Kotler Keller PhillipKevin Lane Marketing Management 14e
Analyzing Business Markets Chapter 7
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 3 of 27 Discussion Questions 1.What is the business market, and how does it differ from the consumer market? 2.What buying situations do organizational buyers face? 3.Who participates in the B2B buying process? 4.How do business buyers make their decisions? 5.How can companies build strong relationships with business customers? 6.How do institutional buyers and government agencies do their buying?
Defined Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 4 of 27 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. -- F. Webster Jr and Y. Wind Organizational Buying
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 5 of 27 Business Markets Agriculture Communications Banking & Finance Transportation & Distribution Construction Forestry Manufacturing
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 6 of 27 Business Markets Understanding deep customer needs Identify areas for growth Improving value management techniques Calculating better marketing metrics Competing and growing in global markets Countering product commoditization Gain support for the marketing concept Similarities to the Consumer Market
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 7 of 27 Business Markets Professional Buyers Geographically Concentrated Multiple Sales Calls Differences to the Consumer Market Personal Relationships Fewer, Larger Buyers
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 8 of 27 Business Markets Demand Derived Inelastic Fluctuating Derived Demand Differences to the Consumer Market Fluctuating Demand Inelastic Demand
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 9 of 27 Buying Situations Straight Rebuy New Task Modified Rebuy
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 10 of 27 Systems Buying and Selling Buyer Prime Contractor Second-tier Contractors
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 11 of 27 Business Buying Participants Influencer Buyers Gatekeeper Decider Initiator/ Users Approver
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 12 of 27 Buying Center Influences Participants differ by: Interest Authority Status Persuasiveness Decision criteria
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 13 of 27 Targeting Firms and Buying Centers Who to target?
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 14 of 27 Purchasing/Procurement Process Diverse supplier base Benefits vs. Costs
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 15 of 27 Stages in the Buying Process Problem Recognition Description and Characteristics Supplier Search Proposal Solicitations Supplier Selection Order Specification Performance Review
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 16 of 27 Stages in the Buying Process Problem Recognition Internal stimuli New product being developed Broken machine Low stock level External stimuli Trade show visit Advertisement
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 17 of 27 Stages in the Buying Process Technical specifications Reliability Durability Price Description and Characteristics Product value analysis
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 18 of 27 Stages in the Buying Process Trade directories Trade advertisements Trade shows Supplier Search E-Procurement Lead generation
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 19 of 27 Proposal Solicitations Stages in the Buying Process Formal presentation Written
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 20 of 27 Supplier Selection Stages in the Buying Process Supplier-evaluation model Number of suppliers
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 21 of 27 Order Specification Stages in the Buying Process Technical specifications Quantity Delivery time Return policy Warranties Stockless purchase plan
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 22 of 27 Stages in the Buying Process End user evaluations Weighted-score method Performance Review 7 9 4
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 23 of 27 Buyclasses New Task Modified Rebuy Straight Rebuy 1. Problem RecognitionYesMaybeNo 2. General need descriptionYesMaybeNo 3. Product specificationYes 4. Supplier searchYesMaybeNo 5. Proposal solicitationYesMaybeNo 6. Supplier SelectionYesMaybeNo 7. Order-routine specificationYesMaybeNo 8. Performance reviewYes Buygrid Framework Buyphases Table 7.1
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 24 of 27 Managing B2B Relationships One-to-one Marketing Online social media
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 25 of 27 Managing B2B Relationships Vertical Coordination Relationship Factors Availability of alternatives Importance of supply Complexity of supply Supply market dynamism
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 26 of 27 Buyer-Seller Relationship Categories Customer is king Collaborative Mutually adaptive Contractual transaction Cooperative systems
Copyright © 2012 Pearson Education, Inc. Publishing as Prentice HallSlide 27 of 27 Institutional and Governments Markets Schools Hospitals Prisons Government agencies