1 chapter 7: business marketing copyright cengage learning 2013 all rights reserved designed &...
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Chapter 7: Business Marketing
Copyright Cengage Learning 2013
All Rights Reserved
Designed & Prepared by Laura RushB-books, Ltd.
Introduction to
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Learning Outcomes
Describe business marketing
Describe the role of the Internet in business marketing
Discuss the role of relationship marketing and strategic alliances in business marketing
Identify the four major categories of business market customers
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Learning Outcomes Explain the North American Industry Classification System
Explain the major differences between business and consumer markets
Describe the seven types of business goods and services
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
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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 Website’s effectiveness; calculatedby multiplying the frequency ofvisits times the duration of a
visit times the number of pagesviewed during each visit.
Stickiness= Frequency x Duration x Site Reach
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Strategic Alliances
A cooperativeagreement between
business firms (strategic partnerships).
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Relationships in Other Cultures
Keiretsu- A network of interlocking corporate
affiliates.
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Major Categories of Business Customers
• OEMS
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Producers Resellers Governments Institutions
• Wholesalers
• Retailers
• Federal• Municipal• Local
• Schools• Churches• Civic Clubs• Hospitals• Unions• Foundation
s• Organizatio
ns• Colleges • Fraternal
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NAICS
NAICS (North American IndustryClassification System)- A detailednumbering system developed bythe United States, Canada, and
Mexico to classify North Americanbusiness establishments by
their main production processes.
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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
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Demand in Business Markets
DerivedDerived Demand for business products results from demand for consumer products.Demand for business products results from demand for consumer products.
InelasticInelastic A change in price will not significantly affect the demand for product.A change in price will not significantly affect the demand for product.
JointJoint Multiple items are used together in final product. Demand for one item affects all.Multiple items are used together in final product. Demand for one item affects all.
FluctuatingFluctuating Demand for business products is more volatile than for consumer products.Demand for business products is more volatile than for consumer products.
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Fluctuating Demand
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.
Multiplier Effect (Accelerator Principle) -
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Types of Business Products
Major EquipmentMajor Equipment
Accessory EquipmentAccessory Equipment
Raw MaterialsRaw Materials
Component PartsComponent Parts
Processed MaterialsProcessed Materials
SuppliesSupplies
Business ServicesBusiness Services
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Business Buying Behavior
Customer ServiceCustomer Service
Business EthicsBusiness Ethics
Buying SituationsBuying Situations
Evaluative CriteriaEvaluative Criteria
Buying CentersBuying Centers
Aspects of Business
BuyingBehavior
Aspects of Business
BuyingBehavior
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Roles in the Buying Center
InitiatorInitiator InfluencersInfluencers GatekeepersGatekeepers
DeciderDecider PurchaserPurchaser UsersUsers
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Evaluative Criteria
1. Quality
2. Service
3. Price
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Buying Situations
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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 thepurchaser reorders the same goods or
services without looking for new informationor investigation other suppliers.
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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
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