This document discusses business markets, types of business buying situations, and the business buying process. It covers the following key points: 1. Business markets have fewer, larger buyers that are geographically concentrated with inelastic, fluctuating demand derived from another industry. Decision making is more complex and formalized with close, long-term buyer-seller relationships. 2. The major types of business buying situations are straight rebuy, modified rebuy, and new task. 3. The business buying process includes problem recognition, need description, product specification, supplier search, proposal solicitation, supplier selection, order routine specification, and performance review.

2. GROUP MEMBERS –
Talat Mehboob
Maqsood Iqbal
Shahrukh Haider
Fawad Imran
Vardah Javid
SUBMITTED TO
Mam. Qurat-ul-Ain

6. Business
Market
Types of Decision and the
decision process
Nature of buying unit
Market structure and
demand

7. Market
structure and
demand
Fewer , larger
buyers
Geographically
concentrated
Derived
demand
Inelastic
demand
Fluctuating
demand

8. Nature of buying units

9. TYPES OF
DECISION
AND THE
DECISION
PROCESS
More
complex
decisions
Process is
more
formalized
Buyer and
seller are
more
dependent on
each other
Build close
long-term
relationships
With customers

10. Supplier development
• Systematic development of
networks of supplier – partners
to ensure appropriate and
dependable supply of products
and materials that they will use
in making their own products or
resell to others.

12. Business Buying Situations
Straight
Rebury
Modified Rebury
New Task
InvolvedDecisionMaking

13. MAJOR TYPES OF
BUSINESS
SITUATIONS:-
• The buyer routinely reorder
something without any modification..
Straight
Re-buy
• The buyer wants to modify product
specification, prices, terms and ,
suppliers.
Modifie
d Re-
buy
• The buyer purchases a product or
services for the first time..
New
task

14. Participants
in the
Business
buying
process:.
users
influencers
buyersdeciders
gatekeeper
s
The Buying Center

17. MAJORINFLUENCE ON BUSINESS
BUYERS:-

18. The
BUSINESS
Buying
PROCESS

19. BUSINESS
BUYING
PROCESS
Business process
by which buyers
determine which
products and
services their
organizations
need to purchase,
and then find,
evaluate, and
choose among,
alternative
suppliers and

20. • First stage in which
someone in the
company recognize a
problem or need that
can be met by acquiring
a good or a service..
Problem
Recognition
• Stage in which the
company describes the
general characteristics
and quantity of a
needed item.
Need
description
• Stage in which
organization decides
and specifies the best
technical product
characteristics for a
needed item.
Product
specification

21. • The stage in which
buyer tries to find the
best vendors.
Supplier
search
• The stage in which the
buyer invites qualified
supplier to submit
proposals.
Proposal
solicitation
• The stage in which the
buyers reviews
proposals and select a
supplier or suppliers..
Supplier
selection

22. • The stage in which the
buyer writes the final
order with the chosen
suppliers..
Order routine
specification
• The stage of the
business in which
buyers assesses the
performance of the
supplier and decides to
continue, modify, or
drop the arrangement..
Performance
Review

23. E- PROCUREMENT:

24. E- PROCUREMENT:-
Online purchasing
Company-buying sites
Extranets

26. WHAT IS E-
PROCUREMENT???
Some times refer as
(Supplier exchange)
 is the business to business,
business to customer ,
business to government,
business to consumer..
 purchase and sale of
supplies, work and services.
 through internet…

27. E-PROCUREMENT
Advantages
◦ Access to new suppliers
◦ Lowers costs
◦ Speeds order processing and delivery
◦ Shares information
◦ Sales
◦ Service and support
Disadvantages
o Can erode relationships as buyers search for new
suppliers
o Security

28. Institutional and
Government markets:-
• Schools, hospitals , nursing homes,
and other institutions that provide
goods, and services to people in their
care..
Institutional Markets
• Government units (federal , state ,
and local bodies) that purchases, or
rent goods and services for carrying
out the main functions of government
Government
Markets

29. INSTITUTIONAL AND
GOVERNMENT
MARKETS
institutional Markets
Low Budget Captive Patrons
Government Markets
Specialized
Buying
Outside Publics
Negotiated
Contracts
Open Bids
Public Review