1. Analysing Business Markets Marketing Management, 13 th ed 7

2. Group Names & Case Allocation Group NameCase/Article Marketing Myopia Movie Test Audiences Marketing to Older Adults Online Music Distbn. Market Segmentation Exclusive Brands External Search Easy Cinema Price & Brand Name FCUK e- Marketing

3. Group Names & Strap Lines Group NameStrap LineReference

4. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-4 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?

5. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-5 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?

6. Summary Complexity and dynamism has implications for business-to-business markets. The target audiences for B2B communications are amorphous, made up of groups of constantly changing individuals with different interests and motivations. Buyers seek a good financial deal. Production managers want high throughput. Health and safety executives want low risk. And those are just their simple, functional needs. Each person who is party to the DMU will also bring their psychological and cultural baggage to the decision and this can create interesting variations to the selection of products and suppliers.

7. Characteristics of Business Markets Fewer, larger buyers Close supplier- customer relationships Professional purchasing Many buying influences Multiple sales calls Derived demand In-elastic demand Fluctuating demand Geographically concentrated buyers Direct purchasing

8. Derived Demand

9. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-9 Buying Situation Straight rebuy Modified rebuy New task

10. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-10 Systems Buying and Selling Turnkey solution desired; Bids solicited Prime Contractors Second-tier Contractors System subcomponents assembled

11. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-11 The Buying Centre Initiators Users Influencers Deciders Approvers Buyers Gatekeepers

12. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-12 Sales Strategies Small Sellers Large Sellers Key Buying Influencers Multi-level In-depth Selling

13. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-13 Stages in the Buying Process: Buyphases Problem recognition General need description Product specification Supplier search Proposal solicitation Supplier selection Order-routine specification Performance review

14. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-14 Table 7.2 Buygrid Framework

15. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-15 Forms of Electronic Marketplaces Catalogue sites Vertical markets Pure play auction sites Spot markets Private exchanges Barter markets Buying alliances

16. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-16 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

17. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-17 Table 7.3 Vendor Analysis

18. Are Business Buyers both Rational & Sophisticated ? Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-18 Lucas Industries plc was a famous manufacturer of components for the motor industry and aerospace industry. It was based in Birmingham in the UK. It was listed on the London Stock Exchange and was once a constituent of the FTSE 100 Index.

19. Are Business Buyers both Rational & Sophisticated ? Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-19 Large Committee Very extensive Invitation to Tender process Sophisticated Questionnaires Complex multi Excel spreadsheet Analysis Short list prepared Long Proposal and meeting schedule over several months.

20. Are Business Buyers both Rational & Sophisticated ? Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-20 Success !! We are awarded the business ‼ Sales are convinced it was down to our Sharper pricing. ? mmd was sent to investigate………….

21. Do you have an office in Swindon ? Answer Yes or No. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-21

22. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-22 Handling Price-Oriented Customers Limit quantity purchased Allow no refunds Make no adjustments Provide no services

23. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-23 Handling Price-Oriented Customers Limit quantity purchased Allow no refunds Make no adjustments Provide no services MBA Student Warning This is all just Theory !

24. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-24 Methods for Researching Customer Value Internal engineering assessment Field value-in-use assessment Focus-group value assessment Direct survey questions Conjoint analysis Benchmarks Compositional approach Importance ratings Take client to Golf course and ask him what we need to do to win the business.

25. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-25 Order Routine Specification Stockless purchase plans Vendor-managed inventory Continuous replenishment

26. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-26 Establishing Corporate Trust and Credibility Expertise LikeabilityTrustworthiness

27. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-27 Figure 7.1 Trust Dimensions Transparent Product/Service Quality Incentive Partnering Co-operating Design Product Comparison Supply Chain Pervasive Advocacy

28. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-28 Factors Affecting Buyer-Supplier Relationships Availability of alternatives Supply market dynamism Complexity of supply Importance of supply

29. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-29 Categories of Buyer-Seller Relationships Basic buying and selling Bare bones Contractual transaction Customer supply Co-operative systems Collaborative Mutually adaptive Customer is king