MARKETING DISCUSSION

12/3/2018 REQUIRED TOPIC 1: DERIVED and FLUCTUATING DEMAND - MRKT 310 7983 Marketing Principles (2188)

https://learn.umuc.edu/d2l/le/329066/discussions/threads/14771178/View 1/2

 REQUIRED TOPIC 1: DERIVED and FLUCTUATING DEMAND 

Melissa Daston posted Oct 24, 2018 6:53 PM  Subscribe

 

TOPIC 1: . Derived and Fluctuating Demand

The characteristic of B2B markets that is most opposite of B2C markets is the concept of derived and fluctuating demand. These concepts explain why when consumer purchasing goes down, the effect on the economy is multiplied by all the transactions that occur throughout the channels. A slowdown in consumer spending is not good for the economy.

Here are some examples of derived demand.

http://smallbusiness.chron.com/example-derived-demand- 80611.html 

https://product2market.walkme.com/examples-derived- demand-product-marketers/

A good way to illustrate derived demand is to study the LeBron effect, the economic boost the basketball superstar LeBron James brought to his hometown of Cleveland, Ohio. Watch this video as the LeBron effect illustrates how businesses throughout the Cleveland area prospered and declined as a result of his choice of where to play.

Cleveland's Basketball Boom Brings Economic Vigor: http://www.econedlink.org/interactives/index.php?iid=87

This article will help you understand derived demand in a different way more easily.

12/3/2018 REQUIRED TOPIC 1: DERIVED and FLUCTUATING DEMAND - MRKT 310 7983 Marketing Principles (2188)

https://learn.umuc.edu/d2l/le/329066/discussions/threads/14771178/View 2/2

https://www.forbes.com/sites/rebeccabagley/2014/08/01/th e-lebron-effect-why-narrative-matters-to-regional- innovation/#3212547a1caa

Can you think of another situation similar to the LeBron effect in which derived demand was created by something that happened in the external environment, something that caused other companies to sell their products to other businesses to meet new demand?

Another example, after 9/11, many people were concerned for their safety or their ability to survive during an attack. This prompted companies to market safety kits for home and auto. Most of these kits were compilations of existing products, but the derived demand for bandages, flashlights, etc. increased.

Respond to at least two (2) of your classmates and use at least one (1) referenc

12/3/2018 An Example of Derived Demand | Chron.com

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An Example of Derived Demand by Jackie Lohrey

The concept of derived demand demonstrates how changing customer

preferences or a changing economy affects business-to-business markets.

In fact, whether you own a manufacturing company or small-business retail

store, you most likely know more about derived demand than you realize.

What Is It?

Derived demand links to increasing or decreasing consumer demand for a specific product or service. Essentially,

demand -- or lack of demand -- for a product creates or reduces demand for related products. Derived demand has both

local and industry implications. For example, if you own an electronics business, the demand for audio equipment

creates demand for related products such as headphones, connector cables and amplifiers. In the same way, if you own a

custom clothing business, customer orders create demand for fabric, sewing pins and thread.

The Chain of Derived Demand

From a business-to-business perspective, derived demand creates a right-to-left-flowing value chain that starts with

consumer demand. Every leftward step in a value chain directly results from consumer demand. In the custom clothing

example, a customer order creates a demand for fabric. Getting this fabric starts with cotton or some other combination

of fibers that first must be spun and then woven into cloth. Each step in the chain adds the value necessary to move raw

materials down the chain until raw materials become the finished product.

The Ripple Effect of Derived Demand

Derived demand doesn’t exist in a vacuum. Instead, it creates a ripple effect within your local community and within and

among related industries. On a local level, the clothing produced in a custom sewing business might also create demand

for shoes, jewelry, ties and handbags. In turn, demand for each of these products creates additional derived value chains.

Likewise, demand for raw materials used in manufacturing creates even more derived value chains.

Derived Demand Marketing

Derived demand value chains and the ripple effect underscore the importance of business-to-business relationships. It

all starts with creating consumer demand, especially in cases where demand might not exist. Small businesses in the

same place can collaborate and promote each other's products or services. Vendors and manufacturers might create

demand for their own products by creating demand for their customer’s products. Joint ventures, strategic partnerships

and vendor partnership agreements are all helpful in using derived demand to each business’s best advantage.

12/3/2018 An Example of Derived Demand | Chron.com

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12/3/2018 An Example of Derived Demand | Chron.com

https://smallbusiness.chron.com/example-derived-demand-80611.html 3/3

References (3) Tutor2U: Understanding Demand

B2B International: B2B Marketing -- What Makes It Special?

