MARKETING MANAGEMENT
12th edition
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
7-5
Organizational Buying
Decision-making process by which formal organizations establish the
need for purchased products and services, and identify,
7-6
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
7-7
Buying Situation
Straight rebuy Straight rebuy
Modified rebuy Modified rebuy
7-8
Systems Buying and Selling
Turnkey solution desired;
Bids solicited
Prime
Contractors
Second-tier Contractors System
7-9
The Buying Center
7-10
Of Concern to Business Marketers
• Who are the major decision participants? • What decisions do they influence?
• What is their level of influence?
7-11
Sales Strategies
Small Sellers
Large Sellers
Key Buying Influencers
Multilevel In-depth
7-12
Types of Business Customers
Price-7-13
Handling Price-Oriented Customers
Limit quantity purchased Limit quantity purchased
Allow no refunds Allow no refunds
Make no adjustments Make no adjustments
7-14
Kodak offers services that streamline
processes for hospital
7-15
Purchasing Orientations
Buying
Procurement
7-16
Product-Related Purchasing Processes
Routine products Routine products
Leverage products Leverage products
Strategic products Strategic products
7-17
7-18
7-19
Methods of e-Procurement
• Websites organized using vertical hubs
• Websites organized using functional hubs • Direct extranet links to major suppliers
• Buying alliances
7-20
Forms of Electronic Marketplaces
7-21
7-22
Assessing Customer Value
• Internal engineering assessment
• Field value-in-use assessment
• Focus-group value assessment
• Direct survey questions
• Conjoint analysis • Benchmarks
• Compositional approach
7-23
Order Routine Specification and
Inventory
Stockless
purchase plans
Vendor-managed inventory
7-24
Desirable Outcomes of a B2B transaction:
OTIFNE
OT On time
NE No error IF
7-25
Establishing Corporate Credibility
Expertise
7-26
Factors Affecting
Buyer-Supplier Relationships
Availability of alternatives
Supply market dynamism Complexity of
supply
7-27
Categories of Buyer-Seller Relationships
• Basic buying and selling
• Bare bones • Contractual
transaction
• Customer supply
• Cooperative systems • Collaborative
7-28
Opportunism
7-29
Aramark successfully services
7-30
Marketing Debate
How different is B-to-B Marketing?
Take a position:
7-31
Marketing Discussion
How might we apply the consumer