Page 211 - Foundations of Marketing

178 Part 3 | Customer Behavior and E-Marketing

G oing Green

IBM: Big Blue Is Really Green

IBM (aka: Big Blue), known worldwide for business- as important, IBM suppliers are expected to push their
to- business technology goods and services, has made suppliers toward greener practices. Being green adds to
eco-friendly operations a priority since 1971. Early on, the IBM’s bottom line, says the company’s chief procurement
company sought to reduce production waste and prevent pol- officer, because conserving scarce resources will keep
lution. Decades later, the ongoing effort to spread these and costs under control—an important consideration for its
other practices throughout its global supply chain has won suppliers and business customers, as well.
the $ 100 billion company high marks for green leadership. Finally, IBM’s green leadership is also attracting atten-
Today, IBM’s 28,000 suppliers in nearly 100 countries tion in government markets, because many of those buyers
are required to measure and report on their environmental are responsible for environmental initiatives on the national,
impact, including energy use, greenhouse gas emis- state, and local levels. It has already been honored by the
sions, and recycling results. Year by year, IBM suppliers U.S. Environmental Protection Agency, by New York State,
must also make progress toward green goals such as and by other government groups for its earth-friendly pro-
b
conserving natural resources and reducing waste. Just grams. Watch for Big Blue to go even greener in the future.

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LO 2 . Identify the major charac- DIMENSIONS OF BUSINESS CUSTOMERS
teristics of business customers
and transactions. AND BUSINESS TRANSACTIONS

Now that we have considered different types of business customers, we look at several
dimensions of marketing related to them, including transaction characteristics, attributes
of business customers and some of their primary concerns, buying methods, major types of
purchases, and the characteristics of demand for business products (see Figure 7.1 ).

Figure 7.1 Dimensions of Business Customers and Business Transactions

Transaction Customer Customers’
Characteristics Attributes Primary Concerns
• Large orders • Detailed information • Price
• Expensive items • Technical • Quality
• Extended negotiations specifications • Service
• Reciprocity • Partnerships • Supplier relationships

Dimensions of Marketing to Business Customers

Methods of Buying Types of Purchases
• Description • New task
• Inspection • Straight rebuy
• Sampling • Modified rebuy
• Negotiation

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