Mankiw - Principles of Macroeconomics - Ch06 P P T Basic

MKTG Designed by Amy McGuire, B-books, Ltd. Prepared by Deborah Baker, Texas Christian University Lamb, Hair, McDaniel 2008-2009 Business Marketing 6 CHAPTER

Learning Outcomes Describe business marketing Describe the role of the Internet in business marketing Discuss the role of relationship marketing and strategic alliances in business marketing Identify the four major categories of business market customers LO 1 LO 2 LO 3 LO 4

Learning Outcomes Explain the North American Industry Classification System Explain the major differences between business and consumer markets Describe the seven types of business goods and services Discuss the unique aspects of business buying behavior LO 5 LO 6 LO 7 LO 8

What Is Business Marketing? Describe business marketing LO 1

What Is Business Marketing? LO 1 Business Marketing The marketing of goods and services to individuals and organizations for purposes other than personal consumption.

Business Products LO 1 The key is intended use.
Business Products:
Are used to manufacture other products
Become part of another product
Aid the normal operations of an organization
Are acquired for resale without change in form

REVIEW LEARNING OUTCOME LO 1 Business Marketing cupboards oven folder and pen Teddy bear CONSUMER BUSINESS cupboards Coffee pot oven folder and pen photocopier

Business Marketing on the Internet Describe the role of the Internet in business marketing LO 2

Measuring Online Success LO 2 A measure of a Web site’s effectiveness; calculated by multiplying the frequency of visits times the duration of a visit times the number of pages viewed during each visit. Stickiness = Frequency x Duration x Site Reach Stickiness

http://www.allbusiness.com AllBusiness provides entrepreneurs with the knowledge and tools to start, manage, and grow their business. The site links to hundreds of how-to articles and provides expert answers to questions.
http://www.bcentral.com Microsoft bCentral offers small business solutions such as assistance in establishing an online business presence, enhancing sales or services, or managing business operations. The site also contains practical tips, advice, and links to how-to articles.
http://office.com Office.com offers practical information on how to start or run a business and how to transform an existing company into an e-business. Users access over 500 databases for news that affects their companies or industries. Office.com is one of the ten most visited business Web sites on the Internet.
http://www.quicken.com/small_business This site offers information on starting, running, and growing a small business. It also provides links to a variety of other Quicken sites that are useful to small-business owners and managers.
Beyond the Book LO 2 Internet Sites for Small Businesses

Evolution of E-Business Initiatives Time LO 2
Revenue generation
Aggressive disintermediation initiatives
Basic marketing communication strategies
Reduce costs
Build channel partnerships and trust
Customer-focused technology and systems
Brand building and development
Integrate online and traditional media
Past initiatives Present initiatives

REVIEW LEARNING OUTCOME LO 2 The Internet in Business Marketing THEN NOW Reduce costs Build partnerships and alliances Build and support branding Develop customer-focused technology and systems Integrate online and traditional media Revenue Generation Basic Marketing Communication Business Internet Uses and

Relationship Marketing and Strategic Alliances Discuss the role of relationship marketing and strategic alliances in business marketing LO 3

Strategic Alliances LO 3 A cooperative agreement between business firms (strategic partnership). Strategic Alliance

Relationships in Other Cultures LO 3 A network of interlocking corporate affiliates. Keiretsu

REVIEW LEARNING OUTCOME LO 3 Relationship Marketing and Strategic Alliances Supplier (like Intel) Supplier Supplier Company (like Dell) Company 1 (like Starbucks) Company 2 (like Jim Beam) Company (like UPS) Customer/ Distributor (like Ford)

Major Categories of Business Customers Identify the four major categories of business market customers LO 4

Major Categories of Business Customers LO 4 Producers Resellers Governments Institutions OEMs Wholesalers Retailers Federal Municipal Local Schools Hospitals Colleges Churches Unions Fraternal groups Civic Clubs Foundations Nonbusiness organizations

Producers LO 4 OEMs. Individuals and organizations that buy business goods and incorporate them into the products that they produce for eventual sale to other producers or to consumers. Original Equipment Manufacturers

