Intro to Business to Business Marketing Flashcards
Entrepreneurial Marketing is defined as what…?
Conducting marketing in a way that involves innovation, acting proactively, and taking calculated risks
What three concepts function differently in B2B Markets than in Consumer Markets?
Relationships, value, and buyer decision making functions
Entrepreneurial marketing can be practiced by start-ups and established companies?
True
Business markets consist of…
All organizations that purchase goods and services to use in the creation of their own goods and services
T or F: Business markets consist of more and smaller customers than consumer markets
False: The consist of fewer and larger customers
Business Marketing is defined as …
The process of matching and combining the capabilities of the supplier with the desired outcomes of the business customer. Also involves creating value for the business customer.
What are the Four Ps of marketing?
Product, price, place, and promotion
Product is referred to as…
a core product or service that can be augmented by additional features and options that will appeal to different buyers
Total offering
the offering that provides a complete solution to the buyer’s needs. This may include financing, delivery, service, or based on the buyer’s preference only the core product
What is the augmented B2B product referred to as?
Total offering
Price refers to what…?
The mutually agreed upon amount that satisfies both sides in an exchange
What determines price?
Price is determined by the market
How does pricing differ in B2B markets?
- Price determination can result from collaborative efforts
- Only in small quantities or generic products does the price charged come from a “list” price
How does pricing vary from B2B and Consumers?
- pricing from business customers often varies from fixed pricing
- pricing for consumers are often fixed and discounted
What are the four types of economic utility?
Form, time, place, and possession
What is the major difference between consumer and B2B channels?
Length and concentration of the channels
Supply chain management
The planning, coordination, and delivery of the place part of the marketing mix. Overall supply chain management works to deliver the economic utility of form, time, place, and possession as a minimized cost at a maximized value- value as determined by the customer. This effort usually involves many companies at different stages of the supply chain.
Advertising plays the largest role in the promotion mix for B2B markets: T or F
False
Personal selling is the most used and effective type of promotion in B2B markets: T of F
True
Personal selling
Allows rapid and accurate feedback to the marketer
Two major differences between B2B marketing and consumer marketing are…?
Closeness and duration of the relationship with B2B relationships being closer and lasting longer than consumer marketing relationships
Marketing Concept
to be successful, a company should understand customers’ needs, met those needs with a coordinated set of activities, and do so in a way that mets organizational goals
A firm operating under this concept focuses al of its efforts and resources toward satisfying the needs of its customers
Marketing concept culture
Consumer Demand
the quantity of goods or services desired to be bought, given market conditions (usually expressed as a function of market price)
Derived Demand
the demand experienced by the chain of suppliers and producers that contribute to the creation of a total offering. Without initial consumer demand, there will not be any demand on the chain of suppliers.
Supply Chain
the chain of entities and activities that results in products provided to end users. It starts with raw materials and traces the flow of materials and sub-assemblies through suppliers, manufacturers, and channel intermediaries to the final customer.
Supply chains are stable in most organizations, yet flexible enough to meet market demand: T or F
True
A small percentage of change in customer demand has what effect on business markets?
It leads to much greater changes in business markets
Bullwhip effect
As consumer demand varies, ether as a result of seasonality or other market factors, “upstream” suppliers of services and components that contributed to the total offering experience a leveraged impact.
Discontinuous demand
The condition in which quantity demanded in the market makes large changes up or down in response to changes in market conditions. The transition from one state to another occurs in large increments rather than incremental changes in demand.
Demand in business markets is elastic or inelastic in the short term?
Inelastic in the short term
Elasticity of demand
refers to the percentage change in quantity demanded relative to the percentage change in rice. if a price change produces a change in the demand that is less than the percentage change in price then demand is said to be inelastic.
Outsourcing
The purchasing of part of the company’s continuing operations such as recruiting or manufacturing rather than investing in the infrastructure to accomplish the task internally
Switching Costs
the cost of switching suppliers that is increased by the need for close relationships in B2B marketing
Is mass promotion efficient and effective as a means to market in the B2B world..?
It is not as effective as it is for consumer marketing
Brand image and name is important in both B2B and consumer markets: T or F
True
Integrated supply
when companies vertically integrate supplies into their business instead of outsourcing to other firms
Networked supply
Purchasing supplies and component parts from other companies rather than integrating their production into its own business
Younger companies tend to use which method to supply their operations
networked supply
large companies tend to use what method supply component parts
vertical integration
Vertical integration does what to the flexibility of a firm?
It reduces the firm’s flexibiity
Operating globally is different for B2B marketers and consumer marketers in what way?
International business is less complex for B2B marketers than consumer marketers
Consumers do not purchase products, they purchase what…?
Offerings that create solutions and satisfaction
Value is defined as what?
The sum of all of the benefits that a customer receives in the process of buying and using a product or service lessthe costs involved
Evaluated price
the total cost of owning and using a product. This may include transportation, inventory carrying costs, financing costs, potential obsolescence, installation, flexibility to upgrade, cost of failure, and obsolescence of existing products or equipment, plus the price paid to the vendor
What is a chain of activities that creates something of value for the targeted customers
Value Chain
Everything that the customer or prospect perceives as contributing to benefits and costs and goes further than simply the product and service
The offering that is the end result of the value chain
What does evaluated price include?
All of the costs that are subtracted from benefits to produce value
The offering is a combination of what factors?
product, service, image, availability, and quantity
What contributes directly to the offering?
Direct Activities
What makes it possible for a firm to perform the direct activities?
Support Activities
The value chain concept provides a framework for pursuing what concept?
The Marketing Concept
What is hyper-competition?
New companies emerge quickly or create new markets and industries almost overnight that challenge established companies
What are the trends and changes taking place in business marketing?
Hyper-competition Formation of partner networks Adoption of information technology and the internet Supply Chain Management Time compression
What is a channel facilitator?
service providers to the channel that are not necessarily part of channel design but who make possible the efficient operation of the channel. They are financial institutions, transportation and logistics companies, and third-party service providers. These organizations provide outsourced services to facilitate the effective operation of the channel.
An increase in the speed of doing business is called what?
time compression
