Chapter 2 Business-to-BUsiness Environment: Customers, organizations, and Markets Flashcards
organizations act as middlemen providing economic utilities of form, time, place, and possession to the manufacturers of products they distribute and segments of customers of those manufacturers that they serve
Industrial Distributors
What are the types of organizational customers?
Commercial enterprises: Industrial distributors and dealers, resellers, original equipment manufacturers, and users or end users
Government Units
Nonprofit and Not-for-profit Organizations
Producer Types: Raw materials producers, component parts and manufacturers materials producers, capital goods manufacturers
These organizations provide an offering with a unique enhancement to manufacturers’ products
Value Added reseller
What is it called when a VAR integrates offerings from many sources
Value network
These organizations purchase goods to incorporate them into good they produce and sell to their customers
Original Equipment manufacturers
Which firms are usually the largest volume users of goods and services
OEMs
Manufacturers that purchase goods and services for consumption either as supplies, capital goods, or materials for incorporation into their products such that the identity of the purchased product is lost
Users or end users
The largest consuming group in the United States
Government Units
The specialized role government plays in society leads to what?
nonstandard products
This business customer group includes churches, colleges, and nursing homes
Nonprofit or not-for-profit
Possess buying habit similar to government units
Nonprofits and not-for-profits
The goods they produce may also serve to classify business-to-business organizations
Producer Types
Producers of materials may find markets more sensitive to price: T or F
T
These suppliers’ products lose their identity when ombined in their customers’ products
raw materials
These usually retain their identity even when fully incorporated into a customer’s product
Component parts and manufactured materials
These are more easily differentiated from their direct competition. producers of these goods have added value to the materials and components they have purchased to create value for their customers
Component parts and manufactured materials
These good are used to produce output
Capital Goods
Customers of these types of goods expect an offering that includes installation, equipment, accessories, employee training, and financing
Capital Goods
Parameters that describe the functionality, interface, and design practices in an industry. These standards can be developed by industry committees, professional groups within an industry, or established by government. It results from many players in an industry embracing a particular way of doing things,which may not be formally agreed upon.
Industry Standards
Used to level the playing field among all potential suppliers
Customer Specifications
reduces opportunities for differentiation between competing suppliers
Customer specifications
What are the publics that have an interest in a business-to-business marketers operations?
Financial publics
Independent press
Public interest groups
Internal Publics
includes banks and other lending institutions, investors, investment banks, venture capital firms and investors, stock exchanges, brokerage houses, and financial analysts, and investment houses
Financial Publics
Attempt to impact corporate action through their ability to influence how the company is perceived by the financial community
Financial Publics
These may be an indicator of a shift in the mainstream market
Public interest groups
This group of publics includes employees
internal publics
What are the seven macro-environmental factors ?
demographic, economic, sociocultural, natural, technological, competitive, and legal and political environments
Vital statistics that describe a population?
Demographics
What are the demographic characteristics that businesses can have?
Type and size of industries that exist, the size and location of companies, the ages of businesses, and the size of the functional areas within the companies
Sum total of all economic activity in the are and certain economic characteristics of note
Macroeconomy of the a region or jurisdiction
Name the macroeconomic characteristics
How fast the economy is growing or declining in size, the level of employment, the rate of unemployment, interest rates and exchange rates of currency between different economies
Symbols and themes that reflect a society’s norms and values
Culture
What environment includes natural resources, raw materials, the ecology, the weather, and, on occasion, geologic activity
The natural environment
technology can open new markets and create new ways to satisfy customer needs: T or F
T
Technology can cause a business marketer’s product to become obsolete if it does not keep up to date with developments and innovations: T or F
T
Should product technology play a major role in your customer’s decision to buy your product?
No, because the technological advantage is fleeting
Traditionally dominated the industrial competitive arena
Oligopolies
Which competitive environment does the 80/20 rule apply to?
Oligopolies
Three major players and a host of niche players seem a likely state of competition in which competitive environment?
Oligopoly
What is the key in monopolistic competition and pure competition markets?
Differentiation and the creation of value compared to the competitor’s products
What are the four competitive forms in the business-to-business market?
Pure competition
Monopolistic competition
Oligopolistic Competition
Pure Monopoly
Helps marketers frame the issues, threats, and opportunities they face
Classification
Includes relationships that create enhanced value from raw materials to final customers
Value chain
A patent holder is part of the …
Value network
Firms can be both part of the value chain and supply chain: T or F
T
An integrated network of suppliers that provide inputs into the creation of an offering marketed to some segment of targeted customers
Supply Chain
usually integrates the supply chain and manages the relationships between suppliers in the chain
Lead collaborator
Lead collaborators are often very ____ customers for the supply chain
large
a market with on dominant buyer
monopsony
___ evolve as competitors, channels, customers, and technologies change
Markets
______ emerge after the market has gone through a period of monopolistic competition
Ologopolies
_____ usually start out as a temporary monopoly generated due to the emergence of radically new technology or business ideas
Ologopolies
Understanding the ___ will enable marketers to anticipate the general behavior of consumers and the general nature of competition within a product category
Product life cycle
The PLC has an assumption that there is an inability to predict when the shape of the sales curve will change: T or F
T
The inability to derive specific strategies from the PLC is an assumptionof the PLC: T or F
T
describes how breakthrough innovation becomes adopted in the market
Technology adoption life cycle
What are the five groupings of the TALC?
Technophiles Visionaries Pragmatists Conservatives Skeptics
a break in the sales growth curve for a new technology
chasm
produces the emergence of a dominant supplier
tornado
When does the chasm occur?
Between the visionaries and pragmatists
The chasm is also known as the ______
market development gap
Which reaches its apex first, the PLC or TALC?
TALC
