Marketing Chapter 6.txt

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  1.  Business Marketing
    •  Marketing to firms, governments, or not-for-profit organizations.
    •  Used in the creation of goods and services that they can produce and market to others
  2.  Organizational Buyers
    •  Manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use or for resale.
    •  Three different markets
    • * Industrial
    • * Reseller
    • * Government
  3.  Industrial Market
    •  These firms reprocess a product or service they buy before selling it again to the next buyer
    •  Ex: Corning Inc., transforms different blends of materials to create optical fibers that are used by companies for telephone traffic
  4.  Reseller Market
    •  Wholesalers and retailers that buy physical products and resell them again without any reprocessing.
    •  In the United States there are almost 3 million retailers and 860,000 wholesalers
  5.  Government Markets
    •  Federal, state, and local agencies that buy goods and services for the constituents they serve.
    •  About 88,000 government units in the U.S.
    • * Ex: NASA (paying to have spacecrafts built)
  6.  North American Industry
    • Classification System (NAICS)
    •  Provides common industry definitions for Canada, Mexico, and the United States
    •  helps to gauge the size of these markets in the United States and around the World
    •  groups economic activity to permit studies of market share, demand for goods and services, import competition in domestic markets, and similar studies
  7.  Characteristics of Organizational Buying (pages 124-127)
    •  Demand Characteristics
    •  Size of Order or Purchase
    •  Number of Potential Buyers
    •  Organizational Buying Objectives
    •  Organizational Buying Criteria
    •  Buyer-Seller Relationship & Supply Partnership
  8.  Derived Demand
    •  Demand for industrial products and services driven by demand for consumer products and services
    •  Ex: Weyerhaeuser (Paper Company) products are based on the consumers demand for newspapers and other products that require paper needs such as pizza boxes and packages
  9.  Organizational Buying Behavior
    •  Process by which organizations determine the need for goods and then choose among alternative suppliers
    •  Stages in the buying decision process (figure 6-3)
  10.  Buying Center
    •  Group of people in an organization who participate in the buying process
    •  For most large multi store chain resellers, such as Sears, 7-Eleven, and Target the buying center is highly formalized and is called a buying committee
  11.  Buy Classes
    •  Three types of organizational buying situations
    •  New buy, straight rebuy, or modified rebuy
    •  Straight Rebuy: Buyer or purchasing manager reorders an existing product or service from the list of acceptable suppliers, probably without checking with users or other influencers
  12.  Buy Classes cont…
    • • Modified Rebuy: Users, influencers, or deciders in the buying center want to change the product specifications, price, delivery schedule, or supplier.
    • • New Buy: Organization is a first-time buyer of the product or service Involves greater risks in the purchase, so the buying center is enlarged to include all those who have a stake in the new buy
  13.  E-Marketplace
    •  Online trading communities that bring together buyers and supplier organizations
    •  These online communities go by a variety of names, including business-to-business exchanges and e-hubs, and make possible the real-time exchange of information, money, products, and services
  14.  Traditional Auction
    •  Occurs when a seller puts an item up for sale and would-be buyers bid in competition with each other
    •  As more would-be buyers become involved, there is an upward pressure on bid prices.
  15.  Reverse Auction
    •  Occurs when a buyer communicates a need for something and would-be suppliers bid in competition with each other
    •  As more would-be suppliers become involved, there is a downward pressure on bid prices for the buyer’s business.
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Marketing Chapter 6.txt
Chapter 6
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