Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Marketing Management, 12/e A South Asian Perspective 7  Analyzing Business Markets Dr. Hitesh Ruparel
Chapter Questions <ul><li>What is the business market, and how does it differ from the consumer market? </li></ul><ul><li>...
Chapter Questions <ul><li>How do business buyers make their decisions? </li></ul><ul><li>How can companies build strong re...
Organizational Buying Decision-making process by which formal organizations establish the need for purchased products and ...
Characteristics of Business Markets <ul><li>Fewer, larger buyers </li></ul><ul><li>Close supplier-customer relationships <...
Buying Situation <ul><li>Straight rebuy </li></ul><ul><li>Modified rebuy </li></ul><ul><li>New task </li></ul>
The Buying Center <ul><li>Initiators </li></ul><ul><li>Users </li></ul><ul><li>Influencers </li></ul><ul><li>Deciders </li...
Of Concern to Business Marketers <ul><li>Who are the major decision participants? </li></ul><ul><li>What decisions do they...
Purchasing Process <ul><li>Understand the perception of purchase dept in the organization </li></ul><ul><li>Understand the...
Stages in Purchase process <ul><li>Problem Recognition </li></ul><ul><li>General Need Description and Product Specificatio...
Types of Business Customers <ul><li>Price-oriented </li></ul><ul><li>Solution-oriented </li></ul><ul><li>Gold-standard </l...
Handling Price-Oriented Customers <ul><li>Limit quantity purchased </li></ul><ul><li>Allow no refunds </li></ul><ul><li>Ma...
Purchasing Orientations <ul><li>Buying </li></ul><ul><li>Procurement </li></ul><ul><li>Supply chain management </li></ul>
Product-Related Purchasing Processes <ul><li>Routine products </li></ul><ul><li>Leverage products </li></ul><ul><li>Strate...
Methods of e-Procurement <ul><li>Websites organized using vertical hubs </li></ul><ul><li>Websites organized using functio...
Assessing Customer Value <ul><li>Internal engineering assessment </li></ul><ul><li>Field value-in-use assessment </li></ul...
Order Routine Specification and Inventory <ul><li>Stockless purchase plans </li></ul><ul><li>Vendor-managed inventory </li...
Desirable Outcomes of a B2B transaction: OTIFNE <ul><li>On time </li></ul><ul><li>In full </li></ul><ul><li>No error </li>...
Establishing Corporate Credibility <ul><li>Expertise </li></ul><ul><li>Trustworthiness </li></ul><ul><li>Likeability </li>...
Factors Affecting  Buyer-Supplier Relationships <ul><li>Availability of alternatives </li></ul><ul><li>Importance of suppl...
Categories of Buyer-Seller Relationships <ul><li>Basic buying and selling </li></ul><ul><li>Bare bones </li></ul><ul><li>C...
Opportunism Some form of cheating or undersupply relative to an implicit or explicit contract.
Govt. & Inst. Purchase <ul><li>Get into the Purchase Registry </li></ul><ul><li>Be with Big Contractors </li></ul><ul><li>...
Upcoming SlideShare
Loading in …5
×

07

1,248 views

Published on

Published in: Business, Career
  • Be the first to comment

  • Be the first to like this

07

  1. 1. Marketing Management, 12/e A South Asian Perspective 7 Analyzing Business Markets Dr. Hitesh Ruparel
  2. 2. Chapter Questions <ul><li>What is the business market, and how does it differ from the consumer market? </li></ul><ul><li>What buying situations do organizational buyers face? </li></ul><ul><li>Who participates in the business-to-business buying process? </li></ul>
  3. 3. Chapter Questions <ul><li>How do business buyers make their decisions? </li></ul><ul><li>How can companies build strong relationships with business customers? </li></ul><ul><li>How do institutional buyers and government agencies do their buying? </li></ul>
  4. 4. Organizational Buying 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. 5. Characteristics of Business Markets <ul><li>Fewer, larger buyers </li></ul><ul><li>Close supplier-customer relationships </li></ul><ul><li>Professional purchasing </li></ul><ul><li>Many buying influences </li></ul><ul><li>Multiple sales calls </li></ul><ul><li>Derived demand </li></ul><ul><li>Inelastic demand </li></ul><ul><li>Fluctuating demand </li></ul><ul><li>Geographically concentrated buyers </li></ul><ul><li>Direct purchasing </li></ul>
  6. 6. Buying Situation <ul><li>Straight rebuy </li></ul><ul><li>Modified rebuy </li></ul><ul><li>New task </li></ul>
  7. 7. The Buying Center <ul><li>Initiators </li></ul><ul><li>Users </li></ul><ul><li>Influencers </li></ul><ul><li>Deciders </li></ul><ul><li>Approvers </li></ul><ul><li>Buyers </li></ul><ul><li>Gatekeepers </li></ul>
  8. 8. Of Concern to Business Marketers <ul><li>Who are the major decision participants? </li></ul><ul><li>What decisions do they influence? </li></ul><ul><li>What is their level of influence? </li></ul><ul><li>What evaluation criteria do they use? </li></ul>
  9. 9. Purchasing Process <ul><li>Understand the perception of purchase dept in the organization </li></ul><ul><li>Understand the Administration of Purchase Dept. </li></ul>
  10. 10. Stages in Purchase process <ul><li>Problem Recognition </li></ul><ul><li>General Need Description and Product Specification </li></ul><ul><li>Supplier Search </li></ul><ul><li>Catalog sites Vertical markets </li></ul><ul><li>Pure play auction sites Spot markets </li></ul><ul><li>Private exchanges Barter markets </li></ul><ul><li>Buying alliances External Links </li></ul><ul><li>Proposal Solicitation </li></ul><ul><li>Supplier Selection </li></ul><ul><li>Order Routine Specification </li></ul><ul><li>Performance Review </li></ul>
  11. 11. Types of Business Customers <ul><li>Price-oriented </li></ul><ul><li>Solution-oriented </li></ul><ul><li>Gold-standard </li></ul><ul><li>Strategic-value </li></ul>
  12. 12. Handling Price-Oriented Customers <ul><li>Limit quantity purchased </li></ul><ul><li>Allow no refunds </li></ul><ul><li>Make no adjustments </li></ul><ul><li>Provide no services </li></ul>
  13. 13. Purchasing Orientations <ul><li>Buying </li></ul><ul><li>Procurement </li></ul><ul><li>Supply chain management </li></ul>
  14. 14. Product-Related Purchasing Processes <ul><li>Routine products </li></ul><ul><li>Leverage products </li></ul><ul><li>Strategic products </li></ul><ul><li>Bottleneck products </li></ul>
  15. 15. Methods of e-Procurement <ul><li>Websites organized using vertical hubs </li></ul><ul><li>Websites organized using functional hubs </li></ul><ul><li>Direct extranet links to major suppliers </li></ul><ul><li>Buying alliances </li></ul><ul><li>Company buying sites </li></ul>
  16. 16. Assessing Customer Value <ul><li>Internal engineering assessment </li></ul><ul><li>Field value-in-use assessment </li></ul><ul><li>Focus-group value assessment </li></ul><ul><li>Direct survey questions </li></ul><ul><li>Conjoint analysis </li></ul><ul><li>Benchmarks </li></ul><ul><li>Compositional approach </li></ul><ul><li>Importance ratings </li></ul>
  17. 17. Order Routine Specification and Inventory <ul><li>Stockless purchase plans </li></ul><ul><li>Vendor-managed inventory </li></ul><ul><li>Continuous replenishment </li></ul>
  18. 18. Desirable Outcomes of a B2B transaction: OTIFNE <ul><li>On time </li></ul><ul><li>In full </li></ul><ul><li>No error </li></ul>
  19. 19. Establishing Corporate Credibility <ul><li>Expertise </li></ul><ul><li>Trustworthiness </li></ul><ul><li>Likeability </li></ul>
  20. 20. Factors Affecting Buyer-Supplier Relationships <ul><li>Availability of alternatives </li></ul><ul><li>Importance of supply </li></ul><ul><li>Complexity of supply </li></ul><ul><li>Supply market dynamism </li></ul>
  21. 21. Categories of Buyer-Seller Relationships <ul><li>Basic buying and selling </li></ul><ul><li>Bare bones </li></ul><ul><li>Contractual transaction </li></ul><ul><li>Customer supply </li></ul><ul><li>Cooperative systems </li></ul><ul><li>Collaborative </li></ul><ul><li>Mutually adaptive </li></ul><ul><li>Customer is king </li></ul>
  22. 22. Opportunism Some form of cheating or undersupply relative to an implicit or explicit contract.
  23. 23. Govt. & Inst. Purchase <ul><li>Get into the Purchase Registry </li></ul><ul><li>Be with Big Contractors </li></ul><ul><li>Watch Tender Websites </li></ul><ul><li>Network with Emerging Bidders for Outsourcing Opportunities </li></ul>

×