Card Set Information

2012-04-03 22:06:38

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  1. B2B Marketing
    The marketing of goods and services that businesses and other organizstions buy for purposese other thabn personal consumption
  2. B2B Markets or Organizational Markets
    Included manufacturers, wholesalers, retailers, and other organizations such as hospitals and govt
  3. Difference in Business Markets
    • Multiple buyers: Must satisfy many individual needs
    • Fewer customers: Specialize in Business products and much less businesses then houses
    • Orders larger: Dealing with large quantity compared to mom's
    • Geographically concentrated: located in small geographic area rather than being spread through country
  4. B2B Demand
    • Derived
    • Inelastic
    • Fluctuating
    • Joint
  5. Derived Demand
    • Demand for goods and services comes ither firectly or indirectly from consumers demand for what it produces.
    • Like books and forestry..if demand college goes down, demand in text books goes down, so forestry industry has to find other sources
  6. Inelastic Demand
    • Doesn't matter if the price of B2B product goes up or down- consumers will still buy the same quantity
    • It's this way because often what is being sold is a part of the overall product so it is needed
  7. Fluctuating Demand
    • Even modest changes in consumer demand create large increases or decreases in business demand
    • Life expectance of product becaues some products only need to be replaced every 10-20 years so it could be high one year and low the next.
  8. Joint demand
    • Two or more goods are necesary to create a product.
    • Example is for car...If supply of spark plugs goes down, then won't be able to make as much so demand of other stuff goes down
  9. Producers
    • Purchase procudes for the production of other goods and services that they, in turn, sell to make a profit
    • They are customers for a vast number of productc from raw materials to goods produced by producers
  10. Resellers
    • Buy finished goods for the purpose of reselling, renting, or leasing to conumers or other businesses.
    • Provided customers with time, place, and possesion utility
  11. Govt Organizatins
    • Make up the largest single business and organizational market in the U.S.
    • Federal, state, county, and local govt that buy goods and services to carry out public objectives and to support their operations
  12. Not for profit Orgs
    Charitbale, educational, communtiy, and other public service goals that buy goos and services to support their functions and to attract and serve their memebers
  13. NAICS
    • Classification system to idnetify their customers and to find new ones
    • Reports number of firms, total dollar amount in sales, the number of employees, and groth rate for inducstres
  14. Business buysing situations
    Behavior of how businesss buy depends on situation. Understand motive and behavior
  15. Buyclass framework
    Identifies the degree of effort and time they need to make a decision. Some take more than others depending of complexity of product and stuff
  16. Straight Rebuy
    • The Routine purchase of items that a B2B customer regularty needs.
    • They have purchased the same item many times before and reorgers them when supplies are low
  17. Modified Rebuy
    • A firm decided to shop around for suppliers with better prices, quality or delervy times.
    • Just because purchased in the past, doesn't mean they will again
  18. New-Task buy
    • A first time purchase.
    • Uncertainty and risk characterize buying decisoins in this classification and they require the most effort becase the buyer has no previous experienc on which to base a decision
  19. Professional buyer
    • Trained prfessional buyers typically carry out buying in B2B markets
    • Focus on economic factors as well
    • Puchasing agents
    • Procurment officers
    • Directors of material managment
  20. Buying Center
    • A group of peope in an organization who participate in purchasing decion
    • A cross functional team of decison makers
  21. Roles in Buying Center
    Initiator, User, Gatkeeper, Influencer, Decider, Buyer
  22. Steps in the Business Buying Process
    • 1) Recognize the Problem
    • 2) Search for info
    • 3) Evaluate the alternatives
    • 4) Select the product and supplier
    • 5) Evaluate the postpurchase
  23. Step 1
    • Recognize the Problem
    • Stems from need to replace, chage tech, marketing communiations
    • Initiation of a purchase requisition or request
    • Formation of a buying center
  24. Step 2
    • Search for Info
    • Search for info about products and suppliers
    • Develop prodcut specifications
    • Identify potential suppliers and obtain proposals
  25. Step 3
    • Evaluate the Alternatives
    • Price is primary consideration
    • Other factors may be considered like extra services
    • Customer reference program, product demos, and presentations can help sell markets prduct to firms
  26. Step 4
    • Select the Prduct and supplier
    • Single sourcing: business practice of buying a particual product from only on supplier
    • Multiple sourcing: Buying from serval diff suppliers
    • Reciprocity: trading parnership in which two firms agree to buy from one another
  27. Market Fragmentation
    • –The creation of many consumer groups due to the
    • diversity of their needs and wants
  28. Target Marketing Strategy
    • –Dividing the total market into different segments
    • based on customer characteristics, selecting one or more segments, and developing products to meet those segments’ needs
  29. Steps in Target Marketing Process
    • Segmentation
    • Targeting
    • Positioning
  30. Segmentation
    Identify and describe market segments
  31. Targeting
    Evaluate segments and decided which to go after
  32. Positioning
    Design a good or service to meet a segments need sna ddevelop a marketing mix that will create a competitive advantage in the minds of the selected target market
  33. Market
    Group of people or orgs that have wants and needs that can be satisfied by particular product categories
