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CHAPTER 7:  ANALYZING BUSINESS MARKETS Briand R. Dayday September 1, 2011 Top 10 Concepts www.brianddayday.blogspot.com
<ul><li>The Manila Jockey Club, Inc. is one of Asia’s oldest racing clubs, founded in 1867. It is operating under a 25 yea...
In year 2003, the  San Lazaro Leisure and Business Park  was developed by the leading architectural firm of  Recio & Casas...
The centerpiece of the development is a  twin-oval thoroughbred race-track  comparable to the best racing facilities in th...
Concept Outline: <ul><li>1. Characteristics of Business Markets </li></ul><ul><li>2. Business Buying Situations </li></ul>...
Concept Outline: <ul><li>7.  Searching for Suppliers </li></ul><ul><li>8.  Researching Customer Value </li></ul><ul><li>9....
<ul><li>Fewer, larger buyers </li></ul><ul><li>Close supplier-customer relationships </li></ul><ul><li>Professional purcha...
Example 1: Horseracing (San Lazaro) Manila Jockey Club, Inc.  www.brianddayday.blogspot.com San Lazaro has ready direct su...
Concept 2: Business Buying Situations www.brianddayday.blogspot.com Purchase decisions are based on  these buying situations
Example 2: San Lazaro Horseracing  Buying Needs www.brianddayday.blogspot.com
Concept 3: Roles in Business Buying Process www.brianddayday.blogspot.com Members can play  several roles in the  purchase...
Example 3: Racetrack Management Purchasing Roles initiators users influencers deciders approvers buyers Gate keepers Buyin...
<ul><li>Who are the major decision participants? </li></ul><ul><li>What decisions do they influence? </li></ul><ul><li>Wha...
<ul><li>Who are the major decision participants?  </li></ul><ul><ul><li>Division Head, Upper Management </li></ul></ul><ul...
Concept 5: Stages in Buying Process www.brianddayday.blogspot.com
Concept 5: Stages in Buying Process www.brianddayday.blogspot.com Maybe Maybe Maybe Maybe Maybe Maybe New Task Modified Re...
Example 5: San Lazaro Examples  (refer to Example 2) www.brianddayday.blogspot.com CCTV order Racetrack Maintenance Office...
<ul><li>Limit quantity purchased </li></ul><ul><li>Allow no refunds </li></ul><ul><li>Make no adjustments </li></ul><ul><l...
<ul><li>Scenario: Unexpected increase in price of raw materials </li></ul><ul><ul><li>Lessen order of sea sand from suppli...
<ul><li>Catalog sites </li></ul><ul><li>Vertical markets </li></ul><ul><li>Pure play auction sites </li></ul><ul><li>Spot ...
<ul><li>Specific catalog sites </li></ul><ul><li>Pure play auction sites </li></ul><ul><ul><li>Ebay, Amazon, Sulit.com </l...
<ul><li>Internal engineering assessment </li></ul><ul><li>Field value-in-use assessment </li></ul><ul><li>Focus-group valu...
<ul><li>Goal:  To further improve service quality of racetrack and off-track betting stations . </li></ul><ul><li>San Laza...
<ul><li>Availability of alternatives </li></ul><ul><li>Importance of supply </li></ul><ul><li>Complexity of supply </li></...
<ul><ul><li>Must maintain good relationships with racetrack element suppliers (sea sand, sandy soil), since there are only...
<ul><li>Basic buying and selling </li></ul><ul><li>Bare bones </li></ul><ul><li>Contractual transaction </li></ul><ul><li>...
<ul><li>Organizational buying is the decision making process by which formal organizations establish the need for purchase...
<ul><li>The buying process consists of eight stages; problem recognition, general need description, product specification,...
CHAPTER 7:  ANALYZING BUSINESS MARKETS Briand R. Dayday September 1, 2011 Top 10 Concepts www.brianddayday.blogspot.com
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10 Concepts: Chapter 7 Analyzing Business Markets

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Transcript of "10 Concepts: Chapter 7 Analyzing Business Markets"

  1. 1. CHAPTER 7: ANALYZING BUSINESS MARKETS Briand R. Dayday September 1, 2011 Top 10 Concepts www.brianddayday.blogspot.com
  2. 2. <ul><li>The Manila Jockey Club, Inc. is one of Asia’s oldest racing clubs, founded in 1867. It is operating under a 25 year franchise granted by the Philippine Congress, which covers off-track betting throughout the country, SMS and internet gaming, as well as simulcast racing. Races in the Philippines alternate every two weeks between MJC and the Philippine Racing Club (PRC), the only other operating race club in the Philippines. Races are Held at MJC 12-14 days a month. Having moved to a new modern location, The San Lazaro and Leisure and Business Park (SLLBP), in Carmona Cavite, MJC is fast evolving into a diversified property and gaming concern. </li></ul>COMPANYPROFILE
  3. 3. In year 2003, the San Lazaro Leisure and Business Park was developed by the leading architectural firm of Recio & Casas . This modern racing facility is a 77-hectare (770,000 sqm) integrated horseracing complex that blends world-class sports, leisure, entertainment, and business facilities , located in the foothills of Carmona, Cavite.
