Business Market: Flashcards
All the organization that buy goods & services for use in the production of other products & services that are sold , rented , or supplied to others.
What is Business Market:
All the organization that buy goods & services for use in the production of other products & services that are sold , rented , or supplied to others.
What is Business Buyer Behavior:
Refers to the buying behavior of the organization that buy goods & services for use in production
of other products of other products & services that are sold , rented , or suppliers to others.
The Business buying process:
Is the process where business buyers determine which products & services are needed to purchase
& then find, evaluate , & choose among alternative brands.
Is the process where business buyers determine which products & services are needed to purchase
& then find, evaluate , & choose among alternative brands.
- Fewer & Larger
- Geographic Concertation
- Derived Demand
- Buyer & seller dependency
Understanding Business Buyer Behavior:
Business buying Process:
a) Marketing Stimuli:
* Product
* Price
* Place
* Promotion.
b) Other Stimuli
b) Other Stimuli
* Economic
* Technological.
* Political
* Culture
Competitive
c) The buying Organization
- The buying center
- Buying decision process.
- Interpersonal & individual influences
- Organizational influences
d)Buyer Reponses:
- Product or service choice.
- Supplier choice
- Order quantities
- Delivery terms & times
- Service terms
- Payment
Understanding Business Buyer Behavior:
- Environmental:
- Economic developments.
- Supply conditions.
- Technological change
- Political & regulatory.
- Competitive developments
- Culture & customs
- Organizational:
- Objectives.
- Polices.
- Procedures.
- Organizational Structure
- System
- Interpersonal
- Authority.
- Status.
- Empathy.
Persuasiveness.
- Individual :
- Age.
- Income
- Education.
- Job Position.
- Personality.
Risk attitudes.
What are the Major Types of Buying Situations?
1.Straight Rebuy
Is a buying situation in which the buyer routinely reorders something without any modification.
Modified Rebuy.
Is a purchase decision that requires some researches where the buyer wants to modify the product
specification, price , terms , or suppliers.
New Task
Is a buying situation in which the buyer purchases a product or services for the first time.
Participants in the Business Buying Process:
- User.
- Influencers.
- Deciders.
- Purchasers.
- Gatekeepers.6. End Users.
- Stakeholders.
- Advisors.
- Collaborators.
- Regulators.1. User.
- Influencers.
- Deciders.
- Purchasers.
- Gatekeepers.
The Business Buyer’s Purchasing Process:
- Identifying the issue.
- Describing the overall need.
- Specifying the product.
- Searching for suppliers.
- Requesting proposals.
- Selecting a supplier.
- Specifying order routines.
- Reviewing performance.1. Problem recognition.
- General need description.
- Product Specification.
- Supply search.
- Proposal solicitation.
- Supplier selection.
- Order-routine specification.
- Performance review.
Institutional Marketers:
Comprises hospitals, nursing homes, and prisons that offer goods and services to people. Limited budgets (“Captive audience”)
Institutional & Government markets:
Federal, state, and local government units purchase or rent goods and services to carry out their main functions.
Customer Driven Marketing Strategy:
Two Questions Involve:
- Which customer will we serve?
- How will we serve them?
It has further parts: - Select customer to serve
a) Segmentation:
Divide the total market into smaller segments
b) Targeting:
Select the segment or segments to enter.
a) Differentiation:
Differentiate the market offering to create superior customer value.
b) Positioning:
Position the market offering in the minds of target customer.
Market Segmentation:
Is the process to divide large heterogenous markets into small markets that can be
reached more efficiently & effectively with products & services that match their unique
needs.
Types Segmentation for Consumer Markets:
- Geographic Segmentation divides the market by location into nations, regions, states, provinces, or cities.
- Demographic Segmentation.
Divide market into groups based on age, gender, family, income, occupation, education, religion, race, generation, & nationality.
- Psychographic Segmentation.
Segments a market based on social class, lifestyle, or personality traits.
- Behavioral Segmentation.
Divides buyers into groups based on their knowledge, attitudes , uses , or responses , to a
product Occasions benefits sought user status Usage rate Loyalty status.
Business Market Segmentation:
Consumer & business marketers use many of the same variables to segment their markets
Additional Variable include:
- Customer operating
characteristic- Purchasing approaches.
- Situational factors.
Personal characteristic
Segmentation International Markets:
- Geographic Locations:
- Economic Factors.
- Political Factors.
- Culture Factors.
Requirements for Effective Segmentation:
- Measurable.
- Accessible.
- Substantial.
- Differentiable.
5.Actionable.
Customer Driven Marketing Strategy:
- Market Targeting:
Is the process of evaluating market segments & selecting one or more to serve.
- Target Market:
Is a set of buyers who share common needs or characteristic that the company decide to serve.
