Transcript Document
BASICS OF MARKETING I
Session 7
Understanding Business Markets
SBA SEMESTER ONE
Designed & developed by E4
SESSION 7
BASICS OF MARKETING- I
Learning Objectives
• To understand what constitute business products
• To understand the organization buying behavior
SBA SEMESTER ONE
Designed & developed by E4
SESSION 7
BASICS OF MARKETING- I
Business Marketing
The marketing of goods and
services to individuals
and organizations for
purposes other than personal
consumption.
SBA SEMESTER ONE
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SESSION 7
BASICS OF MARKETING- I
Business Products
• Are used to manufacture other products
• Become part of another product
• Aid the normal operations of an organization
• Are acquired for resale without change in
form
SBA SEMESTER ONE
Designed & developed by E4
SESSION 7
BASICS OF MARKETING- I
Business vs. Consumer Markets
Characteristic
Demand
Volume
of Customers
Location
Distribution
Nature of Buy
Buy Influence
Negotiations
Reciprocity
Leasing
Promotion
Business Market
Organizational
Larger
Fewer
Concentrated
More Direct
More Professional
Multiple
More Complex
Yes
Greater
Personal Selling
Consumer Market
Individual
Smaller
Many
Dispersed
More Indirect
More Personal
Single
Simpler
No
Lesser
Advertising
Ref: Marketing by Lamb
SBA SEMESTER ONE
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SESSION 7
BASICS OF MARKETING- I
Ref: Marketing Management by Saxena
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SESSION 7
BASICS OF MARKETING- I
Influences on
Industrial Buying Behavior
Ref: Marketing Management by Philip Kotler
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BASICS OF MARKETING- I
Categories of Business Customers
Producers
Categories
of Business
Customers
Resellers
Governments
Institutions
Ref: Marketing by Lamb
SBA SEMESTER ONE
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SESSION 7
BASICS OF MARKETING- I
Demand in Business Markets
Demand is...
Description
Derived
Demand for business products results
from demand for consumer products
Inelastic
A change in price will not significantly
affect the demand for product
Joint
Multiple items are used together in final
product. Demand for one item affects all
Fluctuating
Demand for business products is more
volatile than for consumer products
Ref: Marketing by Lamb
SBA SEMESTER ONE
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SESSION 7
BASICS OF MARKETING- I
Types of Business Products
Major Equipment
Accessory Equipment
Raw Materials
Component Parts
Major
Categories
of Business
Products
Processed Materials
Supplies
Business Services
Ref: Marketing by Lamb
SBA SEMESTER ONE
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SESSION 7
BASICS OF MARKETING- I
Business Buying Behavior
Buying Centers
Aspects of
Business
Buying
Behavior
Evaluation Criteria
Buying Situations
Ref: Marketing by Lamb(modified)
SBA SEMESTER ONE
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SESSION 7
BASICS OF MARKETING- I
Buying Center
All those persons in
an organization who become
involved in
the purchase decision.
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BASICS OF MARKETING- I
Roles in the Buying Center
Initiator
Influencers
Purchaser
Gatekeepers
Decider
Users
Ref: Marketing by Lamb
SBA SEMESTER ONE
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BASICS OF MARKETING- I
Evaluative Criteria
Ref: Marketing by Lamb
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BASICS OF MARKETING- I
Buying Situations
New Buy
A situation requiring the purchase
of a product for the first time.
Modified
Rebuy
A situation where the purchaser wants some
change in the original good or service.
Straight
Rebuy
A situation in which the purchaser reorders the
same goods or services without looking for new
information or investigating other suppliers.
Ref: Marketing by Lamb
SBA SEMESTER ONE
Designed & developed by E4
SESSION 7
BASICS OF MARKETING- I