PleaseTech: The Business Value of Collaboration

Resources (1) Council for Economic Education: Spider Diagram

About the Author

Based in Green Bay, Wisc., Jackie Lohrey has been writing professionally since 2009. In addition to writing web content

and training manuals for small business clients and nonprofit organizations, including ERA Realtors and the Bay Area

Humane Society, Lohrey also works as a finance data analyst for a global business outsourcing company.

Photo Credits Jupiterimages/BananaStock/Getty Images

Energy Bill Cruncher Solar Quotes

District Of Columbia Brings No Cost Solar Program to Washington

Cite this Article

12/3/2018 Examples of Derived Demand for Product Marketers

https://product2market.walkme.com/examples-derived-demand-product-marketers/ 1/2

Finding a clear cut set of examples of derived demand for product marketers online is a bit of a crapshoot, isn’t it? Sometimes search engines take things a little too literally, and of course, there are all of those people on the internet who think they know what they are talking about, but don’t, flooding the digital world with nonsense.

So, if you’re a bit lost looking for examples of derived demand in this situation, then there’s no shame in that. But, there are scenarios in product management where the bean counters are going to want you to forecast possible derived demand for a given project or campaign, and maybe even want precedents in the field, so they can have a clearer view than maybe you have, of what said project or campaign is going to cost. Gotta love those money changers in the temple, ah?

Well, fear not, for today, I am going to give you two sets of examples, one of general resulting derived demand, and a few examples of things that have come into being as the result of derived demand of marketing in modernity. Your financial department’s usual guerilla tactics will crumble, with this information under your belt. Ready?

General Demands 

First, the general types of derived demand that come from product marketing are of course, somewhat obvious. Labor is a big consequential demand for just about anything, in the case of marketing, primarily people skilled in various things that go into advertising and outreach. These may be writers, artists, and various forms of media expertise.

Along with these comes the demand for communications technologies and distribution platforms, especially in a digital setting. These can be software extensions for web platforms, advertising services, affiliate marketing services, any number of things like this.

Specific Examples 

And now we come to specific examples of this in product marketing, beyond the general demands above. Some examples of well-known services and technology that are specifically the result of advertising and marketing needs.

The biggest one is the modern SaaS CRM platform. Such systems as Salesforce, Microsoft Dynamics and Sugar CRM are just a few. Were it not for the increasing need for automation and complex data in tracking both commerce and marketing outreach in the new digital age, CRM software would never have evolved beyond the specialized spreadsheet/database systems they spent most of history being.

12/3/2018 Examples of Derived Demand for Product Marketers

https://product2market.walkme.com/examples-derived-demand-product-marketers/ 2/2

Along with these is an entire web technology that has been developed primarily to facilitate dynamic advertising and marketing interfacing, HTML5. While it also has a purpose in creating general rich web interface, the main goals behind a lot of the innovations in HTML5, versus its predecessor, AJAX, were with the dynamism of massive marketing in mind.

Also, following this chain, is the demand for powerful tools to design these HTML5 systems, such as Google Web Designer, Adobe Muse and other, similar applications. You will notice right off the bat, when opening these programs, that while they’re general HTML5 tools, their presets are geared to advertising and marketing templates almost exclusively.

These are just some basic, general examples of derived demand in product management and product marketing. You’ll discover, when you actually step back, that there are tons of these things you can easily spot, and itemize, so that when you’re ready for your next campaign or project, you have more examples and case studies than your bean counters could ever think to demand. Checkmate!

12/3/2018 The LeBron Effect: Why Narrative Matters To Regional Innovation

https://www.forbes.com/sites/rebeccabagley/2014/08/01/the-lebron-effect-why-narrative-matters-to-regional-innovation/#28a4c74c1caa 1/6

3,423 viewsAug 1, 2014, 01:36pm

The LeBron Effect: Why Narrative Matters To Regional Innovation

I write about strategies that accelerate the pace of innovation.

Rebecca O. Bagley Contributor

On July 11, I was at the City Club of

Cleveland listening to the EPA’s Chris

Korleski speak to business leaders and

policymakers about the economic impact of

the Great Lakes on Northeast Ohio and

other regions. Just before the event kicked

off, news broke that LeBron James had

decided to return to the Cleveland

Cavaliers. For a few minutes his

announcement caught everybody’s

attention and some in the room seemed to

have forgotten why they were even there.

