Week 6

This week, we further discussed market segments, products, and business models. 

B to B
The process of purchasing a product B to B(Business to Business) is much more complicated than the B to C(Business to Consumer) process.  Let's take Phone Soap for example.  Say a nurse notices how unsanitary the waiting room and surrounding areas are.  Maybe she watched a Dr. Oz where she became informed that our cell phones are eighteen times dirtier than the average public bathroom. She may express the need to buy Phone Soap(that she may have seen an info martial or advertisement for), to the Doctor, who may then tell an administration board about their need. The board then goes to the hospital's purchasing agent, who may do research or conduct a survey before going to Accounting to see what their budget is. Then the Purchasing Agent can, if approved by Accounting, buy a certain quantity of Phone Soap for their hospital.  This process is extremely extensive, as it must be run by several people before a final decision is made, which can be very time consuming. This process would be considered a New Buy, as it is the first time they are purchasing this product.  This product could be considered a Modified Rebuy, if say, next year the same hospital buys more of the same product for their new facility.



B to C

The Business to Consumer process is much simpler.  For example, you go into Staples to buy ink for your printer so you can print your assignment. Since you always purchase ink from Staples, you walk into the store, go to the left, walk down the third aisle and find your ink.  As you are walking to the check out, you see an end cap with a new product you have never seen before.  Because it looks new and interesting, you pick it up and look at it.  If you believe Phone Soap has value, you buy it; if you do not, then you probably will not.  Maybe you are a mother of several small children and want to sanitize your phone more often, in a way that won't damage it.  So, you pick up the product, walk to the cashier, and check out.  Much simpler than the B to B process.

A Good Market Segment is...                               

1. Substantial

Is there enough people that would buy this product? Is this market segment too specific? Is it a niche product? Does it follow the Margin Business Model or the Volume Business Model?  Within the Volume Business Model, the market segment contains a lot of people who will buy the product, but will not spend a significant amount of money for it. On the other hand, within Margin Business Model, the market segment is small, but those in it are willing to spend a lot of money for a product.

2. Identifiable

Can you identify who is in this market segment? What are their characteristics? Stereotypes?

3. Measureable

Can the segment be measured?

4. Accessible

Where will they buy the product? On-line? In stores? Do they have access to the product?

5. Responsive

Will they respond to the product? How will they respond? Does this product create value for them, as to where they will purchase it? Does it address their needs?

SMART PROJECT: OK To Drive?

OK To Drive, our breathalyzer controlled lockers, would be mostly a B to B product.  Our product is intended for bars, restaurants, and law enforcement agencies, rather than consumers.  Although since we had the idea of having them available to be rented out for house parties, they could be considered a B to C product as well.  Our group has developed our final logo, and is working on developing our final concept design.  We are planning on meeting with our Marketing Consultant on Monday night, for further marketing advice.