MG1006 CHAPTERS 4,6,7 Flashcards
what is B2B marketing?
is concerned with the marketing of a huge range of products and services that are bought and sold between organisations
what are the key difference between B2C and B2B
- B2B marketing is fundamentally different from consumer goods or services marketing because organisational buyers do not consume the products or services themselves
- Decisions are made by organisations not individuals
- While organisations are often structurally and legally independent, they are also interdependent
- Fewer customers!
- B2B markets serve demand, which is driven by firms (intermediaries) across the value chain, whereas B2C markets serve demand at the end of the value chain
Types of B2B markets
-industrial market
- Reseller Markets
- Government and institutional markets
What are the dimensions in B2B marketing
The purchase dimension
The sales dimension
The communication dimension
The decision making unit of B2B have how many roles?
6
what are the 6 roles in DMU of B2B
initiator
user
decider
influencer
buyer
gatekeepers
what are the 3 ways sales and marketing strategy can affect a sale?
- Through influencing need recognition
- Through the design of production specifications
- By clearly presenting the advantages of the product or service over those of the competition
What are the stages in the Decision making process of B2B?
- recognition of a problem
- Determination of specification and quantity of needed item
- search for and qualification of potential sources
- Acquisition and analysis of proposals
- evaluation of proposals and selection of suppliers
- selection of an order routine
- Performance feedback and evaluation
B2B buying is characterised by? (choice criteria)
Economic
technical
social
personal
how many categories are there in segmenting B2B markets
2
What are the categories in segmenting B2B markets
Macrosegmentation
microsegmentation
The Characteristics of organisational buying
- The organizational purchase depends on:
- The risks and uncertainty
- Negotiations
- Complexity of buying
- Nature and size of customers
- Network technology and e-commerce
*Derived demand - Economical and technical choice criteria
- Buying to a specific requirements
what is the market research?
The process of gathering, interpreting and reporting information to help marketers solve specific problems or to take advantage of marketing opportunities
what are the benefits of market research?
- making important business decisions
- securing investments and funding
- determining new business opportunities
- avoiding business failures
how many stages are there in the market research process?
5
what are the stages in the market research process?
- Research Planning:
- Exploratory Research
- Main data collection considerations
- Data analysis and interpretation
- Report writing and presentation
what are the research approaches in the market research process?
Qualitative research
Quantitative research
Qualitative research
- Research where you analysis and understand consumers
- They are focus groups and in-depth interviews
- They gather verbal data
- small samples, rarely above 30
- content analysis of the data
Quantitative research
- Provide information that can be generalised to the population
- Gather numerical data
- large, representative samples
- surveys using a structured questionnaire
- statistical analysis of data
what do we find in research planning
Initial contact
research brief
research proposal
what is Initial contact (research planning)
Realisation of a problem, information to resolve
what is Research Brief (research planning)
Outline the research objectives
what is Research Proposal (research planning)
Statement of objectives
what do we find in initial contact?
Meetings with the Internal marketing research staff or outside agency
what do we find in Research Brief?
Background information, sources of information, scale of the project, timetable
what do we find in Research Proposal?
- Work to be completed, research design etc.,
- Timetable
- Costs
what are the types of research in the explanatory research?
primary research
secondary research
what is primary research in explanatory research?
- Creating new data for the purpose of the research
- The Data Collection is under the supervision of the investigator
- Research conducted for the first time
what is secondary research in explanatory research?
Secondary data collection and analysis
Questions the marketer needs to ask? (secondary research)
– Accuracy/dependency of the data?
– Qualitative vs quantitative?
– What is more appropriate to answer their research question?
– When was the original data collected?
– Purpose of the study?
– Content of the dat
what do we find in macrosegmentation
indutry
organizational size
geographic location
what do we find in micro-segmentation B2B
choice criteria
DMU structure
DMProcess
buy class
purchasing organisation
organisation innovativeness
what is B2B segmentation?
profiles the organisation and the buyers. It has two types of segmentation. (macro and micro segmenation)
What is B2C segmentation?
Focuses on grouping individuals into marketing related segment
What is Choice criteria in B2B?
It refers to the criteria used by member of the DMU to evaluate suppliers proposals
what is market segmentation?
the process that consists of sectioning the target market into smaller groups that share similar characteristics such as age, income, interest, needs, location…
what is mass marketing?
- selling the same product to all consumers.
- companies try to communicate with the largest possible number of consumer, with the aim of selling the highest possible volume
what is targeted marketing?
Selecting a group of consumers for marketing
why should we segment?
- everybody is different
- it is unlikely for a company to appeal to an entire market
- identifies segments that have viable target market.
- reduces the risk of a product life cycle declining
target marketing , what is segmentation?
Identifying potential company’s customers and splitting them into groups with those who have similar needs.
target marketing, what is targeting?
identifying target market involves evaluating segments and deciding on which segment is worth pursing, having considered issues such as size, value , potential.
target marketing, what is positioning?
designing product to meet segment needs and develop a marketing mix
target market has three processes what are they?
segmentation
targeting
positioning
what are the three processes in market segmentation?
the disaggregated market
the segmented market
the target market
what happens in The disaggregated market ?
The characteristics of individual customers are understood.
what happens in The segmented market
Customers are grouped into segments on the basis of having similar characteristics.
what happens in The target market ?
Find the Segment that is most attractive and a design a marketing mix is for that target market.
What happens in the positioning process in target market?
Marketing Mix is introduced and developed so that it fits the target markets needs and wants.
what are the advantages of market segmentation?
1) Differentiation
2) Target market selection
3) Tailored marketing mix
4) Opportunities and threats
consumer segmentation is divided into 3 groups what are they?
- behavioural
- psychographic
- profile
what happens in Behavioural segmentation ?
It divides the market into groups based on their knowledge, attitudes, uses and responses to the product.
Examples of segmentation criteria include
usage frequency
brand loyalty
purchase occasion
benefits of Behavioural segmentation?
provides an understanding of why people buy in a market and can aid in identifying opportunities.
what is Psychographic Segments ?
involves dividing your market into segments based upon different personality traits, values, attitudes, interests, and lifestyles of consumers.
what is Profile Segments
allow consumer groups to be classified in a way that they can be reached by communications media.
Profile variable are objective and can be assessed using….
demographic
socio-economic
geographic
……segmentation variables.
Geographic segmentation examples?
region, climate, population density, population growth rate and culture
Demographic segmentation examples?
age, race, religion, gender, family size, ethnicity, income, and education.
what are the 4 criteria’s for selecting market segments?
measurable
accessible
substantial
profitable
give me 4 target marketing strategies
undifferentiated marketing
differentiated marketing
focused marketing
customised marketing
what is Undifferentiated marketing?
a company develops a single marketing mix for the whole market
what is Differentiated marketing?
: a company develops specific marketing mixes to appeal to some or all of the segments
what is Focused marketing?
a company develops a single marketing mix aimed at one target (niche) market
what is Customized marketing ?
a company develops a discrete marketing mix for each customer
what are multi segment approach?
- Focuses on a variety of different segments
- Develops a different marketing mix for each
- Applicable to many situations – easy to implement
- Different packaging type of the same product
- Little additional marketing cost (sometimes)
Must be implemented carefully
what do companies decided in positioning?
they decided the value position – how it will create differentiated value for targeted segments and what positions it wants to occupy in those segments
what are the key tasks in positioning?
market segmentation
target market
differentiated advantage
what changes are involved in repositioning ?
target market
the differentiated advantage
or both
what are Repositioning strategies?
image Repositioning
product Repositioning
intangible Repositioning
tangible Repositioning
