question

marketing of goods and service to people and organizations for purposes other than personal consumption ex: the sale of a PC to your college

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business marketing

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used to manufacture good or services to facilitate an organization's operations, or to resell to other consumers.

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business product/industrial product

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bought to satisfy an individual's wants or needs

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consumer product

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the key characteristic distinguishing business products from consumer products

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intended use, no physical form

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some large firms that produce goods like steel, computer memory chips, or production equipment market exclusively to___

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business customers

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the use of the internet to facilitate activities between organizations. this method has evolved and grown rapidly.

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business to business electronic commerce

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companies selling to business buyers face _______ challenges as all markets, including determining the target market and deciding how to best reach it

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the same

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business marketing can be tough because

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social media has gone mainstream- companies adopt social media strategies as a faster pace every year

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the number one goal reported for social media marketing

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branding

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while social media is indeed used for branding, it is also used to _________- a tactic that has become important.

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push out content

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based on the idea of developing valuable content for interested audience members-namely through videos, white papers, e-mail newsletters, webinars, and blog posts- and subsequently using e-mail marketing, search engine optimization, paid search, and display advertising to "pull" customers to the site.

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content marketing

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tools most commonly used by B2B marketers

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blogs, social networking sites, Twitter, video streaming sites, e-newsletters, and mobile marketing

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most marketers use some sort of ________ to determine which activities generate leads and then use that information to make their web sites more effective. metrics include external search traffic, internal search engine analysts, and key word search results.

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Web analytics (such as Google analytics, or Onmiture

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three of the most important measurements of online success

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recency, frequency, monetary value

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relates to the fact that customers who have made a purchase recently are more likely to purchase again in the near future

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recency

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helps marketers identify frequent purchases who are most likely to repeat that behavior in the future

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frequency data

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important because big spenders can be the most profitable customers for a business

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monetary value of sales

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the behavior that the marketer wants the visitor to take-such as signing up for email or watching a video

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conversion task

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defined as a ratio of the number of people who visited the site to the number of people who went on to complete the desired action

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conversion rate

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one common way of evaluating a web application, web site, or other piece of interactive technology by combing frequency data with the length of time a visitor spent on the web sit and the number of pages viewed during each visit frequency x duration x site reach

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stickiness

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by measuring the stickiness factor of a web site before or after a design or function change, the marketer can ____

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quickly determine whether visitors will embrace the change or not.

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by adding purchase information to determine the level of stickiness needed to provide a desired purchased, the marketer ___

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gains an even more precise understanding of how a site change affects business

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-marketers have become better at using the internet -marketers not only have website but also have a site that attracts, interests, satisfies, informs, and retains customers -new apps about customers are developed that lower cost, increase supply chain efficiency, or enhance customer loyalty, retention and trust.

answer

trends in B-to-B marketing

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what business costumers expect

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that suppliers know them personally, monitor their movement, and offer personal interaction through social media, etc.

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many people used to think that the internet would eliminate the need for _______, but this has occurred less frequently than expected because they still perform important functions such as providing credit, aggregating supplies from different sources, making deliveries, and processing returns

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distributors

question

_______ usage in B2B and B2C marketing has been the most pervasive marketing trend in the past 5 years. it requires a lot of adjustment and constant evaluation.

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social media

question

the key to social media for B2B marketers is to create compelling and useful ___ for consumers. for example, Marketo develop white papers and ebooks on topics such as generating leads using social media for its customers and potential customers

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content

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using social media to gather leads product promotion traffic building search engine optimization competitive intelligence and listening customer feedback/support product development

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Other goals for B2B marketers

question

some metrics particularly useful for increasing the success of a social media campaign

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awareness, engagement, conversions

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the attention that social media attracts, such as number of followers

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awareness

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refers to the interactions between the brand and audience

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engagement

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occur when action is taken

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conversions

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a strategy that entails seeking and establishing ongoing partnerships with customers

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relationship marketing

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loyal customers are __________ than those who are price sensitive and perceive little or no difference among brands or suppliers

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more profitable

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encourage businesses to shop around and research options for all needs. this means that for many suppliers retaining their current customer has become a big focus.

answer

social networking sites

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offers companies a way to build competitive advantage

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building long term relationships with customers

