Marketing

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Author:
vasquez.l
ID:
105656
Filename:
Marketing
Updated:
2011-10-01 21:32:58
Tags:
Business Markets
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Description:
CHAPTER 6
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  1. business to business marketing
    • marketing goods/services that business/organizations buy for purpose other than personal
    • organizational markets -> include manufacturers, wholesalers retailers and a variety of other organizations (service providers)
  2. Factors the make a difference in business markets
    • same basic marketing principles
    • Multiple Buyers: must meet the requirement s of everyone involved in the company's purchase decision
    • # of Customers: organizational customers are few/far between compared to end user consumers
    • Size of Purchases: B2B products dwarf consumer purchases both in the quantity of items ordered and how much they cost
    • B2B = 4X B2C
  3. Geographic Concentration
    • business customers are located in a small geographic area
    • can concentrate sales efforts and even locate distribution centers in a single geographic area (intranets are changing this idea)
  4. B2B Derived Demand
    • businesses demand for goods/services comes either directly or indirectly from consumer's demand for what it produces
    • success of a company may depend on another in different industry
    • alert to changes in consumer trends that ultimately affects B2B
  5. B2B Inelastic Demand
    • doesn't matter if the price of a B2B product goes up or down (since what is sold could just be 1 part of the product)
    • demand may become elastic if the manufacturer of the consumer good passes the increase to consumer
  6. business to business markets
    the group of customers that include manufacturers, wholesalers, retailers, and other organizations
  7. organizational markets
    business to business markets
  8. products in business to business
    must meet the requirements of everyone involved in the company's purchase decision
  9. producers
    the individuals or organizations that purchase products for use in the production of other goods and services
  10. resellers
    the individuals or organizations that buy finished goods for the purpose of reselling, renting, or leasing to others to make a profit and to maintain their business operations
  11. government markets
    the federal, state, county, and local, governments that buy goods and services to carry out public objectives and to support their operations
  12. North American Industry Classification System (NAICS)
    the numerical coding system that the United States, Canada, and Mexico use to classify firms into detailed categories according to their business activities
  13. buyclass
    one of three classifications of business buying situations that characterizes the degree of time and effort required to make a decision
  14. straight rebuy
    a buying situation in which business buyers make routine purchases that require minimal decision making
  15. modified rebuy
    • a buying situation classification used by business buyers to categorize a previously made purchase that involves some change and that requires limited decision making
    • when a firm decides t shop around for suppliers with better prices....
  16. new task buy
    • a new business to business purchase that is complex or risky and that requires extensive decision making
    • buyer has no previous experience on which to base a decision
  17. buying center
    • the group of people in an organization who participate in a purchasing decision (selecting quality products and ensuring their timely delivery)
    • purchasing agents
    • procurement officers
    • directors of materials management
  18. Roles in the Buying Center
    • initiator: recognizes that a purchase needs to be made
    • user: individuals who will ultimately use the product
    • gatekeeper: controls flow of information to others in the organization
    • influencer: affects decision by giving advice and sharing expertise
    • decider: makes the final purchase decision
    • buyer: executes the purchase decision
  19. The Business Buying Decision Process
    • 1. Recognize the Problem
    • 2. Search for Information
    • 3. Evaluate the Alternatives
    • 4. Select the Product and Supplier
    • 5. Evaluate Postpurchase
  20. Step 1: Recognize the Problem
    • make purchase requisition or request
    • form buying center, if needed
  21. Step 2: Search for Information
    • Develop product specifications: a written description of the quality, size, weight, and so forth required of a product purchase
    • Identify potential suppliers
    • Obtain proposals and quotations
  22. Step 3: Evaluate the Alternatives
    • Evaluate Proposals
    • customer reference program: a formalized process by which customers formally share success stories and actively recommend products to other potential clients, usually facilitated through an online community
    • Obtain and evaluate samples
  23. Step 4: Select the Product and Supplier
    • issue purchase order
    • single sourcing: the business practice of buying a particular product from only one supplier
    • multiple sourcing: the business practice of buying a particular product from several different suppliers
    • reciprocity: a trading partnership in which two firms agree to buy from one another
    • outsourcing: the business buying process of obtaining outside vendors to provide goods or services that otherwise might be supplied in house
    • crowdsourcing: through a formal network, pulling together expertise from around the globe put to work on solving a particular problem for a firm
    • reverse marketing: a buyer firm attempts to identify suppliers who will produce products according to the buyer firm's specifications
  24. Step 5: Evaluate Postpurchase
    • Survey users
    • document performace
  25. B2B e-commerce
    internet exchanges between two or more business or organizations
  26. extranet
    a private corporate computer network that links company departments, employees, and databases to suppliers, consumers, and others outside the organizations
  27. private exchanges
    systems that link an invited group of suppliers and partners over the Web
  28. firewalls
    is a combination of hardware and software that ensures that ensures that only authorized individuals gain entry into a computer system
  29. encryption
    scrambling a message so that only another individual with the right key can unscramble it

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