Chapter 7 Analyzing Business Markets and Buyer Behavior Know your customer

Characteristics of Business Markets (Table 7.1) Example: Professional purchasing: business goods purchased by trained agents who follow their organization’s purchasing policies Offering ________ service to business buyers

Business Buying Situations Straight rebuy – routine re-ordering; just-in-time inventory is practiced. Office supplies; bulk chemicals Implications for seller: ______________ offer high quality products and reliable service; “out-supplier” offer something new

Business Buying Situations Modified rebuy – consider ____________ before buying; routine purchase has changed Modify product specifications, prices, delivery requirements, etc. Implications: “in-supplier” protects existing account; “out-supplier” - why should they buy from you?

Business Buying Situations New Task Purchase – large investments; extensive information search; formal decision process Office building; new security system Implications: understand _____ of organization; long time to make decision

Business Behavior Conclusion: understand influences and process by which organizations buy their products What do your customers _____? How are decisions made?

Application Offering _____ to Business Buyers: On-line business; B2B e-procurement Shave transaction costs for buyers and sellers Reduce time between order and delivery Reduce drudgery and paperwork Erode buyer-supplier loyalty Create potential security disasters