Chapter 7: Business Marketing

Question 1

Define Business to Business Marketing

Answer 1

Active connection between businesses to ensure needs are met

• Trust, Mutual Respect, Relationships

Question 2

Define Business vs. Consumer Marketing

Answer 2

The passive buyer role in consumer marketing is changing as a result of technology, specifically, social media and the internet. Consumers are taking a more active role in the exchange

Question 3

Define Consumer Marketing

Answer 3

The buyer is the ultimate user of the product/service

Question 4

Define Business Marketing

Answer 4

Providing to other users (not dealing with the end user)

Question 5

Define the Network and Relationships with Businesses

Answer 5

Business relationships are more complex, as they involve greater commitment from both sides, and thus more company resources and effort. (Commitment and Trust being key)

Question 6

Define the Business Marketing Network

Answer 6

Buyers, Sellers, and other Third Parties

Question 7

Define Sales Approach

Answer 7

Generate leads and new business through persuasion

Question 8

Define Marketing Management Approach

Answer 8

Developing and product and marketing it - passive consumer

Question 9

Define Network Approach

Answer 9

Research the factors and forces around a firm, and understand the environment.

• Leads to development of relationships through interaction over time

Question 10

Define Interaction

Answer 10

The culmination of a number of transactions between two business entities that builds over time. It includes negotiations, discussions, customizations, and anything that is apart of the relationship between two organizations

Question 11

Whats the Difference between Business to Business and Business to Customers

Answer 11

1. Market Characteristics
2. Product Change
3. Buying Process
4. Marketing Mix

Question 12

Marketing Characteristics (differences between b-b and b-c)

Answer 12

Fewer customers, but larger orders, demand is more inelastic (less sensitive to price change). Consumer Market: If price changes by $1, must lose a lot of customers as they are more sensitive to price change. Business Marketers are less sensitive to price change

Question 13

Product Change (differences between b-b and b-c)

Answer 13

Products technical in nature, purchased based on specifications, mainly raw and semi-finished goods, heavy emphasis on delivery time, technical assistance, after sale service, financing (not just paying cash, have other options)

Question 14

Buying Process Characteristics (differences between b-b and b-c)

Answer 14

Buying decisions more complex, Competitive bidding, negotiated pricing, complex financial agreements (negotiation involved), buying criteria and objective specified, and many people are involved in decision making (not just one)

Question 15

Marketing Mix (differences between b-b and b-c)

Answer 15

Direct selling and physical distribution often essential, advertising more technical, promotions emphasize personal selling, price often negotiated

Question 16

What are the Fundamental Aspects of Business Marketing

Answer 16

The importance of relationship between buyer and seller in a business interaction

Question 17

Define Demand as a Fundamental Aspects of Business Marketing

Answer 17

Demand in business markets is driven by comparatively fewer buyers, there are aspects of demand that are important to consider. These include derived, inelastic, joint, and fluctuating demand.

Question 18

Define Customers as a Fundamental Aspects of Business Marketing

Answer 18

Far fewer customers, much easier to identify, more geographically concentrated, trust results in buying from each other, ethical, illegal, creates relationships

Question 19

Define Major Equipment as types of Business Products

Answer 19

Large and expensive purchases that depreciate over time (e.g., buildings, machinery)

Question 20

Define Accessory Equipment as types of Business Products

Answer 20

Smaller in size and expense than major equipment, this equipment is more standardized and often sold to consumers as well (e.g., power tools, printers)

Question 21

Define Raw Materials as types of Business Products

Answer 21

Unprocessed or untapped materials that are extracted or harvested for consumption of further processing (e.g., oil, canola, potash)

Question 22

Define Component Parts and Materials as types of Business Products

Answer 22

Finished products ready for assembly or requiring very little in the way of further processing to become part of other products (e.g., engines, pulp paper, chemicals)

Question 23

Define Services as types of Business Products

Answer 23

Not necessarily part of the final product but do have an impact on the customer’s willingness to buy and maintain a relationship

Question 24

Define Producers

Answer 24

Profit-orientated individuals and organizations that use purchased

Question 25

Define Resellers

Answer 25

Retailers and wholesalers, buy to resell

Question 26

Define Governments

Answer 26

Largest single segment for goods/services, contracts are put out for bid, allows for all suppliers a fair change

Question 27

Define Institutions

Answer 27

Seek to achieve goals other than standard business goals

Question 28

Define Buying Centres

Answer 28

All the people in the organization who are involved in the purchase decision

• Nature of buying: Formal, professional
• Nature of Buying Influence: Many influencers

Question 29

Who Are all the People in the Organization Who are Involved in the Purchase Decision

Answer 29

Initiator: The first to suggests to buy something

Influencer: Managers, Colleagues, whoever influences the buy

Decider: Someone responsible to make the final decision

Buyer: Does the logistics, contract, money transaction, involved in the buying process, who buys the product

User: Those who consumer or use the product or service

Gatekeeper: Controls the flow information and access to decision

Question 30

Define New Task Buys as a Buying Situation

Answer 30

A situation requiring the purchase of a product for the first time.

Example: Choosing the textbook for the first time

Question 31

Define Modified Rebuy as a Buying Situation

Answer 31

Normally less critical and less time-consuming than a new buy. In a modified-rebuy situation, the purchaser wants some change in the original good or service.

Example: Newest edition of the textbook (same provider, newer)

Question 32

Define Straight Rebuy as a Buying Situation

Answer 32

The situation vendors prefer. The purchaser is not looking for new information or new suppliers. An order is placed and the product is provided as in previous orders. Usually, a straight rebuy is routine because the terms of the purchase have been agreed to in earlier negotiations.

Question 33

What are some Online Business to Business Marketing Trends

Answer 33

Online usage will grow as a result of a number of new technologies and approaches

• The growth of mobile
• Importance of content marketing
• Blogs, articles, e-newsletters to build profile
• Social media growth
• Being used by consumers as a method of inquiry—more information or to voice a concern
• Critical to ensure that a social media policy exist to ensure social media is leveraged properly