FALL 2002 BA 303 FOR EXAMINATION ONE L.P. CHEW

1. FALL 2002 BA 303 FOR EXAMINATION ONE L.P. CHEW EXAMINATION ONE CHAPTERS 1 thru 5, 7 and 8

2. BA 303 BUSINESS 2 BUSINESS MARKETING • CHAPTER ONE • The chapter is pivotal to developing an effective understanding of business marketing management, as the essence of the business market and its unique aspects are often the basis for the development of marketing strategies.

3. BA 303-B 2 B MARKETING • Every marketer whether focused on consumer or business markets must embrace a market orientation which places the consumer first and uses superior information about customers to manage marketing efforts. It is, however, important to understand how consumer and business market environments differ. • WE ARE IN BUSINESS TO CREATE AND SERVICE A CUSTOMER. CUSTOMER SATISFACTION IS PARAMONT

4. B 2 B MARKETING • WE STRIVE TO CUSTOMER DRIVE

5. Business MarketsMarkets for products and services bought by business, government, orinstitutions. Products to be incorporated into other products, used, consumed, or resold

6. Business Marketing Process of determining needs and developing marketing mixes fororganizationsThe nature of the customer and how the product is used distinguishesbusiness and consumer goods marketing

7. Characteristics of Business MarketsDerived demandBusiness consumer demand is derived from demand for the final products of which they become a part Fluctuating demand Since demand is derived, the businessmarketer must monitor and forecast demand in final consumermarkets

8. Business and Consumer Marketing: A Contrast Emphasis on personal selling The service component of the product offering plays a key role Protracted price negotiations for individual products are common Business marketers typically sell direct to large accounts Relational emphasis Building a longterm relationship is the goal

9. Business Market Customers Commercial enterprisesUsers Purchase goods for use in making other products Buy equipment and machinery that are employed to manufacture other productsOriginal equipment manufacturers Buy products which will be incorporated into a finished product

10. Business Market Customers Commercial enterprisesDealers and distributors Purchase business products for the purpose of reselling them to users and OEM's. Business middlemen which facilitate the distribution processUnderstanding the classifications provides guidelines for effectivestrategy formulation

11. Business product categoriesEntering goods. Become part of the finished product of the purchaserRaw materials and manufactured goods Treated as expense items • ABSORBED!!!!

12. Foundation goods Used to produce products Include installations (buildings, equipment) and accessory equipment (light factory equipment, office equipment)Treated as capital items • EXPENSED

13. Facilitating goods Supplies and services to support the organization'soperationsInclude supplies, repair, and maintenance items andservicesTreated as expense items

14. 1. General Motors costs may be higher because they are not taking advantage of thedistinctive competencies of auto parts suppliers. These suppliers are often able tomake selected parts more effectively and efficiently because they concentrate oncreating competence in a very narrow line of products. In other words, auto partssuppliers are able to deliver superior value as a result of their distinctivecompetencies in a limited product line. A manufacturer's decision rules on whatto buy or make should be based on analyses of those products and processes forwhich they have a distinctive competence.

15. 2. Many business marketers spend considerable sums for advertising to finalconsumers because of the nature of derived demand for many business products.In the case of DuPont, advertising to final consumers should help to expand the demand for clothing made with DuPont's fabric and thus expand the total demand for DuPont's products.