6 Business Marketing

©2002South-WesternChapter6Version6e1chapterBusinessMarketing6PreparedbyDeborahBakerTexasChristianUniversity©2002South-WesternChapter6Version6e2chapterLearningObjectives61.Describebusinessmarketing.2.DescribetheroleoftheInternetinbusinessmarketing.3.Discusstheroleofrelationshipmarketingandstrategicalliancesinbusinessmarketing.©2002South-WesternChapter6Version6e3chapterLearningObjectives(continued)64.Identifythefourmajorcategoriesofbusinessmarketcustomers.5.ExplaintheNorthAmericanIndustryClassificationSystem.6.Explainthemajordifferencesbetweenbusinessandconsumermarkets.©2002South-WesternChapter6Version6e4chapterLearningObjectives(continued)67.Describetheseventypesofbusinessgoodsandservices.8.Discusstheuniqueaspectsofbusinessbuyingbehavior.©2002South-WesternChapter6Version6e5LearningObjective1Describebusinessmarketing.©2002South-WesternChapter6Version6e6BusinessMarketingThemarketingofgoodsandservicestoindividualsandorganizationsforpurposesotherthanpersonalconsumption.1©2002South-WesternChapter6Version6e7WhatisBusinessMarketing?AreusedtomanufactureotherproductsBecomepartofanotherproductAidthenormaloperationsofanorganizationAreacquiredforresalewithoutchangeinformBusinessProductsKeyisintendeduse1©2002South-WesternChapter6Version6e8LearningObjective2DescribetheroleoftheInternetinbusinessmarketing.©2002South-WesternChapter6Version6e9E-Commerce2E-CommerceBusinessE-CommerceConsumerE-CommerceTheprocessofsellinggoodsandservicesontheInternetElectronictransactionsbetweencompaniesElectronictransactionsbetweenbusinessandindividualsthatpurchaseforindividualconsumption©2002South-WesternChapter6Version6e10BenefitsofInternet’sInteractivity2ConvenienceandincreasedefficiencyBettercustomerserviceLowertransactioncostsNewrelationship-buildingopportunities©2002South-WesternChapter6Version6e11ExtranetAprivatenetworkthatusesInternettechnologyandabrowserinterface.2©2002South-WesternChapter6Version6e12BusinessE-CommerceBenefits25.Lowercosts4.Around-the-clockordering&customerservice3.Accesstocustomerandproductsalesdata2.Greaterselectionofproductsandvendors1.Lowerprices6.Customizedproducts©2002South-WesternChapter6Version6e13LearningObjectiveDiscusstheroleofrelationshipmarketingandstrategicalliancesinbusinessmarketing.3©2002South-WesternChapter6Version6e14StrategicAllianceAcooperativeagreementbetweenbusinessfirms.(strategicpartnership)3©2002South-WesternChapter6Version6e15BenefitsofStrategicAlliancesAccesstomarketsortotechnologyEconomiesofscalebycombiningactivitiesFastermarketentryfornewproductsSharingofrisk3©2002South-WesternChapter6Version6e16TipsforSuccessfulAlliances3TrustoneanotherShareacommoninterestBringdifferentskillstothetableSharegainsDecidewhohasdirectcustomercontactUnderstandtheimportanceofcustomersatisfaction©2002South-WesternChapter6Version6e17KeiretsuAnetworkofinterlockingcorporateaffiliates.3©2002South-WesternChapter6Version6e18LearningObjectiveIdentifythefourmajorcategoriesofbusinessmarketcustomers..4©2002South-WesternChapter6Version6e19CategoriesofBusinessCustomersCategoriesofBusinessCustomersProducersResellersGovernmentsInstitutions4©2002South-WesternChapter6Version6e20LearningObjectiveExplaintheNorthAmericanIndustryClassificationSystem.5©2002South-WesternChapter6Version6e21NAICSAdetailednumberingsystemdevelopedbytheU.S.,Canada,andMexicotoclassifyNorthAmericanbusinessestablishmentsbytheirmainproductionprocesses.5NorthAmericanIndustryClassificationSystem©2002South-WesternChapter6Version6e22NAICSProvidescommonindustryclassificationsystemValuabletoolformarketersinanalyzing,segmenting,andtargetingmarketsDatacanbeusedtodetermine:–Number,size,andgeographicdispersionoffirms–Marketpotential/marketshareestimates–Salesforecasts5©2002South-WesternChapter6Version6e23LearningObjective6Explainthemajordifferencesbetweenbusinessandconsumermarkets.©2002South-WesternChapter6Version6e24Businessvs.ConsumerMarketsCharacteristicDemandVolume#ofCustomersLocationDistributionNatureofBuyBuyInfluenceNegotiationsReciprocityLeasingPromotionBusinessMarketOrganizationalLargerFewerConcentratedMoreDirectMoreProfessionalMultipleMoreComplexYesGreaterPersonalSellingConsumerMarketIndividualSmallerManyDispersedMoreIndirectMorePersonalSingleSimplerNoLesserAdvertising6©2002South-WesternChapter6Version6e25Demandis...DescriptionDemandinBusinessMarketsDerivedDemandforbusinessproductsresultsfromdemandforconsumerproductsInelasticAchangeinpricewillnotsignificantlyaffectthedemandforproductJointMultipleitemsareusedtogetherinfinalproduct.DemandforoneitemaffectsallFluctuatingDemandforbusinessproductsismorevolatilethanforconsumerproducts6©2002South-WesternChapter6Version6e26MultiplierEffect(AcceleratorPrinciple)Phenomenoninwhichasmallincreaseordecreaseinconsumerdemandcanproduceamuchlargerchangeindemandforthefacilitiesandequipmentneededtomaketheconsumerproduct.6©2002South-WesternChapter6Version6e27LearningObjectiveDescribetheseventypesofbusinessgoodsandservices.7©2002South-WesternChapter6Version6e28TypesofBusinessProductsMajorEquipmentAccessoryEquipme