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Imc course session 4 business buyer behaviour
Imc course session 4 business buyer behaviour
Imc course session 4 business buyer behaviour
Imc course session 4 business buyer behaviour
Imc course session 4 business buyer behaviour
Imc course session 4 business buyer behaviour
Imc course session 4 business buyer behaviour
Imc course session 4 business buyer behaviour
Imc course session 4 business buyer behaviour
Imc course session 4 business buyer behaviour
Imc course session 4 business buyer behaviour
Imc course session 4 business buyer behaviour
Imc course session 4 business buyer behaviour
Imc course session 4 business buyer behaviour
Imc course session 4 business buyer behaviour
Imc course session 4 business buyer behaviour
Imc course session 4 business buyer behaviour
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Imc course session 4 business buyer behaviour

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This is part 4 of my 15 lecture series class for Integrated Marketing Course at IOBM Karachi

This is part 4 of my 15 lecture series class for Integrated Marketing Course at IOBM Karachi

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  • 1. Session 3
    Ali Raza Merchant
    IMC CourseBusiness-to-Business Buyer Behaviour
    IMC 2011 by ARM
  • 2. Defining various types or categories of business-to- business buyers
    Major roles associated with making purchases, called the business buying center
    Steps of business purchasing decision are outlined
    Important new factors and issues in business-to-business sales are discussed
    Topic Content Summary
    IMC 2011 by ARM
  • 3. Business-to-Business Customer Types
    IMC 2011 by ARM
  • 4. IMC 2011 by ARM
    Types of Products
    • Many types of goods and services are sold to business-to-business market place
    • 5. These can include services like employee medical insurance, cleaning & maintenance services etc
    • 6. Each requires a distinct marketing approach
    Accessories
    Major Equipment
    Process Materials
    Component Parts
  • 7. IMC 2011 by ARM
    Business Customers & What They Buy
  • 8. IMC 2011 by ARM
    Business Buying Centers
    Actual Users of Product or Service such as Secretarial Staff (Stationery), Factory Workers (Tin Cans/ RM) or HR (Hiring Services)
    1. Users
    5. Gatekeeper
    2. Buyers
    Controls flow of info to members of buying center
    Lets them know if certain alternatives have been rejected
    Responsible for making purchases
    In large organizations buyers can be purchasing agents or members of purchase department in a company
    3. Influencers
    Who shape purchasing decisions by providing information specs or criteria e.g. Engineers
    Individuals who authorize buying decision
    Can by CFO, VP, MD
    4. Deciders
  • 9. Was set up by AK Sumar and MNA in the 1960’s, during Ayub Khan’s Govt.
    Was unique in many ways as it was unconventional in its advertising – never used models
    Had a high quality fabric manufacturers’ perception among consumers due to which it commanded higher price
    In the early 1990’s MFTM was a large textile company in Pakistan with a 50 50 emphasis on dressing fabrics for local as well as home textile products for export
    MFTM was a vertically integrated unit with spinning, weaving, bleaching & dying, printing and stitching units
    Mohd. Farooq Textile Mills (MFTM) - Backgrounder
    IMC 2011 by ARM
  • 10. IMC 2011 by ARM
    Mohd. Farooq Textile Mills (MFTM)
  • 11. MFTM was manufacturing Lawn Fabric for women, 100% Cotton Fabric, Wash & Wear Fabric for the local market
    Production for local market was marketed through two distributors under the supervision of Head of local sales
    The brand was well respected and commanded a higher price, which affording consumers were willing to pay
    Local market was not the company’s business focus
    IMC 2011 by ARM
    Interesting Facts About MFTM
  • 12. MFTM exports were growing at a phenomenal rate
    The export market was value added and allowed the company to make greater margins, particularly in view of the govt. rebates and foreign exchange earnings
    The company sold home textile products to manufacturers and retail store brands in Germany, France, Holland & Switzerland
    The flagship product were 100% Satin for Home Textiles which included single and double bed sets i.e. Quilt Cover and Pillow
    In addition to Satin the company also manufactured Flannel and 100 Cretonne, a comparatively low priced cotton fabric
    The average gross margin of Satin was 45%
    The company did not have its own brand for exports – it was a toll manufacturer for other brands like Luxorette, Irisette, Carfour, La Redoute, Kaufhoff, Neckermann etc
    IMC 2011 by ARM
    Interesting Facts About MFTM
  • 13. IMC 2011 by ARM
    Home textile Portfolio
  • 14. IMC 2011 by ARM
    Home textile Portfolio
  • 15. Pakistan was one of the markets that was limited in its export of textiles through quota
    Quota meant that a manufacturer could only export a particular category of textile goods to a country if they possessed quota in value terms
    Therefore, if MFTM had an order of $100,000 for home textiles from Europe, it needed to have equivalent quota to ship the goods. If not they could buy quota from a manufacturer with surplus quota
    Quota was barrier tariff created by USA, Europe and Australia to restrict Pakistani textiles which were low cost and were eating away their own textile industry
    Since MFTM sold high priced Satin products its export value resulted in higher quota every year
    IMC 2011 by ARM
    Exporter Quota – A Barrier to Entry
  • 16. Management Structure of MFTM
    IMC 2011 by ARM
  • 17. IMC 2011 by ARM
    MFTM Purchase Decision
    Requirements included:
    • Labels for Wash Instructions
    • 18. Inlay Cards
    • 19. PE or PP Bags for Packing
    Home Textiles
    (Labels & Packaging)
    Stitching
    Spinning
    Thread and accessories for stitching
    Stitching machines spares & maintenance
    Manager Purchase
    Raw Cotton was the main input material
    Also required was polyester for blended yarn
    Grey Cloth
    Chemicals & dyes for fabric processing
    Screens for printing
    Parts & maintenance
    Chemicals for sizing yarn
    Parts and maintenance for weaving looms
    Bleaching, Dying & Printing
  • 20. IMC 2011 by ARM
    B2B Buying Process
    Identification of Need
    Establishment of Specs
    Identification of Alternatives
    Evaluation of Vendors
    Selection of Vendors
    Negotiation of purchase terms
  • 21. IMC 2011 by ARM
    Dual Channel Marketing
    Products like Digital Cameras, Calculators, Computers, Fax, Cell phones
    Kodak imaging products
    First B2B then Consumers
    DUAL CHANNEL MARKETING
    When a firm sells virtually the same products or services to both consumers and businesses
    Spin off Sales
    Consumers who use officially given product by Company buy same for personal use
    Image Concerns
    Marketers have to be careful that image projected in one market does not damage the other
    Difference v/s Similarities
    • Use different messages
    • 22. Create different brands
    • 23. Use multiple channels or different channels

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