Ch 7: Business Marketing
Ch 7: Business Marketing Mkt 3000
Popular in Marketing/non business
Popular in Marketing
This 3 page Class Notes was uploaded by Rebecca Lord on Sunday October 11, 2015. The Class Notes belongs to Mkt 3000 at Bowling Green State University taught by Fei Weisstein in Fall 2015. Since its upload, it has received 48 views. For similar materials see Marketing/non business in Marketing at Bowling Green State University.
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Date Created: 10/11/15
Ch 7 Business Marketing Business Product The key is intended use 0 Used to manufacture other products 0 Becomes part of another product 0 Aids in the normal operations of an organization Business Marketing The marketing of goods and services to businesses where personal consumption is not the intended use Strategic Alliance Strategic Partnership A cooperative agreement between two firms Ex joint ventures licensing or distribution agreements partnerships Business form strategic alliances to strengthen operations and better compete Relationship Marketing Loyal customers are more profitable than price sensitive customers with little brand loyahy Long term relationships build competitive advantages Original Equipment Manufacturers Individuals and organizations that buy business gods and incorporate them into the products that they produce for eventual sale to producers or consumers Ex General Motors buying paint steel tires and batteries are OEMs North American Industry Classification System NAICS A detailed numbering system developed by the US Canada and Mexico to classify North American Business Establishments by their main product process 1 2 Selector Subsector Industry Group In ustry Industry Subdivision The more digits in a code the more homogenous the group will be NAICS Provides a common industry classification Valuable tool for marketers in analyzing segmenting and targeting markets Data can be used to determine 0 O O 0 Number size and geographic dispersion of firms Market potentialmarket share estimates Sales forecast New customer identification DEMAND Derived Inelastic Demand for business products result from demand for consumer products Ex The number of drills a company buys will depend on the demand for products that are produced using these machines A change in price in a product used in the production will not significantly affect demand for final product Ex If the price of automobile paint increases that won t affect the number of automobiles sold Multiple items are used together in a final product Demand for one item affects all Ex If the price of lettuce for McDonalds hamburgers decreases McDonalds will not alter the amount of lettuce they buy because buying more of one ingredient would mean they would need to buy more of the other ingredients Business Buying Behavior 0 Buying Centers All those persons in an organization who become involved in the purchase decision 39 R0esr o Initiator suggests purchase 0 Influencer Defines specifications and provides specifications for evaluating options 0 Gatekeeper Decider approves the selection 0 Purchaser Negotiates purchase 0 Users Uses the product Evaluating Criteria 1 Quality technical suitability Quality improvement should be part of every businesses criteria 2 Service prepurchase and postpurchase service and dependability of supply 3 Price The business buyers want a low price 0 Buying Situation 0 New buy Purchase of product for first time 0 Modify Rebuy makes some changes in the original good or service 0 Straight Buy Reorders same good without looking for new info or other suppliers Customer Service 0 Divide customers into groups based on their value 0 Create policies that govern how service will be allocated among groups