Trek Bicycle began by manufacturing high-quality, prestige bicycles that required the best materials and component parts. Trek expanded from road racing and mountain bikes to produce a wide range of bikes such as tandem and children's bikes while continuing its focus on quality.
Today, Trek is one of the leading manufacturers of bicycles and cycling products with more than $600 million in sales and 2,000 employees.
Trek's products are marketed through 1,700 dealers in North America and wholly owned subsidiaries in seven countries, and through distributors in 80 other countries. Trek's global mission is to "help the world use the bicycle as a simple solution to complex problems."
Business marketing is the marketing of goods and services to companies, governments, or not-for-profit organizations for use in the creation of goods and services that they can produce and market to others.
Organizational buyers are those manufacturers, wholesalers, retailers, and other government agencies that buy goods and services for their own use or for resale.
Organizational buyers purchase and lease large volumes of capital equipment, raw materials, manufactured parts, supplies, and business services. Organizational buyers are divided into three markets: (1) industrial, (2) reseller, and (3) government.
1. Trek Bicycle purchases only the highest quality raw materials to make products that will live up to its mission to "Build the best bikes in the world." As an organizational buyer, Trek operates in which type of market?
Reseller market
Industrial market
Not-for-profit market
Retailer market
Government market
2. As cycling's popularity increased, so did consumer demand for Trek's products. As consumer demand for Trek's bikes increased, so did Trek's demand for raw materials from its suppliers. The relationship between consumer demand for products and industrial demand for raw materials is known as _______.
secondary demand
consumer demand
inelastic demand
elastic demand
derived demand
3. As part of its organizational buying process, Trek deliberately invested in its relationships with its suppliers to help shape the suppliers' products and services in order to better fit Trek's needs. This process is known as _______.
supplier locating
supplier development
supplier demanding
supplier sourcing
supplier buying
4. Within Trek's domestic buying center, the ______ helps define the specifications for what is bought. For example, if Trek was looking for a saddle for its newest racing bike, this buying center member would draft the requirement for what needs to be purchased.
decider
user
influencer
gatekeeper
buyer
5. Trek is committed to being an efficient, green company and therefore has joined a number of online trading communities called ________, which bring qualified buyers and sellers together and streamline Trek's purchasing process.
organizational markets
e-marketplaces
procurement portals
buying centers
export hubs