As if wanting to recapture their attention,

Korleski, after he got on stage, asked with a

smirk: “Uh, who’s LeBron James?”

“I almost gave up [giving my speech],” he

continued, “because why bother after that

[announcement]?”

12/3/2018 The LeBron Effect: Why Narrative Matters To Regional Innovation

https://www.forbes.com/sites/rebeccabagley/2014/08/01/the-lebron-effect-why-narrative-matters-to-regional-innovation/#28a4c74c1caa 2/6

Korleski’s tongue-in-cheek comment stuck

with me, because in the weeks since,

LeBron has dominated the headlines in and

about Cleveland. There were articles in The

Wall Street Journal, Bloomberg and others

speculating about his economic impact on

the city.

“Economist: LeBron James Worth Almost

$500 Million to Cleveland,” a Time.com

headline read, followed by the subhead:

“But a lot would have to go exactly right.”

The article argued that LeBron “could be an

economic catalyst for the Rust Belt city”

and stressed his likely impact on ticket

sales, hotels, bars, restaurants and shops.

Other stories, like this Meet the Press piece,

viewed Cleveland’s ability to lure both

LeBron and the 2016 Republican National

Convention as evidence that the city is on

the rise.

I am not one to speculate about how much

money LeBron and the Republican National

Convention will bring to Northeast Ohio.

What I do know is that these high-profile

events have an impact on how people feel

about the region. And that’s not an

insignificant thing, particularly when a

historically manufacturing-based region

like Northeast Ohio is trying to nurture a

culture of innovation.

12/3/2018 The LeBron Effect: Why Narrative Matters To Regional Innovation

https://www.forbes.com/sites/rebeccabagley/2014/08/01/the-lebron-effect-why-narrative-matters-to-regional-innovation/#28a4c74c1caa 3/6

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I think a region’s or an organization’s

ability to innovate is as much about attitude

as it is about resources. I’ve written

beforeabout the role GRIP values

(Growth, Respect, Individual

Responsibility, Passion) play in innovation.

Another important layer is how people both

in and outside a region feel about the place.

I think a certain level of confidence and

optimism is required to be innovative.

Imagine how much harder it would be for a

business to encourage its employees to be

innovative, if these employees didn’t think

their company could change; how much

harder it would be, if these employees were

told by others their company wasn’t going

anywhere.

Narrative matters. It’s true for businesses

and it’s true for regions. Think of places like

Boston or Silicon Valley. Talented people

who have never been there want to work

there. Why? Because there are

opportunities and resources. But also

because people keep telling exciting stories

about these places.

12/3/2018 The LeBron Effect: Why Narrative Matters To Regional Innovation

https://www.forbes.com/sites/rebeccabagley/2014/08/01/the-lebron-effect-why-narrative-matters-to-regional-innovation/#28a4c74c1caa 4/6

Boston and Silicon Valley have narratives of

innovation. They are regions that thrive on

positive, innovative cultures built on open

exchanges of ideas and an attitude that

anything is possible.

Northeast Ohio needs that narrative – and

the region is getting there. It already is a

place where manufacturing expertise meets

innovation. It is as much Tech Belt as it is

Rust Belt, as much bits as it is bolts. It is a

leader in industries like biotech, aerospace,

logistics, advanced energy, food processing,

additive manufacturing, flexible electronics,

water technologies and lighting. Add low

costs of living, great entertainment and an

outdoor culture, and you have a desirable

place to live.

Yes, there are challenges, too. Like other

industrial cities, Cleveland is dealing with

poverty, foreclosures and underperforming

schools. The more balanced pieces that

were written in the wake of LeBron’s and

the RNC’s decisions didn’t ignore these

things, but focused on the comeback story.

The biggest impact of LeBron and the

Republican Convention may be to help

change the narrative to this comeback story

– a story that has been in the making not

just over the past three weeks but for more

than a decade; a story that has been told by

12/3/2018 The LeBron Effect: Why Narrative Matters To Regional Innovation

https://www.forbes.com/sites/rebeccabagley/2014/08/01/the-lebron-effect-why-narrative-matters-to-regional-innovation/#28a4c74c1caa 5/6

the Regional Marketing Alliance and

Positively Cleveland for years; a story that

is catching the attention of people across

the country in part because of the recent

developments.

All of a sudden people seem to be paying a

little closer attention than they did before.

