1 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 5 Prepared by Deborah Baker Texas Christian University 5 Business Marketing

2 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 5 Learning Objectives 1.Describe business marketing 2. Describe the role of the Internet in business marketing 3. Discuss the role of relationship marketing and strategic alliances in business marketing

3 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 5 Learning Objectives (continued) 4.Identify the four major categories of business market customers 5.Explain the North American Industry Classification System 6. Explain the major differences between business and consumer markets

4 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 5 Learning Objectives (continued) 7.Describe the seven types of business goods and services 8.Discuss the unique aspects of business buying behavior

5 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 5 Business Products Are used to manufacture other products Become part of another product Aid the normal operations of an organization Are acquired for resale without change in form Key is intended use 1

6 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 5 The Role of the Internet in Business Marketing 2 Business Internet Uses Revenue Generation Basic Marketing Communication THEN AND NOW Reduce costs Build partnerships and alliances Build and support branding

7 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 5 Categories of Business Market Customers On Line Producers Resellers Governments Institutions

8 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 5NAICS North American Industry Classification System NAICS NAICS A detailed numbering system developed by the U.S., Canada, and Mexico to classify North American business establishments by their main production processes. 5

9 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 5 Business vs. Consumer Markets CharacteristicCharacteristic Demand Volume # of Customers Location Distribution Nature of Buy Buy Influence Negotiations Reciprocity Leasing Promotion Business Market Consumer Market 6

10 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 5 Demand in Business Markets Demand is... DerivedDerived InelasticInelastic JointJoint FluctuatingFluctuating 6

11 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 5 Types of Business Products Major Equipment Accessory Equipment Raw Materials Component Parts Processed Materials Supplies Business Services 7

12 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 5 Business Buying Behavior Customer Service Business Ethics Buying Situations Evaluative Criteria Buying Centers Aspects of Business Buying Behavior Behavior 8

13 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 5 Roles in the Buying Center Initiator Influencers Gatekeepers Decider Purchaser Users 8

14 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 5 Evaluative Criteria for Business Buyers 8 Price Service Quality

15 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 5 Buying Situations New Buy Modified Rebuy Modified Rebuy Straight Rebuy Straight Rebuy A situation requiring the purchase of a product for the first time. A situation requiring the purchase of a product for the first time. A situation where the purchaser wants some change in the original good or service. A situation in which the purchaser reorders the same goods or services without looking for new information or investigating other suppliers. 8

16 Copyright ©2006 by South-Western, a division of Thomson Learning. All rights reserved Chapter 5 Review Learning Objective 8 Buying Center Evaluative Criteria New Buy Straight Rebuy Modified Rebuy Customer service 8