Chapter 7 Business Marketing LO 1 What is Business Marketing LO 2 Business Marketing on the Internet business marketing marketing of goods services to individuals organizations for purposes other than personal consumption Stickiness measure of web site s effectiveness multiply freq of visits by duration of visit by of pages viewed BSB e commerce use of internet to facilitate exchange of goods between businesses Disintermediation elimination of intermediaries wholesalers distributers Reintermediation reintroduction of an intermediary between producers and users LO 3 Relationship Marketing Strategic Alliances strategic alliance cooperative agreement between business firms relationship commitment firm s belief that an ongoing relationship with another firm is so important that the relationship warrants maximum efforts at maintaining indefinitely keiretsu network of interlocking corporate affiliates LO 4 Major Categories of Business Consumers original equipment managers OEMs individuals and organizations that buy business goods incorporate them into the products they produce for eventual sale to other producers or to consumers producers resellers governments institutions The North American Industry Classification System detailed numbering system to classify NA business established by LO 5 The North American Industry Classification System their main production processes LO 6 Business vs Consumer Markets Joint demand demand for 2 items used together in a final product Derived demand demand for business products Multiplier effect small change in consumer demand can produce a larger change in demand for equipment to make product B2B online exchange electronic trading floor that provides companies with integrated links to their customers suppliers Reciprocity business purchasers choose to buy from their own customers LO 7 Types of Business Products major equipment capital goods machines buildings accessory equipment portable tools office equipment raw materials unprocessed products component parts finished items ready for assembly processed materials products used directly in manufacturing other products supplies consumable items that do not become part of the final product business services expense items that do not become a part of a final product LO 8 Business Buying Behavior buying center all those people in an organization who become involved in the purchase decision new buy situation requiring the purchase of a product for the first time modified buy purchaser wants some change in the original good straight rebuy purchaser reorders the same good without looking for new info
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