Instructor Manual
Hutt, Business Marketing Management: B2B, 13th ed, 2024, 9780357718230;
Chapter 1: A Business Marketing Perspective
Table of Contents
Purpose and Perspective of the Chapter 2
Chapter Objectives 2
Complete List of Chapter Activities and Assessments 2
Key Terms 3
What’s New in This Chapter 4
Chapter Outline 4
Additional Activities and Assignments 5
Additional Resources 6
External Videos or Playlist 6
Purpose and Perspective of the Chapter
The business market poses special challenges and significant opportunities
for the marketing manager. This chapter introduces the complex forces that
are unique to the business marketing environment and highlights key trends
shaping marketing strategy. The chapter begins with an introduction on the
dynamic nature of the business marketing environment and the basic
similarities and differences between consumer-goods and business
marketing. Then, it describes the different types of customers in business
marketing. Next, the chapter describes the underlying factors that influence
the demand for industrial goods. Then, the chapter discusses the nature of
buyer–seller relationships in a product’s supply chain. Finally, it offers a
method for classifying products and services for the business market.
Chapter Objectives
The following objectives are addressed in this chapter:
1. Define the scope of business-to-business (B2B) marketing
2. Identify the types of customers that comprise B2B markets
, 3. Compare the similarities and differences between business-to-
consumer (B2C) and B2B marketing
4. Explain a method for classifying B2B products and services
5. Contrast how business marketing strategy is adapted among B2B
classification categories
6. Recognize the key imperatives for business marketing management
7. Describe the nature of buyer–seller relationships in a product’s supply
chain
Complete List of Chapter Activities and
Assessments
The following table organizes activities and assessments by objective, so
that you can see how all this content relates to objectives and make
decisions about which content you would like to emphasize in your class
based on your objectives. For additional guidance, refer to the Teaching
Online Guide.
Chapter Source (i.e.,
Objectiv PPT slide, Certificatio
e Activity/Assessment Workbook) Duration n Standard
[return to top]
Key Terms
Business markets are markets for products and services, local to
international, bought by businesses, government bodies, and institutions
(such as hospitals) for incorporation (for example, ingredient materials or
components), for consumption (for example, process materials, office
supplies, and consulting services), for use (for example, installations or
equipment), or for resale (Lichtenthal, et al., 2008).
Commercial enterprises include manufacturers, construction companies,
service firms (for example, hotels), transportation companies, selected
professional groups (for example, dentists), and resellers (wholesalers and
retailers purchasing equipment and supplies to use in their operations).
Formal advertising is when the government solicits bids from appropriate
suppliers.
,Negotiated contract is used when the product cannot be differentiated on
the basis of price alone or when there are few potential suppliers.
Derived Demand refers to the direct link between the demand for an
industrial product and the demand for consumer products: The demand for
industrial products is derived from the ultimate demand for consumer
products.
Fluctuating Demand: Because demand is derived, the business marketer
must carefully monitor demand patterns and changing buying preferences in
the household consumer market, often on a worldwide basis.
The bullwhip effect in supply chains is a supply chain phenomenon that
describes how small fluctuations in point of sale demand can cause
progressively larger fluctuations in demand at the distributor, manufacturer,
and raw material supplier levels (Hau, 1997).
Stimulating Demand: Some business marketers must not only monitor
final consumer markets but also develop a marketing program that reaches
the ultimate consumer directly.
Demand Elasticity refers to the responsiveness of the quantity demanded
to a change in price.
Key buying influentials are those who have power in buying process.
Raw materials include both farm products and natural products.
Manufactured materials and parts undergo more initial processing than
raw materials do.
Installations include the major long-term investment items that underlie
the manufacturing process, such as buildings, land rights, and fixed
equipment.
Accessory equipment is generally less expensive and is short-lived
compared with installations, and it is not considered part of the fixed plant.
Maintenance and repair support: Maintenance involves preventive and
remedial services that physically repair and optimize; repair support means
restoration of a broken, damaged, or failed device, equipment, part, or
property to an acceptable operating or usable condition.
Advisory support: A consulting service that develops findings, conclusions,
and recommendations that are presented to the client for consideration and
decision making
Market-sensing capability concerns how well the organization is equipped
to continuously sense changes in its market and anticipate customer
responses to marketing programs.
, Customer-linking capability comprises the particular skills, abilities, and
processes an organization has developed to create and manage close
customer relationships.
Customer relationship management capabilities include all the skills
required to identify, initiate, develop, and maintain profitable customer
relationships.
A customer value proposition captures the particular set of benefits that
a supplier offers to advance the performance of the customer organization.
Relationship marketing centers on all marketing activities directed toward
establishing, developing, and maintaining successful exchanges with
customers (Morgan and Hunt, 2012).
Supply chain management is a technique for linking a manufacturer’s
operations with those of all of its strategic suppliers and its key
intermediaries and customers to enhance efficiency and effectiveness.
[return to top]
What’s New in This Chapter
The following elements are improvements in this chapter from the previous
edition:
New emphasis on business-to-business marketing
New emphasis on business-to-consumer marketing
Buyer-seller relationships in a supply chain
[return to top]
Chapter Outline
The following outline organizes activities (including any existing discussion
questions in PowerPoints or other supplements) and assessments by chapter
(and therefore by topic), so that you can see how all the content relates to
the topics covered in the text.
