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Outcome 4b. HND Marketing Free essay! Download now

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Outcome 4b. HND Marketing

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HND Marketing Professional Education, 2004


4b. Illustrate differences in marketing products and services to businesses rather than consumers
4b.1 Marketing Products to Organizations
4b.1.1 Explain Organizational Market
Definition: All the individuals and companies who purchase goods and services for some use other than personal consumption. Organizational markets usually have fewer buyers but purchase in far greater amounts thanconsumer markets, and are more geographically concentrated. (
Classifications of industrial goods: Industrial goods can be defined into five categories: capital goods, accessories, raw material, components, supplies and business services. Beddybyes is supplie because the products are used cleaning materials.
4b.1.2. The types of organisational market
Reseller market: is all the individuals and organisations that resell or rent bought-in goods to others ( BPP, p-390). Reseller will buy products and brands that they think will attract to customers. The key factor for marketing to resellers is to be aware of their added-value proposition. For sunshine, the company has to make sure that its product is an attractive proposition and an ideal choice for the reseller.
Government market: offers a huge opportunity for many companies. Government buyers are affected by environmental and other factors, but a unique influence is that government activity is very carefully scruitinised by outside observers ( BPP, p-389 )
Institutional market: Largerbuyers(such ashotels, hospitals, schools, and universities) whopurchasegoods and servicesfor use in theproductionof their owngoodsorservices.
4b.1.3 Industrial goods
Industrial goods are products which used for productive the other products. Hence, industrial goods are purchased by manufacturers in Sunshine.

4b.1.4. The different between consumer and organisational markets
Target marketing: Organisational target market is determined easier than consumer markets because government statistics contains some information of industrial markets and productive statistic will be published monthly and quarterty
Marketing mix differences: the industrial marketing mix differs from the marketing mix for consumer products. Industrial products are not package for resale, price can negotiate, distribution has many directs, restrict promotional mix on trade managine, individual selling has trust much more, using exhibition, and demonstration to promote their products.
Consumer buying behavior influenced by social-culture, sub-culture, social class, reference group and family.
Organisation buying behavior influenced by decision making unit ( DMU ) and type of buying decision. DMU depends on size and culture of organisation
4b.2 Marketing Services to Organizations
4b.2.1 Briefly explain the Nature and Characteristics of service
Intangibility: refers to the lack of physical substance which is involved with service delivery
Ownership: the permanent transfer of title and control over the use of an item
Inseparability: ...

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