  34. To be part of the market...
    • Ability: purhcasing power to purchase these products
    • Willingness to exchange resources for the produts
    • Authority to do so
  35. Market Segmentation
    • –The process of dividing a larger market into smaller
    • pieces based on one or more meaningful shared characteristics
  36. Segmentation variables
    • –Dimensions that divide the total market into fairly
    • homogeneous groups, each with different needs and preferences
  37. Market Segment
    A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs
  38. Segmentation Variable
    Characteristic of indiviudals, groups, or organizations used sa a basis for dividing a market into segments
  39. Segmentation Variables
    • Demographics
    • Geographics
    • Psychographics
    • Behavior
  40. Demographics
    • Age and Generation:
    • Children, Teens, Tweens
    • Generation Y: Born between 1979 and 1994
    • Genreation X: Born between 1965 and 1978
    • Baby Boomers: Born between 1946 and 1964
    • Family LIfe cylce
    • Income
    • Social Class
    • Race and Ethnicity
    • Place of residence
  41. Geodemography
    Combines geography with demographics
  42. Psychographics
    • The use of psychological, sociological, and anthropological factors to construct market segments
    • –Members of
    • psychographic segments typically share activities, interests, and opinions, or AIOS
    • –The VALS2 system
    • segments U.S. consumers into eight unique groups
  43. Behaviroal segmentation
    • Sements consumers based on how they act towrd feel about or use a product
    • 20% purchase acount for 80% of a products sales
  44. Segmenting B2B Markets
    • Segmentation helps B2B firms understand the needs and
    • characteristics of potential customers
  45. Step 2: Targeting
    • –A strategy in which marketers evaluate the
    • attractiveness of each potential segment and decide in which segment they will invest resources to try to turn them into customers
    • –The customer group(s) selected are referred to as the target market
  46. Viable Target segment should...
    • –Have members with similar product needs/wants
    • –Be measurable in size and purchasing power
    • –Be large enough to be profitable
    • –Be reachable by marketing communications
    • –Have needs the marketer can adequately serve
  47. Developing Segment Profiles
    • After segments are identified, profiles or descriptions of the “typical"customer in a segment are developed
    • –Segment profiles might include demographics, location,
    • lifestyle, and product-usage characteristics
  48. Profile
    Description of the typical customer in that segment
  49. Undifferentiated
    Appealing to a broad spectrum of people
  50. Differentiated
    Develpoing one of more products for each of several customer groups
  51. Concentrated
    Offereing one or more products to a single segment
  52. Custom
    Tailing specific products to individual customers
  53. Custom Marketing Strategy
    • Tailoring specific products to individual customers
    • Common in personal and professional servies and in industrial marketing
  54. Mass customization
    Modifying a basic good or service to meet the needs of an individual
  55. Step 3: Positioning
    Developing a marketing strategy to influence how a particular market segment percieveds a good/service in comparison to the competition
  56. Steps in Developing a positioning strategy
    • Analyze competiros Position
    • Offer a good or service with a competitive advantage
    • Finalize the amrketing mix by matching mix elelmnts tot he selected semtn
    • Evaluate target markets responses and modify stragides as needed
  57. Repositionaing
    • is commonly used to change the brand image
    • Requires redoing a products position in response to
    • marketplace changes
    • May breathe life into retro brands
    • A once-popular brand that has bee revived to experience a popoularity comeback, often by riding a wave of nostalgia
  58. Brand personality
    A distinctive image that captures the brands character and benefist
  59. Perceptual Map
    A technique used to visually descrive where products/brans are located in conumers minds relative to competing brands
  60. Product
    • Anythinbg tangivle or intangible that through the exhcnage process satisfires conusmr or business customer needs
    • Heart of the organizations marketing program
    • bundle of benefits and attributes that includes the packaging, brand name, and supporting features in addition to a physical good.
