Chapter 7: Business Marketing Flashcards

1
Q

Define Business to Business Marketing

A

Active connection between businesses to ensure needs are met

  • Trust, Mutual Respect, Relationships
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2
Q

Define Business vs. Consumer Marketing

A

The passive buyer role in consumer marketing is changing as a result of technology, specifically, social media and the internet. Consumers are taking a more active role in the exchange

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3
Q

Define Consumer Marketing

A

The buyer is the ultimate user of the product/service

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4
Q

Define Business Marketing

A

Providing to other users (not dealing with the end user)

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5
Q

Define the Network and Relationships with Businesses

A

Business relationships are more complex, as they involve greater commitment from both sides, and thus more company resources and effort. (Commitment and Trust being key)

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6
Q

Define the Business Marketing Network

A

Buyers, Sellers, and other Third Parties

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7
Q

Define Sales Approach

A

Generate leads and new business through persuasion

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8
Q

Define Marketing Management Approach

A

Developing and product and marketing it - passive consumer

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9
Q

Define Network Approach

A

Research the factors and forces around a firm, and understand the environment.

  • Leads to development of relationships through interaction over time
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10
Q

Define Interaction

A

The culmination of a number of transactions between two business entities that builds over time. It includes negotiations, discussions, customizations, and anything that is apart of the relationship between two organizations

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11
Q

Whats the Difference between Business to Business and Business to Customers

A
  1. Market Characteristics
  2. Product Change
  3. Buying Process
  4. Marketing Mix
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12
Q

Marketing Characteristics (differences between b-b and b-c)

A

Fewer customers, but larger orders, demand is more inelastic (less sensitive to price change). Consumer Market: If price changes by $1, must lose a lot of customers as they are more sensitive to price change. Business Marketers are less sensitive to price change

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13
Q

Product Change (differences between b-b and b-c)

A

Products technical in nature, purchased based on specifications, mainly raw and semi-finished goods, heavy emphasis on delivery time, technical assistance, after sale service, financing (not just paying cash, have other options)

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14
Q

Buying Process Characteristics (differences between b-b and b-c)

A

Buying decisions more complex, Competitive bidding, negotiated pricing, complex financial agreements (negotiation involved), buying criteria and objective specified, and many people are involved in decision making (not just one)

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15
Q

Marketing Mix (differences between b-b and b-c)

A

Direct selling and physical distribution often essential, advertising more technical, promotions emphasize personal selling, price often negotiated

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16
Q

What are the Fundamental Aspects of Business Marketing

A

The importance of relationship between buyer and seller in a business interaction

17
Q

Define Demand as a Fundamental Aspects of Business Marketing

A

Demand in business markets is driven by comparatively fewer buyers, there are aspects of demand that are important to consider. These include derived, inelastic, joint, and fluctuating demand.

18
Q

Define Customers as a Fundamental Aspects of Business Marketing

A

Far fewer customers, much easier to identify, more geographically concentrated, trust results in buying from each other, ethical, illegal, creates relationships

19
Q

Define Major Equipment as types of Business Products

A

Large and expensive purchases that depreciate over time (e.g., buildings, machinery)

20
Q

Define Accessory Equipment as types of Business Products

A

Smaller in size and expense than major equipment, this equipment is more standardized and often sold to consumers as well (e.g., power tools, printers)

21
Q

Define Raw Materials as types of Business Products

A

Unprocessed or untapped materials that are extracted or harvested for consumption of further processing (e.g., oil, canola, potash)

22
Q

Define Component Parts and Materials as types of Business Products

A

Finished products ready for assembly or requiring very little in the way of further processing to become part of other products (e.g., engines, pulp paper, chemicals)

23
Q

Define Services as types of Business Products

A

Not necessarily part of the final product but do have an impact on the customer’s willingness to buy and maintain a relationship

24
Q

Define Producers

A

Profit-orientated individuals and organizations that use purchased

25
Q

Define Resellers

A

Retailers and wholesalers, buy to resell

26
Q

Define Governments

A

Largest single segment for goods/services, contracts are put out for bid, allows for all suppliers a fair change

27
Q

Define Institutions

A

Seek to achieve goals other than standard business goals

28
Q

Define Buying Centres

A

All the people in the organization who are involved in the purchase decision

  • Nature of buying: Formal, professional
  • Nature of Buying Influence: Many influencers
29
Q

Who Are all the People in the Organization Who are Involved in the Purchase Decision

A

Initiator: The first to suggests to buy something

Influencer: Managers, Colleagues, whoever influences the buy

Decider: Someone responsible to make the final decision

Buyer: Does the logistics, contract, money transaction, involved in the buying process, who buys the product

User: Those who consumer or use the product or service

Gatekeeper: Controls the flow information and access to decision

30
Q

Define New Task Buys as a Buying Situation

A

A situation requiring the purchase of a product for the first time.

Example: Choosing the textbook for the first time

31
Q

Define Modified Rebuy as a Buying Situation

A

Normally less critical and less time-consuming than a new buy. In a modified-rebuy situation, the purchaser wants some change in the original good or service.

Example: Newest edition of the textbook (same provider, newer)

32
Q

Define Straight Rebuy as a Buying Situation

A

The situation vendors prefer. The purchaser is not looking for new information or new suppliers. An order is placed and the product is provided as in previous orders. Usually, a straight rebuy is routine because the terms of the purchase have been agreed to in earlier negotiations.

33
Q

What are some Online Business to Business Marketing Trends

A

Online usage will grow as a result of a number of new technologies and approaches

  • The growth of mobile
  • Importance of content marketing
  • Blogs, articles, e-newsletters to build profile
  • Social media growth
  • Being used by consumers as a method of inquiry—more information or to voice a concern
  • Critical to ensure that a social media policy exist to ensure social media is leveraged properly