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a cooperative agreement between business firms. can take the form of licensing or distribution agreements , joint ventures, research and development consortia, and partnerships. they may be between manufacturers, manufacturers and customers, manufacturers and suppliers, and manufacturers and channel intermediaries. used to strengthen operations and better compete

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strategic allience or partnership

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sometimes alliance partners are _____. for example, the partnership between sports and concert promotion company Anschutz Entertainment Group and online ticket marketplace StubHub. On StubHub, even goers can bypass official ticket retailers like AEG and buy them directly from other people at a discount, so AEG incorporated StubHub tickets into its own checkout system, collection a commission on each StubHub order

answer

fierce competitors

question

other alliances form btwn companies that operate____. H&R block partners with Arizona's private catholic school system in a marketing campaign highlighting the Private Education tax credit, allowing low-income students to attend the state's catholic private schools. exhibit 7.1 on page 122 example!!

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in different industries

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means that a firm believes an ongoing relationship with some other firm is so important that it warrants maximum efforts at maintaining it indefinitely.

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relationship commitment

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exists when one party has confidence in an exchange partner's reliability and integrity

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trust

question

-businesses in china, japan, korea, mexico, and europe rely heavily on relationships -in Japan, relationships are developed through amae, or indulgent dependency (the feeling of nurturing concern for, and dependence on one another)

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relationships in other cultures

question

a networking of interlocking affiliates. executives may sit on the boards of their customers or supplies. members of this trade with each other whenever possible and often engage in joint product development, finance, and marketing activity.

answer

keiretsu

question

many firms have found that the best way to compete in asian countries is to form _____ with asian firms. Good has allied with several Asian tech companies to introduce its mapping and location based services in new Asia markets.

answer

relationships

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producers, resellers, governments, and institutions

answer

the business market consists of four major categories of customers

question

include profit-oriented people and organizations that use purchased goods and services to product their own, to incorporate in other products or facilitate in the daily operations.examples include finance, real estate, and food service firms, construction, manufacturing transportation.

answer

producers

question

producers are often called _______. this includes all individuals/organizations that buy business goods and incorporate them into the products they produce for sale ex: GM that buy steel, paint, tires, and batteries

answer

original equipment manufacturers (OEM)

question

includes retail and wholesale businesses that buy finished goods and resell them for a profit. they sell mainly to final consumers; wholesalers sell mostly to retailers ex: P&G, Kraft, Coca Cola sell directly to large retailers and retail chains through wholesalers to smaller retail units

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resellers

question

include federal, state, and local buying units. they account for the greatest volume of purchases in the US marketing to these agencies can be hard. contracts for government purchases are often put out for big. interested vendors submit bids to provide specific products during a particular time. grounds for rejecting the lowest bid include lack of experience, inadequate financing, past poor performance. bidding allows suppliers a fair chance at winning

answer

governments

question

we can view it as a combo of several large companies with overlapping responsibility and thousands of small independent units.

answer

federal government

question

selling to these governments is more simple. includes school districts, highway departments, housing agencies, etc.

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state, county and city government

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includes schools, hospitals, college, churches, labor unions, fraternal organizations, civic clubs, etc. some institutional purchasers operate similar to governments in that the purchasing process is influence, administered and determined by gov't units.

answer

institutions

question

an industry classification system introduced in 1997 to replace the SIC. it classifies North American business establishments. this is a special tool for marketers engaged in analyzing, segmenting, and targeting markets. each classification group is relatively homogenous in terms of raw materials required, components used, manufacturing processes employed, and problems faced. it can also be used for identifying potential new customers (REVIEW IN BOOK) the more digits, the more homogenous

answer

The North American Industry Classification System (NAICS)

question

the basic philosophy and practice of marketing are _____ whether the customer is a business organization or a consumer

answer

the same

question

consumer ___is quite different from that in the business market. business demand is derived, inelastic, joint, and fluctuating

answer

demand

question

organizations buy products to be used in producing their customer's products. ex: the number of rills that a firm needs is derived from the demand for products that are produced using these machines. business marketers must carefully monitor their customers' forecasts because derived demand is based on expectations of future demand for those consumer's products

answer

derived demand

question

increase or decrease in price will not hugely affect demand the price of a product used in the production of a final product is often minor.

answer

inelastic demand

question

occurs when two or more items are used together in a final product. ex: a decline in the availability of memory chips will slow production of microcomputers, which will reduce demand for disk drives.

