MKTG Exam 2 Study Guide 6 7 8 9 10

Business marketing on the internet tremendous growth

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Business Marketing on the Internet Tremendous growth in sales using internet websites (90% go to internet, 50% start buying process online) 24/7 source of information, customer education and ordering (especially reorders) Better technology and security have increased online B2B sales Measurement of online success by (1) sales and (2) evaluating search behavior (e.g., stickiness = frequency X duration X site reach) Disintermediation (cut out the middleman) and reintermediation (go back to middlemen for services and choices offered) Strategic Alliances and Relationship Marketing A cooperative agreement between firms – sharing facilities, distribution, R&D, licensing, etc. Benefits access to market or technology economies of scale facilitate faster entry of new products to market sharing risks Japan examples – amae (concern for and dependency on another), keiretsu (network of interlocking corporate entities often through common board memberships) Types of Business Products (see pictures on p. 114) Major equipment (also installations) Accessory equipment Raw materials Component parts Processed materials Supplies Business services What products do SERVICE businesses buy? Business Buying Behavior Buying Center Members Initiator Influencers (e.g., technical personnel, finance manager) Gatekeepers (e.g., purchasing agent, receptionist) Deciders (e.g., company president) Purchasers (e.g., purchasing agent) Users (e.g., production workers) 6
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Interests and relative influence of the members Permanent or temporary buying centers Evaluative Criteria Three important criteria Quality Service Price [Service Quality Criteria: reliability, assurance, tangibles, empathy, responsiveness] Compensatory and Noncompensatory Decision Processes (Compact Delivery Car decision) Buying Situations (how are decision process and marketing different) New buy Modified rebuy Straight rebuy Ch. 8 Segmentation and Targeting STP – Segmentation, Targeting, Positioning Key Learning Elements Characteristics of market segments The importance of segmentation Criteria for successful segmentation Segmentation bases for consumer markets and business markets Steps in Segmentation Targeting segments – strategies for selection Alternative targeting strategies and 1-to-1 marketing Positioning and product differentiation Modern Marketing = STP Marketing Segments and Segmentation A market segment is a group of people sharing one or more characteristics that cause them to have similar product needs. Segmentation is the process of dividing a market into meaningful, relatively similar, and identifiable segments or groups. Importance of Segmentation Criteria for Successful Segmentation Substantiality Identifiability and measurability Accessibility Responsiveness Steps in Segmenting a Market Select a market for study 7
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Choose bases for segmentation Profile and analyze segments Select descriptors Select target markets
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