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Analyzing
Business Markets
Marketing Management, 13th
ed
7
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-2
Chapter Questions
• What is the business market, and how
does it differ from the consumer
market?
• What buying situations do
organizational buyers face?
• Who participates in the business-to-
business buying process?
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-3
Chapter Questions
• How do business buyers make their
decisions?
• How can companies build strong
relationships with business customers?
• How do institutional buyers and
government agencies do their buying?
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-4
What is Organizational Buying?
Organizational buying refers
to 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.
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-5
Top Business Marketing Challenges
• Expand understanding of customer needs
• Compete globally as China and India
reshape markets
• Master analytical tools and improve
quantitative skills
• Reinstate innovation as an engine of growth
• Create new organizational models and
linkages
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-6
Characteristics of Business Markets
• Fewer, larger
buyers
• Close supplier-
customer
relationships
• Professional
purchasing
• Many buying
influences
• Multiple sales calls
• Derived demand
• Inelastic demand
• Fluctuating demand
• Geographically
concentrated buyers
• Direct purchasing
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-7
Buying Situation
• Straight rebuy
• Modified rebuy
• New task
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-8
The Buying Center
• Initiators
• Users
• Influencers
• Deciders
• Approvers
• Buyers
• Gatekeepers
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-9
Of Concern to Business Marketers
• Who are the major decision
participants?
• What decisions do they influence?
• What is their level of influence?
• What evaluation criteria do they use?
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-10
Stages in the Buying Process:
Buyphases
• Problem recognition
• General need description
• Product specification
• Supplier search
• Proposal solicitation
• Supplier selection
• Order-routine specification
• Performance review
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-11
Forms of Electronic Marketplaces
• Catalog sites
• Vertical markets
• Pure play auction sites
• Spot markets
• Private exchanges
• Barter markets
• Buying alliances
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-12
Methods of e-Procurement
• Websites organized using vertical hubs
• Websites organized using functional
hubs
• Direct extranet links to major suppliers
• Buying alliances
• Company buying sites
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-13
Handling Price-Oriented Customers
• Limit quantity purchased
• Allow no refunds
• Make no adjustments
• Provide no services
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-14
Methods for Researching
Customer Value
• Internal engineering
assessment
• Field value-in-use
assessment
• Focus-group value
assessment
• Direct survey
questions
• Conjoint analysis
• Benchmarks
• Compositional
approach
• Importance ratings
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-15
Order Routine Specification
• Stockless purchase plans
• Vendor-managed inventory
• Continuous replenishment
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-16
Establishing Corporate Trust
and Credibility
• Expertise
• Trustworthiness
• Likability
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-17
Trust Dimensions
• Transparent
• Product/Service
Quality
• Incentive
• Partnering
• Cooperating design
• Product comparison
• Supply chain
• Pervasive advocacy
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-18
Factors Affecting
Buyer-Supplier Relationships
• Availability of alternatives
• Importance of supply
• Complexity of supply
• Supply market dynamism
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-19
Categories of Buyer-Seller
Relationships
• Basic buying and
selling
• Bare bones
• Contractual
transaction
• Customer supply
• Cooperative
systems
• Collaborative
• Mutually adaptive
• Customer is king
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-20
What is Opportunism?
Opportunism is some form of
cheating or undersupply relative to
an implicit or explicit contract.

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Kotler mm 13e_basic_07

  • 2. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-2 Chapter Questions • What is the business market, and how does it differ from the consumer market? • What buying situations do organizational buyers face? • Who participates in the business-to- business buying process?
  • 3. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-3 Chapter Questions • How do business buyers make their decisions? • How can companies build strong relationships with business customers? • How do institutional buyers and government agencies do their buying?
  • 4. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-4 What is Organizational Buying? Organizational buying refers to 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.
  • 5. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-5 Top Business Marketing Challenges • Expand understanding of customer needs • Compete globally as China and India reshape markets • Master analytical tools and improve quantitative skills • Reinstate innovation as an engine of growth • Create new organizational models and linkages
  • 6. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-6 Characteristics of Business Markets • Fewer, larger buyers • Close supplier- customer relationships • Professional purchasing • Many buying influences • Multiple sales calls • Derived demand • Inelastic demand • Fluctuating demand • Geographically concentrated buyers • Direct purchasing
  • 7. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-7 Buying Situation • Straight rebuy • Modified rebuy • New task
  • 8. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-8 The Buying Center • Initiators • Users • Influencers • Deciders • Approvers • Buyers • Gatekeepers
  • 9. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-9 Of Concern to Business Marketers • Who are the major decision participants? • What decisions do they influence? • What is their level of influence? • What evaluation criteria do they use?
  • 10. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-10 Stages in the Buying Process: Buyphases • Problem recognition • General need description • Product specification • Supplier search • Proposal solicitation • Supplier selection • Order-routine specification • Performance review
  • 11. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-11 Forms of Electronic Marketplaces • Catalog sites • Vertical markets • Pure play auction sites • Spot markets • Private exchanges • Barter markets • Buying alliances
  • 12. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-12 Methods of e-Procurement • Websites organized using vertical hubs • Websites organized using functional hubs • Direct extranet links to major suppliers • Buying alliances • Company buying sites
  • 13. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-13 Handling Price-Oriented Customers • Limit quantity purchased • Allow no refunds • Make no adjustments • Provide no services
  • 14. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-14 Methods for Researching Customer Value • Internal engineering assessment • Field value-in-use assessment • Focus-group value assessment • Direct survey questions • Conjoint analysis • Benchmarks • Compositional approach • Importance ratings
  • 15. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-15 Order Routine Specification • Stockless purchase plans • Vendor-managed inventory • Continuous replenishment
  • 16. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-16 Establishing Corporate Trust and Credibility • Expertise • Trustworthiness • Likability
  • 17. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-17 Trust Dimensions • Transparent • Product/Service Quality • Incentive • Partnering • Cooperating design • Product comparison • Supply chain • Pervasive advocacy
  • 18. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-18 Factors Affecting Buyer-Supplier Relationships • Availability of alternatives • Importance of supply • Complexity of supply • Supply market dynamism
  • 19. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-19 Categories of Buyer-Seller Relationships • Basic buying and selling • Bare bones • Contractual transaction • Customer supply • Cooperative systems • Collaborative • Mutually adaptive • Customer is king
  • 20. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-20 What is Opportunism? Opportunism is some form of cheating or undersupply relative to an implicit or explicit contract.