1. Segment Size & growth.
2. Segment structural attractiveness
3.Organizational Objectives & resources
Target Marketing Strategies:
- Undeferential Marketing
- Differentiated segmented Marketing.
- concentrated Niche Marketing
- Micro Marketing.
Differentiated / Segmented Marketing:
Targets several different market segment & design separate offers for each & its goal is to
achieve higher sales & stronger position. This is more expensive than undifferentiated marketing.
Concentrated Market / Niche Marketing:
A market coverage strategy in which a firm goes after a large shares of one or a few segments
or niches.
Micro Marketing
Tailoring products and marketing programs to the needs & wants of specific individuals & local
customer segments : It includes local marketing & individual marketing.
Local Marketing:
Tailoring brands and marketing to the needs & wants of local customer segments cities- neighborhoods , & even specific stores.
Individual Marketing:
Tailoring products & marketing programs to the needs & preference of individual customers.
Concentrated Niche Marketing:
A market - coverage strategy in which a firm goes after a large share of one or a few segments
or niches.
Product Position:
Is the way the product is defined by consumers on important attributes - the place the product
occupies in consumer’s mind relative to competing products.
Competitive Advantage:
Is an advantage over competitors gained by offering consumers greater value , either through
lower prices or by providing more benefits that justify higher prices.
Choosing a Differentiation & Positioning Strategy:
Options:
1. Product differentiation.
2. Service differentiation
3. Channel differentiation
4. People differentiation
5.Image differentiation.
Differentiation & Positioning:
Value Preposition:
Is the full mix of benefits upon which a brand is positioned.
Product:
A product is anything that can be offered in a market for attention, acquisition, use, or consumption that might satisfy a need or want.
Type Of Product:
- Consumer Products.
Products & services for personal consumption.
Classification of Consumer Products:
- Convivence products.
Are consumer products & services that the customer usually buys frequently , immediately ,
& with a minimum comparison & buying effort Like newspaper , candy , fast food.
- Shopping products.
Are consumer products & services that the customer compares carefully on suitability, quality ,
price , & style. Like Furniture , Cars , Appliances.
- Specialty Products.
Are consumer products & services with unique characteristic or brand identification for which a
significant group of buyers is willing to make a special purchase effort Like Medical services ,
Designer Cloths & High - end electronics.
- Unsought Products.
Are consumer products that the consumer does not know about or knows about but does not
normally think of buying. Like Life insurance , Funeral services , Blood donations.
- Industrial Products
- Industrial Products.
Products purchased for further processing or for use in conducting a business.
Classification Of Industrial Products:
- Capital items.
Capitals items are industrial products that aid in the buyer’s production or operations.
- Materials & Parts
Materials & parts include raw materials & manufactured materials & parts usually sold
directly to industrial products
- Supplies & services.
Special Concept:
Organization Marketing
Consists of activities undertaken to create, maintain, or change attitudes & behavior of target
consumers toward an organization.
Organization Marketing
Components:
- Person Marketing
Consists of activities undertaken or change attitudes & behavior of target consumers toward
particular people.
- Place Marketing
Consists of activities undertaken to create maintain , or change attitudes & behavior of target
consumer toward particular places.
- Social Marketing
The use of commercial marketing concepts and tools in programs designed to influence
individual’s behavior to improve their well - being & that of society.
Individual Product Decision:
Types:
- Product attributes.
Product attributes are the benefits of the product or services.- Quality.
- Features.
- Style & design.
- Branding.
Is the name term, sign , or design - or a combination of these __ that identifies the maker or seller
of a product or services
- Packaging.
Involves designing & producing the container or wrapper for a product.
- Labeling
Identify the product or brand , describe attributes , & provide promotion.
- Support Services
Generally include after sale services warranties etc.
Product Line:
Closely related products:
Similar function
Same customer groups
Shared marketing channels
Similar price ranges
Examples:
Smartphone brands within a market segment
Cereal varieties from the same manufacturer
Clothing lines aimed at a specific demographic
Product Mix:
Consists of all the products and items that a particular seller offer for sale.
* Width
* Length
* Depth
* Consistency
Brand & Branding:
Brand: represents the consumer’s perceptions & feelings about a product and its performance.
It is the Organization’s promise to deliver a specific set of features , benefits , & experiences.
Brand Positioning:
Marketers can position brands at any of three levels
- Attributes.
- Benefits.
- Beliefs & values.
Brand Name Selection:
Desirable Qualities:
1. Suggest benefits & qualities.
2. Easy to pronounce, recognize , & remember.
3. Distinctive.
4. Extendable.
5. Translatable for the global economy
6. Capable of registration & legal protection.
Brand Sponsorship:
- Manufacturer’s Brand
- Private Brand
- Licensed Brand
- Co-Brand
