1. Business Markets & Service Marketing

2. 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

3. 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

4. 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

5. 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

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

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