Business Business MarketingMarketing

Key ConceptsKey Concepts

What Is Business What Is Business Marketing?Marketing?

The marketing of goods The marketing of goods

and services to individuals and services to individuals

and organizations for and organizations for

purposes other than purposes other than

personal consumption.personal consumption.

BusinessMarketing

BusinessMarketing

Business ProductsBusiness ProductsThe key is intended use.

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

Evolution of E-Business Evolution of E-Business Initiatives Initiatives

• Revenue generation• Aggressive

disintermediation initiatives• Basic marketing

communication strategies

• Reduce costs• Build channel

partnerships and trust• Customer-focused

technology and systems• Brand building and

development• Integrate online and

traditional media

Past initiatives Present initiatives

Time

The Internet in The Internet in Business MarketingBusiness Marketing

THEN

NOW Reduce costsBuild partnerships and alliancesBuild and support brandingDevelop customer-focused technology and systemsIntegrate online and traditional media

Revenue GenerationBasic Marketing Communication

Business Internet Uses

and

Strategic AlliancesStrategic Alliances

A cooperative agreement

between business firms

(strategic partnership).

StrategicAlliance

StrategicAlliance

Business Market CustomersBusiness Market Customers

Business MarketingBusiness Marketing

InstitutionsInstitutionsResellersResellers

Wholesalers

Retailers

ProducersProducers

OEMs

GovernmentsGovernments

Federal

State

Municipal

County

Unions

CivicClubs

Other

Churches

Foundations

Nonprofits

ProducersProducers

OEMs.

Individuals and organizations

that buy business goods and

incorporate them into the

products that they produce for

eventual sale to other producers

or to consumers.

OEMs.

Individuals and organizations

that buy business goods and

incorporate them into the

products that they produce for

eventual sale to other producers

or to consumers.

OriginalEquipment

Manufacturers

OriginalEquipment

Manufacturers

Business versus Business versus Consumer MarketsConsumer Markets

CharacteristicCharacteristicCharacteristicCharacteristic

DemandDemand

VolumeVolume

# of Customers# of Customers

LocationLocation

DistributionDistribution

Nature of BuyNature of Buy

Buy InfluenceBuy Influence

NegotiationsNegotiations

ReciprocityReciprocity

LeasingLeasing

PromotionPromotion

Business MarketBusiness MarketBusiness MarketBusiness Market

OrganizationalOrganizational

LargerLarger

FewerFewer

ConcentratedConcentrated

More DirectMore Direct

More ProfessionalMore Professional

MultipleMultiple

More ComplexMore Complex

YesYes

GreaterGreater

Personal SellingPersonal Selling

Consumer MarketConsumer MarketConsumer MarketConsumer Market

IndividualIndividual

SmallerSmaller

ManyMany

DispersedDispersed

More IndirectMore Indirect

More PersonalMore Personal

SingleSingle

SimplerSimpler

NoNo

LesserLesser

AdvertisingAdvertising

Types of Business Products

Major Equipment Major Equipment

Accessory Equipment Accessory Equipment

Raw Materials Raw Materials

Component Parts Component Parts

Processed Materials Processed Materials

Supplies Supplies

Business Services Business Services

Types of Business Goods and Types of Business Goods and ServicesServices

Aluminum ore:raw material

Extruded metal:processed material

Propeller blade:component part

Extruding machine:

major equipment Tool cart:accessory equipment

Uniforms:contracted

service

Paper:supply

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

Buying Centers

Buying CenterBuying CenterAll those persons in an

organization who become

involved in the purchase

decision.

Roles in the Buying Center

InitiatorInitiator InfluencersInfluencers GatekeepersGatekeepers

DeciderDecider PurchaserPurchaser UsersUsers

Evaluative Criteria

QualityQuality

ServiceService

PricePrice

Buying Situations

New BuyNew Buy A situation requiring the purchase of a product for the first time.

A situation requiring the purchase of a product for the first time.

ModifiedRebuy

ModifiedRebuy

A situation where the purchaser wants some change in the original good or service.

A situation where the purchaser wants some change in the original good or service.

StraightRebuy

StraightRebuy

A situation in which the purchaser reorders the same goods or services without looking for new information or investigating other suppliers.

A situation in which the purchaser reorders the same goods or services without looking for new information or investigating other suppliers.

Customer Service

Divide customers into Divide customers into groups based on their groups based on their valuevalue

Create policies that Create policies that govern how service will govern how service will be allocated among groupsbe allocated among groups

Business Buying BehaviorBusiness Buying Behavior

Customer service

InitiatorInfluencerDecider GatekeeperPurchaserUser

Buying Center

Quality Service Price

EvaluativeCriteria

Buying Situations

New buyStraight rebuyModified rebuy