Business Markets and Caterpillar Overview

Markets comprised of businesses, organizations, and governments buying raw materials, components, equipment, supplies, and services.

The process by which organizations decide what products and services to buy, evaluate different options, and select a supplier.

Marketing activities between businesses, rather than businesses and consumers.

A major construction equipment manufacturer.

The formal procedure used by organizations to identify, evaluate, and select products and services.

Organizations acquiring goods and services for product/service development or resale.

A marketplace where firms buy and sell components for products.

Major industries providing components and services to businesses, like aerospace, agriculture & energy.

Business markets involve fewer, but significantly larger customers, compared to consumer markets.

Business markets often require customized solutions from suppliers.

Business purchases are often handled by trained purchasing agents following company policies.

Business decisions involve input from several people within the organization.

Demand for business products depends on the demand for consumer products.

Changes in price have little impact on demand for some business goods/services.

Business demand for products can change more drastically compared to consumer demand.

Many business buyers cluster in certain geographic areas.

Business buyers often buy directly from manufacturers instead of intermediaries.

A routine purchase from an approved supplier, following a standard process.

A purchase with changes to existing specifications, prices, or terms.

Acquiring a product or service for the first time, a significant purchase.

The group of people involved in a business purchase decision.

Buying center members who first suggest a purchase.

Buying center members who use a product or service.

Buying center members who provide input and recommendations.

Buying center members who make the final purchase decision.

Buying center members authorizing a proposed purchase.

Buying center members who handle the details of purchase.

Control the flow of information or access to buying center members.

A strategic approach to organizing brands under a unified global identity to enhance a brand's reach.

Challenges faced by businesses in maintaining profit margins due to buyers' relentless focus on reducing costs.

The overall cost of using and maintaining a product throughout its entire life cycle.

A program implementing collaborative partnerships and improved product mix to enhance customer loyalty and potentially drive higher prices.

The degree to which stakeholders believe a company is reliable, capable, and ethical.

A form of cheating or failing to fulfill a contract or obligations, often in a business relationship.

Tailored investments in training, equipment, systems, etc., that are specific to a particular partner or business relationship

A market segment encompassing schools, hospitals, prisons, and other institutions that need to acquire goods and services for their operations.

Individuals and groups within an organization who participate in the buying process, with varying levels of influence.

Examples of individuals involved in buying decisions for medical supplies: vice president of purchasing, operating room administrator, and surgeons.

A series of steps involved in making a purchase decision by a business.

The first step in the business buying process; when a company identifies a need or problem that a product or service can solve.

Determining what characteristics and quantity a business needs from a product or service.

Detailed technical requirements and specifications for a product to meet the needs of a company in the business buying process.

Identifying potential suppliers and evaluating their offerings in the business buying process.

Requesting proposals from qualified suppliers within the business purchasing process.

Evaluating and deciding on the best supplier amongst multiple options in the business purchasing process.

Finalizing the terms and conditions for a purchase, including specifications, delivery, and warranties in the business buying process

Evaluating the supplier's performance, often using contact with end users, weighted scoring, or cost analysis in the business buying process.

A selection based on a range of factors from financial aspects to technical aspects, product and service offerings, and social aspects.

Businesses or governmental entities with limited financial resources.

Customers who are obligated or compelled to use a specific organization's services.

Improving purchasing and supply chain management.

The process of the federal government acquiring goods/services.

Reducing government procurement complexity.

Purchasing readily available products instead of customized ones.

Eliminating paperwork by communicating digitally with vendors.

Providing feedback to unsuccessful bidders to help them improve future bids.

Online resources allowing government agencies to buy goods/services.

Marketing strategies for businesses and organizations, akin to consumer marketing, focusing on explaining benefits and coordinating tasks.

Provides auditing services to reduce health care costs for firms.

Building industry relationships via ongoing webinars.

Using integrated communications (blogs, white papers, and videos) to generate leads and drive website traffic.