2. Commercial Enterprises Government Units Non-Profit and Not-for-Profit Organizations

3. I. Industrial Distributers II. Value Added Resellers III. Original Equipment Manufacturers (OEM) IV. Users and End Users

4.  Provide 4 types of utility: o Form, Time, Place, Possession  Assortment of Products from many manufacturers based on segment needs “Reduce the discrepancy of assortment”  Serves smaller customers where direct representation is not efficient

5.  More than just a distributor  Provides unique, complete Offering from many sources  Creates a value network at the user level.

6.  Purchase products and incorporate those products into their products.  Usually the largest-volume users of goods and services. Ex: Intel is an OEM to many computer manufacturers, Goodyear is an OEM to the auto industry.

7.  A manufacturer that purchases goods or services for consumption or incorporation into its own products  Identity of the purchased product becomes lost Ex: When Goodyear purchases steel for fabrication into steel belts for tires, Goodyear is the steel manufacturer’s end user

8.  More than 35% of GNP  Largest consuming group in the United State.

9.  Consumer grouping consists of: o Hospitals o Churches o Colleges o Nursing Homes

10. Raw Material Producers Component Parts and Manufactured Materials Producers Accessory Equipment Suppliers Capital Goods Manufacturers

11. Raw Materials Producer  Compete in price sensitive markets  Seek Value Added positions  Product loses identity once incorporated into customer’s product  Dominated by a few very large producers

12. Component Parts and Manufactured Materials Producers  Parts retain their same form when incorporated  Retains identity when incorporated into consumer’s product  Differentiated by value added EX:Seagate Disc Drives in Hewlett Packard Computers

13. Capital Goods Manufacturer  Consists of large purchases with high risk to customer  Many parts of customer orgainzation involved in decision  Customers expect installation, equipment and accessories

14. Accessory Equipment Suppliers  Equipment that works with another offering  Accessories can be added to a bundle opportunity by a channel intermediary  Produced by an independent supplier  Add value by complying with industry standards for primary offering

15.  Communities of interested parties who are not direct participants in a market as customers, channel members, suppliers, or competitors.

16.  Financial Publics  Independent Press  Public Interest Groups  Internal Publics o All may have interests because of economic or societal effects of activities o Often may be considered stakeholders in the buying center

17. Demographic Environment Economic Environment Socio- cultural Environment Technological Environment Natural Environment Influence Value Creation

18.  Influences value creation, behavior of market participants  Various Types: o Pure Competition o Monopolistic Competition o Oligopolistic Competition o Pure Monopoly

19. Exhibit 2-3 The Multidimensional Value Network Efforts of collaborators at different levels in the Value Network combine to create the total offering for the customer. See Chapter 1, Exhibit 4 for greater detail. Total Offering Value Activities Value Enabling Value Creating

20. Exhibit 2-5 The Product Life Cycle (PLC) Decline Introduction Growth Maturity Time Sales Revenue/ period

21. Exhibit 2-6 The Technology Adoption Life Cycle (TALC) Technophiles Visionaries Laggards Time Sales from New Adopters/ period Pragmatists Conservatives

22. TALC and PLC Exhibit 2-7 A Hypothetical TALC and PLC for Wireless LANs TALC - Sales from New Adopters/ period PLC –Total Sales Time