businessand finance

1. +
ANALYZING
BUSINESS MARKETS
Chapter 7, Kotler&
Keller

2. +
Six Questions Covered
Business versus
consumer market
Buying situations
Business-to-business
buying
Making decisions
Customer
relationships
Institutional & govt.
markets

3. +
I) Business versus Consumer
Market
Close relationship
Professional purchasing
Mult. buying influences, sales
Fewer, large buyers

4. +
I) Business versus Consumer
Market
Direct purchasing Concentrated buyers
Demand
Fluctuat
ing
Inelastic
Derived

5. +
II) Buying Situation
Purchaser Supplier
STRAIGHT
Purchaser Supplier
MODIFIED
Supplier
Purchaser
??? Supplier
New Task
Marketer’s greatest
opportunity and challenge
Purchaser

6. +
II) Buying Situation
SYSTEMS BUYING
Primary Contractor
Second-tier Contractor
SYSTEMS SELLING
Key industrial marketing strategy
for large-scale projects

7. +
II) Buying Situation
Building cement factory
SYSTEMS SELLING
Choose site
Design
factory
Hire crews
Assemble
material &
equipment
Turn over
factory Hiring &
training
Economic
develop-
ment
TRUE SYSTEMS SELLING=
SYSTEMS SELLING
+

8. +
III) Business-to-business buying
1. Buying Center
Purchasing
Manager
Initiators
Users
Influencers
Deciders
Approvers
Buyers
Gatekeepers

9. +
III) Business-to-business buying
Corporate brand
2. Buying Center Influences 3. Buying Center Targeting
Small seller
Large seller
OrganisationE
conomic, strate
gic
Individual
Achievement,
reward

10. +
IV) Purchasing/Procurement
Staged buying-decision : Buy-phases (8)
Decision Making
(1) Problem recognition
Marketers
Product spec.
(2-3) Need and product specification
Simple Complex
Multiple
Single

11. +
Catalogs
Private
exchang
es
Buying
alliances
Markets
Vertical
Spot
Barter
Auction
sites
IV) Purchasing/Procurement
Decision Making
(4) Supplier Search
E-procurement
Direct links
Alliances
RFPs
Advantageous

12. +
IV) Purchasing/Procurement
Decision Making
(5) Proposal solicitation
Formal
Simple
products
(6) Supplier selection
Beauty Contest
Price
Reputation
Product reliability
Service reliability
Supplier flexibility
Next: Price pressure, # of suppliers

13. +
IV) Purchasing/Procurement
Decision Making
(7) Order-routine specification (8) Performance review
Evaluation
Rating
Performance vs. price
Final order
Tech. spec.
Qty needed
Delivery
Return policy
Warranties

14. +
V) Customer Relationships
Create more value, establish trust.
Advertising agencies and clients:
(a) Market growth
(b) Information asymmetry
(c) Barriers to entry
(d) Dependence asymmetry
(e) Economies of scale

15. +
Buyer-Supplier relationship: Alternatives, importance of
supply, supply complexity and supply market dynamism.
V) Customer Relationships
Routine
Basic buying/
selling
Bare bones
Less
cooperation/info
exchange
Contractual
Formal, low
trust, info
exchange
Customer supply
Competitive, seller
adapts

16. +
Buyer-Supplier relationship: Alternatives, importance of
supply, supply complexity and supply market dynamism.
V) Customer Relationships
Cooperative
systems
United
operationally, not
structurally
Collaborative
True
partnership, com
mitment
Mutually
adaptive
Relationship-
specific
Customer is
king
Close, Seller
adapts

17. +
Institutional markets
VI) Institutional, Govt. Markets
Characterized by: Low budgets and captive clienteles

18. +
Government markets
VI) Institutional, Govt. Markets
Suppliers bid, contracts go to lowest bids
Spending subject to public review
Can be nationalistic
Cumbersome: Comprehensive bid can be 500-700 pages

19. +
Summary
Think BUY
Decide
Organizational
buying
Decision making
process
Business
market
Few large
buyers
Buying
center
Decision
making unit

20. +
Summary
Think BUY
Decide
Buying
process
Eight
buyphases
Business
marketers
Strong bonds,
values
Inst., Govt
markets
Customer, Suppl
ier