Transcript 1133273874_334251

Introduction
to
Chapter 7: Business Marketing
Designed & Prepared by Laura Rush
B-books, Ltd.
Copyright Cengage Learning 2013
All Rights Reserved
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Learning Outcomes
LO1
Describe business marketing
LO2
Describe the role of the Internet in
business marketing
LO3
Discuss the role of relationship marketing and
strategic alliances in business marketing
LO4
Identify the four major categories of business
market customers
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Learning Outcomes
LO5
Explain the North American Industry
Classification System
LO6
Explain the major differences between business
and consumer markets
LO7
Describe the seven types of business goods and
services
LO8
Discuss the unique aspects of business buying
behavior
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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
LO1
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Online B-to-B Marketing Tools
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Blogs
Social Networking Sites
Twitter
Video
Mobile Marketing
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Measuring Online Success
Stickiness- A measure of a Web
site’s effectiveness; calculated
by multiplying the frequency of
visits times the duration of a
visit times the number of pages
viewed during each visit.
Stickiness= Frequency x Duration x Site Reach
LO2
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Strategic Alliances
A cooperative
agreement between
business firms
(strategic partnerships).
LO3
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Relationships in Other Cultures
Keiretsu- A network of
interlocking corporate
affiliates.
LO3
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Major Categories of Business
Customers
Producers
• OEMS
LO4
Resellers
• Wholesalers
• Retailers
Governments
• Federal
• Municipal
• Local
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Institutions
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Schools
Churches
Civic Clubs
Hospitals
Unions
Foundations
Organizations
Colleges
Fraternal
Groups
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NAICS
NAICS (North American Industry
Classification System)- A detailed
numbering system developed by
the United States, Canada, and
Mexico to classify North American
business establishments by
their main production processes.
LO5
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NAICS
• Provides a common industry classification system
• Valuable tool for marketers in analyzing, segmenting,
and targeting markets
• Data can be used to determine:
– Number, size, and geographic
dispersion of firms
– Market potential / market share estimates
– Sales forecasts
– New customer identification
LO5
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Demand in Business Markets
Demand is...
Description
Derived
Demand for business products results from
demand for consumer products.
Inelastic
A change in price will not significantly affect
the demand for product.
Joint
Fluctuating
Multiple items are used together in final
product. Demand for one item affects all.
Demand for business products is more
volatile than for consumer products.
Fluctuating Demand
Multiplier Effect (Accelerator Principle) Phenomenon in
which a small increase or decrease in
consumer demand can produce a much
larger change in demand for
the facilities and equipment needed to
make the consumer product.
LO6
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Types of Business Products
Major Equipment
Processed Materials
Accessory Equipment
Supplies
Raw Materials
Business Services
Component Parts
LO7
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Business Buying Behavior
Buying Centers
Evaluative Criteria
Aspects of
Business
Buying
Behavior
Buying Situations
Business Ethics
Customer Service
LO8
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Roles in the Buying Center
LO8
Initiator
Influencers
Gatekeepers
Decider
Purchaser
Users
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Evaluative Criteria
1. Quality
2. Service
3. Price
LO8
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Buying Situations
New buy – A situation requiring the purchase
of a product for the first time.
Modified Rebuy – A situation in which 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 investigation other suppliers.
LO8
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Customer Service
•Divide customers into groups
based on their value
•Create policies that govern how
service will be allocated
among groups
LO8
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