understand the different kinds of business customers and the differences in marketing issues...
TRANSCRIPT
Understand the different kinds of business customers and the differences in marketing issues associated with each
Understand the different categories of business marketers within each major types and related differences in marketing issues
Understand the different product types and associated marketing issues.
Investigate how the environmental influences on business marketers affect choices and challenges in marketing products and services
For next time:
Commercial Enterprises
Government Units
Non-Profit and Not-for-
Profit Organization
s
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I. Industrial DistributersII. Value Added ResellersIII. Original Equipment
Manufacturers (OEM)IV. Users and End Users
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Supplier of copper wire to manufacturers
Supplier of rear axle assemblies to heave truck manufacturers
A distributor of private telephone exchange equip.
Supplier of automated assembly equipment
VARS Users Component
producers Raw material
producers
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Provide 4 types of utility: o Form, Time, Place, Possession
Assortment of Products from many manufacturers based on segment needs“Reduce the discrepancy of assortment”
Serve smaller customers where direct representation is not efficient
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More than just a distributor
Provides unique, complete offering from many sources
Creates a value network at the user level
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Purchase products and incorporate those products into their products
Usually the largest-volume users of goods and services
Ex: Intel is an OEM to many computer manufacturers. Goodyear is an OEM to the auto industry.
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A manufacturer that purchases goods or services for consumption or incorporation into its own products
Identity of the purchased product becomes lost
Ex: When Goodyear purchases steel for fabrication of steel belts for tires, Goodyear is the steel manufacturer’s end user
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What are some of the differences between marketing to a typical commercial enterprises and government agencies?
More than 35% of GNP Largest consuming group in the United
States
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Consumer grouping consists of: o Hospitalso Churcheso Collegeso Nursing Homes
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Raw Material
Producers
Component Parts and
Manufactured Materials Producers
Accessory Equipment Suppliers
Capital Goods
Manufacturers
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Raw Materials Producer
Compete in price sensitive markets Seek Value Added positions Product loses identity once
incorporated into customer’s product
Dominated by a few very large producers
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Component Parts and Manufactured Materials
Producers Parts retain their same form
when incorporated Retain identity when
incorporated into consumer’s product
Differentiated by value added
EX: Seagate Disc Drives in Hewlett Packard Computers
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Capital Goods Manufacturer
Consists of large purchases with high risk to customer
Many parts of customer organization involved in decision
Customers expect installation, equipment and accessories
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Accessory Equipment Suppliers
Equipment that works with another offering
Accessories can be added to a bundle opportunity by a channel intermediary
Produced by an independent supplier Add value by complying with industry
standards for primary offering
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Communities of interested parties who are not direct participants in a market as customers, channel members, suppliers or competitors.
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Financial Publics Independent Press Public Interest Groups Internal Publics
o All may have interests because of economic or societal effects of activities
o Often may be considered stakeholders in the buying center
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How can the agenda and focus of financial publics and public interest groups create seemingly opposite goals for business-to-business marketers?
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Influence Value Creation
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Influences value creation, behavior of market participants
Various Types:o Pure Competitiono Monopolistic Competitiono Oligopolistic Competitiono Pure Monopoly
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Exhibit 2-3: The Multidimensional Value Network
Efforts of collaborators at different levels in the Value Network combine to create the total offering for the customer. See Chapter 1, Exhibit 4 for greater detail.
Efforts of collaborators at different levels in the Value Network combine to create the total offering for the customer. See Chapter 1, Exhibit 4 for greater detail.
TotalOffering
Value Activities
ValueEnabling
ValueCreating
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Exhibit 2-5: The Product Life Cycle (PLC)
DeclineDecline
IntroductionIntroduction
GrowthGrowth
MaturityMaturity
TimeTime
Sales Revenue/
period
Sales Revenue/
period
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Exhibit 2-6: The Technology Adoption Life Cycle (TALC)
Technophiles
Technophiles
Visionaries
Visionaries
LaggardsLaggards
TimeTime
Sales from New Adopters/
period
Sales from New Adopters/
period
PragmatistsPragmatistsConservativ
esConservativ
es
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TALC and PLCExhibit 2-7: A Hypothetical TALC and PLC for Wireless LANs
TALC - Sales from New Adopters/ period
TALC - Sales from New Adopters/ period
PLC -Total Sales
PLC -Total Sales
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What market characteristics make it unlikely that pragmatists will easily follow the role of model of visionaries?
Relate the PLC and the chasm with particular emphasis on market factors that undergo change from introduction to rapid growth of an offering.
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