Strategic Marketing Chapter 6 Learning Outcomes

1. Strategic Marketing Chapter 6 Learning Outcomes Describe business marketing Describe the role of the Internet in business marketing Discuss the role of relationship marketing and strategic alliances in business marketing Identify the four major categories of business market customers LOI LO2 LO3 LO4

2. Learning Outcomes Explain the North American Industry Classification System Explain the major differences between business and consumer markets Describe the seven types of business goods and services Discuss the unique aspects of business buying behavior LO5 LO6 LO7 LO8

3. What Is Business Marketing? LOI Describe business marketing

4. BusinessMarketing What Is Business Marketing? LOI The marketing of goods and services to individuals and organizations for purposes other than personal consumption. Interesting fact: The US Government is the WORLD’S largest single customer

5. Business Products The key is intended use. Business Products: • Are used to manufacture other products • Become part of another product • Aid the normal operations of an organization • Are acquired for resale without change in form LOI

6. Business Marketing on the Internet LO2 Describe the role of the Internet in business marketing

7. Stickiness Measuring Online Success LO2 A measure of a Web site’seffectiveness; calculated by multiplying the frequency of visits times the duration of a visit times the number of pages viewed during each visit. Stickiness = Frequency x Duration x Site Reach

8. Business Internet Uses Revenue GenerationBasic Marketing Communication THEN NOW and Reduce costsBuild partnerships and alliancesBuild and support brandingDevelop customer-focused technology and systemsIntegrate online and traditional media REVIEW LEARNING OUTCOMEThe Internet in Business Marketing LO2

9. Relationship Marketing andStrategic Alliances LO3 Discuss the role of relationship marketing and strategic alliances in business marketing

10. StrategicAlliance Strategic Alliances LO3 A cooperative agreement between business firms (strategic partnership).

11. Major Categories of Business Customers LO4 Identify the four major categories of business market customers

12. Producers OEMs WholesalersRetailers Resellers Federal MunicipalLocal Governments Schools Hospitals CollegesChurches Unions Fraternal groupsCivic Clubs Foundations Nonbusiness organizations Institutions Major Categories of Business Customers LO4

13. OriginalEquipmentManufacturers Producers LO4 OEMs.Individuals and organizations that buy business goods and incorporate them into the products that they produce for eventual sale to other producers or to consumers.

14. Business Marketing Producers Resellers Governments Institutions OEMs Wholesalers Federal Unions Churches Retailers State CivicClubs Foundations Municipal Other Nonprofits County REVIEW LEARNING OUTCOMEBusiness Market Customers LO4

15. North American Industry Classification System LO5 Explain the North American Industry Classification System

16. NAICS NAICS LO5 A detailed numbering system developed by the U.S., Canada, and Mexico to classify North American business establishments by their main production processes. North American Industry Classification System

17. NAICS • Provides a common industry classification system • Valuable tool for marketers in analyzing, segmenting, and targeting markets • Data can be used to determine: • Number, size, and geographic dispersion of firms • Market potential / market share estimates • Sales forecasts • New customer identification LO5

18. Business versus Consumer Markets LO6 Explain the major differences between business and consumer markets

19. Business versus Consumer Markets Characteristic Business Market Consumer Market Demand Organizational Individual Volume Larger Smaller # of Customers Fewer Many Location Concentrated Dispersed Distribution More Direct More Indirect Nature of Buy More Professional More Personal Buy Influence Multiple Single Negotiations More Complex Simpler Reciprocity Yes No Leasing Greater Lesser Promotion Personal Selling Advertising LO6

20. Demand in Business Markets Demand is... Description Derived Demand for business products results from demand for consumer products. Inelastic A change in price will not significantly affect the demand for product. Joint Multiple items are used together in final product. Demand for one item affects all. Fluctuating Demand for business products is more volatile than for consumer products. LO6

21. Types of Business Products LO7 Describe the seven types of business goods and services

22. Types of Business Products Major Equipment Accessory Equipment Raw Materials Component Parts Processed Materials Supplies http://www.sysco.com Business Services Online LO7

23. Business Buying Behavior LO8 Discuss the unique aspects of business buying behavior

24. Buying Centers Evaluative Criteria Aspects of Business Buying Behavior Buying Situations Business Ethics Customer Service Business Buying Behavior LO8

25. Buying Center All those persons in an organization who become involved in the purchase decision. Buying Centers LO8

26. Initiator Influencers Gatekeepers Decider Purchaser Users http://www.loctite.com Online Roles in the Buying Center LO8

27. Evaluative Criteria LO8 • Quality • Service • Price

28. New Buy Modified Rebuy Straight Rebuy A situation requiring the purchase of a product for the first time. A situation where the purchaser wants some change in the original good or service. A situation in which the purchaser reorders the same goods or services without looking for new information or investigating other suppliers. Buying Situations LO8

29. Business Ethics • Ethical behavior refers to moral principles or values that govern the conduct of companies. • Companies publish a code of ethics which help guide buyers and sellers.

30. EvaluativeCriteria Buying Center Buying Situations • Quality • Service • Price New buyStraight rebuyModified rebuy Initiator Influencer Decider Gatekeeper Purchaser User Customer service REVIEW LEARNING OUTCOMEBusiness Buying Behavior LO8