Hi! I am Aileen Garcia and this is to explain the chapter concepts found in Chapter 7 - Analyzing Business Markets of the 15th edition of Kotler's Marketing Management as a requirement for my v88 Marketing Management class under the guidance of vCoach Bong De Ungria.

1. Aileen Delos Santos-Garcia, MD
ATENEO GRADUATE SCHOOL OF BUSINES
S
MASTERS IN BUSINESS ADMINISTRATION - HEALT
H
V88 Marketing Management
That is the question
B2B
or
not B2B? ANALYZING
BUSINES
S
MARKETS
Chap 7: Kotler, 15ed

2. 2
Outline:
a. Business market VS Consumer market
b. Organizational buying and its Buying situations
c. Seven (7) key persons in a business buying process
https://www.linkedin.com/in/docays/
Lecture at a glance:
CH-7: ANALYZING BUSINESS MARKETS

3. 3
Outline:
a. Business market VS Consumer market
b. Organizational buying and its Buying situations
c. Seven (7) key persons in a business buying process
https://www.linkedin.com/in/docays/
Lecture at a glance:
CH-7: ANALYZING BUSINESS MARKETS

4. Did you know?
https://www.linkedin.com/in/docays/
Video courtesy of YouTube: CNBC channel - “What’s in your iPhone”

5. Did you know?
https://www.linkedin.com/in/docays/

6. 6
Business Market
consists of all the organizations
that acquire goods and services
used in the production of other products or services
that are sold, rented, or supplied to others.
https://www.linkedin.com/in/docays/

7. organizations that acquire
goods and services
Business to Business
ILLUSTRATION
sold, rented, or
supplied to others.
used in the production of
other products or services
https://www.linkedin.com/in/docays/

8. organizations that acquire
goods and services
Business to Business
Local Application
sold, rented, or
supplied to others.
used in the production of
other products or services
https://www.linkedin.com/in/docays/

9. Business to Business
Marketing
Business to Consumer
Marketing
B2B
B2C
B2B or not B2B
CH-7: ANALYZING BUSINESS MARKETS

10. 10
B2B B2C
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sell products to companies sell products to individuals
Professional purchasing Can make emotional decisions
Close supplier-customer relationship
(based on long term relationship)
Based on short term relationships
Fewer clients
and larger buyers
Many clients and
low purchasing volume
Multiple buying in
fl
uences Usually singular to few in
fl
uence
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Derived demand Can make emotional decisions
Inelastic demand Elastic demand
geographically concentrated buyers Diverse buyers
Direct purchasing From resellers or retailers
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13. 13
Derived demand Can make emotional decisions
Inelastic demand Elastic demand
geographically concentrated buyers Diverse buyers
Direct purchasing From resellers or retailers
https://www.linkedin.com/in/docays/

14. 14
Outline:
a. Business market VS Consumer market
b. Organizational buying and its Buying situations
c. Seven (7) key persons in a business buying process
https://www.linkedin.com/in/docays/
Lecture at a glance:
CH-7: ANALYZING BUSINESS MARKETS

15. 15
Outline:
a. Business market VS Consumer market
b. Organizational buying and its Buying situations
c. Seven (7) key persons in a business buying process
https://www.linkedin.com/in/docays/
Lecture at a glance:
CH-7: ANALYZING BUSINESS MARKETS

16. the 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.
Organizational Buying
-
Frederick E. Webster Jr. and Yoram Wind
https://www.linkedin.com/in/docays/

17. 17
-
The business buyer faces many decisions in making a purchase.
Buying Situations
‣ depends on the complexity of the problem being solved
‣ newness of the buying requirement
‣ number of people involved
‣ time required
1. Straight rebuy
2. Modified rebuy
3. New task
FACTORS
TYPES
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18. 18
-
The business buyer faces many decisions in making a purchase.
Buying Situations
‣ depends on the complexity of the problem being solved
‣ newness of the buying requirement
‣ number of people involved
‣ time required
1. Straight rebuy
2. Modified rebuy
3. New task
FACTORS
TYPES
https://www.linkedin.com/in/docays/

19. 19
TYPES of Buying Situations
1. Straight rebuy
2. Modified rebuy
3. New task
‣ the purchasing department reorders supplies on a
ROUTINE basis and chooses from suppliers on an
approved list.
‣ suppliers make efforts to maintain product and
service quality and often propose automatic
reordering systems to save time.
https://www.linkedin.com/in/docays/

