Chapter 1 Flashcards
3 B2B Customers
Commercial, Institutional, Governmental
Examples of commercial customers
Manufacturers, construction, service firms, transportation companies, wholesalers, retailers
Examples of institutional customers
Schools, college, uni, health care, libraries, foundations, art galleries, clinics
Examples of governmental customers
Federal, defense, non-defense, state gov, local gov, counties, townships
Most important in commercial enterprises?
Manufacturers
2 attributes of business markets
Concentrated by size and geographically
2 types of government buying
Formal advertising/open bid and negotiated control
Explain formal advertising/open bid
solicits bids from appropriate suppliers, for standardized products, lowest bidder wins
Explain negotiation control
cannot be differentiated on price alone and few potential suppliers, best product at lowest price
What are 2 methods institutions use to purchase?
agent or department
What is group purchasing?
cooperative purchasing associations to secure purchasing efficiencies
What are 5 advantages of group purchasing?
Lower prices
Improved quality through Testing/supplier selection
Reduced admin costs
Greater competition
What is derived demand?
Refers to the direct link between demand for an industrial product and demand for consumer products
What is fluctuating demand?
changes in demand patterns and changing buying preferences in consumer market
What is the bullwhip effect?
Supply chain phenomenon that describes how small fluctuations in point of sale demand can cause larger fluctuations in demand at distributor, manufacturer, and raw material supplier levels
How to counteract bullwhip effect
Improved communication
Information sharing among supply chain partners
Sharing of downstream demand forecasts with upstream partners
How can business marketers stimulate demand?
Develop a marketing program that reaches ultimate customer directly
Inelastic vs elastic demand
Inelastic : % change in price results in small change in quantity demand
elastic: % change is price results in large change in quantity demand
3 types of b2b products/services
entering goods, foundation goods, facilitating goods
2 types of entering goods
raw materials: farm/natural
manufactured materials and parts: textiles, sheet steel (processed)
2 types of foundation goods
installations: long term investments (building, land rights)
accessory equipment: less expensive and short lived (personal computers, photocopying machine)
2 types of facilitating goods
Supplies: paint, cleaning
Service: legal, advertising, maintenance, repair
Explain market sensing
How we the organization is equipped to continuously sense changes in its market and anticipate customer responses
Explain customer linking
Skills, abilities, and processes an org has developed to create and manage closer customer relationships
4 roles in marketer’s DNA
Instigator, Innovator, Integrator, Implementer
What are the 3 categories of commercial customers
Users, OEM, Dealers/Distributors
Explain users
purchase industrial products or services to help produce other goods or services to sell in business/consumer markets
Explain OEM
purchase goods to incorporate into other products and sell in business/consumer market
Explain dealers/distributors
purchase goods for resale to users and OEM
