This topic is all about analyzing business market as one of the most important segment for marketers. In this discussion, we will be focussing on their composition, decision making process and buying behavior.

1. Analyzing Business Markets
Mark Alfren M. Loria
Ateneo Graduate School of Business
Understanding Marketing Management
https://www.linkedin.com/in/markalfrenloria
(Probing organizational buyers)

2. 1. What is it and how does it differ from consumer
market?
Questions and Objectives:
Business Markets:
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2. Who participates in the Business-to-Business
buying process?
3. How do business buyers make their decision?
4. How to build strong relationships with
business markets?

3. 1. What is organizational buying?
Outline:
Analyzing Business Markets…
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2. Business Markets vs. Consumer
Markets
3. Participants in the business buying
process
4. Managing business-to-business
relationships

4. 1a. What is Organizational Buying?
Organizational buying refers to the
decision-making process of organizations
in…
 Establishing the need for products and
services;
 Identification, evaluation, and choosing among
alternative brands and suppliers.
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5. A group of profit-making organizations
that buy goods and services for
business use.
1.b What is a Business Market?
Industries Warehouses Retailers
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6. 1c. How does Business Market differ from Consumer Market?
Consumer
Markets
Business
Markets
BuyersMany…Smaller Fewer…Larger
Buyer/Seller
Relationship
Closer
Remote
Customization
Highly
CustomizedMass produced
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7. 1c. How does Business Market differ from Consumer Market?
Consumer
Markets
Business
Markets
Purchasing Professional…directNonprofessional…indirect
Demand FluctuatingFixed
Volume LargerSmaller
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8. individuals and groups who
participate in the purchasing
decision-making process, who
share common goals and the
risks arising from the decision.
2.a Who participates in the B2B Buying Process?
The Buying Center!
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9. 2b. Seven roles in the Purchase Decision Process
Know the level and what decisions do
they influence…
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10. 2c. B2B Buying Situations?
The complexity of business decision
depends on what buying situation
they are in !
Straight
Rebuy
Modified
Rebuy
New Task
Decision-making
BuyingExperience
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11. 3a. How do business buyers make decisions?
Through an eight-stage business
decision process or the
buyphases…
Problem
recognition
General need
description
Product
Specification
Supplier
search
Proposal
solicitation
Supplier
selection
Order
routine
specification
Performance
review
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12. 3b. Major buyphases vis-à-vis buying situations
Guided with the Buygrid Framework…
New Task Modified
Rebuy
Straight
Rebuy
Problem Recognition Yes Maybe No
General need description Yes Maybe No
Product Specification Yes Yes Yes
Supplier search Yes Maybe No
Proposal solicitation Yes Maybe No
Supplier selection Yes Maybe No
Order routine
specification
Yes Maybe No
Performance review Yes Yes Yes
Buying Situations
Buyphases
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13. Establishing corporate trust, credibility,
and reputation.
4a. How to build strong relationship with business markets?
Building trust is key…
Forming strong bonds and providing
added value to customers.
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14. Local application
Product manufacturer as a
business market…
Components are supplied by
Third-party vendors
Beer Bottle
Crown
Water
Malt
Sugar
Yeast
Etc.
Marketer
Business Center
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15. Local application
Institutional and Government
markets…
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16. 1. What is a Business Market?
2. How do business buyers make their
decision?
3. How to build strong relationships with
business markets?
Questions and Objectives:
Business Markets:
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17. Summary:
Business Market…
• Differs from consumer market
• Business buyers make purchase decisions base
on different buying situations.
• Business marketers must form bonds and
relationship with their customers and provide
them added value.
https://www.linkedin.com/in/markalfrenloria

18. Analyzing Business Markets
(Probing organizational buyers)
Mark Alfren M. Loria
Ateneo Graduate School of Business
Understanding Marketing Management
https://www.linkedin.com/in/markalfrenloria