Download Business Marketing

Business Marketing
Key Concepts
What Is Business
Marketing?
Business
Marketing
The marketing of goods
and services to individuals
and organizations for
purposes other than
personal consumption.
Business Products
The key is intended use.
Business Products:

Are used to manufacture other products

Become part of another product

Aid the normal operations of an organization

Are acquired for resale without change in form
Evolution of E-Business Initiatives
• Revenue generation
• Aggressive
disintermediation
initiatives
• Basic marketing
communication strategies
• Reduce costs
• Build channel
partnerships and trust
• Customer-focused
technology and
systems
• Brand building and
development
• Integrate online and
traditional media
Time
Past initiatives
Present initiatives
The Internet in
Business Marketing
Business Internet Uses
THEN
Revenue Generation
Basic Marketing Communication
and
NOW
Reduce costs
Build partnerships and alliances
Build and support branding
Develop customer-focused technology and systems
Integrate online and traditional media
Strategic Alliances
Strategic
Alliance
A cooperative agreement
between business firms
(strategic partnership).
Business Market Customers
Business Marketing
Producers
Resellers
Governments
OEMs
Wholesalers
Federal
Unions
Churches
Retailers
State
Civic
Clubs
Foundations
Municipal
Other
Nonprofits
County
Institutions
Producers
Original
Equipment
Manufacturers
OEMs.
Individuals and organizations
that buy business goods and
incorporate them into the
products that they produce for
eventual sale to other producers
or to consumers.
Business versus
Consumer Markets
Characteristic
Demand
Volume
# of Customers
Location
Distribution
Nature of Buy
Buy Influence
Negotiations
Reciprocity
Leasing
Promotion
Business Market
Organizational
Larger
Fewer
Concentrated
More Direct
More Professional
Multiple
More Complex
Yes
Greater
Personal Selling
Consumer Market
Individual
Smaller
Many
Dispersed
More Indirect
More Personal
Single
Simpler
No
Lesser
Advertising
Types of Business Products
Major Equipment
Accessory Equipment
Raw Materials
Component Parts
Processed Materials
Supplies
Business Services
Types of Business Goods and
Services
Extruding
machine:
major equipment
Aluminum ore:
raw material
Tool cart:
accessory
equipment
Extruded metal:
processed
material
Propeller blade:
component part
Paper:
supply
Uniforms:
contracted
service
Business Buying Behavior
Buying Centers
Evaluative Criteria
Aspects of
Business
Buying
Behavior
Buying Situations
Business Ethics
Customer Service
Buying Centers
Buying Center
All those persons in an
organization who become
involved in the purchase
decision.
Roles in the Buying Center
Initiator
Influencers
Gatekeepers
Decider
Purchaser
Users
Evaluative Criteria
 Quality
 Service
 Price
Buying Situations
New Buy
A situation requiring the purchase of
a product for the first time.
Modified
Rebuy
A situation where the purchaser
wants some change in the original
good or service.
Straight
Rebuy
A situation in which the purchaser
reorders the same goods or services
without looking for new information
or investigating other suppliers.
Customer Service
 Divide customers into groups
based on their value
 Create policies that govern
how service will be allocated
among groups
Business Buying Behavior
Buying
Center
Initiator
Influencer
Decider
Purchaser
User
Gatekeeper
Evaluative
Criteria
 Quality
 Service
 Price
Customer service
Buying
Situations
New buy
Straight rebuy
Modified rebuy