Transcript Chapter 1: A Business Marketing Perspective

A Business Marketing
Perspective
Chapter 1
What are Business Markets?
• “Markets for products and services, local
to international, bought by businesses,
government bodies, and institutions for
incorporation, for consumption, for use, or
for resale.”
Business Marketing
Management
• B2B vs. B2C
– Do firms have to be one or the other?
– Which is larger?
– What’s the difference?
• Business Consumers
– Commercial enterprises
– Institutions
– Government
Business Markets v.
Consumer Markets
• Market-driven firms
– Characteristics
• Place customers’ needs first
• Know the environment
• Coordinated use of inter-functional resources
– Capabilities
• Market-sensing capabilities
• Customer-linking capability
What Do Business Marketing
Managers Do?
• Partner for Increased Value
• Create a Value Proposition
– How?
– What is a value proposition?
– Customer solutions
MKT v. “Those Other Guys”
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Finance
Accounting
Logistics
Customer service
R&D
Procurement
Manufacturing
Characteristics of B2B
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Derived Demand
Fluctuating Demand
Stimulating Demand
Price Sensitivity
Global Marketing Perspective
B2B v. B2C
MKT MIX
Promotions
Product
Price
Place
B2B
B2C
Relationship Marketing
• What is it?
The Supply Chain
• “A technique for linking a manufacturer’s
operations with those of its suppliers,
intermediaries, and customers to increase
effectiveness and efficiency.”
• Shifts in SCM
• Cespedes’ “concurrent marketing”
Commercial Enterprises
• Types
– Users
– Original Equipment Manufacturers (OEMs)
– Dealers & Distributors
• Understand buying intentions
Classifying Goods for the
Business Market
• Entering Goods
– Raw materials
– Manufactured materials and parts
• Foundation Goods
– Installations
– Accessory goods
• Facilitating Goods
– Supplies
– Services
• Maintenance and repair support
• Advisory support