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 Business Markets

Markets for products and services

Local to international
– Bought by GE

• Businesses
• Government bodies
• Institutions
– For consumption
– For use
– For resale

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 A Market Driven Firm

Has:
Market sensing capability…companies ability
to sense change and to anticipate customer
responses.
Customer linking…the ability to develop and
manage close customer relationships.

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 Marketing’s Cross Functional Relationship

Business marketing planning must

be coordinated and synchronized
with corresponding planning efforts.

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 Keys to Cross Functional
Working Relationships

 Communications
 Perspective taking
 Responsive behavior
 Compatibility

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 Business Market Characteristics

• Derived demand
• Fluctuating demand
• Stimulating demand
GE

• Price sensitivity/demand
elasticity
• Global Market perspective

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 Relationship Marketing

• All marketing activities directed toward

establishing, developing, and maintaining
successful exchanges with customers.

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 The Supply Chain

Michael Porter and Victor Millar observed that “to gain competitive
advantage over its rivals, a company must either perform these activities at
a lower cost or perform them in a way that leads to differentiation and a
premium (more value).”

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 Procurement Trends

• Longer term and closer relationships.

• Closer interactions among multiple functions.
• Supplier proximity considerations.

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 Business Market Customer
Commercial Enterprises

• Three categories:
– Users
– OEMs
– Dealers and distributors

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 Classifying
Goods for the
Business
Market

Classifying industrial goods by

the following questions:
How does the good or service
enter the production process?
How does it enter the cost
structure of the firm?
Source: Adapted from Philip
Kotler, Marketing
Management: Analysis,
Planning, and Control, 4th ed.
(Englewood Cliffs, N.J.:
Prentice-Hall, 1980), p. 172,
with permission of Prentice-
Hall, Inc.

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The Internet … Providing Goods & Services

Source: http://www.fao.com

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 A Framework for Business Marketing Management
Business marketing strategy
is formulated within the
boundaries established
by the corporate
mission and
objectives.

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