Business Marketing

1. Business Marketing By: Annie Garrett October 14, 2011

2. How is Business Marketing Different from Consumer Marketing? • Business marketing is the marketing of goods and services to individuals and organizations for purposes other than personal consumption. • Consumer Marketing is the marketing of goods and services to individuals and organizations for personal consumption and/or use

3. Producers • Producers include profit-oriented individuals and organizations that use purchased goods and services to produce other products, to incorporate into other products, or to facilitate the daily operations of the organization. • Examples of producers include construction, manufacturing, transportation, finance, real estate, and food service firms.

4. Resellers • The reseller market includes retail and wholesale businesses that buy finished goods and resell them for profit. A retailer sells mainly to final customers; wholesalers mostly sell mostly to retailers and other organizational customers.

5. Governments • Government organizations include thousands of federal, state, and local buying units. They make up what may be the largest single market for goods and services in the world. • Interesting Fact: Government can only buy products that the raw materials, work, and final product are all made in America by American workers to further support our economy.

6. State and Federal Government • These products are sold to states, counties, and cities. Paperwork is typically simpler and more manageable than at the federal level. • Although much of the federal governments buying is centralized, no single federal agency contracts for all the government’s requirements.

7. Institutions • Institutions seek to achieve goals other than standard business goals of profit, market share, and return on investment. Institutions include schools, hospitals, colleges and universities, churches, labor unions, fraternal organizations, civic clubs, foundations, and other so-called non-business organizations

8. Marketing Mix: People (Target Market) • When marketing a product one of the most important things to consider is to whom your business is catering to. Who do you plan on buying your product. Demographically who should you target? Without a supportive market, the product will not turn a profit.

9. Marketing Mix: Pricing • Price is what the buyer must give up in order to obtain a product. • Price is often the most flexible of the four marketing elements and the quickest element to change. • Price is a competitive weapon because price multiplied by the number of units sold equals total revenue for the firm.

10. Marketing Mix: Promotion • Promotion includes personal selling, advertising, sales promotion, and public relations. • Promotions role in the marketing mix is to bring about mutually satisfying exchanges with target markets by informing, educating, persuading, and reminding them of the benefits of an organization or a product

11. Impact of the Internet on Business Marketing: A revolution • The impact of internet on business marketing is innumerable. Where it used to require $80 to contact customer services by phone, contacting customer service through the internet costs a mere $0.50 allowing the company to increase profits by cutting operation costs. • Many companies have online ordering capabilities which can reduce the amount of time in which the order of the product is received, processed, and delivered. • The downside of the internet with business marketing is that many companies still prefer face to face interraction or at least a phone call to establish a customer relationship promoting more trust in the company, and will not use the internet in their ordering and so some producers will miss out on these opportunities with these customers.

12. An American Untapped Market • Dentistry in growing cities. Who knew that such an opportunity was available. Many dentists exiting dental school go to their home towns or to large established cities only to find that there is already an established dentistry office there. However in Arkansas in places such as Little Rock the opportunities are endless. With not having a dental school in the state, many dentists can receive tax credits, low rents, and a booming clientele within a few months.

13. Need Recognition • Need Recognition is when a customer realizes an imbalance between their acutal state and their desired state. • Examples include getting blisters from old running shoes, TV commercials, or seeing something in a store or magazine even

14. Information Search • Internal information search is recalling past information stored in the memory • External information search is the process of seeking information in the outside environment

15. Evaluation of Alternatives • A consumer will use the information stored in memory and obtained from outside sources to develop a set of criteria. These standards help the consumer evaluate and compare alternatives. • An example is picking a product attribute and excluding all products that do not contain that attribute

16. Purchase • Purchase is the actual event of exchange, or giving up something (such as money) to receive something they would rather have. • The customer will either pay with money or exchange for another product that the original seller wants.

17. Post-purchase Behavior • When buying products, consumers expect certain outcomes from the purchase. • For example, if a person bids on a used car stereo from eBay and wins, he may have fairly low expectations regarding performance. Conversely if the person bid on a new car stereo expecting superior quality and performance, but the stereo broke within a month the person would be dissatisfied.

18. 3 Ways Marketers Target Young People: 1 • Marketers target young people through magazines that are targeted towards younger people that display their product on someone that is displayed as young, beautiful/handsome, and successful. • One example would be the marketing of make-up or hair products