Basic Marketing – Chapter 07 Supplementary PowerPoint Archive This is an archive of photos and exhibits from the text and additional graphics and exhibits as referenced in the Basic Marketing Multimedia Lecture Guides. See the Basic Marketing Multimedia Lecture Support Package for additional detail and teaching suggestions. For use only with Perreault/Cannon/McCarthy. These images may not be redistributed or used for any other purpose without permission of the publisher, McGraw- Hill/Irwin, The McGraw-Hill Companies, Inc. McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

John Deere opening photo 7-2

Exhibit 7-1: Understanding Business and Organizational Customers for Marketing Strategy Planning 7-3

Kyocera ad 7-4

Michelin ad 7-5

IBM ad 7-6

Climbing gear photo 7-7

Buying Center photo 7-8

Exhibit 7-2: Multiple Influence and Roles in the Buying Center 7-9

Business Objects ad 7-10

AirTran ad 7-11

Exhibit 7-3: Overlapping Needs of Individual Influencers and the Customer Organization 7-12

Eastman Tritan ad 7-13

Exhibit 7-4: Organizational Buying Processes 7-14

California Dept. of Transportation ad 7-15

Liberty Mutual and Rockwell International ads 7-16

Exhibit 7-6: Key Dimensions of Relationships in Business Markets 7-17

CDW ad 7-18

Exhibit 7-7: Size Distribution of Manufacturing Establishments 7-19

Alcoa Aluminum photos 7-20

Exhibit 7-8: Illustrative NAICS Code Breakdown for Apparel Manufacturers 7-21

Capital One ad targeting small business 7-22

Shell ad 7-23

Diamond Crystal ad 7-24

Caterpillar ad 7-25

ESS ad 7-26

John Deere photo 7-27

Examples of Different Types of Business and Organizational Customers 7-28

Organization Buying Focuses on Value  Vendor analysis is likely to be more formal  Written specifications often spell out needs  Focus on economic criteria, including  Quality (including ISO 9000 certification)  Total costs to purchase and use  Reliability  Value in use  Including consideration of what related costs are reduced by using the product instead of some alternative  Savings possible via e-commerce  and the like … 7-29

Sharp ad 7-30

Nutrasweet ad 7-31

Buying Center  Business purchases often involve multiple influence  Buying center—all people who participate in or influence a particular purchase  Buying center varies from purchase to purchase  Does not appear on the organizational chart  Structure may be formal or informal 7-32

Retail Chain’s Statement of Policy Concerning Gifts To: Our Manufacturers and Suppliers Re: Statement of Policy Concerning Gifts The holiday season is a happy time when custom suggests we share gifts and remembrances with friends and associates. The joy and goodwill of the holiday spirit brings us all a little closer together, and for that we are thankful. However, a (store name) associate who accepts a gift or gratuity from a supplier or vendor during any season violates (store name) policies and procedures. Please save us both embarrassment by not sending any (store) associate gifts this holiday season. Regardless of the intent, the gift cannot be accepted and will have to be returned. If you feel the spirit of the season compels you to do something, we suggest that you make a charitable donation to your favorite charity in the name of your friend. Thank you for your understanding and compliance. Best wishes for a happy holiday season and a prosperous New Year. (signed) President 7-33

Yellow and Canon ads 7-34

Three Kinds of Organizational Buying Processes  New-task buying  a firm has a new need and the buyer wants a great deal of information  Modified rebuy  the in-between process where some review of the buying situation is done—though not as much as in new-task buying  Straight rebuy  a routine repurchase that may have been made many times before 7-35

Internet E-Commerce Reshaping B2B Markets  Both B2B marketers and business customers are turning to the Internet to speed up the flow of market information and to make the market matching process more efficient.  Impact is across industries & vertical channel levels in the value adding process (producer, wholesaler, etc.)  Significant factor in opening up some markets to global competition  A variety of special types of websites have come on the scene  Examples: Procurement hubs, collaboration hubs, seller sites, exchanges, etc.  Competition among similar websites is still shaking out and in the process causing some uncertainty, inefficiency, and expense. 7-36

National.com website series of photos 7-37

eBay e- commerce ad 7-38

Businesspeople in Hong Kong photo 7-39

North American Industry Classification System Codes  NAICS—new system of number codes that groups firms in similar lines of business  Most government data is now being organized by NAICS codes  Replacing the older Standard Industrial Classification (SIC) codes  SIC codes are still prominent in most published government reports because of lag times in publication  Much detail is available  Two digit codes are the most general  Additional digits add more details (i.e., six digit codes are the most detailed) 7-40

Producers of Services  Geographically spread out  Growing in number  Buying may be informal  Government data is incomplete 7-41

Government Market  Government units  Federal government  State governments  Local governments  Foreign countries  Bid buying and negotiated contracts  Sources of information  Commerce Business Daily  A variety of Internet websites  Small Business Administration  Government purchasing departments 7-42

Organizational Customers Are Different 7-43