You are on page 1of 13

Developed

Developed by
by Cool
Cool Pictures
Pictures and
and MultiMedia
MultiMedia Presentations
Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Business Markets

Markets for products and services


Local to international
– Bought by GE

• Businesses
• Government bodies
• Institutions
– For consumption
– For use
– For resale

Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
A Market Driven Firm

Has:
Market sensing capability…companies ability
to sense change and to anticipate customer
responses.
Customer linking…the ability to develop and
manage close customer relationships.

Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Marketing’s Cross Functional Relationship

Business marketing planning must


be coordinated and synchronized
with corresponding planning efforts.

Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Keys to Cross Functional
Working Relationships

 Communications
 Perspective taking
 Responsive behavior
 Compatibility

Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Business Market Characteristics

• Derived demand
• Fluctuating demand
• Stimulating demand
GE

• Price sensitivity/demand
elasticity
• Global Market perspective

Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Relationship Marketing

• All marketing activities directed toward


establishing, developing, and maintaining
successful exchanges with customers.

Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
The Supply Chain

Michael Porter and Victor Millar observed that “to gain competitive
advantage over its rivals, a company must either perform these activities at
a lower cost or perform them in a way that leads to differentiation and a
premium (more value).”

Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Procurement Trends

• Longer term and closer relationships.


• Closer interactions among multiple functions.
• Supplier proximity considerations.

Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Business Market Customer
Commercial Enterprises

• Three categories:
– Users
– OEMs
– Dealers and distributors

Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
Classifying
Goods for the
Business
Market

Classifying industrial goods by


the following questions:
How does the good or service
enter the production process?
How does it enter the cost
structure of the firm?
Source: Adapted from Philip
Kotler, Marketing
Management: Analysis,
Planning, and Control, 4th ed.
(Englewood Cliffs, N.J.:
Prentice-Hall, 1980), p. 172,
with permission of Prentice-
Hall, Inc.

Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
The Internet … Providing Goods & Services

Source: http://www.fao.com

Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.
A Framework for Business Marketing Management
Business marketing strategy
is formulated within the
boundaries established
by the corporate
mission and
objectives.

Developed by Cool Pictures and MultiMedia Presentations Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved.