2-1 Chapter Overview Business Markets/ Customers Types of Business Markets Business Buying Centers Factors to choose Business Buying Centers Business Sales Business to Business Buying Process Business to Business Buyer Behavior 3

2-2 How did Intel reach the point “Best”? What are the obstacles faced by Intel to target market? Who are the target customers of Intel? Identify the needs of the Intel Customers? Intel Bunnies 3

2-3 What Is Business Marketing? The marketing of goods and services to individuals and organizations for purposes other than personal consumption.

2-4 T A B L E 4. 1 Business Customers Major Categories of Business Customers Producers/ Manufacturers Resellers Governments Institutions OEMs Wholesalers Retailers Federal Municipal Local SchoolsHospitalsColleges ChurchesUnionsFraternal groups Civic ClubsFoundations Nonbusiness organizations

2-5 Business Marketing Institutions Resellers Wholesalers Retailers Producers OEMs Governments Federal State Municipal County Unions Civic Clubs Other Churches Foundations Nonprofits Major Categories of Business Customers

2-6 Original Equipment Manufacturers Producers OEMs. Individuals and organizations that buy business goods and incorporate them into the products that they produce for eventual sale to other producers or to consumers.

2-7CharacteristicCharacteristic Demand Volume # of Customers Location Distribution Nature of Buy Buy Influence Negotiations Reciprocity Leasing Promotion Business Market Organizational Larger Fewer Concentrated More Direct More Professional Multiple More Complex Yes Greater Personal Selling Consumer Market Individual Smaller Many Dispersed More Indirect More Personal Single Simpler No Lesser Advertising Business versus Consumer Markets

2-8 Buying Center Buying Centers All those persons in an organization who become involved in the purchase decision.

2-9 Users are those that will use the product or service Influencers help define specifications and provide information for evaluating alternatives Buyers have formal authority to select the supplier and arrange terms of purchase Deciders have formal or informal power to select and approve final suppliers Gatekeepers control the flow of information Five Roles in Buying Center

2-10 Emotions also play a role in business buying. Volvo stresses that the trucks’ benefits will make “drivers a lot more possessive”.

2-11 Factors affecting Business Buying Centers 1. Organizational factors 2. Individual factors 3. Cultural 4. Social

2-12 New Buy A situation requiring the purchase of a product for the first time. Modified Rebuy Modified Rebuy A situation where the purchaser wants some change in the original good or service. Straight Rebuy Straight Rebuy A situation in which the purchaser reorders the same goods or services without looking for new information or investigating other suppliers. Business Sales

2-13 Business to Business Buying Process

2-14 Eight Stages: –Stage 1: Problem Recognition –Stage 2: General Need Description –Stage 3: Product Specification Value analysis helps to reduce costs Business Buying Process

2-15 Eight Stages: –Stage 4: Supplier Search Supplier development Business Buying Process

2-16 Eight Stages: –Stage 5: Proposal Solicitation Business Buying Process

2-17 Eight Stages: –Stage 6: Supplier Selection –Stage 7: Order-Routine Specification Blanket contracts are often used for maintenance, repair and operating items. –Stage 8: Performance Review Business Buying Process

2-18 Choose a brand name for your product. What image do you want to project? Create a brand logo. Choose a positioning strategy. Building Your IMC Campaign