2.  Business marketing involves those activities that facilitate exchange involving products and customer in business market  It include all organization that buy goods and services for use in the production of other product and services that are sold, rented or supplied to other  Business to business customers include manufacturer, wholesaler, retailer and other types of organization such as hospital, university and government unit  Business marketing transaction takes place whenever a good or services is sold for any use other than personal consumption  Is marketing products or services to other companies, government bodies, institutions or other organization

3.  CONSUMER PRODUCTS  Convenience products  Shopping products  Specialty products  Unsought products

4.  INDUSTRIAL PRODUCTS  Raw and processed materials  Component parts-  MRO supplies  Capital Goods  Tools/accessories  Service  System

5. AreasBusiness marketConsumer market Market structure Geographically concentrated, relatively few buyer Geographically dispersed, mass market Buyer Behaviour Functional involvement, professionalism, expertise Family involvement, less trained, often inexperienced Decision makingOften group decisionsUsually individual decision ProductMany tailored for customerMost standardized ChannelShorter, more direct, fewer linksLonger, indirect, multiple links PromotionEmphasis on personal sellingEmphasis on advertising PriceCompetitive biddingList prices with some discounts

6. Buyer-seller interface Public Macroenvironment Government

7. 1) Buyer-seller interface-firms that sell their output as required inputs to other firms  Government agencies  Original equipment manufacturer-OEM  Reseller  Input supplier  Facilitator  Commercial end user  Institution 2)Public-distinct groups that have an actual or potential interest in or an impact on a firm’s ability to achieve its respective goals  Financial public  Independent media  General public  Internal public  Interest group

8. 3)Macroenvironment  Economic influence  Economic condition among countries can influence the buying power among their citizen, and indirectly generated the growth of business industry. It is related with derived demand.  Both domestic and worldwide economic conditions affect an organization’s ability and eagerness to buy and sell.  Ecological influence  Industrial organizations involved in the manufacture of chemicals and pesticides constantly pose severe threats to the environment  Therefore, business organizations face public reaction and government intervention when their activities pose potential danger to the earth’s resources  Demographic influences  The demographic environment (world population explosion and aging of populations) impacts business through derived demand.

9. 3)Macroenvironment  Technological changes  The trend in technology is rapidly changed; certain technology has shortened life cycle. Marketer needs to update their knowledge in technology in order to produce a quality product and conduct a better job procedure  Cultural Influences  Value, belief, norm and traditions influence the structure and function of an organization as well as the interpersonal relationships of its member  Physical environment influences  The ability to do business at a profit demands a favorable combination of required inputs. Certain advantages stem from the natural riches of an environment, such as raw materials, water and power, or the availability of skilled workers, experienced management personnel and, transportation facilities. 4)Government  Law, regulations and control

10.  Derived demand  Demand for a business product that is linked to demand for a consumer good. The original demand occurs among consumers and is reflected in the business-to- business market.  Inelastic Demand  Inelastic demand takes place if price changes have little impact on the quantity of goods or services demanded.

11.  Joint Demand  Occur when 2 or more items are used in combination to produce a product

12.  1.Government  Include federal, state & local authority  2.Institution  Not for profit org.  3. Commercial Enterprises  Original equipment manufacturers (OEM)  When the company purchases the product or service to be included in its own final products that eventually sell to either the business or consumer market.

13.  Resellers  The company that purchase raw materials, component parts or equipment that usually resell with little or no alteration.  End Users  User customer buys product to support a manufacturing facility. These purchases do not become part of the finished product but to help to produce products.

14.  Procurement is the acquisition of goods or commodities by a company, organization, institution, or a person. This simply means the purchase of goods from suppliers at the lowest possible cost. The best way to do this is to let the suppliers compete with each other so that the expenses of the buyer are kept at a minimum.  Procurement usually involves a bidding process in which the bidders or sellers quote their prices and the buyer accepts the lowest possible bid. This is the most efficient and cost effective method of procuring goods or services if the quality of the goods meets the buyers' requirement.  The process of procurement usually begins when the procurer starts to search the market for bidders. After identifying the suppliers, a request for bids, proposals, quotes, and information can be made. However, direct contact with bidders can also be made instead of advertising the above requests.  After selecting the suitable bidders, a quality check is essential in order to confirm the suitability of the goods in question. The next step would be negotiation of the terms, conditions, quality, and delivery schedules. Logistics and payment are the next two important processes that determine the safe delivery and the payoff of goods.