BU352 Chapter Notes - Chapter 5: Business Marketing, Retail, Marketing Mix
Document Summary
B2b marketing sell to businesses instead of consumers: usually these are products that are bought to be used in the production of other product. Manufacturers buy raw materials and turn them into their own goods. Resellers intermediaries that buy a product to resell it without making big alterations: wholesalers, distributors, and retailers. Government one of the largest purchasers of g&s. Differences between b2b and b2c markets: market characteristics. B2c buy g&s to satisfy own needs and are influenced by price, tastes, brand, recommendation by friends/family. B2b demand usually stems from derived demand (which means the demand for a consumer product moves up the supply chain and there is now demand for raw materials) Demand in business markets is inelastic demand won"t change much by price changes. The purchases are significantly larger: product characteristics. Primarily raw or semifinished goods that are processed into finished goods: buying process characteristics. More people are usually involved in more complex buying decisions.