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10 Concepts: Chapter 7 Analyzing Business Markets
 

10 Concepts: Chapter 7 Analyzing Business Markets

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    10 Concepts: Chapter 7 Analyzing Business Markets 10 Concepts: Chapter 7 Analyzing Business Markets Presentation Transcript

    • CHAPTER 7: ANALYZING BUSINESS MARKETS Briand R. Dayday September 1, 2011 Top 10 Concepts www.brianddayday.blogspot.com
      • 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.
      COMPANYPROFILE
    • 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.
    • The centerpiece of the development is a twin-oval thoroughbred race-track comparable to the best racing facilities in the world.
    • Concept Outline:
      • 1. Characteristics of Business Markets
      • 2. Business Buying Situations
      • 3. Roles in Business Buying Process
      • 4. Of Concern to Business Marketers
      • 5. Stages in Buying Process
      • 6. Overcoming Price Pressures
      www.brianddayday.blogspot.com
    • Concept Outline:
      • 7. Searching for Suppliers
      • 8. Researching Customer Value
      • 9. Buyer-supplier relationship Factors
      • 10. Buyer-seller relationships
      www.brianddayday.blogspot.com
      • Fewer, larger buyers
      • Close supplier-customer relationships
      • Professional purchasing
      • Multiple buying influences
      • Multiple sales calls
      • Derived demand
      • Inelastic demand
      • Fluctuating demand
      • Geographically concentrated buyers
      • Direct purchasing
      Concept 1: Characteristics of Business Markets www.brianddayday.blogspot.com
    • 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.
    • 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 decision process Buying Center
    • Example 3: Racetrack Management Purchasing Roles initiators users influencers deciders approvers buyers Gate keepers Buying Center
      • Who are the major decision participants?
      • What decisions do they influence?
      • What is their level of influence?
      • What evaluation criteria do they use?
      Concept 4: Of Concern to Business Marketers www.brianddayday.blogspot.com
      • Who are the major decision participants?
        • Division Head, Upper Management
      • What decisions do they influence?
        • Almost all managerial decisions
      • What is their level of influence?
        • Final say on all matters
      • What evaluation criteria do they use?
        • Product quality or service, price, efficiency of product or service.
      Example 4: San Lazaro Example www.brianddayday.blogspot.com
    • 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 Rebuy Straight Buy Problem recognition General need description Product specification Supplier search Proposal solicitation Supplier selection Order-routine specification Performance review
    • 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
      • Limit quantity purchased
      • Allow no refunds
      • Make no adjustments
      • Provide no services
      Concept 6: Overcoming Price Pressures www.brianddayday.blogspot.com
      • Scenario: Unexpected increase in price of raw materials
        • Lessen order of sea sand from supplier.
        • Try other suppliers.
      Example 6: San Lazaro Example www.brianddayday.blogspot.com
      • Catalog sites
      • Vertical markets
      • Pure play auction sites
      • Spot markets
      • Private exchanges
      • Barter markets
      • Buying alliances
      Concept 7: Searching for Suppliers www.brianddayday.blogspot.com
      • Specific catalog sites
      • Pure play auction sites
        • Ebay, Amazon, Sulit.com
      • Direct from suppliers
      Example 7: How San Lazaro looks for suppliers www.brianddayday.blogspot.com
      • Internal engineering assessment
      • Field value-in-use assessment
      • Focus-group value assessment
      • Direct survey questions
      • Conjoint analysis
      • Benchmarks
      • Compositional approach
      • Importance ratings
      Concept 8: Researching Customer Value www.brianddayday.blogspot.com
      • Goal: To further improve service quality of racetrack and off-track betting stations .
      • San Lazaro does a yearly Customer value research using Focus Group Discussions, and Direct Surveys.
      • Satisfaction based surveys are also used by San Lazaro for Importance Ratings.
      • Benchmarking of competitor performance is also used to measure company performance.
      Concept 8: San Lazaro Example www.brianddayday.blogspot.com
      • Availability of alternatives
      • Importance of supply
      • Complexity of supply
      • Supply market dynamism
      Concept 9: Buyer-supplier Relationship Factors www.brianddayday.blogspot.com
        • Must maintain good relationships with racetrack element suppliers (sea sand, sandy soil), since there are only a handful of suppliers.
        • Must maintain good relationships with suppliers since if not delivered, horses cannot run properly on the racetrack, ergo no races, therefore no sales.
      Example 9: San Lazaro Buyer-supplier Relationships www.brianddayday.blogspot.com
      • Basic buying and selling
      • Bare bones
      • Contractual transaction
      • Customer supply
      • Cooperative systems
      • Collaborative
      • Mutually adaptive
      • Customer is king
      Concept 10: Buyer-seller Relationships www.brianddayday.blogspot.com
      • 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.
      • The buying center is the decision making unit of a buying organization.
      Summary www.brianddayday.blogspot.com
      • 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.
      • Business marketers must form strong bonds and relationships with their customers and provide them added value.
      Summary www.brianddayday.blogspot.com
    • CHAPTER 7: ANALYZING BUSINESS MARKETS Briand R. Dayday September 1, 2011 Top 10 Concepts www.brianddayday.blogspot.com