Chapter 1 Flashcards
Business Markets
All organizations that purchase goods and services used in the creation of their own goods and services (which in turn are sold to consumers)
Market size: b2b vs b2c
fewer for b2b
Transactional Value: b2b vs b2c
higher for b2b
Marketing
activity for creating, communicating, delivering, and exchanging offerings that benefit the organization, its stakeholders, and society at large
Business Marketing
Creating value for the business customer
Value creation to business consumer –> value creation for final consumer
Product
Good, service, or ideas to satisfy the consumers’ needs
Total Offering
Provides the complete solution to the buyer’s needs (products + service + financing + training, etc)
Price
What is exchanged for the product (generally final step in a negotiation effort)
Place
Where the consumer gets a product, marketer needs to make product available such that economic utility is maximized
Form Utility
value firm production (pack size/quantity)
Place Utility
Value of access (atm, online purchasing)
Time Utility
value from time saved
Possession Utility
value from ease of purchase (credit cards, cash, ownership transfer)
Economic Utility for B2B
Offered in the way of supply chain management efficiencies
Promotion
Means of communication between seller and buyer - in b2b it is leveraged with personal selling
Marketing Concept
the idea that an organization should strive to satisfy customer needs while also trying to achieve the organization’s goals
Bullwhip effect
the idea that as consumer demand varies (seasonality, trends) upstream suppliers of components that created the total offering to the end consumer experience an impact
Discontinued Demand
Condition in which quantity demanded in the market makes large changes up or down in response to changes in the market place
Customer Value
Value = Benefits - Costs
Evaluated Price
cost of owning and using the product
B2B Market Structure
Concentrated Geographically
Relatively Few Buyers
Oligopolistic competition
B2C Market Structure
Dispersed
Mass Markets
Monopolistic competition
B2B Products
Technically Complex,
Customized for users,
Service is important,
Not for personal use
B2C Products
Standardized,
Service not as important,
Purchased for personal use
