MKTG Ch 7- Business Marketing
Terms in this set (34)
The marketing of goods and services to individuals and organizations for purposes other than personal consumption.
Business to Business Electronic Commerce
the use of the Internet to facilitate the exchange of goods, services, and information between organizations.
A measure of a Web site'seffectiveness;
Stickiness = Frequency x Duration x Site Reach
-Loyal customers are more profitable than price-sensitive customers with little brand loyalty
-Long-term relationships build competitive advantage
-Licensing or distribution agreements
-Research and development consortia
Alliances succeed with commitment and trust
North American Industry Classification System (NAICS)
A detailed numbering system developed by the U.S., Canada, and Mexico to classify North American business establishments by their main production processes.
-Provides a common industry classification system
-Valuable tool for marketers in analyzing, segmenting, and targeting markets
Demand for Business Markets
Derived, Inelastic, Joint, or Fluctuating
Demand for business products results from demand for consumer products.
A change in price will not significantly affect the demand for product.
Multiple items are used together in final product. Demand for one item affects all.
Demand for business products is more volatile than for consumer products.
- multiplier effect
Multiplier Effect ( Accelerator Principle)
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.
Types of business products
Major Equipment, Accessory Equipment, Raw Materials, Component Parts, Processed Materials, Supplies, Business Services
capital goods such as large or expensive machines, mainframe computers, airplanes, and buildings. Depreciated over time, often custom-designed. Personal selling is an important marketing strategy.
Less expensive and shorter-lived than major equipment, includes fax machines, personal computers, power tools. Usually not depreciated. Often standardized and purchased by more customers. Advertising is an important promotional tool.
Unprocessed products, such as minerals, timber, wheat, corn, fish. Become part of finished products. Personal selling is the marketing mix component used, distribution channels usually direct from producer to business user.
Finished items ready for assembly or that need very little processing. Two important markets for component parts: original equipment manufacturer (OEM) and replacement market.
Used directly in manufacturing other products. Sheet metals, chemicals, and lumber. Do not retain their identity in final products. Price and service are important factors in choosing a supplier.
Consumable items that do not become part of the final product. Short lives and inexpensive. Generally fall into categories of maintenance, repair, or operating supplies (MRO).
Expense items that do not become part of the final product. This includes janitorial, advertising, legal, management consulting, marketing research, and maintenance services.
Aspects of Business Buying Behavior
Buying Centers, Evaluating Criteria, Buying Situations, Business Ethics, and Customer Service
All those people in an organization who become involved in the purchase decision.
Quality, Service, and Price
New Buy, Modified Rebuy, and Straight Rebuy
A situation requiring the purchase of
a product for the first time.
A situation where the purchaser wants some change in the original good or service.
A situation in which the purchaser reorders the same goods or services without looking for new information or investigating other suppliers.
-Divide customers into groups based on their value
-Create policies that govern how service will be allocated among groups
a practice whereby business purchasers choose to buy from their own customers
Business to Business Online Exchange
an electornic trrading floor that provides companies with integrated links to their customers and suppliers.
the elimination of intermediaries such as wholesalers or distributers from a marketing channel
the reintroduction of an intermediary between producers and users.
a network of interlocking corporate affiliates