CH 13 Degrees of Newness

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Products and Services for Business
Chapter
13
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Major Categories U.S. Exports
Category Percentage
Services Total 28.5
Travel (hotels, etc)
8.7 Transportation (fares, freight, and port
services) 7.5 Commercial,
professional, and technical services
(advertising, accounting, legal,
construction, engineering)
1.7 Financial services (banking and insurance)
1.5 Education and training services
(most foreign student tuition)
1.0 Entertainment (movies, books, records)
0.8 Other categories (telecommunications,
information, health care) 7.3
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Source U.S. Department of Commerce,
http//www.doc.gov. 2001
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Major Categories U.S. Exports
Category Percentage
Merchandise Total 71.5
Food, feeds, and beverages (wheat, fruit, meat)
4.8 Industrial supplies (crude oil,
plastics, chemicals, metals)
15.1 Capital goods (construction equipment,
aircraft, computers telecommunication)
32.1 Automotive vehicles, engines, and
part 7.7 Consumer goods
(pharmaceuticals, tobacco, toys, clothing)
8.2 Other categories 3.6
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Irwin/McGraw-Hill
Source U.S. Department of Commerce,
http//www.doc.gov. 2001
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An Example of Derived Demand
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SOURCE Adapted from R.L. Vaile, E.t.Grether, and
R. Cox, Marketing in the American Economy (New
York Ronald Press, 1952), p.16. Appears in
Robert W. Hass, Business Marketing, 6th edition
(Cincinnati, OH Southwestern, 1995) p.115
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The Industrial Product Market
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? Lack of Universal Standards
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The Stages of Economic Development

• Preindustrial/Precommercial Stage
• Preconditions for Take-Off
• Take-Off
• Drive to Maturity
• Age of Mass Consumption

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ISO 9000
ISO 9000 is the registration and certification
of a manufacturers quality system. It relates
to generic system standards that enable a company
through a mix of internal and external audits, to
provide assurance that it has a quality control
system. It is a certification of the production
process only, and does not guarantee that a
manufacturer produces a quality product or
service.
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Effective Competition Requires

• Effective Service
• Prompt Deliveries
• Available Spare and Replacement Parts
• Installation and Training

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Reading Industrial Customers

• Print Advertising
• Catalogs
• Websites
• Direct Mail
• Trade Shows/Fairs

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Percentage of Media Budget Spent on Participation
in Trade Events
U.S. Europe
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