  61. Good
    Tangible product, somthing that we can see, touch, smell, hear, tase, or possess
  62. Intangible Products
    Servies idiea, people, places, are products that we can't always see touch taste, smell or possess
  63. Layers of the product
    • Core Product: all the bnefits the product will provide
    • Actual Product: physical good or delivered service that supplies the desired benefits
    • Augmented Product: Acutal product plus supporing featues such as warranty, credit, deliveryk, installation, and repair serviced after sale
  64. Durable Goods
    • Provide bnefits over a pericod of months, years, decades
    • automobile, washing machine
  65. Nondurable goods
    • Consumed in the short term
    • Newspaper, beverages, printer cartriges
  66. Convenience Products
    • Frequently purchaes
    • Staples (milk)
    • Impulse products (candy)
    • Emergency products (draino)
  67. Shoppind products
    • Are purchases with consideragble time and effort
    • Attribute based (shoes)
    • Price based (water heater)
  68. Specialty Products
    • Have unique characteristics important to buyers
    • rolex watch
  69. Unsought Producuts
    • Those in which consumers have little rinterest until a need arises
    • Burial plots
  70. B2B Products
    • Classifed by how organization customers use them
    • Equipment: used in daily operations
    • Maintence, repari and operation (MRO): goods are consumer realively quickly
    • Raw Materials: Products of fishing, lumber, ag, miming, that are used in maufature of finished good
    • Processed Materials: raw material transforme dfrom origijnal
    • Specialzed services: outside suppliers
    • Component Prts: manufactured goods or subassemblies of finished goos that organiztaions need to complete their own products
  71. Innovation
    A product that customers percieve to be new and different from existing products
  72. Federal Trade commision
    • –A product must
    • be entirely new or changed significantly to be called new, and
    • – A product may
    • be called “new” for only six months
  73. Devleoping new Products
    New product devel is a continuos process of looking for entirely new products or for ways to make an exisinting product better
  74. Phases in New product development
    • Idea genreation
    • Prodcut concept development
    • Mktg stragey devel
    • business analysis
    • technical devel
    • market testing
    • commercializtion
  75. Producte adoption
    Process by which a consumer or business cusotm begins to buy and use a new good service or idea
  76. Diffusion
    • Process by which the use of a product spread throughout a population
    • The point where a products sales spike from a slow climb to a new level is called tipping point
  77. Awareness
    Massive advertising is used to generate awareness that the innovation exists
  78. Interest
    • Prospective adopters see how the new product might satisfy a need
    • Consumers are open to info
    • Teaser advertissing may be used to stimualte intersts
  79. Evaluation
    • Consumers weight the costs benefits
    • Impulse purchase are typically made with little
  80. Trial
    • Potential adopters experience or use the procut for the first time
    • Sales promotinos and product demos are creitcal for generatling trial
  81. Adoption
    Prospect buys the product or agrees with the new idea
  82. Confirmation
    • After adoptiong, the consumer weights the expected vs actual benefis and costs
    • Marketers can reienfoce the consumer choice via markeitng communicaionts
  83. Indivicual diff and adoption
    • Innovatiors: younger, high tech entrpruurial
    • Early adopter: market sahre leaders, try new ways of ding thing to maintin leadership
    • Early majority: adopt new products ehn they ahve to keep up
    • Late Majority: oreinte toward thestatus quo
    • Laggards: in financial trouble
  84. Factors affecting the rate of adoption
    • Relative advantage
    • compatibility
    • Complexity
    • Trialability
    • Observability
  85. Steps to manage Products
    • Develop Product objective
    • Design Product strategies
    • Make tacticaal Product decisions
  86. Criteria for effective objectives
    • Measuralbe
    • Clear
    • Unambiuous
    • Time-framed
    • Consisten with long term health of org
  87. Product Planning
    Develping productline and product mix strategies
  88. Product Line
    • Firms total product offering designed to satisfy a single need or desire of targe customers
    • Full live vs limited lineUpward, downward or two wayfillout out or contractoing a product line
  89. Product Mix
    • the total set of all products that a firm offers for sale
    • width of product mix: number of differeent product lines produced by the firm
  90. Full LIne stategy
