MKTG 2030 Chapter Notes - Chapter 6: Final Good, Cross-Functional Team, Gust Co. Ltd.
6 Nov 2014
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Marketing of g&s that business and organizational customers need in order to produce other g&s for resale or to support their operations. Business to business customers include manufacturers, wholesalers, retailers etc. Market for business and organizational goods is 4x larger than the consumer market. Means a limited # of potential customers: size of purchases: business purchases are much larger than consumer purchases in quantity of items ordered and price of individual purchases. Generally, business demand is derived, inelastic, fluctuating and joint. Derived: whereas consumer demand arises from the desire to fulfill a need, a business"s demand for g&s comes directly from consumers" demand (ex. derived demand for textbooks comes from a demand for education). Derived demand means that some industries rely on the successes of others so marketers need to be aware of changes in consumer trends as these affect b2b sales. Inelastic: regardless of whether the price of a b2b product rises/falls, customers will still buy the same quantity.
