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Analyzing

Business Markets

Marketing Management, 13thed

7

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Chapter Questions

!hat is the business "ar#et, and ho$

does it di%%er %ro" the consu"er

"ar#et&

!hat buying situations do

organi'ational buyers %ace&

!ho participates in the business-to-

business buying process&

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Chapter Questions

Ho$ do business buyers "a#e their

decisions&

Ho$ can co"panies build strongrelationships $ith business custo"ers&

Ho$ do institutional buyers and

go)ern"ent agencies do their buying&

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CISCO Targets Businesses

http://www.cisco.com/

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What is Organizational Buying?

Organizational buyingre%ers

to the decision-"a#ing process by

$hich %or"al organi'ations establish

the need %or purchased products and

ser)ices, and identi%y, e)aluate, and

choose a"ong alternati)e brands

and suppliers.

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Top Business Marketing Challenges

Epand understanding o% custo"er needs

Co"pete globally as China and India

reshape "ar#ets

aster analytical tools and i"pro)e/uantitati)e s#ills

einstate inno)ation as an engine o% gro$th

Create ne$ organi'ational "odels andlin#ages

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Characteristics of Business Markets

1e$er, larger buyers

Close supplier-

custo"er

relationships Pro%essional

purchasing

any buyingin%luences

ultiple sales calls

eri)ed de"and

Inelastic de"and

1luctuating de"and

3eographically

concentrated buyers

irect purchasing

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Buying Situation

5traight rebuy5traight rebuy

odi%ied rebuyodi%ied rebuy

6e$ tas#6e$ tas#

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Systes Buying an! Selling

urn#ey solution

desired8

bids solicited

Pri"econtractors

5econd-tiercontractors

5yste"

subco"ponents

asse"bled

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The Buying Center

InitiatorsInitiators

:sers:sers

In%luencersIn%luencers

eciderseciders

;ppro)ers;ppro)ers

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Of Concern to Business Marketers

!ho are the "a=or decision

participants&

!hat decisions do they in%luence&

!hat is their le)el o% in%luence&

!hat e)aluation criteria do they use&

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Sales Strategies

5"all 5ellers

>arge 5ellers

?ey

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Stages in the Buying "rocess#

Buyphases

Proble" recognition

3eneral need description

Product speci%ication

5upplier search

Proposal solicitation

5upplier selection @rder-routine speci%ication

Per%or"ance re)ie$

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Table $%& Buygri! 'rae(ork

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'ors of )lectronic Marketplaces

Catalog sitesAertical "ar#ets

Pure play auction sites5pot "ar#ets

Pri)ate echanges

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Metho!s of e*"rocureent

!ebsites organi'ed using )ertical hubs

!ebsites organi'ed using %unctional

hubs

irect etranet lin#s to "a=or suppliers

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Table $%+ ,en!or Analysis

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-an!ling "rice*Oriente! Custoers

>i"it /uantity purchased>i"it /uantity purchased

;llo$ no re%unds;llo$ no re%unds

a#e no ad=ust"entsa#e no ad=ust"ents

Pro)ide no ser)icesPro)ide no ser)ices

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Metho!s for .esearching

Custoer ,alue

Internal engineering

assess"ent

1ield )alue-in-useassess"ent

1ocus-group )alue

assess"ent irect sur)ey

/uestions

Con=oint analysis

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Or!er .outine Specification

5toc#less

purchase plans

Aendor-"anaged

in)entory

Continuous

replenish"ent

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)stablishing Corporate Trust

an! Cre!ibility

Epertise

>i#eabilityrust$orthiness

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'igure $%/ Trust 0iensions

ransparent

ProductB5er)iceuality

Incenti)e

Partnering

Cooperating

esign

ProductCo"parison

5upply Chain

Per)asi)e

;d)ocacy

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'actors Affecting

Buyer*Supplier .elationships

;)ailability o%

alternati)es

5upply "ar#etdyna"is"Co"pleity o%supply

I"portance o%

supply

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Categories of Buyer*Seller

.elationships

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What is Opportunis?

Opportunisis so"e %or" o%

cheating or undersupply relati)e to

an i"plicit or eplicit contract.

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Araark Successfully Ser1ices Institutional

an! 2o1ernent Markets

http://www.aramark.com/

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Marketing 0ebate

ho$ di%%erent is

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Marketing 0iscussion

Consider so"e o% the consu"er

beha)ior topics %ro" Chapter . Ho$ "ight you apply the" to business-

to-business settings&