Business Markets & Service Marketing

Business Markets & Service
Business Markets
• Companies and organizations that
purchase products for the operation of a
business or the completion of a business
Capital equipment
Operating equipment
Raw materials
Component parts
• Direct Demand (consumer markets)
• Derived Demand: quantity of product
or service needed by a business in
order to operate at a level that will
meet the demand of its customers
Business Markets
• Capital: land, buildings, and major pieces
of equipment
• Operating Equipment: smaller, less
expensive equipment (cash registers, tools,
small machines)
• Supplies: materials consumed in the
operation of the business (paper, ink
• Raw Materials: materials incorporated into
the products they make
• Component Parts: parts manufactured by
another business incorporated into the
products they make
Service Marketing
• Service Marketing: Services are intangible,
inseparable, perishable, and heterogenous
– Intangible: cannot be touched, seen, tasted,
heard, or felt
– Inseparable: service is produced and consumed
at the same time
– Perishable: services unused in a period cannot
be stored for use in the future
– Heterogeneous: differences between services
due to the difference in the people who perform
Service Quality
• The degree to which the service meets
customers’ needs and expectations
– Competition
– Performance standards
– Customer satisfaction
Service Marketing
• Planning:
– nature of services affect the planning
• Promotion:
– endorsements, word of mouth, personal selling
• Price:
– bundling
• Product/Distribution:
– distributed at the point of creation