Business Markets & Service Marketing

Business Markets Companies and organizations that purchase products for the operation of a business or the completion of a business activity –Capital equipment –Operating equipment –Supplies –Raw materials –Component parts

Demand Direct Demand (consumer markets) Derived Demand: quantity of product or service needed by a business in order to operate at a level that will meet the demand of its customers

Business Markets Capital: land, buildings, and major pieces of equipment Operating Equipment: smaller, less expensive equipment (cash registers, tools, small machines) Supplies: materials consumed in the operation of the business (paper, ink catridges) Raw Materials: materials incorporated into the products they make Component Parts: parts manufactured by another business incorporated into the products they make

Service Marketing Service Marketing: Services are intangible, inseparable, perishable, and heterogenous –Intangible: cannot be touched, seen, tasted, heard, or felt –Inseparable: service is produced and consumed at the same time –Perishable: services unused in a period cannot be stored for use in the future –Heterogeneous: differences between services due to the difference in the people who perform them

Service Quality The degree to which the service meets customers’ needs and expectations –Competition –Performance standards –Customer satisfaction

Service Marketing Planning: –nature of services affect the planning Promotion: –endorsements, word of mouth, personal selling Price: –bundling Product/Distribution: –distributed at the point of creation