Business Marketing
Chapter 6
Prepared by
Deborah Baker
Texas Christian University
Chapter 6 Marketing 7e Lamb Hair McDaniel
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Learning Objectives
1. Describe business marketing.
2. Describe the role of the Internet in
business marketing.
3. Discuss the role of relationship marketing
and strategic alliances in business
marketing.
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Learning Objectives (continued)
4. Identify the four major categories of
business market customers.
5. Explain the North American Industry
Classification System.
6. Explain the major differences between
business and consumer markets.
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Learning Objectives (continued)
7. Describe the seven types of business
goods and services.
8. Discuss the unique aspects of business
buying behavior.
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1
Learning Objective
On Line
http://www.gm.com
Describe business
marketing.
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1
Business Marketing
The marketing of goods and
services to individuals
and organizations for
purposes other than
personal consumption.
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1
Business Products
 Are used to manufacture
other products
 Become part of another
product
Key is
intended
use
 Aid the normal operations of
an organization
 Are acquired for resale
without change in form
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2
Learning Objective
Describe the role of
the Internet in
business marketing.
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2
Internet Marketing Opportunities
On Line
http://www.gepolymerland.com

Increase efficiency

Reduce costs

Improve customer service

Create one-to-one relationships

Introduce new products

Expand markets
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Benefits of Marketing on the Internet
On Line
http://www.covisint.com
1. Lower prices
2. Greater selection of products and vendors
3. Access to customer and product sales data
4. Around-the-clock ordering & customer service
5. Lower costs
6. Customized products
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3
Learning Objective
Discuss the role of
relationship
marketing and
strategic alliances
in business
marketing.
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3
Strategic Alliance
A cooperative agreement
between business firms
(strategic partnership).
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3
Keiretsu
A network of
interlocking
corporate affiliates.
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4
Learning Objective
Identify the four
major categories
of business market
customers.
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4
Categories of Business Customers
On Line
http://www.cbd-net.com
http://www.governmentbids.com
Producers
Categories
of Business
Customers
Resellers
Governments
Institutions
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5
Learning Objective
Explain the North
American Industry
Classification
System.
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5
NAICS
A detailed numbering
system developed by the
U.S., Canada, and Mexico
North American
Industry
Classification
System
Chapter 6 Marketing 7e Lamb Hair McDaniel
©2004 South-Western/Thomson Learning
to classify North American
business establishments
by their main production
processes.
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5
Examples of NAICS
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NAICS
 Provides common industry classification
system
 Valuable tool for marketers in analyzing,
segmenting, and targeting markets
 Data can be used to determine:
•
•
•
Number, size, and geographic
dispersion of firms
Market potential / market share estimates
Sales forecasts
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6
Learning Objective
Explain the major
differences between
business and
consumer markets.
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6
Business vs. Consumer Markets
Characteristic
Demand
Volume
# of Customers
Location
Distribution
Nature of Buy
Buy Influence
Negotiations
Reciprocity
Leasing
Promotion
Business Market
Organizational
Larger
Fewer
Concentrated
More Direct
More Professional
Multiple
More Complex
Yes
Greater
Personal Selling
Chapter 6 Marketing 7e Lamb Hair McDaniel
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Consumer Market
Individual
Smaller
Many
Dispersed
More Indirect
More Personal
Single
Simpler
No
Lesser
Advertising
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6
Demand in Business Markets
Demand is...
Description
Derived
Demand for business products results
from demand for consumer products
Inelastic
A change in price will not significantly
affect the demand for product
Joint
Multiple items are used together in final
product. Demand for one item affects all
Fluctuating
Demand for business products is more
volatile than for consumer products
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Multiplier Effect
(Accelerator Principle)
6
Phenomenon in which 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.
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7
Learning Objective
Describe the seven
types of business
goods and services.
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7
Types of Business Products
On Line
http://www.pmpa.org
Major Equipment
Accessory Equipment
Raw Materials
Component Parts
Major
Categories
of Business
Products
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Processed Materials
Supplies
Business Services
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8
Learning Objective
Discuss the unique
aspects of business
buying behavior.
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Business Buying Behavior
Buying Centers
Evaluation Criteria
Aspects of
Business
Buying
Behavior
Buying Situations
Purchasing Ethics
Customer Service
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Buying Center
On Line
http://www.loctite.com
http://www.napm.org
All those persons in
an organization who
become involved in
the purchase decision.
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Roles in the Buying Center
Initiator
Influencers
Gatekeepers
Decider
Purchaser
Users
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Roles in the Buying Center
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Evaluative Criteria for
Business Buyers
8
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Buying Situations
New Buy
Modified
Rebuy
Straight
Rebuy
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Buying Situations
New Buy
A situation requiring the purchase
of a product for the first time.
Modified
Rebuy
A situation where the purchaser wants
some change in the original good or
service.
Straight
Rebuy
A situation in which the purchaser
reorders the same goods or services
without looking for new information or
investigating other suppliers.
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