ch 7

Describe Business Marketing
Describe Trends in B-to-B Internet Marketing
Discuss the Role of Relationship Marketing and Strategic Alliances in Business Marketing
Identify the Four Major Categories of Business Market Customers

Business marketing is also known as industrial, B-to-B (business-to-business) marketing.
It involves marketing goods and services to individuals and organizations for purposes other than personal consumption.
Key Characteristic: The distinguishing factor between business products and consumer products is the intended use, not physical form.
Examples:
- Sale of PCs to organizations (school, university).
- Business products: Used to manufacture other goods, facilitate operations, or resell.
- Consumer products: Bought to satisfy personal wants/needs.

The Internet has transformed B-to-B marketing, making it more sophisticated.
Companies evolve from basic online presence to engaging websites that attract and satisfy customers.
Three Major Uses of the Internet in B-to-B:
- Facilitate communication and order processing.
- Increase brand awareness through digital marketing.
- Utilize content marketing to position as thought leaders and generate leads.
Demand for personalized supplier interactions is growing, including knowledge of customer behavior and personal touches through social media.

Relationship Marketing:
- Focuses on establishing ongoing partnerships with customers due to increased competition and customer demands.
- Loyal customers are more profitable and retain better than those with little brand preference.
Strategic Alliances:
- Refers to cooperative agreements between firms.
- Alliances may include joint ventures or partnerships to leverage strengths for competitive advantages.

Producers: Profit-oriented individuals and organizations using goods/services to produce further products.
Resellers: Retailers and wholesalers purchasing finished goods for resale.
Governments: Various government entities that spend the most on goods/services to support operations.
Institutions: Non-profit entities (schools, hospitals) that seek services and goods to achieve goals other than profit.

Comprises retail and wholesale businesses that profit from selling finished products.

Institutions include non-business entities like schools and churches that function as business entities but aren't profit-driven.

NAICS is a classification system for business establishments introduced in 1997, allowing firms to be grouped by similar production processes.
It helps in analyzing and targeting markets effectively.

Differences: Derived, inelastic, joint, and fluctuating demand in business markets.
Business purchase volumes are significantly larger, with fewer, more concentrated customers.