Chapter 6 Business Marketing What is Business Marketing
Chapter 6 Business Marketing
What is Business Marketing? 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 Key is intended use
E-Commerce The process of selling goods and services on the Internet Business E-Commerce Electronic transactions between companies Consumer E-Commerce Electronic transactions between business and individuals that purchase for individual consumption
Benefits of Internet’s Interactivity • Convenience and increased efficiency • Better customer service • Lower transaction costs • New relationship-building opportunities
Business E-Commerce Benefits 1. Lower prices 2. Greater selection of products and vendors 3. Access to customer and product sales data 4. Around-the-clock ordering & customer service 5. Lower costs 6. Customized products
Categories of Business Customers Producers Categories of Business Customers Resellers Governments Institutions
NAICS • Provides 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
Business vs. Consumer Markets Characteristic Demand Volume # of Customers Location Distribution Nature of Buy Influence Negotiations Reciprocity Leasing Promotion Business Market Organizational Larger Fewer Concentrated More Direct More Professional Multiple More Complex Yes Greater Personal Selling Consumer Market Individual Smaller Many Dispersed More Indirect More Personal Single Simpler No Lesser Advertising
Demand in Business Markets 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
Business Buying Behavior Buying Centers Evaluation Criteria Aspects of Business Buying Behavior Buying Situations Purchasing Ethics Customer Service
Buying Situations New Buy A situation requiring the purchase of a product for the first time. Modified Rebuy A situation where the purchaser wants some change in the original good or service. Straight Rebuy A situation in which the purchaser reorders the same goods or services without looking for new information or investigating other suppliers.
Customer Service is enhanced through technology Online Services World Wide Web CD-ROMs
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