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MARKT 351 A. LEBARD C-7

BUSINESS MARKETING I. Types of User Customers A. Producer 1. OEM 2. End User a. Capital equipment (Major) b. Accessory equipment c. Raw materials, semi-processed, and components d. Maintenance, repair and operating (MRO) supplies e. Services

B. Resellers 1. Agents 2. Merchants

C. Government Agencies 1. Federal 2. State 3. Local

D. Institutions 1. Public 2. Private 3. For-profit 4. Non-profit Review #1 II. Organizational Buying and Selling A. Size – fewer, larger buyers B. Complexity 1. Professional buyers 2. Extensive buying process a. Closer relationships b. Multiple roles and influences c. Multiple sales calls d. Diverse issues e. Legal/regulatory concerns C. Demand 1. Derived Demand for user goods a. Step or wave effect

b. Inelastic demand c. Fluctuating demand 2. Geographically concentrated 3. Direct purchasing Review #2

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III. Major Types of Business Buying Situations (Organizational Buy Classes)

A. New Task Buy 1. 2. 3.

B. Modified Rebuy 1. 2. 3.

C. Straight Rebuy 1. 2. 3. IV. Buying Center Concept - Roles

A. User B. Influencer (includes initiators)

1. 2.

C. Gatekeepers D. Deciders E. Buyers (Purchaser)

Review #3 Intermission V. Eight Steps in the Buying Process

A. Recognizing a need or a problem B. General need description C. Developing product specifications D. Searching for qualified suppliers E. Acquiring and analyzing proposals F. Supplier selection G. Order routine H. Evaluating product performance

VI. North American Industry Classification System (NAICS) A. U.S., Canada, and Mexico – effective 01/01/1997 B. Replaced SIC codes C. Six digits: 1) sector of the economy, 2) subsector, 3) industry group, 4) industry,

5) country specific industry, and 6) product class 441221 = U.S. Motorcycle, ATV, and Personal Watercraft Dealers (reference: www.census.gov/epcd/www/naics.html)

Review #4 DIRECT MARKETING – MARKETING IN THE DIGITAL AGE

Supplement I. DIRECT MARKETING

A. Definition – “Direct communication with carefully targeted individual consumers to obtain an immediate response” B. Forms of Communication

1. Face-to-Face Selling – personal sales 2. Direct-Mail Marketing – mailed, faxed, and emailed: letters, advertisements, samples, foldouts, and novelty devices 3. Catalog Marketing – systematically arranged listings of offerings, often with a description, provided to a select list of customers 4. Telemarketing – inbound and outbound direct telephonic solicitation of customers 5. Direct-Response Television Marketing – direct response television, infomercials, and home shopping channels 6. Kiosk Marketing – information and ordering devices

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7. On-Line Marketing – interactive, on-line computer systems electronically linking consumers with sellers C. Electronic Commerce 1. “any activity that uses some form electronic communication in the inventory, exchange, advertisement,

distribution, and payment of goods and services” 2. Profit Opportunities in the Marketspace a. Sales Revenue Model: “marketing products and services though the internet” Ex Peapod, CDNow b. Advertising Support Model: “selling advertising on a company’s web site” Ex Yahoo, Excite c. Cost Elimination Model: “substitution for more expensive means of data and information management” Ex Banking d. Subscription Support Model: “monthly or annual subscription revenue based on the value of the content or service provided” Ex wsj.com (Dow Jones) e. Information Trading Model: “the gathering and selling of consumer interests or purchase intentions” Ex Popular Demand, Inc. ($10 to $15 per viable customer) f. Infomediary Model: “literally a virtual market, typically earning a commission or transaction fee for its service” Ex e-bay, nte.net (freight) Review #5

D. Interactive Marketing – “in the marketspace, on-demand two-way information exchange anywhere and anytime”

1. Sources of Customer Value Position a. Convenience b. Cost c. Customer Service d. Choice – breadth/depth and assistance e. Customization f. Coordination (marketplace and marketspace)

