1. Strategic Marketing Chapter 6 Learning Outcomes Describe business marketing Describe the role of the Internet in business marketing Discuss the role of relationship marketing and strategic alliances in business marketing Identify the four major categories of business market customers LO I LO 2 LO 3 LO 4

2. Learning Outcomes Explain the North American Industry Classification System Explain the major differences between business and consumer markets Describe the seven types of business goods and services Discuss the unique aspects of business buying behavior LO 5 LO 6 LO 7 LO 8

3. Describe business marketing What Is Business Marketing? LO I

4. Business Marketing The marketing of goods and services to individuals and organizations for purposes other than personal consumption. Interesting fact: The US Government is the WORLD’S largest single customer LO I What Is Business Marketing?

5. LO I 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 Business Products The key is intended use.

6. Describe the role of the Internet in business marketing Business Marketing on the Internet LO 2

7. Stickiness A measure of a Web site’s effectiveness; calculated by multiplying the frequency of visits times the duration of a visit times the number of pages viewed during each visit. Measuring Online Success Stickiness = Frequency x Duration x Site Reach

8. REVIEW LEARNING OUTCOME The Internet in Business Marketing LO 2 THEN NOW Reduce costs Build partnerships and alliances Build and support branding Develop customer-focused technology and systems Integrate online and traditional media Revenue Generation Basic Marketing Communication Business Internet Uses and

9. Discuss the role of relationship marketing and strategic alliances in business marketing Relationship Marketing and Strategic Alliances LO 3

10. Strategic Alliance Strategic Alliances A cooperative agreement between business firms (strategic partnership).

11. Identify the four major categories of business market customers Major Categories of Business Customers LO 4

12. Major Categories of Business Customers Producers Resellers Governments Institutions OEMs Wholesalers Retailers Federal Municipal Local SchoolsHospitalsColleges ChurchesUnionsFraternal groups Civic ClubsFoundations Nonbusiness organizations

13. LO 4 Original Equipment Manufacturers Producers OEMs. Individuals and organizations that buy business goods and incorporate them into the products that they produce for eventual sale to other producers or to consumers.

14. REVIEW LEARNING OUTCOME Business Market Customers LO 4 Business Marketing Institutions Resellers Wholesalers Retailers Producers OEMs Governments Federal State Municipal County Unions Civic Clubs Other Churches Foundations Nonprofits

15. Explain the North American Industry Classification System North American Industry Classification System LO 5

16. NAICS LO 5 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

17. LO 5  Provides a 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 –New customer identification NAICS

18. Explain the major differences between business and consumer markets Business versus Consumer Markets LO 6

19. CharacteristicCharacteristic 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 Consumer Market Individual Smaller Many Dispersed More Indirect More Personal Single Simpler No Lesser Advertising LO 6 Business versus Consumer Markets

20. LO 6 Demand is... DescriptionDescription 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. Demand in Business Markets

21. Describe the seven types of business goods and services Types of Business Products LO 7

22. 22 LO 7 Major Equipment Accessory Equipment Raw Materials Component Parts Processed Materials Supplies Business Services Types of Business Products Online http://www.sysco.com

23. Discuss the unique aspects of business buying behavior Business Buying Behavior LO 8

24. Customer Service Business Ethics Buying Situations Evaluative Criteria Buying Centers Aspects of Business Buying Behavior Aspects of Business Buying Behavior Business Buying Behavior

25. Buying Center LO 8 Buying Centers All those persons in an organization who become involved in the purchase decision.

26. LO 8 Initiator Influencers Gatekeepers Decider Purchaser Users Roles in the Buying Center Online http://www.loctite.com

27. LO 8 Evaluative Criteria 1.Quality 2.Service 3.Price

28. LO 8 New Buy A situation requiring the purchase of a product for the first time. Modified Rebuy Modified Rebuy A situation where the purchaser wants some change in the original good or service. Straight Rebuy Straight Rebuy A situation in which the purchaser reorders the same goods or services without looking for new information or investigating other suppliers. Buying Situations

29. Business Ethics Ethical behavior refers to moral principles or values that govern the conduct of companies. Companies publish a code of ethics which help guide buyers and sellers.

30. REVIEW LEARNING OUTCOME Business Buying Behavior LO 8 Customer service Initiator Influencer Decider Gatekeeper Purchaser User Buying Center  Quality  Service  Price Evaluative Criteria Buying Situations New buy Straight rebuy Modified rebuy