20. 20
TYPES of Buying Situations
1. Straight rebuy
2. Modified rebuy
3. New task
‣ the buyer wants to change product specifications,
prices, delivery requirements, or other terms.
‣ This usually requires additional participants on
both sides.
‣ moderate level of of involvement and time
commitment
https://www.linkedin.com/in/docays/

21. 21
TYPES of Buying Situations
1. Straight rebuy
2. Modified rebuy
3. New task ‣ A new-task purchaser buys a product or service
for the first time (an office building, a new
security system).
Unit 2512, 25/F Medical Plaza Ortigas
Condominium, San Miguel Avenue, Ortigas
Center, Pasig City
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22. 22
TYPES of Buying Situations
1. Straight rebuy
2. Modified rebuy
3. New task ‣ The greater the cost or risk, the larger the number
of participants, and the greater their information
gathering—the longer the time to a decision.
‣ It is the marketer’s greatest opportunity and
challenge.
https://www.linkedin.com/in/docays/

23. 23
TYPES of Buying Situations
https://www.linkedin.com/in/docays/
*DMU:decision-making unit

24. 24
Outline:
a. Business market VS Consumer market
b. Organizational buying and its Buying situations
c. Seven (7) key persons in a business buying process
https://www.linkedin.com/in/docays/
Lecture at a glance:
CH-7: ANALYZING BUSINESS MARKETS

25. 25
Outline:
a. Business market VS Consumer market
b. Organizational buying and its Buying situations
c. Seven (7) key persons in a business buying process
https://www.linkedin.com/in/docays/
Lecture at a glance:
CH-7: ANALYZING BUSINESS MARKETS

26. 26
- the decision-making unit (DMU
)
of a buying organization.
- it consists of “all those individuals and groups who participate in the
purchasing decision-making process, who share some common goals and the
risks arising from the decisions.”
Buying Center
-
Frederick E. Webster Jr. and Yoram Wind
https://www.linkedin.com/in/docays/

27. 27
1. Initiators
2. Users
3. Influencers
4. Deciders
5. Approvers
6. Buyers
7. Gatekeepers
7 Roles
IN THE PURCHASE DECISION PROCESS
The buying center includes
ALL members of the
organization who play any of
the following seven roles in
the purchase decision
process.
https://www.linkedin.com/in/docays/

28. 28
1. Initiators—users or others in the organization who request that something be purchased.
2. Users—those who will use the product or service.
* In many cases, the users initiate the buying proposal and help define the product requirements.
3. Influencers— people who influence the buying decision, often by helping define specifications
and providing information for evaluating alternatives.
-
Technical personnel are particularly important influencers.
4. Deciders
—
People who decide on product requirements or on suppliers.
7 Roles
IN THE PURCHASE DECISION PROCESS
https://www.linkedin.com/in/docays/

29. 29
1. Initiators—users or others in the organization who request that something be purchased.
2. Users—those who will use the product or service.
* In many cases, the users initiate the buying proposal and help define the product requirements.
3. Influencers— people who influence the buying decision, often by helping define specifications
and providing information for evaluating alternatives.
-
Technical personnel are particularly important influencers.
4. Deciders
—
People who decide on product requirements or on suppliers.
7 Roles
IN THE PURCHASE DECISION PROCESS
https://www.linkedin.com/in/docays/
Request to purchase a Facial Nerve Monito
r
Cost: Php 3M + consumables 10,000 per use
ENT Department

30. 30
1. Initiators—users or others in the organization who request that something be purchased.
2. Users—those who will use the product or service.
* In many cases, the users initiate the buying proposal and help define the product requirements.
3. Influencers— people who influence the buying decision, often by helping define specifications
and providing information for evaluating alternatives.
-
Technical personnel are particularly important influencers.
4. Deciders
—
People who decide on product requirements or on suppliers.
7 Roles
IN THE PURCHASE DECISION PROCESS
https://www.linkedin.com/in/docays/
Request to purchase a Facial Nerve Monito
r
Cost: Php 3M + consumables 10,000 per use
ENT Department
Surgery Department
TCVS Department

