Marketing 7

the marketing of goods and services to individuals and organizations for purposes other than personal consumption

products and services bought by final consumers for personal consumption

products purchased for further processing or for use in conducting a business

• 1) producers
• 2) resellers
• 3) governments
• 4) institutions

OEM's

wholesalers, retailers

federal, municipal, local

schools, churches, civic clubs, hospitals, unions, foundations, colleges, fraternal groups, nonbusiness organizations

• 1) major equipment
• 2) accessory equipment
• 3) raw materials
• 4) component parts
• 5) processed materials
• 6) supplies
• 7) business services

• -the decision making unit of a buying organization
• -includes all individuals and units that participate in decision making

• -business buyers evaluate products and suppliers against 3 important criteria: 1)quality, 2)service, 3)price; in that order
• -although this sounds straightforward, it opens the door for manipulation and unethical behavior

• 1) Straight rebuy: reordering without modification
• 2) Modified Buy: requires modification to prior purchase
• 3) New Task: first time purchase

-for many industrial products the revenues from associates servicess exceed the revenues from the products. Ex: cell phones, printers

-almost always more profitable than the actual sale of the machinery or product

• 1) demand is derived
• 2) demand is price inelastic
• 3) demand fluctuates more

• 1) more complex buying decisions
• 2) the buying process is more formalized

• 1) involve more buyers in the decision process
• 2) more professional purchasing effort