1/2/2017<br />
<br />
Chapter 1<br />
<br />
Introduction to Business<br />
Marketing<br />
www.dinhtienminh.net<br />
<br />
DINH Tien Minh (Ph.D.)<br />
University of Economics HCMC<br />
<br />
Objectives<br />
<br />
Understand Business Market and Business<br />
Marketing.<br />
Distinct the differences between B2B and<br />
B2C.<br />
Know the different kinds of demand in<br />
Business Market.<br />
<br />
2<br />
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Content<br />
1.1 Concepts of Business Market<br />
1.2 Concepts of Business Marketing<br />
1.3 Demands of Business Market<br />
1.4 Conceptual Questions<br />
<br />
1.5 Homework<br />
<br />
3<br />
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1<br />
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1.1. Concepts of Business Market<br />
<br />
What is Business Market?<br />
All of the organisations who buy goods and/or<br />
services for producing their own goods and/or<br />
services.<br />
Krishna K Havaldar (2010), Business Marketing, McGraw Hill, 3rd edition, p1.<br />
<br />
4<br />
<br />
1.1. Concepts of Business Market (cont’)<br />
<br />
Business organizations include:<br />
Commercial market: the Firms that acquire<br />
products to support, directly or indirectly,<br />
production of other goods and services. This is<br />
the largest segment of the business market.<br />
Trade industries: Retailers or wholesalers that<br />
purchase products for resale to others.<br />
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5<br />
<br />
1.1. Concepts of Business Market (cont’)<br />
<br />
Business organizations include (cont’):<br />
Government: all domestic levels (federal, state,<br />
local) and foreign governments.<br />
Public and private institutions: such as hospitals,<br />
churches, colleges and universities, and museums.<br />
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6<br />
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1.1. Concepts of Business Market (cont’)<br />
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Characteristics of Industrial Market:<br />
Geographic market concentration<br />
• Business market is more concentrated than consumer<br />
market and becomes less geographically concentrated as<br />
Internet technology improves.<br />
<br />
Sizes and number of buyers<br />
• Business market has smaller number of buyers than<br />
consumer market.<br />
• Many buyers are large organizations, such as Boeing,<br />
which buys jet engines.<br />
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7<br />
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1.1. Concepts of Business Market (cont’)<br />
<br />
Characteristics of Industrial Market (cont’):<br />
The purchase decision process<br />
• Sellers must navigate organizational buying processes<br />
that often involve multiple decision makers.<br />
• Purchasing process is usually more formal than in<br />
consumer market and may require bidding and<br />
negotiations.<br />
<br />
Buyer-seller relationships<br />
• Often more complex than in consumer market.<br />
• Greater reliance (trust) on relationship marketing.<br />
8<br />
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1.1. Concepts of Business Market (cont’)<br />
<br />
Characteristics of Industrial Market (cont’):<br />
Evaluating international business markets<br />
• Business purchasing patterns differ from country to<br />
country.<br />
• Global sourcing purchasing goods and services from<br />
suppliers worldwide.<br />
– Can bring significant cost savings but requires adjustments.<br />
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9<br />
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1.1. Concepts of Business Market (cont’)<br />
<br />
Customer value in Business Markets:<br />
The economic, technical, service and social benefits<br />
received by a customer firm in exchange for the<br />
price paid for the product or service offering.<br />
Anderson and Narus, Business Market Management, Pearson Education,<br />
2nd edition, p5-9.<br />
<br />
A ratio between what the customer gets (functional<br />
and emotional benefits) and what he gives<br />
(monetary, time, energy cost).<br />
Philip Kotler, Marketing Management, Prentice Hall India, 11th edition,<br />
p11-12.<br />
10<br />
<br />
1.1. Concepts of Business Market (cont’)<br />
<br />
Customer value in Business Markets (cont’):<br />
Accurately estimating value would help the<br />
supplier firms to create and deliver value to<br />
targeted market segments and customers. Here are<br />
some methods:<br />
• Focus group<br />
• Customer interview<br />
• Internal test (conduct laboratory test)<br />
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11<br />
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1.2. Concepts of Business Marketing<br />
<br />
What is Business Marketing?<br />
<br />
R<br />
<br />
S.T.P<br />
<br />
MM<br />
<br />
I<br />
<br />
C<br />
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12<br />
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1.2. Concepts of Business Marketing (cont’)<br />
Product<br />
<br />
Place<br />
Marketing Mix<br />
<br />
Personal<br />
selling<br />
Price<br />
Promotion<br />
<br />
Advertising<br />
C/T<br />
Promotion<br />
<br />
Press<br />
Meeting<br />
<br />
Direct<br />
Marketing<br />
<br />
Event/<br />
Launching<br />
<br />
PR<br />
<br />
Charity/<br />
Sponsor<br />
Crisis<br />
Evaluation<br />
<br />
13<br />
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1.2. Concepts of Business Marketing (cont’)<br />
<br />
What is Business Marketing? (cont’)<br />
Organizational sales and purchases of goods and<br />
services to support production of other products, to<br />
facilitate daily company operations, or for resale.<br />
<br />
Companies also buy services, such as legal,<br />
accounting, office-cleaning, and other services.<br />
Lau Geok Theng (2007), Business Marketing – An Asian Perspective,<br />
McGraw Hill, p3.<br />
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14<br />
<br />
1.2. Concepts of Business Marketing (cont’)<br />
<br />
The importance of Business Marketing<br />
The business market occupies several layers of the<br />
value chain in comparison to the consumer market,<br />
which often occupies one layer.<br />
Metal plastics<br />
• Business<br />
market<br />
<br />
Electronic<br />
components<br />
• Business<br />
market<br />
<br />
Printed circuit<br />
boards<br />
• Business<br />
market<br />
<br />
Televisions<br />
Computers<br />
• Consumer<br />
market<br />
• Business<br />
market<br />
<br />
Lau Geok Theng (2007), Business Marketing – An Asian<br />
Perspective, McGraw Hill, p4.<br />
15<br />
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5<br />
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