Reverse marketing refers to the situation in which a buyer encourages an organisation to enter a market that they otherwise had not planned to do. The term is based on the idea that marketing involves stimulating demand and satisfying it at a profit. Reverse marketing involves stimulating supply and receiving supply to create a saving. The motives for reverse marketing range from the absence of any supply market, for example in remote areas, to the absence of a competitive market. For example, two airlines operating out of an airport may find that a monopoly supplier of aviation fuel is charging a premium. By agreeing to guarantee a minimum volume to a prospective new entrant, the airlines may create the circumstances for a business case in which the new entrant invests in infrastructure in return for a guaranteed demand for a certain period of time. On the expiry of that period, normal competitive processes would apply. See also Forward Commitment Procurement.« Back to Glossary Index
Discover the world’s largest Glossary of Procurement terms
With over 800 Procurement specific terms (and growing) you will find everything you need to know or thought you knew about the Procurement function. Our aim is to provide you with a comprehensive list collated from the Comprara Groups hub of training and consulting source materials.The Procurement Glossary has been compiled by industry expert Paul Rogers.