D099 Study guide
- DMU (Decision Making Unit) / Buying center roles:
Initiators = the people in the organization who first see the need for the product
Users = those within the organization who use the product
Influencers = Those who have experience and expertise that can help improve the buying decision
Gatekeeper = people who decide if, and when, someone gets access to members of the buying center
(ex: shark tank)
Decision Maker = the person who makes the final purchasing decision
Buyer = the person who signs the purchasing contract
- Undifferentiated Marketing = Mass Marketing
- AIDA = ATTENTION, INTEREST, DESIRE, ACTION
- Social Style Matrix = categorizes people according to personality traits and how they interact
with others
- Law of psychological reciprocity = if you do something nice for someone they will reciprocate
- Return on Customer Investment = measures how much value a business can create per customer
- Transactional Selling = involves focusing on quick sales. No long-term relationship with
customers
- Adaptive Selling = Using social styles to customize the sales approach to each customer
- Stages of a B2B Buying Process:
1. Recognize the Need: an organization realizes the need for a good/service.
2. Define the Need: Stakeholders define the product with detailed specifications. Usually involves
users and initiators.
3. Search for Suppliers: Search for information about vendors and products. Usually involves
purchasing agents.
4. Bid Analysis: The buyer sends out an RFP to multiple vendors. Each vendor provides detailed
proposals for review by the buyer.
5. Supplier Selection: RFPs are reviewed, and the vendor is chosen. Negotiations for price and
other aspects of the deal take place.
6. Order Placement: Order is typically placed electronically. Orders can be one transaction or
continuous.
7. Performance Review: Buyer surveys quality and satisfaction levels. Not all poor performance is
the fault of the vendor.
, - KAM (Key Account Management) = Developing and maintaining long-term sustainable and
mutually beneficial relationships with key accounts (customers)
- Pareto Principle: 80/20 rule. Suggests that 20% of your activities will result in 80% of your
outcomes.
- JIT (Just in time) = materials are delivered immediately before they are required to minimize
product inventory cost
- Simple Moving Average = calculated by adding recent prices and dividing by the number of time
periods in calculation average
- Quotas should be 1. Easy to understand 2. Complete 3. Timely
- Quota setting procedure: Choose system, select basis for setting quota, determine factors,
Establish a rewards system, Level of sales rep involvement.
- Recoverable Draw = payout the company expects to get back (employee draws $1,000 per
month and must earn $1,000 in commission)
- Organizational Buying Types:
1. Producer: A B2B company that purchases parts, or ingredients to produce other goods and
services to then sell to other companies or consumers
2. Reseller: A B2B company that buys FINISHED goods to sell, lease, or rent to other companies or
consumers
3. Organization: A government agency or nonprofit group that purchases products or services to
serve or sell to its constituents
- B2B Buying Types (Situations)
1. Straight Rebuy: A purchaser buys the same product in the same quantity from the same vendor.
No modifications!
2. Modified Rebuy: Company buys the same type of product as in the past but wants to make some
modifications to it such as color, or quantity.
3. New Task Purchase: When a firm purchases a product for the first time ever.
- Weighted Moving Average = Puts more weight on recent data and less weight on old data
- Exponential Smoothing = Weighs the most recent observations the heaviest, and decreases the
weight over time
- Overlay quota = sum of estimates for an entire sales team
- Breakdown = determine sales force by establishing the total workload and number of hours
needed to cover the entire customer base, divided by selling time each representative has
available
- DMU (Decision Making Unit) / Buying center roles:
Initiators = the people in the organization who first see the need for the product
Users = those within the organization who use the product
Influencers = Those who have experience and expertise that can help improve the buying decision
Gatekeeper = people who decide if, and when, someone gets access to members of the buying center
(ex: shark tank)
Decision Maker = the person who makes the final purchasing decision
Buyer = the person who signs the purchasing contract
- Undifferentiated Marketing = Mass Marketing
- AIDA = ATTENTION, INTEREST, DESIRE, ACTION
- Social Style Matrix = categorizes people according to personality traits and how they interact
with others
- Law of psychological reciprocity = if you do something nice for someone they will reciprocate
- Return on Customer Investment = measures how much value a business can create per customer
- Transactional Selling = involves focusing on quick sales. No long-term relationship with
customers
- Adaptive Selling = Using social styles to customize the sales approach to each customer
- Stages of a B2B Buying Process:
1. Recognize the Need: an organization realizes the need for a good/service.
2. Define the Need: Stakeholders define the product with detailed specifications. Usually involves
users and initiators.
3. Search for Suppliers: Search for information about vendors and products. Usually involves
purchasing agents.
4. Bid Analysis: The buyer sends out an RFP to multiple vendors. Each vendor provides detailed
proposals for review by the buyer.
5. Supplier Selection: RFPs are reviewed, and the vendor is chosen. Negotiations for price and
other aspects of the deal take place.
6. Order Placement: Order is typically placed electronically. Orders can be one transaction or
continuous.
7. Performance Review: Buyer surveys quality and satisfaction levels. Not all poor performance is
the fault of the vendor.
, - KAM (Key Account Management) = Developing and maintaining long-term sustainable and
mutually beneficial relationships with key accounts (customers)
- Pareto Principle: 80/20 rule. Suggests that 20% of your activities will result in 80% of your
outcomes.
- JIT (Just in time) = materials are delivered immediately before they are required to minimize
product inventory cost
- Simple Moving Average = calculated by adding recent prices and dividing by the number of time
periods in calculation average
- Quotas should be 1. Easy to understand 2. Complete 3. Timely
- Quota setting procedure: Choose system, select basis for setting quota, determine factors,
Establish a rewards system, Level of sales rep involvement.
- Recoverable Draw = payout the company expects to get back (employee draws $1,000 per
month and must earn $1,000 in commission)
- Organizational Buying Types:
1. Producer: A B2B company that purchases parts, or ingredients to produce other goods and
services to then sell to other companies or consumers
2. Reseller: A B2B company that buys FINISHED goods to sell, lease, or rent to other companies or
consumers
3. Organization: A government agency or nonprofit group that purchases products or services to
serve or sell to its constituents
- B2B Buying Types (Situations)
1. Straight Rebuy: A purchaser buys the same product in the same quantity from the same vendor.
No modifications!
2. Modified Rebuy: Company buys the same type of product as in the past but wants to make some
modifications to it such as color, or quantity.
3. New Task Purchase: When a firm purchases a product for the first time ever.
- Weighted Moving Average = Puts more weight on recent data and less weight on old data
- Exponential Smoothing = Weighs the most recent observations the heaviest, and decreases the
weight over time
- Overlay quota = sum of estimates for an entire sales team
- Breakdown = determine sales force by establishing the total workload and number of hours
needed to cover the entire customer base, divided by selling time each representative has
available
