Chapter 7 - Marketing - Chapter 7 B2B Marketing: Refers to...

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Marketing - Chapter 7 B2B Marketing: Refers to the process of buying and selling goods and services to be used in the production of other goods and services, for consumption buying organization, and or for resale by wholesalers and retailers. Distinction between a B2B and B2C transaction is not the product or service itself, rather it is the ultimate purchaser and user of that product or service B2B Markets Manufacturers or Producers: Buy raw materials, components, and parts that allow them to manufacture their own goods. Resellers: Marketing intermediaries that resell manufactured products without significantly altering their form Wholesalers and distributors buy a product from a manufacturer for all of mankind and then sell them to the ultimate consumer Institutions: hospitals, educational organizations, prisons, religious organizations, also purchase goods and services for the people they serve. Government: Most countries the government tends to be one of the largest purchasers of goods and services. Canadian government spends about $240 billion annually on procuring goods and services Bulk done by centrally by Public works and Government Services Canada. B2B Classification System and Segmentation: Statistics Canada collects data about business activity in the Country through its classification scheme, which categorizes all firms into a hierarchical set of North American Industry classification System (NAICS) codes. The NAICS codes replaced the Standard Industrial Classification that was used since 1930’s First two digits represent the industry group, the third digit represents the subsector, the fourth digit represents the industry group, and fifth digit represents a specific sub-group within the industry. The full six digits refer to the country level or National Industry\ Classification system can be very useful to B2B marketers for analyzing markets shares, demand for goods and services, import competition into the Canadian market, and for segmenting and targeting markets Manufacturers can assess the number size and geo-graphical dispersion within each type of market Difference between B2B and B2C Markets Market Characteristics Consumers buy goods to satisfy personal needs and wants, heavily influenced by price, personal taste etc.
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Chapter 7 - Marketing - Chapter 7 B2B Marketing: Refers to...

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