Session 6 Marketing Strategically in Industrial Markets Chapters 9 and 11

Industrial Markets (Business Markets -B2B) This is when an individual (or group) purchases a specific kind of product for resale, or to use in producing other products or to use in general operations Business Markets Producer Markets Reseller Markets Government Markets Institutional Markets

Producer Markets Includes buyers of raw materials, as well as purchasers of semi-finished and finished items used to produce other products Manufacturers tend to be geographically concentrated and can be served more efficiently Examples?

PRODUCER MARKETS Focused on producer market “Fellowes” manufactures shredders. The company that sell raw materials, equipment and component parts to Fellowes and other manufacturers are serving producer market.

Reseller Markets Resellers Intermediaries who buy finished goods and resell them for a profit Factors resellers consider Level of demand Space required relative to potential profit Ease of placing orders Availability of technical assistance Training programs from producers Examples?

Government Markets Federal, state, county or local governments that buy goods and services to support their internal operations and provide products to their constituencies Examples?

Institutional Markets Organisations with charitable, educational, community or other non-business goals Examples?

Discussion Question Can you think of products used mainly by institutional markets?

Characteristics of Transactions with Business Customers Large orders Expensive Items Frequent replenishments Long-term contractual agreements Considerable marketing efforts Purchasing committees Reciprocity

Attributes of Business Customers Well informed about the products they purchase Demand detailed information and technical specifications Help the firm achieve organisational objectives Engage in rational buying behaviour Goals of a purchasing agent may include advancement or financial awards Often form partnerships with suppliers

Primary Concerns of Business Customers Price Quality Service Supplier relationships Concerns of business customers In this ad, CDW promises excellent and timely service; one of the primary concerns of business customers

VIDEO Vodafone total business customers Understanding the needs of B2B customers Vodafone Total Business Customer Stories Location: http://www.youtube.com/watch?v=xHtqX-vnhc0 Concept: Understanding the needs of B2B customers. Clip Description: Vodafone UK video that shows stories of satisfied Vodafone business customers. Key outcome/points to consider: Students will identify the needs of business customers in telecommunications services based on the stories/testimonials that are provided in the video. Students can elaborate a list of the drivers when they are selecting a mobile company and how it differs from the reasons pointed to in the video.

VIDEO Boeing takes to the cloud with a solution to market its best- selling plane Understanding the needs of B2B customers Boeing takes to the cloud with a solution to market its best-selling plane Location: http://www.youtube.com/watch?v=dVBPxcb_PhY Concept: Understanding the needs of B2B customers. Clip Description: Boeing shows how they use new technology to attract business customers. Key outcome/points to consider: Students will understand that an innovative way of dealing with business customers is needed to better attract this customer group.