An Overview of Marketing

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Lamb, Hair, McDaniel
CHAPTER 7
Business Marketing
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What Is Business Marketing?
Business Marketing The marketing of goods and
services to individuals and organizations for
purposes other than personal consumption.
Business products are used to 1. manufacture
other products 2. become part of another
product 3. support operations of an
organization 4. resale without change in form
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Business Marketing on the Internet

• B2B marketing and B2B ecommerce are becoming
  popular. www.alibaba.com
• Trends in B2B marketing-us of social media is
  increasing substantially. Examples LinkedIn,
  Facebook, Blogs, Twitter, YouTube
• Disintermediation is a trend
• Becoming more global. Example-K-Pop or Korean
  Music (gannam style)

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Measuring Online Success
A measure of a Web siteseffectiveness
calculated by multiplying the frequency of visits
times the duration of a visit times the number of
pages viewed during each visit.
Stickiness Frequency x Duration x Site Reach
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Evolution of E-Business Initiatives
Time
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Business Relationship and Strategic Marketing

• Loyal customers are more profitable than
  price-sensitive customers with little brand
  loyalty
• Long-term relationships build competitive
  advantage
• Companies form strategic alliances to gain
  competitive advantage

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Business Market Customers
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NAICS
A detailed numbering system developed by the
U.S., Canada, and Mexico to classify North
American business establishments by their main
production processes.
North American Industry Classification System
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NAICS

• Provides a common industry classification system.
  http//www.census.gov
• 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
• New customer identification

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How NAICS works
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Business vs. Consumer Markets
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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
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Ch 7 Discussion Questions

• What is a business market? How does it differ
  from consumer market?
• What are the major categories of business
  customers? How do they vary among themselves?
• What is NAICS? How does it help the marketing of
  a product or service?
• Explain the role of Internet in Business
  Marketing.