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Business Markets

Local to international– Bought by

• Businesses• Government bodies• Institutions

– For consumption– For use– For resale

GE

Markets for products and services

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A Market Driven Firm

Market sensing capability…companies ability to sense change and to anticipate customer responses.

Customer linking…the ability to develop and manage close customer relationships.

Has:

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Marketing’s Cross Functional Relationship

Business marketing planning must be coordinated and synchronized with corresponding planning efforts.

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Keys to Cross Functional Working Relationships

CommunicationsPerspective takingResponsive behaviorCompatibility

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Business Market Characteristics

• Derived demand• Fluctuating demand• Stimulating demand• Price sensitivity/demand

elasticity• Global Market perspective

GE

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Relationship Marketing

• All marketing activities directed toward establishing, developing, and maintaining successful exchanges with customers.

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Michael Porter and Victor Millar observed that “to gain competitive advantage over its rivals, a company must either perform these activities at a lower cost or perform them in a way that leads to differentiation and a premium (more value).”

The Supply Chain

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Procurement Trends

• Longer term and closer relationships.• Closer interactions among multiple functions.• Supplier proximity considerations.

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Business Market CustomerCommercial Enterprises

• Three categories:– Users– OEMs– Dealers and distributors

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Classifying industrial goods by the following questions:

How does the good or service enter the production process?

How does it enter the cost structure of the firm?

Classifying Goods for the Business Market

Source: Adapted from Philip Kotler, Marketing Management: Analysis, Planning, and Control, 4th ed. (Englewood Cliffs, N.J.: Prentice-Hall, 1980), p. 172, with permission of Prentice-Hall, Inc.

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The Internet … Providing Goods & Services

Source: http://www.fao.com

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A Framework for Business Marketing Management

Business marketing strategy is formulated within the boundaries established by the corporatemission andobjectives.