Assignment and Reflection about Principles of Marketing

Business Marketing

Unrestricted

“Marketing of goods and services to individuals and organizations for purposes

other than personal consumption”

What is B2B?

• Why do consumers buy things? • Why do businesses buy things?

Business vs consumer products

• Business products: • Used to manufacture other products • Facilitate operations • Are resold to other customers

• Consumer products: • Satisfy individual personal needs and wants

Business vs consumer products

• New ways to use websites • Increase brand awareness with digital marketing • Content marketing to strengthen brand position

Trends in B2B internet marketing

• Strategic marketing approach focused on creating and distributing valuable, relevant, and consistent content

• Goal - To attract and retain a clearly defined audience and drive profitable customer action

Content marketing

• Content should be: • Compelling • Useful • Include mobile compatibility • Video • Measured

• What should we measure?

Content marketing

• A strategy that involves seeking and establishing ongoing partnerships with customers

• Has become important because: • Customers have become more demanding • Competition has become more intense • Business suppliers use social networking sites to

advertise themselves to businesses

• Steady dialogue between the supplier and the customer needs to be maintained to gain repeat business

Relationship marketing

• AKA strategic partnerships • Is a cooperative agreement between business

firms • May be:

• Licensing or distribution agreements • Joint ventures • Research and development consortia • Partnerships

• Goal is to strengthen operations

Strategic Alliances

• In Japan, relationships are developed through amae

• The nurturing feeling for and dependence upon one another

• Can develop into keiretsu – a network of interlocking corporate affiliates

• In keiretsu, members: • Trade with each other when they can • Engage in joint production and marketing • Sit on one another’s boards

Relationships in other cultures

ProducersProducers ResellersResellers

GovernmentsGovernments InstitutionsInstitutions

Categories of business customers

• North American Industry Classification System • Provides an industry classification system for those in

NAFTA

• Number, size, and geographic dispersion of firms can be identified

• Data can be converted to market potential and share estimates and sales forecasts

• Can identify firms that may be prospective users of a supplier’s goods and services

NAICS

Business versus consumer markets

• Demand for business products results from demand for consumer productsDerived

• Demand for product not significantly affected by change in priceInelastic

• Demand for multiple items used together in final productJoint

• Demand for business products is more volatile than for consumer productsFluctuating

Demand in business markets

Characteristic Business market Consumer market

Demand Organizational Individual

Volume Larger Smaller

No. of customers Fewer Many

Location Concentrated Dispersed

Distribution Direct Indirect

Nature of buying Formal Informal

Buying influence Multiple Single

Negotiation Common Rare

Reciprocity Yes No

Leasing Greater Lesser

Promotion Personal selling Advertising

Other business market differences

• Major equipment • Accessory equipment • Raw materials • Component parts • Processed materials • Supplies • Business services

Types of business products

• Buying centers: • Often, more than one person is involved in making a

business purchase decision • May change from purchase to purchase

• Roles in buying centers: • Initiator • Influencer/evaluator • Gatekeeper • Decider • Purchaser • User

Business buying behavior

• Evaluative criteria: • Quality - Refers to technical suitability • Service - Includes prepurchase, postsale, and

dependability of supply • Price - Business buyers want to buy at low prices

Business buying behavior

• Buying situations:

• New buy • Purchase of a product for the first time

• Modified rebuy • Purchase involving some change in the original good

or service

• Straight rebuy • Purchase of the same goods or services without

looking for new information or investigating other suppliers

Business buying behavior

• Business ethics • Most companies require or offer ethics training • Many have a formal written ethics guide

Business buying behavior

• Customer service • Business marketers often track customer opinions

and perceptions of customer service experiences • Measures are unique to product and market

• To ensure superior service, firms must: • Divide customers into groups based on their value • Create policies that govern how service will be

allocated among groups

Business buying behavior