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| Commerce conducted using interenet based exchanges. Business or organizations locate eachothers good and services via-ecommerce forums |
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the marketing of goods and serices to business customers that need them to enable their production of goods and services. A buisness may purchase goods and services that are:
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B2B marketing business may purchse products that are.
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1. part of the prodcut/service they make and sell (Ford buying auto parts) or raw materials such as shoe leather
2. Resold: such as when ford purchases nissan cars and puts their name on it.
3. Value added resellers take a product and modify it for a customer ( when IT consultants buy software then modify it for resale, such as protviti buying ap software and customizing it for resale
4. in suppoer of their operations (consumables such as copy paper and hand soap) |
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| the group of custo,er that include manufactuers, wholesalers, retailers, and other organizations. In comparison to B2C they are charcterized as a small # of customers, yet a huge $ amount |
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Business purchases are classified as being one of three types. The three classifications are based on the degree of time and effort required to make a decision.
the three categories are:
1) straight re buy
2) modified re buy
3) new tak buy |
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| The group of people in an organization who participate in purchase desicions. Can include purchasers, legal, engineering and other advisors. These can be full time purchasing dept employees or called in as needed |
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| demand for business or organizational products (tires) caused by demand for consumer goods of services (autos) |
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| Inter Organizational System (IOS) |
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| a private or corporate somputer network that links compnay departements, employees and databases to suppliers, customers, and other outside organizations. An exampe is the wal mart- extranet that suppliers have to sue to communicate order infor or a system build on SAP's Enterprise resource Planning (ERP system) |
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| the federal, state, county, and local governements that buy goods and services to carry out public objectives and to support their operations |
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| Demand in which changes in price have little or not effect of the amount demanded. Companies hope that their product is inelastic |
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| a kind of demand that occurs when the demand for two or more products are interdependent, normall because the two are used together |
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one of the three buying classifications used by businesss buyers. A previously made purchases that invloves some change and that requires limited decision making to deal with the changes is called a modified re buy.
ex. instead of buying a new fleet of rental cars they purchase a fleet of hybrid cars |
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| the busines practice of buying a particular product from several different suppliers. Doing this can keep price down as the companies compete for your business |
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| a new b2b purchase that is complex or risky and that requires extensive decision making. Occurs when you have no experience buying the product or service. |
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| the busines buying process of obtaining outside vendors to provide goods/services that otherwise might be supplied in house. Examples are outsourcing tax accounting and preperation or outsourcing legal representation. |
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| E-commerce sustems that link an invted group of supplies and partners over the web. These are industry groups organized around the production of for example, metal, steel ceramics etc. |
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| Prodcut Specifications (specs) |
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| a written description of the quality size weight and so forth required of a product purchase. When creating an RFP a business defines the specs they need the requested prodcuts/services to meet. the more the detailed the specs the highger the product or service quality will be |
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| a trading partnership in which two firms agree to buy from one another. |
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| Request for Proposal (RFP) |
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| a company asks suppliers to place bids (proposals) on a job such as to build a building or provide component parts. Proposals are needed as the job specs are unique (construction job) |
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| a company asks suppliers to provide quotes for the off sheldf needed products |
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| the individuals or organizations that buy finished goods for the purpose of reselling, renting, leasing to others to make a profit and to maintain their buisness operations. Could be value added resellers, where a company customizes or modifies a product for their customers or just a retailer |
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| the buiness practice of buying particular products from only one supplier. This is pretty risky. Many technology companies try to lock a customer in by using proprietary technologies |
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| a buying situation in which business buyers make routine purchases that require minimal decision making, re-buy the same product from a pre approved vendor. The choice of vendor, delivery specs, and price may change though, not the the product |
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| a maketing heurisitc that claims that 20% of purcahses account for 80% of a products sales. |
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the segment of people born between 1946-1964.
Know that GenX, GenY, Gen I, Greatest generation |
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| a technique that divides consumers into segments on teh basis of how they act toward, feel about or use a good or service |
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| a distinctive image that captures a good ro servies character and benefits |
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| Concentration Targeting Strategy |
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| focusins a firms efforts on offering one or more products to a single segment |
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| Custom Marketing Strategy |
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| an approach that tailors specific producs and the messages about them to individual customers. |
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| Customer Relationship Management |
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Definition
a philosphy that sees marketing as a process of building long term relationships with customers to keep them satisified and teo keep them coming back. Involves systematically tracking customers preferences and behaviors over tiem in order to tailor the value proposition as closely as possible to each individuals uniqe wants and needs.
purpose is to increase revenues, profits, and customer service by understanding customer preferences. |
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| statistics that measure observably aspects of the population including size, age, gender, ethnic group, income, education, occupation, and family structure |
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| Differentiated targeting strategy |
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| developing one or more products for each of several distinct customer groups and making sure these offerings are kept seperate in the market place |
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marketing to members of a generation who tend to share the same outlook and priorities.