“The recent highly visible and exciting news

of both the Republican National

Convention choosing Cleveland for 2016

and LeBron James deciding to come back to

play in his hometown are both significant in

our important task of changing the

narrative on Cleveland,” says David Gilbert,

president and CEO of the Greater Cleveland

Sports Commission and Positively

Cleveland, which recently launched

its “This Is Cleveland” campaign.

“A change in perception is critically

important to attract more visitors,

businesses and residents,” he says. “This

news additionally enhances the self-

confidence of locals, which can be critical to

any strategy for advancing a community.”

David brings up an important point.

Northeast Ohioans seem to have been

infected with a new sense of optimism.

Over the past three weeks, I have heard

numerous business leaders talk about how

they believe the region is on the rise, and

12/3/2018 The LeBron Effect: Why Narrative Matters To Regional Innovation

https://www.forbes.com/sites/rebeccabagley/2014/08/01/the-lebron-effect-why-narrative-matters-to-regional-innovation/#28a4c74c1caa 6/6

several have cited LeBron and the

convention as evidence.

It’s important business leaders channel that

kind of confidence into strategies that can

accelerate the pace of innovation. These

strategies should include embracing

national innovation trends, creating

organizational cultures that empower

creative thinking, and pursuing new and

different business opportunities.

One area where changing the narrative is

particularly important is inclusive

competitiveness. If regions want to stay

competitive, they need to make sure

minority tech-employment and

entrepreneurship reflect population levels.

Yet, too few minorities, particularly in our

cities, are even aware of the opportunities

that exist within the Innovation Economy.

Changing the narrative in these

communities to one focused on

opportunities in the tech sector is a small,

first step in the right direction.

If LeBron James were to become part of

that effort, it may be his greatest

contribution to Cleveland and Northeast

Ohio.

12/3/2018 REQUIRED TOPIC 2: BUYING CENTERS - MRKT 310 7983 Marketing Principles (2188)

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TOPIC 2: Buying Centers

Buying centers, some�mes called procurement, are where B2B buying decisions are made.

Consider your own workplace. Do you work for a company, the military, or at a nonprofit

ins�tu�on such as a hospital?

Describe your organiza�on's buying center and how it adds value by procuring what your

organiza�on needs to conduct its business and produce its own products or services?

How are the buying decisions made?

Comment on at least one of your classmate's posts and use a link to your workplace if you have one. If

you aren't working, you may use a friend's company or that of your significant other.

12/3/2018 REQUIRED TOPIC 3: CUSTOMER SATISFACTION SURVEYS - MRKT 310 7983 Marketing Principles (2188)

https://learn.umuc.edu/d2l/le/329066/discussions/threads/14771201/View 1/2

 REQUIRED TOPIC 3: CUSTOMER SATISFACTION SURVEYS  Melissa Daston posted Oct 24, 2018 6:54 PM  Subscribe

 

TOPIC 3:  Customer Satisfaction Surveys

You might remember Joy Mead, associate director of marketing at Procter & Gamble, when she spoke about consumer behavior. Listen to this clip to hear Mead talk about the research techniques and methods Procter & Gamble uses to develop consumer insight. You will learn that the company isn't just interested in what consumers want now but also years into the future.

http://app.wistia.com/embed/medias/c89771530a

Primary marketing research is generally used when all other options for gathering marketing data have been exhausted. It is very expensive, and sometimes the research itself is flawed in its design. 

One of the areas of primary marketing research we are all familiar with is the customer satisfaction survey. Even this supposedly simple type of survey is difficult to design to elicit the most accurate responses from customers. Let’s get a little experience in question design. 

Go to surveymonkey.com. Click on “Examples,” then “Customer Satisfaction,” then on the Customer Satisfaction Survey Template, click "Preview." On the right side, click on “Surveys 101.” (You should not have to sign up for an account to access this information.) 

12/3/2018 REQUIRED TOPIC 3: CUSTOMER SATISFACTION SURVEYS - MRKT 310 7983 Marketing Principles (2188)

https://learn.umuc.edu/d2l/le/329066/discussions/threads/14771201/View 2/2

Scroll through the tutorial on survey design, paying special attention to the section on "How to Design a Survey."

Then create one question you would ask UMUC students about this class for the purposes of improving the course, or measuring student satisfaction. The question type can be multiple choice, comment/essay, rating scale—your choice based on the objective of the question.

Give a few brief comments as to why you felt this question was an important measurement of customer satisfaction and why you chose the particular question format.

Comment on at least two (2) classmates and use a reference related to customer satisfaction.