MKTG 2030 Chapter Notes -North American Industry Classification System, Extranet, Intranet
Document Summary
Chapter 5: business-to-business markets: how and why organizations buy. 5. 1 business markets: buying and selling when the customer is another firm. Business-to-business (b2b) markets (aka organizational markets) the groups of customers that include manufacturers, wholesalers, retailers, and other orgs like hospitals, universities and gov"t agencies. Factors that make a difference in business markets. Multiple buyers: the product must meet the requirements of everyone involved in the company decisions. Size of purchases: larger purchases that equal a lot more money. Geographic concentration: many businesses are located in a small geographic area rather than being spread out across the country (can concentrate sales efforts, for example) Derived demand is derived directly or indirectly from consumer demand for another g/s. Fluctuating demand: even small changes in consumer demand can largely impact demand- one reason is that businesses tend to order certain product infrequently. Joint demand occurs when two or more goods are necessary to create a product.