Flashcards in Basics Deck (17)
What is marketing?
Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large
What is B2B marketing?
Business Marketing involves those activities that facilitate involving products and customers in business markets. It includes all organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others. Business-to-business customers include manufacturers, wholesalers, retailers, and other types of organizations such as hospitals, universities, and government units
Explain what a buying centre is
A buying center includes all the individuals and groups participating in the buying decision process who have interdependent goals and share common risks. They are also known as DMUs - decision making units
Who are the buying centre participants?
Initiator, Buyer, User, Influencer, Decider and Gatekeeper
What are Industrial Goods?
Industrial goods are products that are sold to other business entities. There are four main types of industrial goods: Production goods, capital goods, systems and services.
What is important to know when we think of marketing?
- Understanding customer behaviour and customer needs
- Indentifying cooperation partners (Important for delivery process)
- Determining appropriate markets and segments
- Determining how to act in a competitive environment
- Guiding activities for selling and determining prices
- Communicating the value of products on the market
What was the case of marketing at GE (General Electric)?
GE established a marketing engine that drove more direct collaboration with customers and that led to new markets. Marketers had a voice earlier in the process to make sure GE's offerings where aimed at the right customer segment.
They did not only have high-end products, but also "just what's needed" technology to better meet customer needs.
What is the difference between B2B and B2C?
B2B - Customers are manufacturing firms, service providers, and other org. Buyers (e.g. State, hospitals etc.). The purpose of demand is the generation of products and services. The goods are commodities, capital goods (e.g. Machines), syst. Technologies and industrial services.
B2C - Customers are end consumers and consumers. The purpose of demand is consumption and the goods are products and services.
What are the B2B Marketing characteristics?
Derived demand, organisation as customers, multiple buying influences, degree of individualization tends to be higher and also the degree of interaction
What is the B2B product policy?
- Poducts are often complex in technical terms and need explanation
- Often custom-made and individualized products
- Close collaboration with customers in the improvement and adaption of the products
What is the B2B price policy?
- Prices are flexible and subject to negotiations
- Price building is often the central decision criterions in biddings
- The fixed price is only one of many components in pricing (e.g. Rebates, discounts, price bundles etc. )
What is the B2B communication policy?
- Non-personal communication forms are rarely used (e.g. Advertising through mass media)
- Personal selling has an outstanding importance
- Communication can be addressed to direct as well as indirect customers
What is the B2B sales & distribution policy?
- Shorter distribution channels
- Emphasis on personal selling
Explain industrial goods more precise
Production goods - Raw material, consumables, Auxillary supplies, operating material, parts, energy carrier
Capital goods - Plants, Machinery, Large specialized equipment
Systems - Network, system components, subsystems (main cost driver) and network services
Services - consulting services, transport and logistic services, renting/leasing of property and machinery, insurances
What are important characteristics of system technologies?
- High degree of technical complexity
- High cost of integration, requires a precise fit with the respective product environment
- Combination of subsystems
- Networks are the central element of syst. Tech.
What is important in B2B Marketing or Marketing in general?
- Know your customer and also your customers customer
- Understand the competition so you can find the right position for your products
- Always look ahead for new markets and new customers
- Remember that customers needs always change and vary from market to market
- Marketing is controlling the willingness to the costumers