An Overview of Marketing

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Lamb, Hair, McDaniel
CHAPTER 7
Business Marketing
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What Is Business Marketing?
BusinessMarketing
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Business Products

• The key is intended use.

• 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

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Types of Business Products
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Measuring Online Success
A measure of a Web siteseffectiveness
calculated by multiplying the frequency of visits
times the duration of a visit times the number of
pages viewed during each visit.
Stickiness Frequency x Duration x Site Reach
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Evolution of E-Business Initiatives
Time
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Business Relationship and Strategic Marketing

• Loyal customers are more profitable than
  price-sensitive customers with little brand
  loyalty
• Long-term relationships build competitive
  advantage
• Companies form strategic alliances to gain
  competitive advantage

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Business Market Customers
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NAICS
A detailed numbering system developed by the
U.S., Canada, and Mexico to classify North
American business establishments by their main
production processes.
North American Industry Classification System
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NAICS

• Provides a common industry classification system
• Valuable tool for marketers in analyzing,
  segmenting, and targeting markets
• Data can be used to determine
• Number, size, and geographic dispersion of firms
• Market potential / market share estimates
• Sales forecasts
• New customer identification

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How NAICS works
NAICS Level NAICS Code Description
Sector 51 Information
Subsector 513 Broadcasting and telecommunications
Industry group 5133 Telecommunications
Industry 51332 Wireless telecommunications, except satellite
Industry subdivision 513321 Paging
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Business versus Consumer Markets
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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.
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Types of Business Goods and Services
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Business Buying Behavior
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Business Buying Behavior
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Ch 7 Discussion Questions

1. What is business decision making process? How
   does business market differ from consumer market?
2. What are the major categories of business
   customers? How do they vary among themselves?
3. What is NAICS? How does it help the marketing of
   a product or service?
4. Explain the role of Internet in Business
   Marketing.