    • Large nuber of variates in a product line
    • cerel
  91. limited line stragegy
    • fewer product variations
    • rolls royce cars
  92. Product Mix Strategies
    A product mix is a firm's entire range of products
  93. Strategic mix decisions
    Relate to the width of the prodcut mix-How many different product lines are produced by the firm
  94. Quality as a product Objective
    Product quality is the overall ability of a product to satisfy customers expectations
  95. TQM
    • Total quality management
    • Company-wide dedicatino to the devleoment, maintenance and continuous improvement of all aspects of the company's operations
  96. The 4 ps
    • Product: improve customer service
    • Place: involve suppliers and customers in improvoing on time deliever
    • Price: lower costs and imporve service at same time
    • Promotion: give customers info when they want and need it
  97. PLC
    • Product Life cylcel
    • Refer to life of product category
    • Length of PLC varies for products
    • An Amaylytical tool
  98. Introduction Stage
    • Represents the full-scale launch of a new product into the marketplace
    • High product failure rate
    • Little competition
    • Out goal is to get conusmer to try product
    • Promotion
    • Limitied distribution
  99. Growth Stage
    • Competitors enter the market
    • Large companies may start to acquire small pioneering firms
    • Our goal is to encourage brand loyalty and differentiat our product from the competition
    • Introduce product variation
    • Attempt to widen distributrion
    • May reduce prices
  100. Maturity Stage
    • The marketplace is approaching saturation
    • Competition grow intense
    • Marginal competitor begin dropping out of the market
    • product lines lengthened or extedned
    • heavy pormotions
    • Prices further reduced
    • Intensive distribution
    • Emphasis on style rather than function
  101. Decline Stage
    • Characterized by a long term drop in sales
    • Rate of decline is governed by how rapidly consumer tastes change or subsitiute products are adopted
    • Many leave the market
    • Reduce number of product variations
    • Reduce distribution outlets
    • Decrease promotion
    • Reduce price
  102. Branding
    Major tool to distinquish prodcuts from competitions
  103. 3 main purposes of branding
    • identification
    • Repeat sales
    • New product sales
  104. Brand
    A name, term, symbol, or any other unique element that identifies one firms producet and sets it apart from the competition
  105. Brand Name
    is the part of the bran that can be spoken including letters workds and numbers
  106. A Good brand name...
    • Creates a postitive memorable connection
    • Positions a product by convying an image
    • Is easy to spell say read and remember
    • Ftis target market produce benefits customer culture and legal requiements
  107. Brand Mark
    Logo is the elements of brand that cannot be spoken such as symbols
  108. Trademark
    is the legal term for a brand name, brand mark, or trad character
  109. Brand equity
    • A brands value to it's organization over and above the value of the generic version of the product
    • Provide competivie advantage because capture and hold onto a larger share of the amrket
  110. Brand Meaning
    The beliefs and associations a consumer has about the brand
  111. Brand Extensions
    New products sold with the same brand name
  112. Individual vs family brands
    • Family brand provide an umbrella under which multiple products can be marketed
    • ex: philips, kellogs kraft
  113. National vs store brands
    Store brands ( private lables brands) are exclusive to given retailer like target or sams club
  114. Generic Branding
    This is like kleexex or cutips. Not good for that company becasuse no set apart anymore
  115. Licensing
    One firm sells the right to another to use a legally protected brand anme for a specific purpose and for a specific period of time
  116. Co-Branding
    Two brands combine to creat a new produce, providing greater rcognition or other strenghts that either could ahcieve alone
  117. Package
    the covering or container for a product that provides product protection, facilitates product use and storage, and supplies important marketing communication
  118. Federal Fair Packaging and Labeling Act
    • 1966
    • Aims at making labels more helpful to consumers by providing useful info
  119. Services
    Acts, efforts, or performances exchanged from producer to user without ownership rights
  120. Services responsible for:
    • 90% of new jobs creaed yearly
    • 92% of u.s. work force emplyed in srvices
  121. Characteristics of services
    • Intangibility
    • Perishability
    • Variability
    • Inseparability