Lifetime Value = $1000 per year at Walmart they generate revenue of $30,000 over 30 years.

Very valuable due to customer lifetime profit.

Revenue per customer $500 - Varible Cost (VC) per customer $100 = Contribution margin per customer $400.

Generates revenue

positive word of mouth = value

You tell 3 and they all tell 3 and pretty soon everyone would know.l

One satisified lifetime customer may generate huge potential revenue stream.

Customer satisfaction is critical for long term customer value because it may cost (marketing mix) for one customer to try your product may acquire 100 new customers that generate years worth.

Unsatisifed customer will not return and wasted the marketing mix money.

Need to integrate customer satisfaction into marketing mix.

Business to business marketing rather than to consumers.

Spends lots of money

ie. Federal, state and local gov., large and small business units, non-profit, universities, red cross, etc.

system to standardize measurements of economics activity in NAFTA countries

6 digit code broken down into more specialized sectors.

If only 2 in industry, won't give gov info due to privacy because it can be figured out and affect competition.

few business units v consumers

Implies: large purchases and tailored to buyer through collaborative effort because it is worth the effort.

People involved in buying

Gatekeepers - controls info/people into org (foot in the door)

Users-little influence or a lot

Decision maker - bigger decision/elivate

Buyers select supplier

Other influences - purchasing, engineering, etc.

Straight Rebuy (done it before, re-order)

Modified Rebuy (some change, switch paper must ask what didn't you like and change your marketing pitch minus the things the consumer didn't like).

New Purchase (go through all 5 purchase decision process stages)

Traditional (seller offers, buyers bid in competition, upward price pressure: Ebay)

Reverse Auction (buyer needs product/service, sellers bid - low bid wins, downward price pressure)

Adjust 4 P's to meet needs of business

Can tailor 4 P's to specific business for profit if order is large.

Marketers must know and follow specific laws governing purchase behavior of businesses.