  4. 4. The centerpiece of the development is a twin-oval thoroughbred race-track comparable to the best racing facilities in the world.
  5. 5. Concept Outline: <ul><li>1. Characteristics of Business Markets </li></ul><ul><li>2. Business Buying Situations </li></ul><ul><li>3. Roles in Business Buying Process </li></ul><ul><li>4. Of Concern to Business Marketers </li></ul><ul><li>5. Stages in Buying Process </li></ul><ul><li>6. Overcoming Price Pressures </li></ul>www.brianddayday.blogspot.com
  6. 6. Concept Outline: <ul><li>7. Searching for Suppliers </li></ul><ul><li>8. Researching Customer Value </li></ul><ul><li>9. Buyer-supplier relationship Factors </li></ul><ul><li>10. Buyer-seller relationships </li></ul>www.brianddayday.blogspot.com
  7. 7. <ul><li>Fewer, larger buyers </li></ul><ul><li>Close supplier-customer relationships </li></ul><ul><li>Professional purchasing </li></ul><ul><li>Multiple buying influences </li></ul><ul><li>Multiple sales calls </li></ul><ul><li>Derived demand </li></ul><ul><li>Inelastic demand </li></ul><ul><li>Fluctuating demand </li></ul><ul><li>Geographically concentrated buyers </li></ul><ul><li>Direct purchasing </li></ul>Concept 1: Characteristics of Business Markets www.brianddayday.blogspot.com
  8. 8. Example 1: Horseracing (San Lazaro) Manila Jockey Club, Inc. www.brianddayday.blogspot.com San Lazaro has ready direct suppliers and standard purchasing procedures for specific construction requirements, and racetrack maintenance. E.G. High voltage lights, sea sand, sandy soil, etc. Strategic location of OFF-TRACK Betting Stations (OTBs) to penetrate specific target markets, OTB = 93% of its total racing sales. San Lazaro’s strategic move to Cavite is to expand and to penetrate Cavite’s booming economy, Cavite logs in an average of 48M in recreational expenditures.
  9. 9. Concept 2: Business Buying Situations www.brianddayday.blogspot.com Purchase decisions are based on these buying situations
  10. 10. Example 2: San Lazaro Horseracing Buying Needs www.brianddayday.blogspot.com
  11. 11. Concept 3: Roles in Business Buying Process www.brianddayday.blogspot.com Members can play several roles in the purchase decision process Buying Center
  12. 12. Example 3: Racetrack Management Purchasing Roles initiators users influencers deciders approvers buyers Gate keepers Buying Center
  13. 13. <ul><li>Who are the major decision participants? </li></ul><ul><li>What decisions do they influence? </li></ul><ul><li>What is their level of influence? </li></ul><ul><li>What evaluation criteria do they use? </li></ul>Concept 4: Of Concern to Business Marketers www.brianddayday.blogspot.com
  14. 14. <ul><li>Who are the major decision participants? </li></ul><ul><ul><li>Division Head, Upper Management </li></ul></ul><ul><li>What decisions do they influence? </li></ul><ul><ul><li>Almost all managerial decisions </li></ul></ul><ul><li>What is their level of influence? </li></ul><ul><ul><li>Final say on all matters </li></ul></ul><ul><li>What evaluation criteria do they use? </li></ul><ul><ul><li>Product quality or service, price, efficiency of product or service. </li></ul></ul>Example 4: San Lazaro Example www.brianddayday.blogspot.com
  15. 15. Concept 5: Stages in Buying Process www.brianddayday.blogspot.com
  16. 16. Concept 5: Stages in Buying Process www.brianddayday.blogspot.com Maybe Maybe Maybe Maybe Maybe Maybe New Task Modified Rebuy Straight Buy Problem recognition General need description Product specification Supplier search Proposal solicitation Supplier selection Order-routine specification Performance review
  17. 17. Example 5: San Lazaro Examples (refer to Example 2) www.brianddayday.blogspot.com CCTV order Racetrack Maintenance Office Supplies Problem recognition General need description Product specification Supplier search Proposal solicitation Supplier selection Order-routine specification Performance review
