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Full business marketing summary
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Samenvatting Business and international marketingSession 1
What is the purpose of a business?
- Make a profit
- What the company need to make a profit? Need customers to pay, also look at the costs
- Because the purpose of business is to create a customer, the business enterprise has two and
only two basic functions: marketing and innovation . … Marketing and innovation produce
results; all the rest are costs. Marketing is the distinguishing, unique function of the business.
What is marketing
- Marketing is the science and art of exploring, creating, and delivering value to satisfy the
needs of a target market at a profit.
1: Significance of B2B markets
Business to business marketing = purpose of the course.
International marketing within business marketing.
“Business marketers serve the largest market of all the dollar volume of transactions in the industrial
or business market significantly exceeds that of the ultimate consumer market. For example,
companies such as GE, DuPont and IBM spend more than 60 million a day on purchases to support
their operations”
“The purchases made by companies, government agencies and institutions account for more than
half of the economic activity in industrialized countries such as the United States, Canada and France”
“The differences between B2B and B2C marketing are often differences of degree rather than kind,
yet the degrees of differences are substantial.”
- Difference what is important, how do they work, we are dealing with another types of
dynamics, different
- Same concepts, but difference is how they applied
B2B won’t usually have a brand impact on consumers. So marketing here is actually not targeted in
the same way as consumer goods taught before. But b2b are some of the biggest employers with
significant growth. Most of the biggest brands known to consumers (Apple, Microsoft, Amazon etc.)
have a decent B2B presence as well as their main B2C presence.
Branding is still just as important – branding gives confidence to business consumers as well, the
amounts that are exchanged are much higher too. This means the possibility of loss/error is higher
and the businesses buying must feel reassured.
,2: B2B buying process
1. Problem recognition
a. The company recognize that there is a problem
2. Solution determination
a. Look for different solution, define how the solution
should look like
3. Solution description
4. Search and quality potential suppliers
a. Look for potential suppliers, find offering that helps
5. Obtain proposals
a. There is a difference, when I have a need what I want to fulfil, I going to look for the
store or online, but is not like that I have to specific proposals which they are
customize to my need, usually you are concern one segment
6. Evaluate proposals and select what I want
7. Order
8. Performance feedback and evaluation
a. Am I actually happy with the offering that I did or will I do in the different way next
time
b. That pretty straightforward
2.1: BuyGrid model
Second dimension: Buygrid model – this is called a buy situation, there is three buying situation
- Modified rebuy
- Straight rebuy
- New task
First goal is to understand the consumer (the business in this case). The buying process here is
different for each buying situation. If it’s a new problem, you go through multiple stages if you’re
adjusting your need but using the same supplier it’s a modified rebuy
Purchasing department looks all of their products category, every three or five years they would say –
lets reconsider our needs, are we still happy or not, do we have to go to new buying process or not
Modified rebuy
- Buy different product from some supplier or buy same product from different supplier
- For example, computer, it is getting start to be slowly after some time, I reconsider the needs
which I have for the computer, one options is to stay with the same supplier and buy the new
version or second options is switch supplier/brand
- Some novelty/variation to the purchase process, but not all of it, it depends whether how
many of those steps I actually take
o If I buy a new product from the same supplier I will start at “obtain proposals”
o If I buy a same product from different supplier I will start from the beginning
,Straight rebuy
- Could be B2B markets, in consumer live you don’t really look so much if you are satisfied with
(your toilet paper) the product, you just rebuy without really considerate much
- Buying process, start in order and then performance feedback and evaluation, how much I
am satisfied (I will go through two of them)
New task
- You buy something you never buy before, for example car or house
- Buying process - for the new task I will go through all buying process
- Buying a house – problem recognition -> need what I have, define where I do want live, have
many rooms, ect…, solution determination -> look at a different potential solution
2.2: Evaluate proposals and select
It depends on the product, but I list the criteria which are important for me
Computer
- Functional, price, …
- Then I will give weight to these criteria how important if these criteria in the purchasing
decision, they weigh up each requirement and the score of each vendor and the necessity of
each attribute presented
, There must be input from different stakeholders, not just buying department, also involving people
like user, financial departments, they must be involved. At the end we will see which vendor is better
and we will choose him
This making my decision process more objective, we take subjectivity out, in this process there are
involved many people and everyone has some preference for something, to make sure that everyone
will be happy at the end, important is be sure that internal customers are satisfied
2.3: Supplier evaluation
Scorecard
- This is done in the evaluation stage as well and each requirement will be evaluated and
essentially given a score.
- Quality, delivery, cost, responsiveness, innovation, risk, CSR, dealing with consumer
complaints
- It gives an overview on it
o If they are in the red zone across these criteria, I am not actually satisfied with them,
I will go to the new buying process and I will switch potential suppliers, this one is
longer not satisfied my needs
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