This document discusses analyzing business markets and organizational buying. It begins by asking chapter review questions about the nature of business markets, buying situations, and the business-to-business buying process. The document then defines organizational buying and discusses characteristics of business markets, different buying situations, and the various roles that make up the buying center. It also outlines the stages in the buying process and methods for researching customer value and building buyer-seller relationships. Finally, it briefly discusses institutional markets and repeats the chapter review questions.

1. 7
Analyzing
Business Markets
1

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 © 2011 Pearson Education, Inc. Publishing as Prentice Hall 7-2

3. Copyright © 2011 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 © 2011 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. Top Marketing Challenges

Understanding customer needs in new ways;

Identifying new opportunities for growth;

Improving value management techniques

Calculating better marketing performance and
accountability metrics;

Competing and growing in global markets

Countering the threat of product and service
commoditization

Convincing C-level executives to embrace the
marketing concept
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 7-5

6. Characteristics of
Business Markets

Fewer 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 © 2011 Pearson Education, Inc. Publishing as Prentice Hall 7-6

7. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 7-7
Buying Situation
Straight Rebuy
Modified Rebuy
New Task

8. Systems Buying And Selling
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 7-8

9. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 7-9
The Buying Center

Initiators

Users

Influencers

Deciders

Approvers

Buyers

Gatekeepers

10. Of Concern to 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 © 2011 Pearson Education, Inc. Publishing as Prentice Hall 7-10

11. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 7-11
Stages in the Buying Process:
Buyphases

Problem recognition

General need description

Product specification

Supplier search

Proposal solicitation

Supplier selection

Order-routine specification

Performance review

12. Table 7.1 Buygrid Framework
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 7-12

13. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 7-13
Forms of Electronic Marketplaces

Catalog sites

Vertical markets

Pure play auction sites

Spot markets

Private exchanges

Barter markets

Buying alliances

14. Table 7.2 An Example of
Vendor Analysis
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 7-14

15. 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 © 2011 Pearson Education, Inc. Publishing as Prentice Hall 7-15

16. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 7-16
Order Routine Specification

Stockless purchase plans

Vendor-managed inventory

Continuous replenishment

17. Categories of Buyer-Seller
Relationships

Basic buying and
selling

Bare bones

Contractual
transaction

Customer supply

Cooperative
systems

Collaborative

Mutually adaptive

Customer is king
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 7-17

18. Institutional Markets
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 7-18

19. For Review

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 © 2011 Pearson Education, Inc. Publishing as Prentice Hall 7-19

20. For Review

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 © 2011 Pearson Education, Inc. Publishing as Prentice Hall 7-20