Business Markets & Service Marketing

1. Business Markets & Service Marketing

2. Business Markets • Companies and organizations that purchase products for the operation of a business or the completion of a business activity • Capital equipment • Operating equipment • Supplies • Raw materials • Component parts

3. Demand • Direct Demand (consumer markets) • Derived Demand: quantity of product or service needed by a business in order to operate at a level that will meet the demand of its customers

4. Business Markets • Capital: land, buildings, and major pieces of equipment • Operating Equipment: smaller, less expensive equipment (cash registers, tools, small machines) • Supplies: materials consumed in the operation of the business (paper, ink catridges) • Raw Materials: materials incorporated into the products they make • Component Parts: parts manufactured by another business incorporated into the products they make

5. Service Marketing • Service Marketing: Services are intangible, inseparable, perishable, and heterogenous • Intangible: cannot be touched, seen, tasted, heard, or felt • Inseparable: service is produced and consumed at the same time • Perishable: services unused in a period cannot be stored for use in the future • Heterogeneous: differences between services due to the difference in the people who perform them

6. Service Quality • The degree to which the service meets customers’ needs and expectations • Competition • Performance standards • Customer satisfaction

7. Service Marketing • Planning: • nature of services affect the planning • Promotion: • endorsements, word of mouth, personal selling • Price: • bundling • Product/Distribution: • distributed at the point of creation