07

1,171 views
1,072 views

Published on

Published in: Business, Career
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,171
On SlideShare
0
From Embeds
0
Number of Embeds
4
Actions
Shares
0
Downloads
32
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

07

  1. 1. Marketing Management, 12/e A South Asian Perspective 7 Analyzing Business Markets Dr. Hitesh Ruparel
  2. 2. Chapter Questions <ul><li>What is the business market, and how does it differ from the consumer market? </li></ul><ul><li>What buying situations do organizational buyers face? </li></ul><ul><li>Who participates in the business-to-business buying process? </li></ul>
  3. 3. Chapter Questions <ul><li>How do business buyers make their decisions? </li></ul><ul><li>How can companies build strong relationships with business customers? </li></ul><ul><li>How do institutional buyers and government agencies do their buying? </li></ul>
  4. 4. Organizational Buying Decision-making process by which formal organizations establish the need for purchased products and services, and identify evaluate, and choose among alternative brands and suppliers.
  5. 5. Characteristics of Business Markets <ul><li>Fewer, larger buyers </li></ul><ul><li>Close supplier-customer relationships </li></ul><ul><li>Professional purchasing </li></ul><ul><li>Many 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>
  6. 6. Buying Situation <ul><li>Straight rebuy </li></ul><ul><li>Modified rebuy </li></ul><ul><li>New task </li></ul>
  7. 7. The Buying Center <ul><li>Initiators </li></ul><ul><li>Users </li></ul><ul><li>Influencers </li></ul><ul><li>Deciders </li></ul><ul><li>Approvers </li></ul><ul><li>Buyers </li></ul><ul><li>Gatekeepers </li></ul>
  8. 8. Of Concern to Business Marketers <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>
  9. 9. Purchasing Process <ul><li>Understand the perception of purchase dept in the organization </li></ul><ul><li>Understand the Administration of Purchase Dept. </li></ul>
  10. 10. Stages in Purchase process <ul><li>Problem Recognition </li></ul><ul><li>General Need Description and Product Specification </li></ul><ul><li>Supplier Search </li></ul><ul><li>Catalog sites Vertical markets </li></ul><ul><li>Pure play auction sites Spot markets </li></ul><ul><li>Private exchanges Barter markets </li></ul><ul><li>Buying alliances External Links </li></ul><ul><li>Proposal Solicitation </li></ul><ul><li>Supplier Selection </li></ul><ul><li>Order Routine Specification </li></ul><ul><li>Performance Review </li></ul>
  11. 11. Types of Business Customers <ul><li>Price-oriented </li></ul><ul><li>Solution-oriented </li></ul><ul><li>Gold-standard </li></ul><ul><li>Strategic-value </li></ul>
  12. 12. Handling Price-Oriented Customers <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>
  13. 13. Purchasing Orientations <ul><li>Buying </li></ul><ul><li>Procurement </li></ul><ul><li>Supply chain management </li></ul>
  14. 14. Product-Related Purchasing Processes <ul><li>Routine products </li></ul><ul><li>Leverage products </li></ul><ul><li>Strategic products </li></ul><ul><li>Bottleneck products </li></ul>
  15. 15. Methods of e-Procurement <ul><li>Websites organized using vertical hubs </li></ul><ul><li>Websites organized using functional hubs </li></ul><ul><li>Direct extranet links to major suppliers </li></ul><ul><li>Buying alliances </li></ul><ul><li>Company buying sites </li></ul>
  16. 16. Assessing Customer Value <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>
  17. 17. Order Routine Specification and Inventory <ul><li>Stockless purchase plans </li></ul><ul><li>Vendor-managed inventory </li></ul><ul><li>Continuous replenishment </li></ul>
  18. 18. Desirable Outcomes of a B2B transaction: OTIFNE <ul><li>On time </li></ul><ul><li>In full </li></ul><ul><li>No error </li></ul>
  19. 19. Establishing Corporate Credibility <ul><li>Expertise </li></ul><ul><li>Trustworthiness </li></ul><ul><li>Likeability </li></ul>
  20. 20. Factors Affecting Buyer-Supplier Relationships <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>
  21. 21. Categories of Buyer-Seller Relationships <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>
  22. 22. Opportunism Some form of cheating or undersupply relative to an implicit or explicit contract.
  23. 23. Govt. & Inst. Purchase <ul><li>Get into the Purchase Registry </li></ul><ul><li>Be with Big Contractors </li></ul><ul><li>Watch Tender Websites </li></ul><ul><li>Network with Emerging Bidders for Outsourcing Opportunities </li></ul>

×