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14 Cards in this Set
- Front
- Back
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What is Business Marketing?
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The marketing of goods and services to individuals and organizations for purposes other than personal consumption.
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Consumer products:
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Products and services bought by final consumers for personal consumption.
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Business (Industrial) products:
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Products purchased for further processing or for use in conducting a business.
Depends on the purpose |
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Producers
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OEMS
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Resellers
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wholesale realailers
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Govt
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Federal Municipal Local
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Institutions
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Schools Hospitals Colleges Churches Unions Fraternal groups Civic Clubs Foundations Nonbusiness organizations
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Buying Center:
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The decision-making unit of a buying organization
Includes all individuals and units that participate in decision making |
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Evaluative Criteria & Ethical Behavior:
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Business buyers evaluate products and suppliers against three important criteria: quality, service, and price – in that order.
Although this may sound straightforward, yet it opens the door for manipulation and unethical behavior. |
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Major Types of Buying Situations:
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Straight rebuy
Reordering without modification, same suppliers, same product, low effort Modified rebuy Requires modification to prior purchase, needs more involvement New task First-time purchase, more complex, expensive |
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Customer Service:
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For many industrial products the revenues from associates services exceed the revenues from the products:
Cellular phones Printers After-Sale Services: Almost always more profitable than the actual sale of the machinery or product. |
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Nature of Demand:
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this is the main diff btwn consumer and business purchases
Demand is derived Demand is price inelastic Demand fluctuates more, professional agents, etc |
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Types of Decisions:
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More complex buying decisions
The buying process is more formalized |
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Nature of the Buying Unit:
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Involve more buyers in the decision process
More professional purchasing effort |
