MARKETING MANAGEMENT
12
thedition
7 Analyzing Business Markets
7-2
Chapter Questions
What is the business market, and how does it differ from the consumer market? What buying situations do organizational
buyers face?
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
7-4
Organizational Buying
Decision-making process by which formal organizations establish the
need for purchased products and services, and identify
7-5
Characteristics of Business
Markets
Fewer, larger buyers Close
supplier-customer relationships
Professional
purchasing
Many buying influences Multiple sales calls
Derived demand Inelastic demand
Fluctuating demand Geographically
concentrated buyers
7-6
Buying Situation
Straight rebuy
Modified rebuy
7-7
The Buying Center
Initiators
Users
Influencers
Deciders
Approvers
Buyers
7-8
Of Concern to Business Marketers
Who are the major decision participants?
What decisions do they influence?
What is their level of influence?
7-9
Types of Business Customers
Price-oriented
Solution-oriented
7-10
Handling Price-Oriented Customers
Limit quantity purchased
Allow no refunds
Make no adjustments
7-11
Purchasing Orientations
Buying
Procurement
7-12
Product-Related Purchasing Processes
Routine products
Leverage products
Strategic products
7-13
Methods of e-Procurement
Websites organized using vertical hubs
Websites organized using functional hubs
Direct extranet links to major suppliers
Buying alliances
7-14
Forms of Electronic Marketplaces
Catalog sites
Vertical markets
Pure play auction sites
Spot markets
Private exchanges
Barter markets
7-15
Assessing Customer Value
Internal engineering
assessment
Field value-in-use
assessment
Focus-group value
assessment
Direct survey
questions
Conjoint analysis Benchmarks
Compositional
approach
7-16
Order Routine Specification and
Inventory
Stockless purchase plans
Vendor-managed inventory
7-17
Desirable Outcomes of a B2B
transaction: OTIFNE
On time
In full
7-18
Establishing Corporate Credibility
Expertise
Trustworthiness
7-19
Factors Affecting
Buyer-Supplier Relationships
Availability of alternatives
Importance of supply
Complexity of supply
7-20
Categories of Buyer-Seller
Relationships
Basic buying and
selling
Bare bones Contractual
transaction
Customer supply
Cooperative systems Collaborative
7-21
