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74 Cards in this Set
- Front
- Back
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the marketing of goods and services to individuals and organizations for purposes other than personal consumption |
business marketing |
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Business products include those that... |
are used to manufacture other products become part of another product aid the normal operations of an organization |
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What is the key characteristic? |
The product's intended use |
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The use of internet to facilitate activities between organizations is called... |
business-to-business electronic commerce |
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Stickiness = |
frequency x duration x site reach |
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We evaluate stickiness by combining frequency data... |
with the length of time a visitor spent on the Web site and the number of site pages viewed during each visit |
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Loyal customers are more profitable than those who are.. |
price sensitive and perceive little or no difference among brands or suppliers. |
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Building long-term relationships with customer offers... |
companies a way to build competitive advantage that is hard for competitors to copy. |
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Strategic Alliance (4) |
licensing or distribution agreements joint ventures research and development consortia partnerships |
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a network of interlocking corporate affiliates |
keiretsu |
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Three points about a keiretsu |
executives may sit on the boards of their customers or their suppliers trade with each other whenever possible engage in joint product development, finance, and marketing activity |
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The business market consists of four major categories of customers: |
producers resellers governments institutions |
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Producers are often called... |
Original Equipment Manufacturers |
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The reseller market includes... |
retail and wholesale businesses |
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Government organizations include... |
thousands of federal, state, and local buying units |
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Instituions: |
includes schools hospitals colleges and universities churches labor unions fraternal organizations civic clubs foundations other so-called non-business organizations |
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NAICS is... |
a system for classifying North American business establishments |
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Who developed the NAICS system? |
United States, Canada, and Mexico |
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This system provides a... |
common industry classification system for the North American Free Trade Agreement partners |
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NAICS is a valuable tool for business marketers engaged in... |
analyzing segmenting and targeting markets |
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Four points for NAICS code: |
the number size and geographic dispersion of firms market potential estimates market share estimates sales forecasts can be used for identifying potential new customers |
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Unlike customer demand, business demand is... |
derived, inelastic, joint, and fluctuating |
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Why is the demand for business products called derived demand?
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because organizations buy products to be used in producing their customers' products |
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means that an increase or decrease in the price of the product will not significantly affect demand for the product |
inelastic demand |
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occurs when two or more items are used together in a final product |
joint demand |
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The demand for business products tends to be... |
less stable than the demand for consumer products |
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Business products generally fall into one of the following seven categories, depending on their use: |
major equipment accessory equipment raw materials component parts processed materials supplies business services |
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includes capital goods |
major equipment |
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is generally less expensive and shorter-lived than major equipment |
accessory equipment |
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are unprocessed extractive or agricultural products |
raw materials |
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are either finished items ready for assembly or products that need very little processing before becoming part of some other product |
component parts |
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are products used directly in manufacturing other products |
processed materials |
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are consumable items that do not become part of the final products |
supplies |
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are expense items that do not become part of a final product |
business services |
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Business buying behavior has five important aspects: |
buying centers evaluative criteria buying situations business ethics customer service |
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includes all those people in an organization who become involved in the purchase decision |
buying center |
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the person who first suggests making a purchase |
initiator |
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are people who influence the buying decision |
influencers/evaluators |
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group members who regulate the flow of information |
gatekeepers |
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the person who has the formal or informal power to choose or approve the selection of the supplier or brand |
decider |
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the person who actually negotiates the purchase |
purchaser |
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the members of the organization who will actually use the product |
users |
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Business buyers evaluate products and suppliers against three important criteria: |
quality service price |
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If a firm does decide to buy a product instead of making it, the purchase will be... |
a new buy a modified rebut a straight rebuy |
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In a modified rebut situation.... |
the purchaser wants some change in the original good or service |
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A straight rebut is a... |
situation vendors prefer |
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In a straight rebut, the purchaser is not looking for... |
new information or other suppliers |
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The firm must be able to divide customers into two or more groups, based... |
on their value |
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It must also create and apply policies that... |
govern how service will be allocated among groups. |
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Which one is the largest out of the 4 major categories of business customers? |
government |
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What is the demand for the business market? |
organizational |
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What is the volume for the business market? |
larger |
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What is the number of customers for the business market? |
fewer |
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What is the location for the business market? |
concentrated |
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What is the distribution for the business market? |
more direct |
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What is the nature of buying for the business market? |
more professional |
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What is the buy influence for the business market? |
multiple |
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What is the negotiations for the business market? |
more complex |
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Is there reciprocity for the business market? |
Yes |
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What is the leasing for the business market? |
Greater
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What is the promotion for the business market? |
Personal selling |
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What is the demand for the consumer market? |
individual |
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What is the volume for the consumer market? |
smaller |
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What is the number of consumers for the consumer market? |
many |
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What is the location for the consumer market? |
dispersed |
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What is the nature of buying for consumers? |
more personal |
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What is the influence for the consumer market? |
single |
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What are the negotiations for the consumer market? |
simpler |
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Is there reciprocity for the consumer market? |
no |
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What is the leasing for the consumer market? |
lesser |
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What is the promotion for the consumer market? |
advertising. |
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Derived demand is more... |
business to business |
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Consumers are not... |
spending as much since the recession |
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Millenials haven't... |
hit the markers that they were supposed to. |
