, for consumption by the
buying organization, or for resale by wholesalers and retailers
Characteristics of B2b marketing - ANSWER involves manufacturers' selling to
wholesalers who then sell the products to the retailers. More complex than B2C
and involve members of the buying and selling organizations
Derived demand - ANSWER the linkage between consumers' demand for a
company's output and its purchase of necessary inputs to manufacture or
assemble that particular output.
Manufacturers - ANSWER buy raw materials, components, and parts that allow
them to make and market their own goods and ancillary services
ex. Volkswagen
Resellers - ANSWER marketing intermediary that resells manufactured products
without significantly altering their form
Wholesalers - ANSWER firms engaged in buying, taking title to, often storing,
and physically handling goods in large quantities
Distributors - ANSWER a type of reseller that resells manufactured products
without significantly altering their form
Institutions - ANSWER include hospitals, educational organizations, and
religious organizations who purchase all kinds of goods and services
Government - ANSWER in most countries, the central government is one of the
largest purchasers of goods and services
NAICS - ANSWER North American Industry Classification System
-uses a 6 digit code
-shows what a store is labeled as
-ex: shoe retailer, restaurant
B2B buying process, Stage 1: Need Recognition - ANSWER organization
recognizes , through either internal or external sources, that it has an unfulfilled
need.
, -sources can be suppliers, salespeople, or competitors
Stage 2: Product Specification - ANSWER how the buying organization
describes what they want the product to look like
Stage 3: Request for Proposals (RFP) Process - ANSWER a process through
which buying organizations invite alternative suppliers to bid on supplying their
required components
Stage 4: Proposal Analysis, Vendor Negotiation, and Selection - ANSWER
usually several vendors are competing against each other for selection. The
buying organization compares which vendor's products they prefer the most
based on experience, price, quality, delivery, and financing
Stage 5: Order Specification - ANSWER the firm places it order and then
receives a detailed description of the goods, prices, delivery dates, and
penalties for noncompliance.
Stage 6: Vendor Performance Assessment Using Metrics - ANSWER a firm's
analysis of their vendor's performance so they can make decisions about future
purchases
The Buying Center - ANSWER the group of people typically responsible for the
buying decisions in large organizations
-initiator
-influencer
-gatekeeper
-user
-buyer
-decision maker
Initiator - ANSWER the person who first suggests buying the particular product
or service
Influencer - ANSWER the person whose views influence other members of the
buying center in making the final decision
Decider/decision maker - ANSWER the person who ultimately determines any
part of or the entire buying decision-whether to buy, what to buy, how to buy, or
where to buy
Buyer - ANSWER the person who handles the paperwork of the actual purchase
User - ANSWER the person who consumes or uses the product or service
