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Principles of Marketing

Key Terms

Principles of MarketingKey Terms

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
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