Principles Of Marketing - Mid Term 1 - Chapter 6

Front 1

Which are the major types of buying situations?

Back 1

Straight rebuy - routine purchase decision such as reorder without any modification
Modified rebuy - purchase decision that requires some research, the buyer wants to modify the product spec. (terms, price, suppliers..)
New task - purchase decision that requires thorough research such as a new product
System selling - involves the purchase of a packages solution from a single seller

Front 2

What is supplier development?

Back 2

Customer companies are practicing systematic development of networks of supplier-partners to ensure an appropriate and dependable supply - that they will use when they make their own products

Front 3

What is the business buying process?

Back 3

Business buyers determine which products and services are needed to purchase, and then find, evaluate and choose among alternative brands

Front 4

Who are the participants in the business buying process?

Back 4

Users, influencers, buyers, deciders, gatekeepers and procurement personnel

Front 5

Which are the major influences on business buyers?

Back 5

Economic factors: price, service
Personal factors: emotion

Front 6

Which are the environmental factors?

Back 6

Demand for product, economic outlook, cost of money, supply of materials, technology, culture, politics and competition

Front 7

Which are the organisational influences?

Back 7

Objectives
Policies
Procedures
Structures
Systems

Front 8

Which are the individual factors?

Back 8

Motives, perceptions, preferences, age, income, education and attitude towards risk

Front 9

What are the steps in the buying process?

Back 9

Problem recognition > general need description > product specification > supplier search > proposal solicitation > supplier selection > order-routine specification > performance review

Front 10

Tell me more about the buying process

Back 10

The problem recognition occurs when someone in the company recognises a problem or need. There are two types: internal stimuli and external stimuli. Internal: the need for a new product or production equipment. External: the idea from a trade show or advertising.
Then, you describe the characteristics of the needed item. Also, the technical criteria and rank attributes (price, durability and so on). Then you need to look at the value, can we make this product less costly?
Next is making a list of desired suppliers and negotiating with them. Lastly, order-routine specifications = the final order with the chosen supplier and spec. with the terms of the purchase. Not forgetting about reviewing the supplier afterwards!

Front 11

How do business markets differ from consumer markets?

Back 11

macro forces, stimuli exist in both of them. The decision making processes are different. Fewer in number, but amounts they buy is higher.