Wednesday, July 31, 2013

Week 4 EOC: Business to Business Marketing



GE's consumer demand ranges from good ol’ GE lightbulbs to refrigerators, ranges, clothes washers and dryers, microwave ovens, dishwashers, coffee makers, room air conditioners, and hundreds of other products bearing the familiar script GE logo. An average consumer buying a refrigerator might do a little online research and then pop out to the local Best Buy to compare models before buying one. In contrast, buying a batch of jet engines involves a tortuously long buying process, dozens or even hundreds of decision makers from all levels of the buying organization, and layer upon layer of subtle and not-so-subtle buying influences. In its business markets, rather than selling to large numbers of small buyers, GE sells to a few very large buyers. Whereas it might be disappointing when a refrigerator buyer chooses a competing brand, losing a single sale to a large business customer can mean the loss of hundreds of millions of dollars in business. In the buying decision, locomotive performance plays an important role. In such big-ticket purchases, buyers carefully scrutinize factors such as cost, fuel efficiency, and reliability.

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