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7
Analyzing
Business Markets

Marketing Management, 13th ed
Chapter Questions
• What is the business market, and how
does it differ from the consumer
market?
• What buying situations...
Chapter Questions
• How do business buyers make their
decisions?
• How can companies build strong
relationships with busin...
What is Organizational Buying?
Organizational buying refers
to the decision-making process by
which formal organizations e...
Top Business Marketing Challenges
• Expand understanding of customer needs
• Compete globally as China and India
reshape m...
Characteristics of Business Markets
• Fewer, larger
buyers
• Close suppliercustomer
relationships
• Professional
purchasin...
Buying Situation
• Straight rebuy
• Modified rebuy
• New task

Copyright © 2009 Pearson Education, Inc. Publishing as Pren...
The Buying Center
•
•
•
•

Initiators
Users
Influencers
Deciders

• Approvers
• Buyers
• Gatekeepers

Copyright © 2009 Pea...
Of Concern to Business Marketers
• Who are the major decision
participants?
• What decisions do they influence?
• What is ...
Stages in the Buying Process:
Buyphases
•
•
•
•
•
•
•
•

Problem recognition
General need description
Product specificatio...
Forms of Electronic Marketplaces
•
•
•
•
•
•
•

Catalog sites
Vertical markets
Pure play auction sites
Spot markets
Privat...
Methods of e-Procurement
• Websites organized using vertical hubs
• Websites organized using functional
hubs
• Direct extr...
Handling Price-Oriented Customers
•
•
•
•

Limit quantity purchased
Allow no refunds
Make no adjustments
Provide no servic...
Methods for Researching
Customer Value
• Internal engineering
assessment
• Field value-in-use
assessment
• Focus-group val...
Order Routine Specification
• Stockless purchase plans
• Vendor-managed inventory
• Continuous replenishment

Copyright © ...
Establishing Corporate Trust
and Credibility
• Expertise
• Trustworthiness
• Likability

Copyright © 2009 Pearson Educatio...
Trust Dimensions
• Transparent
• Product/Service
Quality
• Incentive
• Partnering

•
•
•
•

Cooperating design
Product com...
Factors Affecting
Buyer-Supplier Relationships
•
•
•
•

Availability of alternatives
Importance of supply
Complexity of su...
Categories of Buyer-Seller
Relationships
• Basic buying and
selling
• Bare bones
• Contractual
transaction
• Customer supp...
What is Opportunism?
Opportunism is some form of
cheating or undersupply relative to
an implicit or explicit contract.

Co...
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Chap 7

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Chap 7

  1. 1. 7 Analyzing Business Markets Marketing Management, 13th ed
  2. 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-tobusiness buying process? Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
  3. 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
  4. 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
  5. 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
  6. 6. Characteristics of Business Markets • Fewer, larger buyers • Close suppliercustomer 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
  8. 8. The Buying Center • • • • Initiators Users Influencers Deciders • Approvers • Buyers • Gatekeepers Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
  9. 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
  10. 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
  11. 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
  12. 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
  13. 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
  14. 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
  15. 15. Order Routine Specification • Stockless purchase plans • Vendor-managed inventory • Continuous replenishment Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
  16. 16. Establishing Corporate Trust and Credibility • Expertise • Trustworthiness • Likability Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall
  17. 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
  18. 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
  19. 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
  20. 20. What is Opportunism? Opportunism is some form of cheating or undersupply relative to an implicit or explicit contract. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall

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