1. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Developed by Cool Pictures and MultiMedia Presentations

2. Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Business Markets Local to international –Bought by Businesses Government bodies Institutions –For consumption –For use –For resale GE Markets for products and services Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

3. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. A Market Driven Firm Market sensing capability…companies ability to sense change and to anticipate customer responses. Customer linking…the ability to develop and manage close customer relationships. Has:

4. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Marketing’s Cross Functional Relationship Business marketing planning must be coordinated and synchronized with corresponding planning efforts. Developed by Cool Pictures and MultiMedia Presentations

5. Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Keys to Cross Functional Working Relationships  Communications  Perspective taking  Responsive behavior  Compatibility

6. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Business Market Characteristics Derived demand Fluctuating demand Stimulating demand Price sensitivity/demand elasticity Global Market perspective GE Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.

7. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Relationship Marketing All marketing activities directed toward establishing, developing, and maintaining successful exchanges with customers.

8. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Michael Porter and Victor Millar observed that “to gain competitive advantage over its rivals, a company must either perform these activities at a lower cost or perform them in a way that leads to differentiation and a premium (more value).” The Supply Chain

9. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Procurement Trends Longer term and closer relationships. Closer interactions among multiple functions. Supplier proximity considerations.

10. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Business Market Customer Commercial Enterprises Three categories: –Users –OEMs –Dealers and distributors

11. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Classifying industrial goods by the following questions: How does the good or service enter the production process? How does it enter the cost structure of the firm? Classifying Goods for the Business Market Source: Adapted from Philip Kotler, Marketing Management: Analysis, Planning, and Control, 4 th ed. (Englewood Cliffs, N.J.: Prentice-Hall, 1980), p. 172, with permission of Prentice- Hall, Inc.

12. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. The Internet … Providing Goods & Services Source: http://www.fao.com

13. Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. A Framework for Business Marketing Management Business marketing strategy is formulated within the boundaries established by the corporate mission and objectives.