Chap 7 Flashcards
Which of the following statements is true regarding the nature of the business market?
Personal selling plays a bigger role in business markets than consumer markets.
When firms in business markets are grouped based on their sales revenues, they are said to be segmented by:
demographic characteristics
Dell computers purchases parts and resources for its computers from multiple suppliers that are spread across the world. Practice is known as:
global sourcing.
Product characteristics of B2B marketing
Relatively technical in nature
Exact form often variable
Accompanying services very important
Promotion - B2B
emphasis on personal selling
Distribution - B2B
relatively short, direct channels to market
Customer relations - B2B
relatively enduring and complex
Decision making process - B2B
diverse group of organization members makes decision
Price - B2B
competitive bidding for unique items; list prices for standard items
Product characteristics of B2C marketing
Standardized form
Service important but less than B2B
Promotion - B2C
Emphasis on advertising
Distribution - B2C
Comparatively infrequent contact
Relationship of relatively short duration
Decision making process - B2C
individual or household unit makes decision
Price - B2C
List prices
B2B Marketing Objectives
Organizational sales and purchases of goods and services:
- to support production of other products
- to facilitate daily company operations (telecommunications, security company, cleaning company)
- for resale (products to resale)
Components of the Business Market
Commercial market
Trade industries
Government
Public and private institutions (hospital, college, nonprofit)
What is a commercial market?
Individuals and firms that acquire products to support, directly or indirectly, production of other goods and services. (largest segment of business market)
What is a trade industry market?
retailers and wholesalers that purchase products for resale to others
What is a government market?
primary motivation: to provide some form of public benefit
What percentage of all internet sales are B2B transactions?
91%
How does segmentation help marketers?
To develop a strategy that best suits a particular segments need.
What are characteristics of B2B markets?
- geographic market concentration
- size and number of buyers
- the purchase decision process
- buyer-seller relationships
What is global sourcing?
purchasing goods and services from suppliers worldwide
Organizational buying situations:
Straight rebuy - reoccurring purchase decision
Modified rebuy
New-task rebuy
Reciprocity - buying from suppliers who are also customers
What is the Buying Center Concept?
The buying center includes everyone who is involved in some fashion in an organizational buying action.
The five buying center roles are:
Users Gatekeepers - control the info that all buying center members will review Influencers Deciders Buyers