31. 31
1. Initiators—users or others in the organization who request that something be purchased.
2. Users—those who will use the product or service.
* In many cases, the users initiate the buying proposal and help define the product requirements.
3. Influencers— people who influence the buying decision, often by helping define specifications
and providing information for evaluating alternatives.
-
Technical personnel are particularly important influencers.
4. Deciders
—
People who decide on product requirements or on suppliers.
7 Roles
IN THE PURCHASE DECISION PROCESS
https://www.linkedin.com/in/docays/
Request to purchase a Facial Nerve Monito
r
Cost: Php 3M + consumables 10,000 per use
Biomedical Department
Facilities and Maintenance Dept
IT Department

32. 32
1. Initiators—users or others in the organization who request that something be purchased.
2. Users—those who will use the product or service.
* In many cases, the users initiate the buying proposal and help define the product requirements.
3. Influencers— people who influence the buying decision, often by helping define specifications
and providing information for evaluating alternatives.
-
Technical personnel are particularly important influencers.
4. Deciders
—
People who decide on product requirements or on suppliers.
7 Roles
IN THE PURCHASE DECISION PROCESS
https://www.linkedin.com/in/docays/
Request to purchase a Facial Nerve Monito
r
Cost: Php 3M + consumables 10,000 per use
Biomedical Department
Facilities and Maintenance Dept
IT Department
ENT Department
Surgery Department
TCVS Department
OR Complex Chair
Finance Department
Hospital Director
Medical Director

33. 33
7 Roles
IN THE PURCHASE DECISION PROCESS
5. Approvers — people who authorize the proposed actions of deciders or buyers.
6. Buyers—people who have formal authority to select the supplier and arrange the purchase terms.
* In more complex purchases, buyers might include high-level managers.
7. Gatekeepers — people who have the power to prevent sellers or information from reaching members
members of the buying center.
*For example, purchasing agents, receptionists, and telephone operators may prevent salespersons
from contacting users or deciders.
https://www.linkedin.com/in/docays/
Request to purchase a Facial Nerve Monito
r
Cost: Php 3M + consumables 10,000 per use
OR Complex Chair
Finance Department
Hospital Director
Medical Director

34. 34
7 Roles
IN THE PURCHASE DECISION PROCESS
5. Approvers — people who authorize the proposed actions of deciders or buyers.
6. Buyers—people who have formal authority to select the supplier and arrange the purchase terms.
* In more complex purchases, buyers might include high-level managers.
7. Gatekeepers — people who have the power to prevent sellers or information from reaching members
members of the buying center.
*For example, purchasing agents, receptionists, and telephone operators may prevent salespersons
from contacting users or deciders.
https://www.linkedin.com/in/docays/
Request to purchase a Facial Nerve Monito
r
Cost: Php 3M + consumables 10,000 per use
OR Complex Chair
Finance Department
Biomedical Department
Facilities and Maintenance Dept
IT Department
ENT Department
Surgery Department
TCVS Department

35. 35
7 Roles
IN THE PURCHASE DECISION PROCESS
5. Approvers — people who authorize the proposed actions of deciders or buyers.
6. Buyers—people who have formal authority to select the supplier and arrange the purchase terms.
* In more complex purchases, buyers might include high-level managers.
7. Gatekeepers — people who have the power to prevent sellers or information from reaching members
members of the buying center.
*For example, purchasing agents, receptionists, and telephone operators may prevent salespersons
from contacting users or deciders.
https://www.linkedin.com/in/docays/

36. 36
Outline:
a. Business market VS Consumer market
b. Organizational buying and its Buying situations
c. Seven (7) key persons in a business buying process
https://www.linkedin.com/in/docays/
Lecture at a glance:
CH-7: ANALYZING BUSINESS MARKETS

37. 37
Outline:
a. Business market VS Consumer market
b. Organizational buying and its Buying situations
c. Seven (7) key persons in a business buying process
https://www.linkedin.com/in/docays/
Lecture at a glance:
CH-7: ANALYZING BUSINESS MARKETS

38. Aileen Delos Santos-Garcia, MD
ATENEO GRADUATE SCHOOL OF BUSINES
S
MASTERS IN BUSINESS ADMINISTRATION - HEALT
H
V88 Marketing Management
That is the question
B2B
or
not B2B? ANALYZING
BUSINES
S
MARKETS
Chap 7: Kotler, 15ed