Marketing 3010 Week 6 Notes
Marketing 3010 Week 6 Notes Mkt 3010-001
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This 6 page Class Notes was uploaded by Hannah Stephens on Thursday February 11, 2016. The Class Notes belongs to Mkt 3010-001 at Clemson University taught by Carter Willis McElveen in Spring 2016. Since its upload, it has received 50 views. For similar materials see Principles of Marketing in Marketing at Clemson University.
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Date Created: 02/11/16
Chapter 7: Business-‐to-‐Business Marketing Business Products ▯ The key is intended use! ▯ Are used to manufacture other products ▯ Become part of another product ▯ Aid the normal operations of our organization ▯ Are acquired for resale without change in form B2B Markets 1. Manufactures or Procedures a. But raw materials, components, or parts b. Manufacture their own goods 2. Reseller a. Manufacture—reseller—retailer b. Aggregate goods 3. Institutions a. Schools, museums, and religious organizations b. Government not an institution market!! 4. Government a. US government spends $2.1 trillion procuring goods b. State and local gov’ts also make significant purchases c. Firms specialize in selling to gov’t B2B Buying Process Need Recognition▯Product Specification▯RFP Process▯Proposed analysis & supplier selection • Stage 1: Need Recognition o Can be generated internally or externally o Sources for recognizing new needs: ▯ Suppliers, salespeople, competitors • Stage 2: Product Specification o Used by suppliers to develop proposals o Can be done collaboratively with suppliers • Stage 3: RFP Process (Request for Proposal) • Stage 4: Proposal Analysis, Vendor Negotiation & Selection o Often several vendors are negotiation against each other o Considerations other than price play a role in final selection • Stage 5: Order Specification o Firm places the order o Exact details of purchase are specified o All terms are detailed including payment • Stage 6: Vendor Analysis o Evaluation of Vendor’s Performance Organization Culture Buying The Buying Situation Center Buying Process 1. The Buying Center • Initiator—someone initiating the purpose • Influencer—helps influence the decision • Decider—person that makes the decision about what gets bought • Buyer—the one that pushes the paperwork, makes it happen • User—who uses the product • Gatekeeper—who controls the flow of information 2. Organizational Buying Culture a. Democratic—majority rules b. Consultative—one person makes decision but takes feedback of others into consideration c. Consensus—all have to agree or disagree d. Autocratic—one person makes decision (small business) 3. Buying Situations a. New buy i. Likely to be very involved ii. Buying center will probably use all 6 steps in buying process b. Modified rebuy i. Purchasing a similar product but changing specifics ii. Current vendors have an advantage c. Straight rebuy i. Buying additional units or products that have been previously purchased ii. Most B2B purchases fall into this category Chapter 8: Global Markets Companies that failed in China: ▯ Home Depot—don’t value investing in real estate; like neighbor stores ▯ Matter: House of Barbie—didn’t understand she was an icon ▯ EBay—want to buy from someone they know ▯ Google—government wanted to censor the searches Global Marketing—having a global vision ▯ Recognizing and reacting to international marketing opportunities ▯ Using effective global marketing strategies ▯ Being aware of threats from foreign competitors The Fear of Trade & Globalization ▯ Americans have lost jobs/ fear of losing jobs ▯ Outsourcing if workers don’t take pay cuts ▯ Vulnerability to operations moving offshore Benefits: ▯ Expand economic freedom, spurs competition ▯ Raises productivity and living standards ▯ Offers access to foreign capital, global export markets and advanced technology ▯ Promotes higher labor and environmental standards (ex. Thailand is filthy) ▯ Acts as a check on government power Big Mac Index & Burgernomics*** ▯ Burgernomics is based on the theory of purchasing power parity (PPP)—a dollar should buy the same amount in all countries ▯ Exchange rate between two countries should equalize prices of an identical good in each country ▯ This “identical good” is a McDonald’s Big Mac in ~120 counties ▯ “the big mac index” is the exchange rate that would mean Big Macs cost the same everywhere o Switzerland—most expensive o India—cheapest Organizations Involved in World Trade ▯ Lower trade barriers and raise global living standards*** ▯ GATT (General agreement on tariffs and trade) ▯ IMF (international monetary fund) ▯ World bank group GATT—document agreeing to lower trade barriers between 23 counties in 1948 ▯ Turned into WTD—more of an active body that lowers trade barriers IMF—promote international monetary negotiations World Bank Group—provides loans to developing counties Assessing Global Markets—picture in book*** ▯ Economic analysis ▯ Sociocultural ▯ Infrastructure and technology ▯ Government actions Assessing Global Markets 1. Economic Analysis a. General economic environment i. Gross domestic product ii. Gross national income iii. Purchasing power parity iv. Human development index 2. Evaluating market size & population growth rate a. You want to enter an economy where the population is growing 3. Evaluating real income a. Firms make adjustments to an existing product to meet the unique needs of a particular country market 4. Analyzing Infrastructure & Technological Capabilities a. Transportation b. Communication c. Distribution channel d. Commerce Government Actions • European Union: 27 member countries (Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Stoma, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latria, Lithuania, Luxemburg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, The UK • NAFTA: USA, Canada, Mexico • CAFTA: USA, Costa Rica, DR, El Salvador, Guatemala, Honduras, Nicaragua • Mercosur: Argentina, Brazil, Paraguay, Uruguay, Venezuela • ASEAN Analyzing Sociocultural Factors: Hofestede’s Dimensions 1. Power distance a. Degree to which you accept the fact that power is distributed unequally 2. Uncertainty avoidance a. Ability to deal with ambiguity 3. Individualism a. All about me (individualism) or for the good of the group (collectivism) 4. Masculinity a. Degree of power that men have in the culture 5. Time Orientation a. Long-‐term or short term The Global Marketing Mix: Product of Service Strategies • Do the same thing • Change a little (same product /minor adaptations) • All new products Global Marketing Mix: Pricing Strategies • Tariffs • Quotes • Anti-‐dumping policies (can’t sell for anything less than anything else on the market) • Economic conditions • Competitive factors
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