Professional Documents
Culture Documents
Geographically Geographically
Dispersed Concentrated
Mass Market; Relatively Few
Many Buyers Buyers
Monopolistic Oligopolistic
Competition Competition
A market situation in which there are many A competitive situation in which there are
sellers and many buyers of products which only a few sellers (of products that can be
can be differentiated on price and other differentiated but not to any great extent);
features. each seller has a high percentage of the
market and cannot afford to ignore the
actions of the others.
Copyright © 2011 Pearson Education, Inc., publishing as Prentice Hall 8
5 customers contributing to
80% of the Revenue:
PTC
Pepsi
Fewer & Large Buyers Unilever
P&G
Business
Consumer to
Business
Can be technically
Standardized complex
Customized to user
Service, delivery and
preference
availability only
Service, delivery and
somewhat important
Purchased for availability very
important
personal use
Purchased for other
than personal use
Professionally trained
Individual purchasing
purchasing personnel
Family involvement,
Functional involvement at
influence
Social or psychological many levels
Task motives
motives predominate
predominate
Indirect, multiple
Shorter, more direct
relationships
Organization
Little or no customer
involvement as part of
supply chain
supply chain
involvement
Emphasis on personal
Emphasis on advertising,
selling, dialogue
monologue
Most communications
Companies compete for
invisible to the consumer
visibility and awareness of
Consumer is seldom
consumer market
aware of B2B brands and
companies
Derived
Direct
Inelastic (short run)
Elastic
Volatile (leveraged)
Less volatile
Discontinuous
•Product
•Service
•Image
•Availability
•Quantity
•Evaluated
Price
From Exhibit 1-5: Value Enabling activities Inbound logistics would refer more
include infrastructure, human resources, to the transport, storage and
procurement and technology/technology delivery of goods coming into your
business, whilst outbound
development. Value Creating activities include
logistics refers to the same but for
inbound and outbound logistics, operations, goods going out of your business.
marketing and sales and customer service.
M
Offering:
ar
gi
Human resources
n
th
Procurement
ro
ug
Technology &
Product
h
technology development
va
l
Target
ue
Support activities Service
Added value
Direct activities Image Customers
e
cs cs s a lu Availability
i ti le e v
i st g is sa rvic gh
Quantity
g lo & se ou
lo o ns d g r r
d
at
i un in e th Evaluated Price
o un r o ket m i n
b pe ut
b ar to
ar
g
In O O M Cus M
Creates
Of particular note is that the customer and
the supplier that created the total offering
may perceive it quite differently.