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64 Cards in this Set
- Front
- Back
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Types of business markets
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-producer
-reseller - government - institutional |
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Producer
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Organizations that purchase products to make profits by using them to produce other products or operations
examples agriculture,forestry,fisheries, mining, construction, transportation, communication, and utilities |
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Reseller
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Intermediaries who buy finished goods and resell them for profit
Resellers do not change the physical characteristics of the product |
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government
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Federal,State,county and local governments buy goods to support their internal operations and to provide products to their constituencies
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institutional
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Organizations with charitable,educational,community or other non-business goals
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Dimensions of Marketing to business customers
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1. Characteristics of the transaction
2. Attributes of the customer 3.Primary concern of the customer 4. Methods of buying 5. Types of business purchases |
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Characteristics of the transaction
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Transactions between businesses tend to be larger
negotiated less frequently than customer sales long negotiating periods often require marketing and selling effort |
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Attributes of the customer
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Better informed about products purchased
demand more detailed product info personal goals may influence buying behavior |
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Primary concerns of business customers
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price of good affecting ability to compete
return on investment quality of the product quality of service |
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Methods of business buying
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Description
Inspection Sampling Negotiation |
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Description
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used when the products are standardized according to certain characteristics
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inspection
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necessary when items have unique characteristics and vary in condition
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Sampling
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occurs when one item is taken from the lot and assumed to represent the characteristics of the entire lot
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Negotiation
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contracts through bid process
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Types of business purchases
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New-task
Straight rebuy Modified rebuy |
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New-Task
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An initial item purchases to be used to perform a new job or solve a new problem development of product spec,vendor specs, and procedures for future purchases
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Straight rebuy
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The routine purchase of the same products
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Modified rebuy
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A new-task purchase that is changed on subsequent orders
requirements of straight rebuy are modified |
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E-Marketing
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creating, distributing, promoting and pricing products for targeted customers over the internet
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E-commerce
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conducting business through telecommunications network
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Consumer-generated marketing
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Electronic marketing & related technologies are more consumer driven than traditional marketing.
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Characteristics of Electronic Marketing
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Addressability
Interactivity Memory Control Accessibility Digitalization |
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Addressability
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A marketers ability to identify customers before they make a purchase
ie registering visitors internet cookies |
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Interactivity
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Allows customers to express their needs and wants and communicate directly with the firm
ie. Communities |
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Memory
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The ability to access databases containing individual customer profiles and purchase histories and use these data in real time to customize a marketing offer
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Control
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Customers ability to regulate the information they view and the rate and sequence of their exposure to that information
The web is referred to as "pull" medium because users determine what they view at the websites-info is being pulled from the source In contrast push medium is characterized by television because the broadcaster determines what the viewer sees once he or she has selected a channel |
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Accessibility
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The ability to obtain the extraordinary amount of information available on the internet
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Digitalization
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The ability to represent a product,or at least some of its benefits,as digital bits of information
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Legal/Ethical issues of e-marketing
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Personal privacy -Unauthorized placement of cookies on pc
use of spyware in software Collection of info from children. Spam- Unsolicited commercial email Misappropriation of intellectual property- illegal copyingof copyrighted software,movies and cd's |
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Distribution
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the activities that make products available to customers when and where they want to purchase them
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Marketing Channel
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Direct - Producer<->Customer
Indirect - Producer ->Intermediary->Customer |
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4 consumer product channels
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1.Producer <-->Consumers
2. Producer ->Retailers ->Consumers 3. Producer ->Wholesaler->Retailer->Consumer 4. Producer->Agent/Broker->Wholesaler->Retailer->Consumer |
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4 business product channels
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1.Producer->Org buyers
2. Producer->Industrial dist.->Org buyers 3. Producer->Agents->Org buyers 4. Producer->Agents->Industrial dist.->Org buyers |
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Types of Utility
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Place - making products available where customers want them.
Time - have products available when the customer wants them Possession -the customer has access to the product to use or to store for future use (raincoats) |
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Marketing Intermediary
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A middle person linking producers to other middle people or to the ultimate consumers through contractual arrangements or through purchase and resale of products
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Wholesalers major function
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Supply chain management- Creating long-term partnerships
Promotion- Providing a sales force.advertising.publicity Warehousing,shipping,product handling Inventory control and data processing Risk Taking Financing and Budgeting Market research and information systems |
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Wholesalers Service's provided
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To Retailers- Assist with marketing strategy, help select inventory,provide knowledge,negotiation of final purchases,reduce retailers burden of looking for and coordinating supply sources.
To Producers- Serve as an extension of sales force , lend financial assistance for the distribution channel |
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Retailers
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purchase products and resell them to ultimate customers
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Supply Chain Management
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long term partnerships among marketing channel members that reduce inefficiencies,costs,and redundancies, and develop innovative approaches to satisfy customers
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Selecting Marketing Channels
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Customer Characteristics
Product attributes Type of Organization Competition Marketing Environment forces Characteristics of intermediaries |
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Customer Characteristics
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Business customers prefer to deal directly with a producer
For Customers concentrated in a small geographic area,a more direct channel may be ideal |
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Product Attributes
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Less expensive,more standardized products can employ longer channels with many intermediaries
Fragile products that require special handling are more likely to be distributed through shorter channels to minimize the risk of damage |
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Type of Organization
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Large firms may be in a position to have more distribution centers that may reduce delivery times to customers
Smaller firms may not have the resources to develop their own sales force to ship their products long distances to store own products or to extend credit |
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Competition
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a firm may also be forced to adopt a similar strategy in order to remain competitive.
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Marketing Environment Forces
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Changes in laws, introduction of technology,state of the economy
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Characteristics of intermediaries
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Some organizations may feel that a current intermediary is inadequately promoting their product, and may reconsider their channel choices
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Intensity of Market Coverage
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Intensive
Selective Exclusive |
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Intensive Distribution
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Using all available outlets to distribute a product.
Provides availability and reduces search time Availability is more important than outlet type |
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Selective Distribution
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using only some available outlets to distribute a product
desirable when a special effort such as customer service from a channel member is important |
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Exclusive Distribution
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Using a single outlet in a fairly large geographic area to distribute a product
Dealers carry complete inventory and have trained staff for sales and service |
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Goals of Physical distribution
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Right Goods,Right Place, Right Time,Right Quantity, Right Support Services,While meeting customer service standards,reducing total distribution costs and reducing cycle time
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Modes of Transportation
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Railroads,Trucks,Waterways,Airways,Pipelines
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Factors in deciding on mode of transportation
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Cost,Speed,Dependability,Load Flexibility, Accessibility, Frquency
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The 6 characteristics of service
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Intangibility
Inseparability Perishability Heterogeneity Client-based relationships customer contact |
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Intangibility
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The quality of being produced and consumed at the same time
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Perishability
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The inability of unused service capacity to be stored for future use
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Heterogeneity
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Variation in quality
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Client -based relationships
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Interactions that result in satsfied customers who use a service repeatedly over time.
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Customer Contact
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The level of interaction between provider and customer needed to deliver the service
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4 p's of Service
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Product -A service offered by an org is generally a package,or bundle of servicesconsisting of a core service and one or more supplementary services
Distribution- Marketer deliver services Providers facility, Customer home/business, Arms length without face to face contact Promotion- typically includes tangible cues that symbolize the service Pricing- Performance,hourly daily or other time rates,demand based pricing when high price is high |
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Service quality
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Customers perception of how well a service provider meets or exceeds their expectations. Marketers are thus forced to examine quality from a customers point of view
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Customer Evaluation of Service quality
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Service Quality is difficult to evaluate because service have few search qualities(tangible attributes that can be judged before the purchase
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Experience qualities
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attributes that can be judged only during purchase or consumption of a service.
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Credence qualities
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attributes that are unable to evaluate even after purchasing and consuming a service because of lack of knowledge or skill
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