MARKETING MANAGEMENT 12 th edition 7 Analyzing Business Markets KotlerKeller

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? Who participates in the business-to- business buying process?

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 government agencies do their buying?

7-4 SAP’s software applications automate business functions

7-5 Organizational Buying 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.

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 concentrated buyers Direct purchasing

7-7 Buying Situation Straight rebuy Modified rebuy New task

7-8 Systems Buying and Selling Turnkey solution desired; Bids solicited Prime Contractors Second-tier Contractors System subcomponents assembled

7-9 The Buying Center Initiators Users Influencers Deciders Approvers Buyers Gatekeepers

7-10 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?

7-11 Sales Strategies Small Sellers Large Sellers Key Buying Influencers Multilevel In-depth Selling

7-12 Types of Business Customers Price- oriented Gold- standard Strategic- value Solution- oriented

7-13 Handling Price-Oriented Customers Limit quantity purchased Allow no refunds Make no adjustments Provide no services

7-14 Kodak offers services that streamline processes for hospital administrators

7-15 Purchasing Orientations Buying Procurement Supply Chain Management

7-16 Product-Related Purchasing Processes Routine products Leverage products Strategic products Bottleneck products

7-17 Table 7.1 Buy-grid Framework

7-18 Figure 7.1 Organizational Buying Behavior in Japan

7-19 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

7-20 Forms of Electronic Marketplaces Catalog sites Vertical markets Pure play auction sites Spot markets Private exchanges Barter markets Buying alliances

7-21 Table 7.2 Vendor Analysis

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 Importance ratings

7-23 Order Routine Specification and Inventory Stockless purchase plans Vendor-managed inventory Continuous replenishment

7-24 Desirable Outcomes of a B2B transaction: OTIFNE OT On time NE No error IF In full

7-25 Establishing Corporate Credibility Expertise LikeabilityTrustworthiness

7-26 Factors Affecting Buyer-Supplier Relationships Availability of alternatives Supply market dynamism Complexity of supply Importance of supply

7-27 Categories of Buyer-Seller Relationships Basic buying and selling Bare bones Contractual transaction Customer supply Cooperative systems Collaborative Mutually adaptive Customer is king

7-28 Opportunism Some form of cheating or undersupply relative to an implicit or explicit contract.

7-29 Aramark successfully services institutional and government markets

7-30 Marketing Debate How different is B-to-B Marketing? Take a position: 1.B-to-B requires special, unique marketing concepts and principles. 2. B-to-B is really not that different; basic marketing concepts apply.

7-31 Marketing Discussion How might we apply the consumer behavior topics from Chapter 6 to B-to-B settings?