Ex. Baby boomers, genX etc. |
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| customizing advertising so that people who live or log on in different places will be xposed to advertising for local businesses. |
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| a segmentation technique that combines geography with demographics. Map demogrpahic customer segmetns to neighborhood/regions |
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| Lifetime value of a customer |
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| an estimation of the potential profit that one conusmer may provide over their lifetime |
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| the creation of many consumer groups (segments) due to a diverstiy of distinct needs and wants in modern society |
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| an approach that modifies a basic good ro service to meet the needs of an individual |
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| a vivd way to construct a picture of where products are located in the customers mind |
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| Developing a marketing strategy aimed at influencing how a particular market segment percieves a good or service in comparison to the competition. |
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| the use of psychology, sociology, and anthropological factors to construct market segments. Segments are fomed based on attitudes, interest, and opinions |
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| updating a products position to respont to new marketplace changes |
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| a description of a typical customer in a segment |
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| the process of dividing a larger market into smaller pieces based on one or more meaningful shared characterisitics. |
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| dimensions that divide the total market into fairly homgeneous groups, each with different needs and preferences |
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| the precentage of an individual customers purchase of a product that is a single brand |
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| the market segments on which an organization focuses its marketing plan and toward which it directs its marketing efforts. |
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| Dividing the total market into different segmentss on the basis of consumer characterisitics, selecting one or more segments and developing products to meet the needs of those specific segments |
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| a strategy in which marketers evaluate the attractivness of each potential segment and decide in which of these groups they will invest resources to try and turn them into consumers. |
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| Undifferentiated targeting strategy |
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| appealing to a broad spectrum of people |
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| an indicator used in one type of market sgmentation based on when consumers use a product most |
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| the physical good or the delivered service that supplies the desired benefit |
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| the actual prodcut plus other supported features such as warranty, credit, delivery, installation, bundled services and repair services after the sale |
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| the step in the product development process in which a new procuct is launched into the market |
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| the tep in the product development process in which a marketer assess a products commercial viability. |
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the extent to which a new innovation is consistent with the target markets existing cultural values, customs, and practices.
Ex. Ipod was compatable with peoples desire to control the music they carried around and listened to. |
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| the degree to which consumers find a new innovation or its use difficuly to understand, learn and us. Opposite of ease of use |
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a change (improvement) in an existing product that requires no consumer learning.
ex. chaning from hard drive to flash memory |
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| Dynamically continuous innovation |
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| a change in an exisiting product that requires moderate amount of learning or behavior change (switching from gas to hydrogen cars) |
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| a consumer good or service that is usually low priced, widely available, or purchased frequently with a minimum of comparison or effort |
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the coming together of two or more technologies or industries to create a new system with greater benefits that it's parts.
Ex. Phones that can surf the web and make calls |
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all the benefits the prodcut will provide for consumers or business customers.
ex. what are all the benefits from getting a hari cut (style) |
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| the process by which the use of a product spreads throughout the population |
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| Discontinuous (disruptive) innovation |
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| a totally new product that creates major changes in the way we live. Some examples are pc's, fridges, email |
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| consumer products that provide benefits over a long period of time usually many years. Such as cars, furniture |
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| is a measurement tool that gauges the difference between a customers expectations of product or service quality and that level which actually occured. |
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| a tangible product that we can see, touch, hear or smell or taste |
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| the first step of product development in which marketers brainstorm for products tha provide customer benefits and are compatible with the company mission |
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| a product that consumers percieve to be a new and different from existing products. |
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consumer products that provide benfits for a short time b.c they are consumed or are no longer useful
ex. food or yesteday's paper |
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| Product concept development and screening |
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| the second step of product development in which marketers test product ideas for technical and commercial success. |
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| the process by which a consumer or business customer beings to buy and use a new good or service or idea |
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| test versions of a proposed product |
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| the degree to which a consumer perceives that a new product provides superior benefits that existing products. |
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| basic or necessary items that are available almost everywhere |
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a good or service for which consumers spend consdierable time and effort gathering information and comparing alternatives before making a purchase. Consumers have enduring involvenment for shopping products.
