Designed & developed by E4 SBA SEMESTER ONE SESSION 7 BASICS OF MARKETING- I BASICS OF MARKETING I Session 7 Understanding Business Markets

Designed & developed by E4 SBA SEMESTER ONE SESSION 7 BASICS OF MARKETING- I Learning Objectives To understand what constitute business products To understand the organization buying behavior

Designed & developed by E4 SBA SEMESTER ONE SESSION 7 BASICS OF MARKETING- I Business Marketing The marketing of goods and services to individuals and organizations for purposes other than personal consumption.

Designed & developed by E4 SBA SEMESTER ONE SESSION 7 BASICS OF MARKETING- I 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

Designed & developed by E4 SBA SEMESTER ONE SESSION 7 BASICS OF MARKETING- I Business vs. Consumer MarketsCharacteristicCharacteristic 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 Ref: Marketing by Lamb

Designed & developed by E4 SBA SEMESTER ONE SESSION 7 BASICS OF MARKETING- I Ref: Marketing Management by Saxena

Designed & developed by E4 SBA SEMESTER ONE SESSION 7 BASICS OF MARKETING- I Influences on Industrial Buying Behavior Ref: Marketing Management by Philip Kotler

Designed & developed by E4 SBA SEMESTER ONE SESSION 7 BASICS OF MARKETING- I Categories of Business Customers Producers Resellers Governments Institutions Ref: Marketing by Lamb

Designed & developed by E4 SBA SEMESTER ONE SESSION 7 BASICS OF MARKETING- I Demand in Business Markets Demand is... DescriptionDescriptionDerivedDerived 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 Ref: Marketing by Lamb

Designed & developed by E4 SBA SEMESTER ONE SESSION 7 BASICS OF MARKETING- I Types of Business Products Major Equipment Accessory Equipment Raw Materials Component Parts Processed Materials Supplies Business Services Major Categories of Business ProductsMajor Products Ref: Marketing by Lamb

Designed & developed by E4 SBA SEMESTER ONE SESSION 7 BASICS OF MARKETING- I Business Buying Behavior Buying Situations Evaluation Criteria Buying Centers Aspects of Business Buying Behavior Behavior Ref: Marketing by Lamb(modified)

Designed & developed by E4 SBA SEMESTER ONE SESSION 7 BASICS OF MARKETING- I Buying Center All those persons in an organization who become involved in the purchase decision.

Designed & developed by E4 SBA SEMESTER ONE SESSION 7 BASICS OF MARKETING- I Roles in the Buying Center DeciderDeciderInitiatorInitiatorInfluencersInfluencersGatekeepersGatekeepers PurchaserPurchaserUsersUsers Ref: Marketing by Lamb

Designed & developed by E4 SBA SEMESTER ONE SESSION 7 BASICS OF MARKETING- I Evaluative Criteria Ref: Marketing by Lamb

Designed & developed by E4 SBA SEMESTER ONE SESSION 7 BASICS OF MARKETING- I 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. Ref: Marketing by Lamb