Chapter 6 Business Marketing

What is Business Marketing? 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 Business Products Key is intended use

E-Commerce E-Commerce Business E-Commerce Consumer E-Commerce The process of selling goods and services on the Internet Electronic transactions between companies Electronic transactions between business and individuals that purchase for individual consumption

Benefits of Internet’s Interactivity Convenience and increased efficiency Better customer service Lower transaction costs New relationship-building opportunities

Business E-Commerce Benefits 5. Lower costs 4. Around-the-clock ordering & customer service 3. Access to customer and product sales data 2. Greater selection of products and vendors 1. Lower prices 6. Customized products

Categories of Business Customers Producers Resellers Governments Institutions

NAICS Provides common industry classification system Valuable tool for marketers in analyzing, segmenting, and targeting markets Data can be used to determine: –Number, size, and geographic dispersion of firms –Market potential / market share estimates –Sales forecasts

Business vs. Consumer Markets CharacteristicCharacteristic Demand Volume # of Customers Location Distribution Nature of Buy Buy Influence Negotiations Reciprocity Leasing Promotion Business Market Organizational Larger Fewer Concentrated More Direct More Professional Multiple More Complex Yes Greater Personal Selling Consumer Market Individual Smaller Many Dispersed More Indirect More Personal Single Simpler No Lesser Advertising

Demand is... DescriptionDescription Demand in Business Markets DerivedDerived Demand for business products results from demand for consumer products InelasticInelastic A change in price will not significantly affect the demand for product JointJoint Multiple items are used together in final product. Demand for one item affects all FluctuatingFluctuating Demand for business products is more volatile than for consumer products

Business Buying Behavior Customer Service Purchasing Ethics Buying Situations Evaluation Criteria Buying Centers Aspects of Business Buying Behavior Behavior

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.

Customer Service Online Services CD-ROMs World Wide Web Customer Service is enhanced through technology