Business Marketing Business marketing the marketing of goods and services to an individuals and organizations for purposes other than personal consumption 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 Business to business electronic commerce the use of the internet to facilitate the exchange of goods services and information between organizations Stickiness a measure of a website s effectiveness Stickiness frequency x duration x site reach pages viewed during each visit Relationship marketing Loyal customers are more profitable than price sensitive customers with little brand loyalty Long term relationships build competitive advantage Strategic alliances do the best with trust Joint ventures Licensing or distribution agreements Research and development consortia Partnerships Major categories of business customers Producers o OEMs Resellers o Wholesalers o Retailers Governments o Federal o State o Local Institutions o Schools o Churches o Hospitals etc NAICS North American Industry Classification System a detailed numbering system developed by the US Canada and Mexico to classify North American business establishments by their main production processes Provides a common industry classification system Valuable tool for marketing in analyzing segmenting and targeting markets Data can be used to determine o Number size dispersion of firms o Market potential o Sales forecasts o New customer identification Demand in business markets Derived demand for business products result in 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 products Demand for one item affects all Fluctuating demand for business products is more volatile than for consumer products Types of business products Major equipment extruding machine Accessory equipment tool cart Raw materials aluminum Component parts propeller blade Processed materials extruded metal Supplies paper Business services Business buying behavior Buying centers all those people in an organization who become involved in the purchase decision o Number of people involved varies with each purchase decision charts o Buying centers do not appear on formal organization Roles initiator influences gatekeepers decider purchaser users Evaluate criteria Buying situations Business ethics Customer service Buying situations the first time New buy a situation requiring the purchase of a product for Modified rebuy a situation where the purchaser wants some change in the original service or good Straight rebuy a situation in which the purchaser reorders the same goods or services without looking for new information or investigating other suppliers
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