Business Marketing

1. Business Marketing Key Concepts

2. The marketing of goods and services to individuals and organizations for purposes other than personal consumption. What Is Business Marketing? BusinessMarketing

3. Business Products The 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

4. Revenue generation • Aggressivedisintermediation initiatives • Basic marketingcommunication strategies • Reduce costs • Build channel partnerships and trust • Customer-focusedtechnology and systems • Brand building and development • Integrate online and traditional media Time Past initiatives Present initiatives Evolution of E-Business Initiatives

5. Business Internet Uses Revenue GenerationBasic Marketing Communication THEN NOW and Reduce costsBuild partnerships and alliancesBuild and support brandingDevelop customer-focused technology and systemsIntegrate online and traditional media The Internet in Business Marketing

6. Strategic Alliances StrategicAlliance A cooperative agreement between business firms (strategic partnership).

7. Business Marketing Producers Resellers Governments Institutions OEMs Wholesalers Federal Unions Churches Retailers State CivicClubs Foundations Municipal Other Nonprofits County Business Market Customers

8. Producers OriginalEquipmentManufacturers 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.

9. Business Market Characteristic Consumer Market Demand Organizational Individual Volume Larger Smaller # of Customers Fewer Many Location Concentrated Dispersed Distribution More Direct More Indirect Nature of Buy More Professional More Personal Buy Influence Multiple Single Negotiations More Complex Simpler Reciprocity Yes No Leasing Greater Lesser Promotion Personal Selling Advertising Business versus Consumer Markets

10. Major Equipment Accessory Equipment Raw Materials Component Parts Processed Materials Supplies Business Services Types of Business Products

11. Extruding machine:major equipment Aluminum ore:raw material Tool cart:accessory equipment Extruded metal:processed material Propeller blade:component part Uniforms:contractedservice Paper: supply Types of Business Goods and Services

12. Buying Centers Evaluative Criteria Aspects of Business Buying Behavior Buying Situations Business Ethics Customer Service Business Buying Behavior

13. Buying Center All those persons in an organization who become involved in the purchase decision. Buying Centers

14. Initiator Influencers Gatekeepers Decider Purchaser Users Roles in the Buying Center

15. Evaluative Criteria • Quality • Service • Price

16. New Buy Modified Rebuy 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. Buying Situations

17. Customer Service • Divide customers into groups based on their value • Create policies that govern how service will be allocated among groups

18. EvaluativeCriteria Buying Center Buying Situations • Quality • Service • Price New buyStraight rebuyModified rebuy Initiator Influencer Decider Gatekeeper Purchaser User Customer service Business Buying Behavior