Lecture one Flashcards
What are the three types of organizational customers?
- Commercial enterprises
- Government units
- Not-for-profit organizations
What is B2B marketing?
The process of matching and combining the suppliers capabilities to the customer’s desired outcomes to create value for the customer’s customer.
What are the four types of commercial enterprises (one of the three organizational customers)
A. Industrial distributors
B. Value added resellers
C. Original equipment manufacturers (OEM)
D. Users and end users
Describe industrial distributors (a type of commercial enterprise which is a type of organizational customer)
Industrial distributors are middlemen that provide the economic utilities of: Form, Time, Place, Possession.
An industrial distributor is a wholesale company that sells products to businesses that use the products in their own business, rather than for resale. For example, a robotic arm used in automated manufacturing would be sold by an industrial distributor.
Describe value added reseller (a type of commercial enterprise which is a type of organizational customer)
A value added reseller provides a product/service offering with unique enhancements to manufacturers products. For example, computer software and hardware integration (possibly customized). Creates a value network at the user level.
Describe original equipment manufacturer OEM (a type of commercial enterprise which is a type of organizational customer)
OEM’s purchase products and incorporate them into their own products. OEMs are usually the largest-volume users of goods and services (particularly in oligopolistic markets). GM is an OEM, Goodyear is an OEM supplier.
Describe users and end-users (a type of commercial enterprise which is a type of organizational customer)
A manufacturer that purchases goods or services for consumption or incorporation into its own products.
What are the four product types?
- Raw material producers
- Component parts and manufactured materials producers
- Accessory equipment suppliers
- Capital goods manufacturers
Describe raw materials producer
Compete in price-sensitive markets
Product loses identity once incorporated into consumers product. Dominated by a few large producers.
Describe component parts and manufactured materials producers
Parts retain their same form when incorporated into consumer’s products. Differentiated by value-added.
Describe capital goods manufacturers
Consists of large purchases with high risk to customer.
Capital goods are tangible objects that are used in the production of other goods or commodities or during the providing of services. They can include things such as buildings, machinery, tools and computers.
Describe accessory equipment suppliers
Equipment that works with another offering. Accessories can be added to a bundle.
What is the marketing mix
It is a total offering which includes: Product price place promotion
Place is about getting the product to the customer in order to maximize _______________________.
Economic utility (Which consists of: form, time, place and possession).
What is the evaluated price?
The evaluated price is the total cost of owning or using a product. It includes transportation, carrying costs, financing costs, cost of failure, installation etc.
What is price?
Price is the measure of value exchanged and is determined by the market (not by costs)
For promotion B2B marketing emphasizes on what three things?
Personal selling rather than advertising.
Communication with customers is a dialogue rather than a monologue.
Relationship is often long-lasting rather than brief.
Describe the market structure of business to business marketing
Geographically concentrated
Relatively few buyers
Oligopolistic competition
Describe the bullwhip effect
Suppliers forecast production or existing order rates. If consumer demand drops, the order rate also drops. Supply-chain members are than likely to overcompensate the difference between the old and the new forecasts. This is because:
Inventory levels can decline to fit the new order rate.
Customers change orders frequently.
Minimum order quantities may exist.
Trade promotions may influence buying patterns.
Describe value and it’s three parts
Value is the perception of the product’s benefits beyond its price.
The three parts are:
1. Value received from the product.
2. Value received from the seller’s services.
3. Value received from relationship with seller.
1+2+3= total product offering.
In the B2B marketplace ____________ tend to dominate
Oligopolies
What are some trends affecting the B2B marketplace?
Hyper competition Formation of partner networks Adoption of technology and the Internet Supply chain management Time compression
Define entrepreneurial marketing.
Entrepreneurial marketing is conducting marketing in a way that involves innovation, acting proactively, and taking calculated risks.
Define business markets
Business markets consist of all organizations that purchase goods and services to use in the creation of their own goods and services.
The augmented business- to- business product is a total offering that will provide a complete solution to the buyers needs. Define total offering.
Total offering is the offering that provides a complete solution to the buyers needs. This may include financing, delivery, service, or based on the buyers preference, only the core product.
Economic utility is a necessary ( though not sufficient), pivotal part of the concept of value in business- to- business markets which often takes on the form of ______________, ______________, and __________________.
supply chain management, inventory services, and material resource planning.
Providing value in terms of place involves what four aspects of economic utility?
Form: size, package, quantity
Time: short waiting period, reasonable hours of operation
Place: minimum inconvenience
Possession: easy transfer of ownership
What are the four parts of the promotion mix?
Advertising, sales promotion, personal selling, public relations.
What is the marketing concept?
The marketing concept states that the firm should be contextually market sensitive, understand customer needs, meet those needs in a coordinated way that provides value to the customer, and do so in a way that meets organizational goals.
Define supply chain
Supply chain is the chain of entities and activities that results in products provided to end- users.
Define 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.
What is the difference between consumer demand and derived demand?
Consumer demand is the quantity of goods or services desired to be bought, given market conditions.
Derived demand is 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.