answer

joint demand

question

demand for business products tends to be less stable 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. this is called the multiplier effect.

answer

fluctuating demand

question

business customers tend to buy large quantities.

answer

purchase volume

question

business marketers usually have far fewer customers than consumer marketers, so its easier to identify prospective buyers, monitor current needs and levels of satisfaction, and create relationships. the main disadvantage is that each customer becomes crucial

answer

number of customers

question

manufacturing operations in the US tend to be more concentrated than consumer markets

answer

concentration of customers

question

many consumer products pass through a distribution system. in business marketing, channels of distribution are usually shorter. there are more direct channels

answer

distribution structure

question

electronic trading floor that provides companies with integrated links to their customers and suppliers. the goal is to simplify purchasing and make it more efficient

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business to business online exchange

question

business buyers often approach purchasing more formally. some professional purchasers earn the CPM

answer

nature of buying

question

typically more people are involved in a single business purchase decision in a consumer purchase.

answer

nature of buying influence

question

consumers are used to negotiating price on cars and real estate, but usually consumers expect sellers to set price and other conditions. but negotiating in business is common. buyers and sellers negotiate product specifications, delivery dates, payment terms, and other matters. final contracts are often very detailed.

answer

type of negotiations

question

business purchases often choose to buy from their own customers. for example, GM buys engines for use in its car and trucks from BorgWarner, which is turn buys many of the cars and trucks it needs from GM.

answer

use of reciprocity

question

consumers normally buy products rather than lease them. but leasing allows firms to reduce capital outflow, acquire a seller's latest products, receive better services, and gain tax advantages. the benefits to the leaser include greater total revenue from leasing compared to selling and an opportunity to do business with customers who cannot afford to buy.

answer

use of leasing

question

business marketers tend to emphasize personal selling in their promotion efforts, especially for pricy item, custom products, large purchases, and situations with negotiations.

answer

primary promotional method

question

major equipment, accessory equipment, raw materials, component parts, processed material, supplies, business services

answer

types of business products

question

includes capital goods such as large or expensive machines, mainframe computers, airplanes, buildings. this stuff is depreciated over time. it is often custom designed for each consumer. personal selling is an important strategy for marketers.

answer

major equipment

question

generally less expensive and shorter lived like microcomputers, power tools, and table drills. it is often charged as an expense in the year it is bought. they are often more standardized and customers are more dispersed. advertising is a better tool for this

answer

accessory equipment

question

examples include mineral ore, timber, corn, vegetables, etc. extensive users usually buy big quantities. none can greatly influence price or supply because the market sets the price. promotion is almost always personal selling and distribution channels are usually direct.

answer

raw materials

question

either finished items ready for assembly or products that need little processing. examples include tired, and motors. they can retain their identity after becoming part of the product. there are two important markets: the OEM and the replacement READ

answer

component parts

question

products used directly in manufacturing other products. they've had some processing. it includes, sheet metal, chemicals, treated lumber, corn syrup, and plastics. they do not retain their identity. most are marketed to OEMS or distributors servicing OEM market.

answer

processed materials

question

consumable items that do not become part of the final product such as lube, detergents, paper towels, pencils, etc.they are normally standardized. this category is often in the MRO category (maintenance, repair, operating) and competition is intense.

answer

supplies

question

expense items that don't become part of a final product. business often retain outside providers.

answer

business services

question

buying centers, evaluative criteria, buying situations, ethics, customer service

answer

business buying behavior has 5 aspects

question

all people in an organization that become involved in the purchase decision

answer

buying centers

question

initiator: suggests making the purchase influencer/evaluator: influence buying decision and define specification and provide info for evaluating options gatekeepers: regulate information flow decider: chooses or approves selection of the supplier or brand purchaser: negotiates the buy users: use the product

answer

buying center roles

question

ability to marshal resources understand buyer's business goals responsive to requests willingness to be accountable

answer

what executives look for in sales reps

question

quality, service, price

answer

evaluative criteria

question

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

answer

new buy

question

less critical and less time consuming. the purchaser wants some change in the original good/service. it may be a new color, more respondents in a marketing research study, or additional services in a contract.

answer

modified rebuy

question

the purchaser reorders the same goods or services without looking for new information or investigating other suppliers.

answer

straight rebuy

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