Launch your PollEV session: Text : UWMBUSINESS to 37607

1. Launch your PollEV session: Text: UWMBUSINESS to 37607 *Text LEAVE at the end of class* Alternate #: (747) 444-3548

2. Test 1 results • Class average: 79.8% • 90 and above: 30% • 80 – 89: 25% • 79 and below: 45%

3. Remember: • 4 tests • homework, discussion, lectures are crucial – 60% of your grade • Earn bonus points every day!

4. Please stop by after lecture • Joel durham • David zuniga

5. Decision: Don’t Buy • Expensive • Clunky • Increase my monthly phone bill • Don’t really have the money right now • I love Apple products! • Would make me more productive

7. Decision: Don’t Buy • Expensive • Clunky • Increase my monthly phone bill • Don’t really have the money right now • I love Apple products! • Would make me more productive - - - - + +

8. + Heart health

10. The Elaboration Likelihood Model

12. Your questions: • Is psychological risk more of an internal risk? Does it affect only you? I'm confused between performance and psychological self-image, self-perception, self-concept, how I feel about myself • Performance risk: (independent of me) - what if the product fails to live up to its expectations? It fails to perform • How Do you prevent the competition slandering your product (like with political candidates?)

13. Macro strategies for developing value

14. If we could go over why it is actually good news when the customer complains! • Do you want them to complain to you, or to the rest of the world? • It’s more profitable to “hug your haters”

16. Prescription drug ads – high/low involvement?

18. Understanding the Marketplace – Business-to-Business Marketing Ref: Text, chapter 7

19. Exchange of value “PRODUCT” (Value) Seller Business Buyer ? VALUE

20. In this topic, we will: • Explain what business-to-business (B2B) marketing is, and who it involves • Explain the steps in the B2B buying process (and how it’s different from or similar to the B2C process) • Identify the different roles within the buying center; why it’s important for a vendor to understand these • Describe different types of organizational cultures, and how they may influence buying • Describe different buying situations

21. What is B2B marketing? • B2B marketing is when a business markets to another organization • Be used in the production of other goods or services • For consumption by the buying organization, or • For resale

22. What is B2B marketing? • B2B and B2C marketing are related – derived demand. • The demand for B2B sales is often derived from B2C sales in the same supply chain

23. Fishermen B2B Fish Wholesalers B2B McDonald’s B2C Consumer

25. What is B2B marketing? • DIFFERENT: B2B transactions are more complex typically and involve multiple members on both the buying side and the selling side

26. What is B2B marketing? principles • SIMILAR: Both are similar in their understanding of what marketing is, though: • They focus on creating value for their customers • They focus on key market or industry segments, and don’t try to serve everyone

27. B2B Markets • Manufacturers and service providers • Buy raw materials, components, and parts, that they use to manufacture their own goods, which they sell to others • Resellers • Are marketing intermediaries that resell manufactured products without significantly altering their form • For example, wholesalers and distributors buy products from manufacturers and sell them to retailers, who sell them to consumers

28. B2B Markets • Institutions • Such as hospitals, educational institutions, museums, religious organizations, sports teams • Government • In most countries, one of the largest purchasers of goods and services (US$4 trillion by the US Federal Government) • Central, state, local

29. The B2B Buying Process • The B2B buying process parallels the B2C process, with a number of differences

31. B2B Buying Process The CONSUMER Buying decision process

32. The B2B Buying Process • Both begin and end with need recognition and postpurchase evaluation, but the information search and alternative evaluation stages are more formal and structured in the B2B process

33. The B2B Buying Process • The process also typically involves groups (a committee) rather than individuals, and significantly more effort and consideration • Example: buying hammers

34. Gorilla Glass?

40. Stages 1-2: • Stage 1: Need Recognition - The buying organization recognizes an unfulfilled need through either their internal or external sources • Stage 2: Product Specification – The organization then needs to come up with potential specifications that vendors can use to develop proposals to fulfill that need “specs” Suppliers/ sellers

41. Stage 3: • Stage 3: RFP Process • This is a Request for Proposals, a process through which the organization invites alternative vendors to bid on supplying their required components or specifications • This is done on the firm’s website, through a web portal, or by advertising in publications

42. Stage 3: “gateway” • Stage 3: RFP Process • A web portal in B2B marketing is a specialized site that connects vendors and organizational buyers, allowing rich, relevant, information exchanges. They bring enormous efficiencies to the procurement or distribution processes

46. Stage 4: • Stage 4: Proposal Analysis, Vendor negotiation, and Selection • The buying organization then evaluates all the proposals it receives in response to its RFP • Clear criteria are used to evaluate the proposals such as the amount of experience of the vendor, ability to meet the specifications, and financial position

48. Stage 5: • Stage 5: Order Specification • The order is placed with the selected vendor • This includes a detailed description of the goods, prices, delivery dates, and penalties for noncompliance • Vendor sends an acknowledgment; fills the order

49. Stage 6: • Stage 6: Vendor Performance Assessment using Metrics • After the purchase, firms analyze the vendor’s performance so they can make decisions about future purchases, using formal, objective methods, and criteria called “performance metrics” (e.g., product quality, timely delivery)