Class Notes (835,598)
Canada (509,274)
Business (634)
BUSI 2204 (58)
Lecture 4

Lecture 4 Jan 28th 2014.docx

7 Pages
94 Views
Unlock Document

Department
Business
Course
BUSI 2204
Professor
Les Melamed
Semester
Winter

Description
Lecture 4                                                                                                                    Jan  28  2014 B­to­B Marketing Market and Product • Market o Demand for business products is derived o Fewer customers, more geographically concentrated, and orders are larger o Demand is more inelastic, fluctuates more and more frequently • Product o Products technical in nature, purchased based on specifications o Mainly raw and semi­finished goods o Heavy emphasis on delivery time, technical assistance, after sale service The Buying Process • Buying decisions more complex • Competitive bidding, negotiated pricing, complex financial arrangements • Qualified, professional buyers – more formalized buying process • Buying criteria and objective specified • Multiple participants in purchase decisions • Reciprocal arrangements common • Close long­term relationships • Online buying common  Controllable Marketing Mix – 4 p’s • Direct selling and physical distribution often essential  • Advertising more technical, promotions emphasize personal selling • Price often negotiated, inelastic, affected by trade/quantity discounts • Multiple participants in purchase decisions • Close long­term relationships with customers Business Buying Process • Recognition of a need • Information search o Definition of the product type needed o Development of detailed product specification o RFP process: search for qualified suppliers • Alternative evaluation o Acquisition and analysis of proposals • Buying Center: Initiator; Influencer; Decider; Buyer; User; Gatekeeper • Organizational Culture: Consensus; Consultative; Autocratic • Buying Situations; New Purchase, Modified rebuy; Straight Rebuy Buying Situations • Straight rebuy: Buying more of what has previously been bought Current Suppliers have the advantage Most frequent B2B purchase • Modified Rebuy: Buying a similar product with minor modifications Current suppliers also have the advantage • New Buy: An item that has not been bought before Gives an opportunity for new suppliers Chapter 7: Segmentation Segmentation Focus Segmentation, targeting, and positioning process The basis of segmentation Evaluating the attractiveness of segments Selecting target markets – segmentation strategies Identifying and developing positioning strategies Market Segmentation: Rationale Customers are not uniformly homogeneous with respect to their needs (1) and the value  they provide (2) This different customers have to be served differently in order to provide value for them But there exists groups of customers that might be served in a  similar fashion Hence segmentation to Choose the customers to serve Choose the customers not to serve  Not all potential and actual customers are equal Segmentation, Targeting, Positioning Process Segmentation Set strategy and objectives (discussed before) Segment Targeting Evaluate segment attractiveness Positioning After Segmentation Depending in the basis of segmentation, one may need one or more: Different products for different segments Different promotional methods for different segments Different distribution channels – place – for different segments Different prices for different segments Segmentation Base Sample Segments Geographical  Country, province, city, urban, rural,  climate Continent: North America, Asia, Europe,  Africa Region: Atlantic, Central, Western Canada Demographic Age, gender, income, education,  occupation, ethic background, religion,  family life cycle, etc. Psychographic Lifestyles, Values, personality, self concept Behavioral Benefits sought, usage rates, user status,  loyalty Geographic Segmentation •  
More Less

Related notes for BUSI 2204

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit