MARKET-AREA BUYERS & SELLERS NEGOTIATE

MARKETPLACE-ORGANIZATION PURCHASE RAW MATERIALS

BUSINESS MARKET- PURCHASE FOR RESALE PURPOSES
CONSUMER MARKET-PURCHSE FOR PERSONAL CONSUMPTION
CHARACTERISTICS OF BUSINESS MARKET:
1) MARKET STRUCTURE & DEMAND
2) NATURE OF THE BUYING UNIT
3) TYPES OF DECISION & DECISION PROCESS
BUSINESS BUYER BEHAVIOR-BUYING BEHAVIOR OF ORGANIZATION
GENERAL MODE OF BUSINESS BUYER BEHAVIOR:
1) MARKETING STIMULI-PRICE/PLACE/PRODUCT/PROMOTION
2) OTHER STIMULI-POLITICAL/ECONOMIC/TECHNOLOGICAL/
CULTURAL/COMPETITIVE
3) THE BUYING ORGANIZATION-THE BUYING DECISION PROCESS
THE BUYING CENTER
4) RESPONSES OF BUYING ORGANIZATION-SUPPLIER CHOICE/
PRODUCT OR SERVICE CHOICE/ORDER QUANTITIES/DELIVERY/
SERVICE/PAYMENT TERMS
BUSINESS BUYING SITUATION:
NEW TASK BUYING/MODIFIED REBUY/STRAIGHT REBUY
STRAIGHT REBUY- PURCHASE DECISION SUCH AS REORDER
NEW TASK-PURCHASE DECISION REQUIRES RESEARCH
PARTICIPANTS IN BUSINESS BUYING PROCESS:
USERS/INFLUENCERS/BUYERS/DECIDERS/GATEKEEPERS
SIMPLE PURCHASES-BUYING CENTER INCLUDE 1 PERSON
COMPLEX-BUYING CENTER INCLUDE MORE THAN 1 PERSON
INFLUENCING FACTORS:
ENVIRONMENTAL FACTORS/ORGANIZATIONAL FACTORS/
INTERPERSONAL FACTORS/INDIVIDUAL FACTORS
THE BUYING PROCESS:
PROBLEM RECOGNITION/GENERAL NEED DESCRIPTION/
PRODUCT SPECIFICATION/VALUE ANALYSIS/SUPPLIER SEARCH/
PROPOSAL SOLICITATION/SUPPLIER SELECTION/
ORDER-ROUTINE SPECIFICATION/PERFORMANCE REVIEW
INSTITUTIONAL MARKETS-CHURCHES,SCHOOLS,PRISONS,
HOSPITALS,NURSING,HOMES&OTHER INSTITUTIONS, PROVIDES
GOODS & SERVICES TO PEOPLE IN THEIR CARE.
GOVERNMENT MARKETS-FEDERAL,STATE,LOCAL
PURCHASE OR RENT GOODS & SERVICES FOR CARRYING OUT
THE MAIN FUNCTION OF THE GOVERNMENT.
PRODUCT-GOOD,SERVICE OR IDEA RECEIVED IN EXCHANGE
FORMAL PRODUCTS-WHAT CUSTOMERS THINK THEY BUYING
CORE PRODUCTS-WHAT CUSTOMERS ACTUALLY BUYING
AUGMENTED PRODUCTS-BENEFITS RECEIVED BY CUSTOMERS
CLASSIFYING PRODUCT:
CONSUMER PRODUCTS-SATISFY PERSONAL & FAMILY NEEDS
BUSINESS PRODUCTS-USE TO RESELL OR MAKE OTHER PRODUCTS
TYPES OF CONSUMER PRODUCTS:
CONVENIENCE PRODUCTS-EXERT MINIMAL PURCHASING EFFORT
SHOPPING PRODUCTS-EFFORT IN MAKING PURCHASE
SPECIALTY PRODUCTS-CONSIDERABLE EFFORT TO OBTAIN
UNSOUGHT PRODUCTS-PURCHASE TO SOLVE SUDDEN PROBLEMS
TYPES OF BUSINESS PRODUCTS:
INSTALLATIONS-FACILITIES & NONPORTABLE MAJOR EQUIPMENT
ACCESSORY EQUIPMENT-USE IN PRODUCTION/OFFICE ACTIVITIES
RAW MATERIALS-PHYSICAL PRODUCT SUCH AS ORES,GRAINS
COMPONENT PRODUCTS-ITEMS THAT PART OF PHYSICAL PRODUCTS
PROCESS MATERIALS-NOT READILY IDENTIFIABLE
MRO SUPPLIES-MAINTENANCE,REPAIR AND OPERATING ITEMS
BUSINESS SERVICES-ITANGIBLE PORDUCTS LIKE CLEANING/REPAIR
PLC-PROGRESSION OF PRODUCT THROUGH FOUR STAGES
PRODUCT LIFE CYCLE FOUR STAGES:
INTRODUCTION-FIRST APPERANCE IN MARKETPLACE
GROWTH-SALES RISE RAPIDLY & PROFIT REACH A PEAK
MATURITY-SALES CURVE PEAKS & STARTS DECLINE & PROFITS FALL
DECLINE-STAGE OF PLC SALES FALL RAPIDLY
TECHNOLOGICAL LIFE CYCLE 6 PHASES:
CUTTING EDGE/STATES OF THE ART/ADVANCED/
MAINSTREAM/MATURE/DECLINE
NEW PRODUCT DEVELOPMENT PROCESS:
IDEA GENERATION/SCREENING OF IDEAS/BUSINESS ANALYSIS/
PROTOTYPE DEVELOPMENT/MARKET TESTS/COMMECIALIZATION
ADOPTER CATEGORIES:
INNOVATORS/EARLY ADOPTERS/EARLY MAJORITY/
LATE MAJORITY/LAGGARDS
PRODUCT ADOPTION PROCESS:
AWARENESS/INTEREST/EVALUATION/TRIAL/ADOPTION/CONFIRMATION
ADOPTION PROCESS-DECISION MAKING ACTIVITY OF INDIVIDUAL
DIFFUSION-INNOVATION SPREAD THROUGH SOCIAL SYSTEM
FASHION PROCESS-SERIES OF BUYING WAVES AS A GIVEN STYLE
THREE THEORIES OF FASHION ADOPTION:
TRICKLE-DOWN/TRICKLE-ACROSS/TRICKLE-UP
PRODUCT ITEM-SPECIFIC VERSION OF A PRODUCT
PRODUCT LINE-GROUP OF CLOSELY RELATED PRODUCT ITEMS
PRODUCT MIX-TOTAL OF GROUP PRODUCTS
WIDTH OF PRODUCT MIX-NUMBER OF PRODUCT LINES
DEPTH OF PRODUCT-AVERAGE NUMBER OF DIFFERENT PRODUCTS
SEVEN FACTORS HELP EXPLAIN LURE OF LINE EXTENSIONS:
MARKET FRAGMENTATION/CONSUMER DESIRES/PRICING BREADTH/
EXCESS CAPACITY/SHORT-TERM GAIN/COMPETITIVE INTENSITY/
TRADE PRESSURE
SEVEN PITFALLS OF PROLIFERATION:
OVEREXTENDED LINE/LOWER BRAND LOYALTY/UNDEREXPLOITED IDEAS/
STAGNANT CATEGORY DEMAND/POORER TRADE RELATIONS/
MORE COMPETITOR OPPORTUNITIES/INCREASED COST
REASONS OF PRODUCT FAILURE:
PRODUCT VALUE DID NOT MUCH CUSTOMERS NEED/
INEEFECTIVE BRANDING/TECHNICAL OR DESIGN PROBLEMS/
POOR MARKET TIMING/OVERESTIMATION OF MARKET SIZE/
INEFFECTIVE PROMOTION/INSUFFICIENT DISTRIBUTION