2. Web Sites a. Transactional – electronic store fronts b. Coordination (marketplace and marketspace) c. Promotional – promotes company’s products and services, and provides information d. In conjunction with integrated marketing communications, connecting the promotion mix

3. Growth Barriers and Issues a. Limited Marketspace – limited exposure and buying b. Skewed User Demographics – upscale and technical orientation c. Chaos and Clutter – site must capture surfers within eight seconds d. Security – many jeopardous issues: espionage, unauthorized purchase, identity theft, and sabotage e. Privacy – with very few exceptions, internet activity can be collected, analyzed, and sold

Review #6 II. MARKETING IN THE DIGITAL AGE

A. Terms 1. Customerization – individual customer design of the marketing offering, allowing customers to be prosumers rather than only consumers 2. Customization – taking the initiative to customize the market offering 3. E-business – use of electronic platforms to conduct a company’s business 4. E-commerce – buying and selling processes supported by electronic means, primarily the internet 5. E-marketing – efforts to communicate about, promote, and sell products and services over the internet 6. Prosumers – customer-centric process of customers adding value throughout the product life cycle a) Serving as business process producers b) Identifying demand, design, testing, defining the benefits c) Marketing - word of mouth, being brand evangelists, blogging, reviewing, and discussing d) Finding new uses for things people own - hacking, recycling, repairing, sharing 7. Viral marketing – email messages and other marketing events that are so infectious that customers will want to pass them along

B. E-Marketing Domains 1. Business to Consumer (B2C) – online selling of goods and services to final consumers

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2. Business to Business (B2B) – trading networks, auction sites, spot exchanges, online catalogs, barter sites, online resource utilization 3. Consumer to Consumer (C2C) – online exchanges of goods and information between final consumers 4. Consumer to Business (C2B) – online exchanges in which consumers search out sellers, learn about their offers, and initiate purchase, sometimes even driving transaction terms

C. Conducting E-Commerce 1. Click-Only Companies (dot-coms) – marketspace sellers operating only online 2. Click-and-Mortar Companies – marketplace and marketspace sellers operating online and through traditional facility formats 3. Website considerations a) Context – layout and design b) Content – text, pictures, sound, and video c) Community – enabled user-to-user communication d) Customization – degree of user personalization e) Communication – types of user enablement: site-to-user, user-to-site, or two-way communication f) Connection – degree to which site is linked to other sites g) Commerce – level of commercial transaction enablement Recommended Reading: New Language of Marketing 2.0, 1st Edition, Sandy Carter, 2009 IBM Press, available: ibmpressbooks.com END Review #1 California State University, Fullerton is best described as which type of institution? 1. Public 2. Private 3. For-profit 4. Non-profit 5. 2 and 3 above 6. 1 and 4 above Review #2The characteristics of Derived Demand are commonly explained with the 1. Business Cycle effect 2. Consumer effect 3. Delayed Demand effect 4. Step or Wave effect Review #3 In the Buying Center Concept, which role is best described the entity which controls the in-low and outflow of information 1. Buyers 2. Deciders 3. Gatekeepers 4. Influencer Intermission Review #4 The digit of the six digit North American Industry Classification System (NAICS) which stipulates country specific industry is? 1) 2) 3) 4) 5) 6) Review #5 The Profit Opportunity Model in the Marketspace which is best described as the gathering and selling of consumer interests or purchase intentions is 1) Sales Revenue Model 2) Advertising Support Model 3) Cost Elimination Model 4) Subscription Support Model 5) Information Trading Model 6) Infomediary Model

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Review #6 Among the Internet Growth Barriers and Issues, which is best described as with very few exceptions, internet activity can be collected, analyzed, and sold? 1) Limited Marketspace 2) Skewed User Demographics 3) Chaos and Clutter 4) Security 5) Privacy End