REVIEW LEARNING OUTCOME LO 4 Business Market Customers Business Marketing Institutions Resellers Wholesalers Retailers Producers OEMs Governments Federal State Municipal County Unions Civic Clubs Other Churches Foundations Nonprofits

North American Industry Classification System Explain the North American Industry Classification System LO 5

NAICS LO 5 A detailed numbering system developed by the U.S., Canada, and Mexico to classify North American business establishments by their main production processes. North American Industry Classification System NAICS

Example of NAICS Hierarchy LO 5 Reproduction of software Mfg. and reproduction of magnetic/ optical media Computer electronic product manufacturing Manufacturing Description 334611 3346 334 31-33 NAICS Code U.S. Industry Industry Group Subsector Sector NAICS Level

NAICS LO 5
Provides a common industry classification system
Valuable tool for marketers in analyzing, segmenting, and targeting markets
Data can be used to determine:
Number, size, and geographic dispersion of firms
Market potential / market share estimates
Sales forecasts
New customer identification

Business versus Consumer Markets Explain the major differences between business and consumer markets LO 6

Business versus Consumer Markets LO 6 Characteristic Demand Volume # of Customers Location Distribution Nature of Buy Buy Influence Negotiations Reciprocity Leasing Promotion Business Market Organizational Larger Fewer Concentrated More Direct More Professional Multiple More Complex Yes Greater Personal Selling Consumer Market Individual Smaller Many Dispersed More Indirect More Personal Single Simpler No Lesser Advertising

Demand in Business Markets LO 6 Demand is... Description Derived Inelastic Joint Fluctuating Demand for business products results from demand for consumer products. A change in price will not significantly affect the demand for product. Multiple items are used together in final product. Demand for one item affects all. Demand for business products is more volatile than for consumer products.

Fluctuating Demand LO 6 Multiplier Effect (Accelerator Principle) Phenomenon in which a small increase or decrease in consumer demand can produce a much larger change in demand for the facilities and equipment needed to make the consumer product.

Types of Business Products Describe the seven types of business goods and services LO 7

Types of Business Products LO 7 Online http://www.sysco.com Major Equipment Accessory Equipment Raw Materials Component Parts Processed Materials Supplies Business Services

REVIEW LEARNING OUTCOME LO 7 Types of Business Goods and Services Aluminum ore: raw material Extruded metal: processed material Propeller blade: component part Extruding machine: major equipment Tool cart: accessory equipment Uniforms: contracted service Paper: supply

Business Buying Behavior Discuss the unique aspects of business buying behavior LO 8

Business Buying Behavior LO 8 Customer Service Business Ethics Buying Situations Evaluative Criteria Buying Centers Aspects of Business Buying Behavior

Buying Centers LO 8 Buying Center All those persons in an organization who become involved in the purchase decision.

Roles in the Buying Center LO 8 Initiator Influencers Gatekeepers Decider Purchaser Users Online http://www.loctite.com

Quality
Service
Price
Evaluative Criteria LO 8

Buying Situations LO 8 New Buy A situation requiring the purchase of a product for the first time. Modified Rebuy A situation where the purchaser wants some change in the original good or service. Straight Rebuy A situation in which the purchaser reorders the same goods or services without looking for new information or investigating other suppliers.

Divide customers into groups based on their value
Create policies that govern how service will be allocated among groups
Customer Service LO 8

REVIEW LEARNING OUTCOME LO 8 Business Buying Behavior Customer service Initiator Influencer Decider Gatekeeper Purchaser User Buying Center
Quality
Service
Price
Evaluative Criteria Buying Situations New buy Straight rebuy Modified rebuy

Mankiw - Principles of Macroeconomics - Ch06 P P T Basic

by mschwede on Feb 14, 2008

Accessibility

Categories

Upload Details

Usage Rights

1 Embed 7

Statistics

Mankiw - Principles of Macroeconomics - Ch06 P P T Basic Presentation Transcript