1. Chapter 7 Analyzing Business Markets and Buyer Behavior
Know your customer

2. 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

3. 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

4. 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?

5. 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

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

7. 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