Business Marketing

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Chapter 6
Business Marketing
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Objectives

• 1. Describe business marketing.
• Identify the four major categories of business
  market customers.
• 3. Explain the North American Industry
  Classification System.
• Explain the major differences between business
  and consumer markets.
• Discuss the unique aspects of business buying
  behavior.

3
What is Business Marketing?
Shoes

• Hide dealers sell hides to tanners
• Tanners sell leather to shoes manufacturers
• Manufacturers sell shoes to wholesalers
• Wholesalers sell shoes to retailers
• Retailers sell to consumers
• Each party in the supply chain also has to buy
  many other goods and services

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What is Business Marketing?Marketing of goods
services to individuals organizations for
purposes other than personal consumption
Business Products

• Are used to manufacture other products
• Become part of another product
• Aid the normal operations of an organization
• Are acquired for resale without change in form

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Categories of Business Customers
Categories of Business Customers
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NAICS Codes replace SIC North American Industry
Classification System, Standard Industrial
Classification

• Provides common industry classification system
• Valuable tool for marketers in analyzing,
  segmenting, and targeting markets
• Data can be used to determine
• Number of establishments in industry
• Sales volumes
• Number of employees
• Growth and geographic trends
• Declining industries

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Business vs. Consumer Markets
Demand
Volume
of Customers
Location
Nature of Buying
Buying Influence
Negotiations
Reciprocity
Leasing
Promotion
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Business vs. Consumer Markets
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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Types of Business Products
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Business Buying Behavior
Aspects of Business Buying Behavior
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Roles in the Buying Center
Decider
Initiator
Influencers
Gatekeepers
Purchaser
Users
Back
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Evaluative Criteria for Business Buyers
Back
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Buying Situations
Modified Rebuy Changes are desired in the
original product
StraightRebuy Original product is
reordered
Back
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Stages in the Buying Process New Task

• Problem Recognition
• General Need Description
• Product Specification
• Supplier Search
• Proposal Solicitation
• Supplier Selection Example
• Order-Routine Specification
• Performance Review

15
An Example of Vendor Analysis
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