7 B2B Flashcards
what is business marketing
marketing goods to iindv or orgs for purposes otehr than personal consumption
how is business and consumer markets similar?
basic purchase process same (5 steps)
-frame works (cognitive etc)
-decision making units
what are business products?
-used to manufacture other products
-aid the normal operations of an organization
-are aquired for resale without changing in form
what are the differences between business and consumer markets?
-B2B:
few customers
large transactions
customized pdts
negotiated price
lengthy process
multiple decison making makers
dervied demand
what is derived demand?
where the demand for intermediary goods is influenced by the ultimate demand for the final product.
what are the ways that help you understand similarities and differences in needs relative to business pdts ?
location
firmographic -industry type, company size, location
buying approach
behavioral
but all these are proxies to understanding benefits
why is potential value so low? what is it?
-potential value delivered by firms core tech or capability
-intention is to use the best of your sources because it lets you focus on the few aspects of creation without stretching your resources
-represnet beneifts that an org can provide to a customer
-basically the level of things that.i can do to create value
why are the benefits sought for the end user so high?
-collaborators are very important to get here
-push for growth with associated risks
what are marketing decisions impacted by?
-interconnectedness between firm capabilities, marjet, and product related factors
why do we want to look at the benefits that customers are looking for?
to craft our approach to the benfits that we ware seeking
what is the ability for buyers to evaluate the benefits before the purchase?
to communicate that benefits before purchase
economic tangible benefits
-focus on comparing current alternatives available to customers
-easy to communicate and easy to understand
-readily measured and quantified in terms of price performance
–unless the benefits are unique then there is a high chance that a competitor will replace your product
non-economic tangible benefits
focuses on building market reputation and brand image
-experience of sales and service reps
-look at agencies and price and the team (evaluating their expertise like higher education)
-influence is that they justify a significant marketing investment
economic intangible benefits
-vendor claims to be quantifiable but is unverifiable by the customer at least short term
-to sell the benefit you need to have testimonies from satisfied customers , short term trila with money back , or pay for performance contract
-when these are communicated correctly these benefits allow sellers to effectively differentiate pdts and services that are similar to competion on economic tangible benefits
non-economioc intangible benefits
not a viable option for acquiring customers, but the glue that holds buyers together over time
- qualities include trust and easy of working together
-can only experience them so they need to influence tehir perception and have power to create long term relationship