I. Introduction (PPT Slides 1-2)
II. Defining the Scope of Business (B2B) Marketing (LO 1, PPT Slides 3-4)
a. Business Markets
III. Types of Business Market (B2B) Customers (LO 2, PPT Slides 5-10)
Hutt, Business Marketing Management: B2B, 13th ed, 2024, 9780357718230;
Chapter 1: A Business Marketing Perspective
Table of Contents
Purpose and Perspective of the Chapter 2
Chapter Objectives 2
Complete List of Chapter Activities and Assessments 2
Key Terms 3
What’s New in This Chapter 4
Chapter Outline 4
Additional Activities and Assignments 5
Additional Resources 6
External Videos or Playlist 6
Purpose and Perspective of the Chapter
The business market poses special challenges and significant opportunities
for the marketing manager. This chapter introduces the complex forces that
are unique to the business marketing environment and highlights key trends
shaping marketing strategy. The chapter begins with an introduction on the
dynamic nature of the business marketing environment and the basic
similarities and differences between consumer-goods and business
marketing. Then, it describes the different types of customers in business
marketing. Next, the chapter describes the underlying factors that influence
the demand for industrial goods. Then, the chapter discusses the nature of
buyer–seller relationships in a product’s supply chain. Finally, it offers a
method for classifying products and services for the business market.
Chapter Objectives
The following objectives are addressed in this chapter:
1. Define the scope of business-to-business (B2B) marketing
2. Identify the types of customers that comprise B2B markets
, 3. Compare the similarities and differences between business-to-
consumer (B2C) and B2B marketing
4. Explain a method for classifying B2B products and services
5. Contrast how business marketing strategy is adapted among B2B
classification categories
6. Recognize the key imperatives for business marketing management
7. Describe the nature of buyer–seller relationships in a product’s supply
chain
Complete List of Chapter Activities and
Assessments
The following table organizes activities and assessments by objective, so
that you can see how all this content relates to objectives and make
decisions about which content you would like to emphasize in your class
based on your objectives. For additional guidance, refer to the Teaching
Online Guide.
Chapter Source (i.e.,
Objectiv PPT slide, Certificatio
e Activity/Assessment Workbook) Duration n Standard
[return to top]
Key Terms
Business markets are markets for products and services, local to
international, bought by businesses, government bodies, and institutions
(such as hospitals) for incorporation (for example, ingredient materials or
components), for consumption (for example, process materials, office
supplies, and consulting services), for use (for example, installations or
equipment), or for resale (Lichtenthal, et al., 2008).
Commercial enterprises include manufacturers, construction companies,
service firms (for example, hotels), transportation companies, selected
professional groups (for example, dentists), and resellers (wholesalers and
retailers purchasing equipment and supplies to use in their operations).
Formal advertising is when the government solicits bids from appropriate
suppliers.
,Negotiated contract is used when the product cannot be differentiated on
the basis of price alone or when there are few potential suppliers.
Derived Demand refers to the direct link between the demand for an
industrial product and the demand for consumer products: The demand for
industrial products is derived from the ultimate demand for consumer
products.
Fluctuating Demand: Because demand is derived, the business marketer
must carefully monitor demand patterns and changing buying preferences in
the household consumer market, often on a worldwide basis.
The bullwhip effect in supply chains is a supply chain phenomenon that
describes how small fluctuations in point of sale demand can cause
progressively larger fluctuations in demand at the distributor, manufacturer,
and raw material supplier levels (Hau, 1997).
Stimulating Demand: Some business marketers must not only monitor
final consumer markets but also develop a marketing program that reaches
the ultimate consumer directly.
Demand Elasticity refers to the responsiveness of the quantity demanded
to a change in price.
Key buying influentials are those who have power in buying process.
Raw materials include both farm products and natural products.
Manufactured materials and parts undergo more initial processing than
raw materials do.
Installations include the major long-term investment items that underlie
the manufacturing process, such as buildings, land rights, and fixed
equipment.
Accessory equipment is generally less expensive and is short-lived
compared with installations, and it is not considered part of the fixed plant.
Maintenance and repair support: Maintenance involves preventive and
remedial services that physically repair and optimize; repair support means
restoration of a broken, damaged, or failed device, equipment, part, or
property to an acceptable operating or usable condition.
Advisory support: A consulting service that develops findings, conclusions,
and recommendations that are presented to the client for consideration and
decision making
Market-sensing capability concerns how well the organization is equipped
to continuously sense changes in its market and anticipate customer
responses to marketing programs.
, Customer-linking capability comprises the particular skills, abilities, and
processes an organization has developed to create and manage close
customer relationships.
Customer relationship management capabilities include all the skills
required to identify, initiate, develop, and maintain profitable customer
relationships.
A customer value proposition captures the particular set of benefits that
a supplier offers to advance the performance of the customer organization.
Relationship marketing centers on all marketing activities directed toward
establishing, developing, and maintaining successful exchanges with
customers (Morgan and Hunt, 2012).
Supply chain management is a technique for linking a manufacturer’s
operations with those of all of its strategic suppliers and its key
intermediaries and customers to enhance efficiency and effectiveness.
[return to top]
What’s New in This Chapter
The following elements are improvements in this chapter from the previous
edition:
New emphasis on business-to-business marketing
New emphasis on business-to-consumer marketing
Buyer-seller relationships in a supply chain
[return to top]
Chapter Outline
The following outline organizes activities (including any existing discussion
questions in PowerPoints or other supplements) and assessments by chapter
(and therefore by topic), so that you can see how all the content relates to
the topics covered in the text.
I. Introduction (PPT Slides 1-2)
II. Defining the Scope of Business (B2B) Marketing (LO 1, PPT Slides 3-4)
a. Business Markets
III. Types of Business Market (B2B) Customers (LO 2, PPT Slides 5-10)