ex. coffee beans |
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| the fee that retail vendors charge to a manufacturer or wholesaler to ensure a good prodcut placement. For example, the products are placed at the front of the store, end of each aisle etc. |
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| a type of good or service that has unique characterisitcs which often makes the consumer brand loyal. There are probably not any generics for the product (pepto bismol) |
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| the step in the product development process in whcih a new product is refined and perfected by company engineers |
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| testing the complete marketing plan in a small geographic area that is similar to the larget market the firm wishes to enter. |
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| the ease of sampling a new product and its benefits. For example, test driving a car. |
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| goods or services for which a consumer has little awareness or interest untill the product or a need for the product is brough to his or her attention |
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| a name, term, symbol or any other unique element of a product that identifies one firm products and sets is apart from the competition. |
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| based on sales projections, brand equity is the financial value of a brand to an organization. The value of a product line is greatly increased when the product line is branded. |
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a company leveraged its strong brand to enter a new market. A brand extension is anew branded product or service sold under the same brand name. Can be an extension to the product line or an entirley new product line which makes it an extensio to the prodcut mix.
ex. tgi fridays frozen food |
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| organizational employee whom is responsible for developing, implementingm and refining the marketing plan for a single brand. this person makes sure the marketing communications and 4p's are consistent across the product line, so that the products fit together. Also runs studies to see how the brand affects the consumer |
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when a company's products sells a lot and eats the sales of the current product line. the loss of sales of an existing brand or product line when a new item in a product line or product family is introduced.
ex. coke zero made sales fo coke classic dip |
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an agreement between to brands to work together in marketing a new product.
Ex. Eddie bauer and ford making suburbans |
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| the final stage in a prodduct life cycle, during which a sales decrease as customer needs change and lose interest. product may be pulled or sold of to specialty vendor |
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a bran that a group of individual products or individual brands share.
Ex. All microsoft products have the word microsoft on them.
Opposite is individual branding where you make a ton of different products under different names |
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| no brand= product is a commodity (large bins at winco). products are not branded and are sold at lowest price. |
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| the second stage in the prodcut life cycle, during which the product is accepeted and sales rapidly increase. |
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one company buys a license to incorporate the other brand in its recipe or design. Branded materials are used as ingredients or component parts of other branded products. ( M&M's blizzard at mcdonalds).
Or when a company pays another to highlght the fact it is part of a product. |
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| the first stage in the product life cycle=the introduction of a new product in the marketplace. Equivalent to commercialization phase of the product innovation cycle. |
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an agreement in which one firm sells another firm the right to use a brand name for specific purposes and for specified time.
Ex. generic toy company licensing spiderman logo to create new toys
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| organizationl employee who is responsible for developing and implementing the marketing plans for products sold to a particular customer group |
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| the third and longest stage in the product life cycle, during which sales peak and profit margins narrow as competition gets stiffer |
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| National or manufacturer brands |
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| brands that are owned by the manufacturer of the product. This is the normal case. |
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| the covering or container for the product the provides product orientation, protection, facilitates the product use and storage, and supplies important marketing communication such as instructions |
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brands that are owned and sold by a certain retailer or distributor
ex. Safeway selects |
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| Product category managers |
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individuals who are responsible for developing and implementing the marketing plan for all the branded products within one product line.
ex. all tide detergents for P&G |
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| a concept that explains how products go through four distinct stages from birth to death: Introduction, growth, maturity and decline, not all products die tho |
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a firms total product offering designed to satisfy a single need or desire of target customers.
Ex. all flavors of starbucks coffee beans |
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| the total set of all product lines a firm offers for sale, the product mix can be one product line or many (narrow or wide) |
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| this is a brand that has been on the market line for a long time, like chuck taylors. The marketing strategy is to rejuvinate interest in the product to resonate with current consumers. |
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| a management philosophy that incorporates the ideals of continuous improvement and a myriad of performance measures. TQM measures indicate whether in fact business performanc is improving, stagnant or declining. |
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| the legal term for brand name, brand mark, or trade character; trademarks need to be legally reigstered by a governement to obtain protection for exclsuive use in the country or territory. |
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| groups of people within an organization who work together, focus exclusivley on the development of a new product. |
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