1. ANALYZING
BUSINESS MARKETS
Marketing Management
07 February 2014
MMPD

2. What Is INSTITUTIONAL BUYING?
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 Decision-making process by organizations
 Establish the need for purchased products
and services
 Identify, evaluate, and choose among
alternative brands and suppliers
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3. What Is BUSINESS MARKET?
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- Also known as business-to-business or
B2B market
- Consists of all organizations that acquire
goods and services used in the
production of other products or services
that are sold, rented, or supplied to
others.
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4. B2B Features
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1. Fewer, larger buyers
2. Close supplier-customer
relationship
3. Professional purchasing
4. Multiple buying influences
5. Multiple sales calls
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5. B2B Features
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6.
7.
8.
9.
Derived demand
Inelastic demand
Fluctuating demand
Geographically concentrated
buyers
10. Direct purchasing
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6. 3 Types of BUYING SITUATIONS
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1. Straight Rebuy
2. Modified Rebuy
3. New Task
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7. Participants in Buying Process
(The Buying Center)
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1.
Initiators – request that something be
purchased
2.
Users – use the product
3.
Influencers – influence the buying
decision, e.g. technical personnel
4.
Deciders
–
decide
on
requirements or on suppliers
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product

8. Participants in Buying Process
(The Buying Center)
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5.
Approvers – authorize the
actions of deciders or buyers
6.
Buyers – authorized to select the supplier
and arrange the purchase terms
7.
Gatekeepers – with power to prevent
sellers from reaching members of the
buying center
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proposed

9. 8 Stages in BUYING PROCESS
(BUYPHASES)
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1. Problem Recognition
2. General Need Description
3. Product Specification
4. Supplier Search
5. Proposal Solicitation
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10. 8 Stages in BUYING PROCESS
(BUYPHASES)
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6. Supplier Selection
7. Order-routine Specification
8. Performance Review
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11. OTHER MARKETS
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1.
Institutional Market –provides goods and
services to people under their care. E.g.
hospitals, schools, prisons
2.
Government Market – requires much
paperwork from vendors and favors open
bidding
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12. SUMMARY
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Business-to-Business
Marketing requires a special,
unique set of marketing
concepts and principles
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