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MKTG

MKTG. Lamb, Hair, McDaniel 2007-2008. 6. CHAPTER. Business Marketing. Designed by Amy McGuire, B-books, Ltd. Prepared by Deborah Baker, Texas Christian University. The marketing of goods and services to individuals and organizations for purposes other than personal consumption.

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MKTG

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  1. MKTG Lamb, Hair, McDaniel 2007-2008 6 CHAPTER Business Marketing Designed by Amy McGuire, B-books, Ltd. Prepared by Deborah Baker, Texas Christian University

  2. The marketing of goods and services to individuals and organizations for purposes other than personal consumption. What Is Business Marketing? BusinessMarketing LO1

  3. 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 LO1

  4. CONSUMER BUSINESS cupboards cupboards Coffee pot oven oven folderand pen Teddy bear photocopier folderand pen REVIEW LEARNING OUTCOME LO1 Business Marketing

  5. Stickiness Measuring Online Success A measure of a Web site’seffectiveness; 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

  6. Revenue generation • Aggressivedisintermediation initiatives • Basic marketingcommunication strategies • Reduce costs • Build channel partnerships and trust • Customer-focusedtechnology and systems • Brand building and development • Integrate online and traditional media Time Past initiatives Present initiatives Evolution of E-Business Initiatives LO2

  7. Business Internet Uses Revenue GenerationBasic Marketing Communication THEN NOW and Reduce costsBuild partnerships and alliancesBuild and support brandingDevelop customer-focused technology and systemsIntegrate online and traditional media REVIEW LEARNING OUTCOME LO2 The Internet in Business Marketing

  8. Strategic Alliances LO3 StrategicAlliance A cooperative agreement between business firms (strategic partnership).

  9. Relationships in Other Cultures LO3 Keiretsu A network of interlocking corporate affiliates.

  10. Supplier(like Intel) Supplier Supplier Company(like Dell) Company 1(like Starbucks) Company 2(like Jim Beam) Company(like UPS) Customer/Distributor(like Ford) REVIEW LEARNING OUTCOME LO3 Relationship Marketing and Strategic Alliances

  11. OEMs Producers WholesalersRetailers Resellers Federal MunicipalLocal Governments Schools Hospitals CollegesChurches Unions Fraternal groupsCivic Clubs Foundations Nonbusiness organizations Institutions Major Categories of Business Customers LO4

  12. Producers OriginalEquipmentManufacturers 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. LO4

  13. Business Marketing Producers Resellers Governments Institutions OEMs Wholesalers Federal Unions Churches Retailers State CivicClubs Foundations Municipal Other Nonprofits County REVIEW LEARNING OUTCOME LO4 Business Market Customers

  14. NAICS NAICS LO5 A detailed numbering system developed by the U.S., Canada, and Mexico to classify North American business establishments by their main production processes. North American Industry Classification System

  15. Example of NAICS Hierarchy LO5

  16. NAICS LO5 • 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

  17. Business versus Consumer Markets Characteristic Business Market Consumer Market Demand Organizational Individual Volume Larger Smaller # of Customers Fewer Many Location Concentrated Dispersed Distribution More Direct More Indirect Nature of Buy More Professional More Personal Buy Influence Multiple Single Negotiations More Complex Simpler Reciprocity Yes No Leasing Greater Lesser Promotion Personal Selling Advertising LO6

  18. Demand in Business Markets LO6 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 Multiple items are used together in final product. Demand for one item affects all. Fluctuating Demand for business products is more volatile than for consumer products.

  19. Fluctuating Demand Multiplier Effect 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. (Accelerator Principle) LO6

  20. Major Equipment Accessory Equipment Raw Materials Component Parts Processed Materials Supplies Business Services Types of Business Products http://www.sysco.com LO7 Online

  21. Extruding machine:major equipment Aluminum ore:raw material Tool cart:accessory equipment Extruded metal:processed material Propeller blade:component part Uniforms:contractedservice Paper: supply REVIEW LEARNING OUTCOME LO7 Types of Business Goods and Services

  22. Buying Centers Evaluative Criteria Aspects of Business Buying Behavior Buying Situations Business Ethics Customer Service Business Buying Behavior LO8

  23. Buying Center All those persons in an organization who become involved in the purchase decision. Buying Centers LO8

  24. Initiator Influencers Gatekeepers Decider Purchaser Users http://www.loctite.com Online Roles in the Buying Center LO8

  25. Evaluative Criteria • Quality • Service • Price LO8

  26. New Buy Modified Rebuy Straight Rebuy A situation requiring the purchase of a product for the first time. A situation where the purchaser wants some change in the original good or service. A situation in which the purchaser reorders the same goods or services without looking for new information or investigating other suppliers. Buying Situations LO8

  27. Biz Flix Bowfinger LO8

  28. Customer Service • Divide customers into groups based on their value • Create policies that govern how service will be allocated among groups LO8

  29. EvaluativeCriteria Buying Center Buying Situations • Quality • Service • Price New buyStraight rebuyModified rebuy Initiator Influencer Decider Gatekeeper Purchaser User Customer service REVIEW LEARNING OUTCOME LO8 Business Buying Behavior

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