IBM 301 Lecture Notes - Lecture 7: Chaebol, Keiretsu
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Published on 20 Mar 2019
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Chapter 7: Business Marketing
What is Business Marketing?
● The marketing of goods and services to individuals and organizations for purposes other
than personal consumption
Business Products
● Are used to manufacture other products
● Become part of another product
● Aid the normal operations of an organization
● The key is intended use
Relationship Marketing
● Loyal customers are more profitable than price-sensitive customers with little brand
loyalty
● Long-term relationships build competitive advantage
Strategic Alliances
● Licensing or distribution agreements
● Joint ventures
● Research and development consortia
● Partnerships
Relationships in Other Cultures
● Keiretsu (Japan) or Chaebol (Korea) relationships are highly integrated:
○ Companies have executives sitting on each others’ boards
○ Maintain dedicated trade efforts
○ Joint development, finance, and marketing
Major Categories of Busines Customers
● Producers
○ OEMs
● Resellers
○ Wholesalers
○ Retailers
● Governments
○ Federal
○ State
○ Local
● Institutions
○ Schools
○ Churches
○ Civic clubs
○ Hospitals
○ Unions
○ Foundations