Scribd
Upload
534 views23 pages

Chapter 6 - Analyzing Business Markets

This document discusses business markets and organizational buying. It covers key topics like the differences between business and consumer markets, the buying process organizations go through, and how relationships are built with business customers. The buying process involves multiple individuals and stages. Marketers must understand customer needs and find ways to provide value at each stage of the process to strengthen relationships.

Uploaded by

Arman
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF or read online on Scribd
534 views23 pages

Chapter 6 - Analyzing Business Markets

This document discusses business markets and organizational buying. It covers key topics like the differences between business and consumer markets, the buying process organizations go through, and how relationships are built with business customers. The buying process involves multiple individuals and stages. Marketers must understand customer needs and find ways to provide value at each stage of the process to strengthen relationships.

Uploaded by

Arman
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF or read online on Scribd
You are on page 1/ 23

6

Analyzing
Business Markets
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 and how are buying decisions
made?
 How can marketers build strong relationships
with business customers?

6-2
What is a Business Market?
Business market consist of individuals and
organizations that buy goods and services for
further production, resale, re-rent, re-
distribution, etc.

6-3
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.

6-4
Characteristics of
Business Markets
 Fewer buyers  Multiple sales calls
 Larger buyers  Derived demand
 Close supplier-  Inelastic demand
customer relationships  Fluctuating demand
 Professional  Geographically
purchasing concentrated buyers
 Many buying  Direct purchasing
influences

6-5
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

6-6
Institutional and Government
Markets

6-7
Buying Situations

Straight
Straight re-buy/re-order
re-buy/re-order

Modified
Modified re-buy
re-buy

New
New task
task

6-8
Systems Buying and Selling

Turnkey solution System


desired; subcomponents
Bids solicited assembled

Prime Second-tier
Contractors Contractors

6-9
Sales Strategies

Key Buying
Small Sellers Influencers

Multilevel
Large Sellers In-depth
Selling

6-10
The Buying Center

 Initiators  Approvers
 Users  Buyers
 Influencers  Gatekeepers
 Deciders

6-11
Stages in the Buying Process:
Buyphases New Modified Straight
task rebuy rebuy
1. Problem recognition Yes Maybe No
2. General need Yes Maybe No
description
Yes Yes Yes
3. Product specification
Yes Maybe No
4. Supplier search
5. Proposal solicitation Yes Maybe No

6. Supplier selection Yes Maybe No


7. Order-routine Yes Maybe No
specification
Yes Yes Yes
8. Performance review
6-12
Supplier Search:
Forms of Electronic Marketplaces
 Catalog sites
 Vertical markets
 Pure play auction sites
 Spot markets
 Private exchanges
 Barter markets
 Buying alliances

6-13
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

6-14
Supplier Selection:
An Example of Vendor Analysis

6-15
Order Routine Specification

Stockless
purchase plans

Vendor-managed
inventory

6-16
Building Business Relationships:
Establishing Corporate Trust
and Credibility

Expertise

Trustworthiness Likeability

6-17
Trust Dimensions

Cooperating
Transparent
Design

Product/Service Product
Quality Comparison

Incentive Supply Chain

Pervasive
Partnering
Advocacy
6-18
Handling Price-Oriented Customers

Limit
Limit quantity
quantity purchased
purchased

Allow
Allow no
no refunds
refunds

Make
Make no
no adjustments
adjustments

Provide
Provide no
no services
services

6-19
Factors Affecting
Buyer-Supplier Relationships

Availability of Importance of
alternatives supply

Complexity of Supply market


supply dynamism

6-20
Categories of Buyer-Seller
Relationships

 Basic buying and  Cooperative


selling systems
 Bare bones  Collaborative
 Contractual  Mutually adaptive
transaction  Customer is king
 Customer supply

6-21
Methods for Researching
Customer Value
 Internal engineering  Conjoint analysis
assessment  Benchmarks
 Field value-in-use  Compositional
assessment approach
 Focus-group value  Importance ratings
assessment
 Direct survey
questions

6-22
What is Opportunism?

Opportunism is some form of cheating


or undersupply relative to an implicit or
explicit contract.

Opportunities is a concern because firms


must devote resources to control and
monitoring that otherwise would be allocated
to more productive purposes.

6-23

You might also like

pFad - Phonifier reborn

Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


Alternative Proxies:

Alternative Proxy

pFad Proxy

pFad v3 Proxy

pFad v4 Proxy