1Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 6

Prepared byPrepared byDeborah BakerDeborah Baker

Texas Christian UniversityTexas Christian University

6Business Marketing

2Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 6

Learning ObjectivesLearning Objectives

1. Describe business marketing

2. Describe the role of the Internet in business marketing

3. Discuss the role of relationship marketing and strategic alliances in business marketing

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Learning Objectives (continued)Learning Objectives (continued)

4. Identify the four major categories of business market customers

5. Explain the North American Industry Classification System

6. Explain the major differences between business and consumer markets

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Learning Objectives (continued)Learning Objectives (continued)

7. Describe the seven types of business goods and services

8. Discuss the unique aspects of business buying behavior

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Business ProductsBusiness 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 Key is intended intended

useuse

1

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The Role of the Internet in Business The Role of the Internet in Business MarketingMarketing

2

Business Internet Uses

Revenue GenerationBasic Marketing Communication

THEN

AND

NOW Reduce costsBuild partnerships and alliancesBuild and support branding

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Categories of Business Market Categories of Business Market CustomersCustomers

On Linehttp://www.cbdnet.gpo.govhttp://www.governmentbids.com

4

Producers

Resellers

Governments

Institutions

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NAICSNAICS

North American North American Industry Classification Industry Classification

SystemSystemNAICSNAICS

A detailed numbering system

developed by the U.S., Canada, and

Mexico to classify North American

business establishments by their main

production processes.

5

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Business vs. Consumer MarketsBusiness vs. Consumer 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 Consumer MarketConsumer MarketConsumer MarketConsumer Market

6

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Demand in Business MarketsDemand in Business Markets

Demand is...Demand is...Demand is...Demand is...

DerivedDerivedDerivedDerived

InelasticInelasticInelasticInelastic

JointJointJointJoint

FluctuatingFluctuatingFluctuatingFluctuating

6

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Types of Business ProductsTypes of Business Products

Major EquipmentMajor Equipment

Accessory EquipmentAccessory Equipment

Raw MaterialsRaw Materials

Component PartsComponent Parts

Processed MaterialsProcessed Materials

SuppliesSupplies

Business ServicesBusiness Services

7

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Business Buying BehaviorBusiness Buying Behavior

Customer ServiceCustomer Service

Business EthicsBusiness Ethics

Buying SituationsBuying Situations

Evaluative CriteriaEvaluative Criteria

Buying CentersBuying Centers

Aspects of Aspects of Business Business

BuyingBuyingBehaviorBehavior

Aspects of Aspects of Business Business

BuyingBuyingBehaviorBehavior

8

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Roles in the Buying CenterRoles in the Buying Center

InitiatorInitiator InfluencersInfluencers GatekeepersGatekeepers

DeciderDecider PurchaserPurchaser UsersUsers

8

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Evaluative Criteria for Business Evaluative Criteria for Business BuyersBuyers

8

PricePrice

ServiceService

QualityQuality

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Buying SituationsBuying Situations

New BuyNew Buy

ModifiedRebuy

ModifiedRebuy

StraightRebuy

StraightRebuy

A situation requiring the purchaseof a product for the first time.

A situation requiring the purchaseof a product for the first time.

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.

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.

8

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Review Learning Objective 8Review Learning Objective 8

BuyingCenter

BuyingCenter

EvaluativeCriteria

EvaluativeCriteria

New BuyStraight RebuyModified Rebuy

New BuyStraight RebuyModified Rebuy

Customer service

8