  18. 18. <ul><li>Limit quantity purchased </li></ul><ul><li>Allow no refunds </li></ul><ul><li>Make no adjustments </li></ul><ul><li>Provide no services </li></ul>Concept 6: Overcoming Price Pressures www.brianddayday.blogspot.com
  19. 19. <ul><li>Scenario: Unexpected increase in price of raw materials </li></ul><ul><ul><li>Lessen order of sea sand from supplier. </li></ul></ul><ul><ul><li>Try other suppliers. </li></ul></ul>Example 6: San Lazaro Example www.brianddayday.blogspot.com
  20. 20. <ul><li>Catalog sites </li></ul><ul><li>Vertical markets </li></ul><ul><li>Pure play auction sites </li></ul><ul><li>Spot markets </li></ul><ul><li>Private exchanges </li></ul><ul><li>Barter markets </li></ul><ul><li>Buying alliances </li></ul>Concept 7: Searching for Suppliers www.brianddayday.blogspot.com
  21. 21. <ul><li>Specific catalog sites </li></ul><ul><li>Pure play auction sites </li></ul><ul><ul><li>Ebay, Amazon, Sulit.com </li></ul></ul><ul><li>Direct from suppliers </li></ul>Example 7: How San Lazaro looks for suppliers www.brianddayday.blogspot.com
  22. 22. <ul><li>Internal engineering assessment </li></ul><ul><li>Field value-in-use assessment </li></ul><ul><li>Focus-group value assessment </li></ul><ul><li>Direct survey questions </li></ul><ul><li>Conjoint analysis </li></ul><ul><li>Benchmarks </li></ul><ul><li>Compositional approach </li></ul><ul><li>Importance ratings </li></ul>Concept 8: Researching Customer Value www.brianddayday.blogspot.com
  23. 23. <ul><li>Goal: To further improve service quality of racetrack and off-track betting stations . </li></ul><ul><li>San Lazaro does a yearly Customer value research using Focus Group Discussions, and Direct Surveys. </li></ul><ul><li>Satisfaction based surveys are also used by San Lazaro for Importance Ratings. </li></ul><ul><li>Benchmarking of competitor performance is also used to measure company performance. </li></ul>Concept 8: San Lazaro Example www.brianddayday.blogspot.com
  24. 24. <ul><li>Availability of alternatives </li></ul><ul><li>Importance of supply </li></ul><ul><li>Complexity of supply </li></ul><ul><li>Supply market dynamism </li></ul>Concept 9: Buyer-supplier Relationship Factors www.brianddayday.blogspot.com
  25. 25. <ul><ul><li>Must maintain good relationships with racetrack element suppliers (sea sand, sandy soil), since there are only a handful of suppliers. </li></ul></ul><ul><ul><li>Must maintain good relationships with suppliers since if not delivered, horses cannot run properly on the racetrack, ergo no races, therefore no sales. </li></ul></ul>Example 9: San Lazaro Buyer-supplier Relationships www.brianddayday.blogspot.com
  26. 26. <ul><li>Basic buying and selling </li></ul><ul><li>Bare bones </li></ul><ul><li>Contractual transaction </li></ul><ul><li>Customer supply </li></ul><ul><li>Cooperative systems </li></ul><ul><li>Collaborative </li></ul><ul><li>Mutually adaptive </li></ul><ul><li>Customer is king </li></ul>Concept 10: Buyer-seller Relationships www.brianddayday.blogspot.com
  27. 27. <ul><li>Organizational buying is the decision making process by which formal organizations establish the need for purchased products and services, then identify, evaluate, and choose among alternative brands and suppliers. </li></ul><ul><li>The buying center is the decision making unit of a buying organization. </li></ul>Summary www.brianddayday.blogspot.com
  28. 28. <ul><li>The buying process consists of eight stages; problem recognition, general need description, product specification, supplier research, proposal solicitation, supplier selection, order routine specification, and performance review. </li></ul><ul><li>Business marketers must form strong bonds and relationships with their customers and provide them added value. </li></ul>Summary www.brianddayday.blogspot.com
  29. 29. CHAPTER 7: ANALYZING BUSINESS MARKETS Briand R. Dayday September 1, 2011 Top 10 Concepts www.brianddayday.blogspot.com
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