business markets and business marketing chapter1.pp
TRANSCRIPT
8/14/2019 Business Markets and Business Marketing Chapter1.PP
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Chapter 1
Business Markets
and
Business Marketing
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BASF: http://www2.basf.us/stories/index.htm
A B2B company that:
• Creates value for its customers
• Builds brand recognition
• Communicates a unified message
• Targets decisions makers
• Supports salespeople with variety of communication tools
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Exhibit 1-1
ConAgra
Salt is added to
frozen dinners
Salt is processed into
food-grade or
industrial grade salt
Salt is mined
Kroger
Salt is sold in
shakers
Morton’s
Salt
Salt mine
YOU!
McDonalds
Salt is added to
fries
Consumer MarketingBusiness MarketingBusiness Marketing
MARKETING SALT
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BUSINESS MARKETING
The marketing of goods and services to:
• Companies that consume
•Government agencies
• Institutions
• Resellers
to:• produce their products, and/or
• facilitate or support operations.
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WHY BUSINESS MARKETING IS UNIQUEWHY BUSINESS MARKETING IS UNIQUE
• Buyer-seller relationshipsBuyer-seller relationships
• Shorter distribution channelsShorter distribution channels
• Emphasis on personal sellingEmphasis on personal selling
• Greater Web integrationGreater Web integration
• Unique promotional strategiesUnique promotional strategies• Consumption (OEM v. end user)Consumption (OEM v. end user)
• Knowledge of customer’s customersKnowledge of customer’s customers
• Marketing researchMarketing research
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TYPICAL BUSINESS TO BUSINESS
GOODS AND SERVICES INCLUDE:
• Raw materials
• Manufactured materials
(transformed from raw materials)
• Component or OEM parts
(part of a completed product)
• Accessory equipment (tools)
• Capital equipment (machinery)
• MRO items (maintenance, repair and operation) 1-6
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BUSINESS TO BUSINESS CHALLENGES
• Size and location of customers
• Performance standard expectations
• Complicatedpurchasing decisions
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DERIVED DEMAND
• Demand comes from the customer’s customer.
• Most demand originates
with consumers.
• Volatility?
• Elasticity? 1-8
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DERIVED DEMAND SIMPLIFIED
YOU MAKE HEADLAMP ASSEMBLIES:
Consumers
want more carsCar manufacturers
produce more carsYou sell more
headlamp assemblies
Consumers stop
buying cars Car manufacturers
stop making carsYou sell fewer
headlamp assemblies
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THE FLOW OF GOODS AND SERVICES
Amount and type of car determined by
research facilitating service
Purchase order printed facilitating product
Finishedcar
Componentparts
Assembly Sub-assembly
Manufacturedmaterials
RawMaterials
Transported via facilitating services
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CREATING VALUE
VALUE – The perception of product’s benefit
beyond price or function.
Value is received:
1. From the product
2. From seller’s services
3. From relationship with seller
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1. Who are our customers?
2. What do our customers want?
3. How do our customers makebuying decisions?
SUCCESSFUL B2B COMPANIES ASK:
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