Chapter 1 Flashcards
what is b2b marketing?
process of matching capabilities of the supplier with desired outcomes of the customer to create value for the “customer’s customer”
total offering
created by a partnership between the buying organization and the marketing organization
total offering equation
core product + financing terms + delivery options
augmented product
something specific to buying unit’s needs to maximize value creation capabilities for marketer
price
measure of value exchanged and is determined by market, not costs
place
getting the product to the customer to maximize economic utility
economic utility is made up of
form, possession, time, place
difference between consumer MKT and B2B MKT: promotion
b2b
- more personal selling
- communication through dialogue
- relationship lasts long
difference between consumer MKT and B2B MKT: market structure
b2b
- geographically concentrated
- few buyers
- oligopolistic competition
difference between consumer MKT and B2B MKT: products
b2b
- technically complex
- customized
- service, delivery and availability are important
- purchased for other than personal use
difference between consumer MKT and B2B MKT: buyer behavior
- professionally trained
- functional involvement
- task motivates predominate
difference between consumer MKT and B2B MKT: expectations
- technical expertise is an asset
- interpersonal relationships
- significant personal info exchanged
- stable, long term relationships encourage loyalty
difference between consumer MKT and B2B MKT: channels
- shorter, more direct
- organization involvement as part of supply chain
difference between consumer MKT and B2B MKT: promotion
- emphasis on personal selling, dialogue
- most communication invisible to consumer
- consumer is seldom aware of B2B brands and companies
difference between consumer MKT and B2B MKT: price
- B2b complex purchasing process or competitive bidding, depending on purchase type
difference between consumer MKT and B2B MKT: demand
- derived
- inelastic (short run)
- volatile (leveraged)
- discontinuous
concept of derived demand
nothing happens unless consumer buys something
acceleration principle
bullwhip effect
bullwhip effect
suppliers forecast production orders. consumer demand drops and supply chain members overcompensate
international standards organization ISO
- define technical performance for manufacturing and quality systems
- global firms require compliance of suppliers to these
ISO industries that are targeted
steel, plastic, pulp/paper products, chemicals, electronics
evaluated price
total cost of owning or using a product - transportation - carrying costs - financial costs - installation etc
total offering =
product service image availability quantity evaluated price
value chain definition
the chain of activities that creates something of value for targeted customers
value chain breaks off into
direct activities and support activities
direct activities
contribute directly to the offering
support activities
make it possible to perform the direct activities
value enabling activities
infrastructure human resources procurement technology technology development
value creating activities
inbound and outbound logistics
operations
marketing and sales
customer service
trends and changes in business marketing
- hyper competition
- formation of partner networks
- adoption of technology/internet
- supply chain management
- time compression
