1. Analyzing Business Markets Chapter 6 Phillip Kotler & Kevin Lane Keller
Prepared for:
Universitas Ciputra

2. What is Organizational Buyers?
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
The business market consists of all the organizations that acquire goods and services that are sold, rented, or supplied to others

3. Characteristics of Business Markets
Fewer, larger buyers
Close supplier-customer relationship
Professional purchasing
Multiple buying influences
Multiple sales calls
Derived demand
Inelastic demand
Fluctuating demand
Geographically concentrated business
Direct purchasing

4. Buying Situation Straight re-buy
a business buying situation in which the buyer routinely re-orders something without modification
Modified re-buy
a business buying situation in which the buyer wants to modify the product specifications, price, term or suppliers
New task
a business buying situation in which the buyer purchase a product or service for the first time

5. Participants in the Business Buying Process
The Buying Center 
Buying Center Influences 
Buying Center Targeting  

6. Buying Center all the individual and units that participate in the business buying decision process
Initiator: those who request something to be purchased
Users: member of the organization who will use the product of service
Influencers: people who affect the buying decision
Deciders: people who have formal or informal power to select or approve the final suppliers
Approvals: people who authorized the proposed actions of deciders or buyers
Buyers: the person who make the actual process
Gatekeeper: people who control the flow of information to others 

7. Buying Center Influencers
Interest
Authority
Status
Persuasiveness
Age
Income
Education
Job position
Personality
Attitude toward risk
Culture 
Personal motivation
Personal perception
Personal preferences
Buying style

8. Buying Center Targeting
Four types of Business costumers:
Price-oriented customers
Solution-oriented customers
Gold-standard customers
Strategic-value customers
Solution Selling:
Solution to enhance customer revenue
Solution to decrease customer risk
Solution to reduce customer cost 

9. The Purchasing Process
Purchasing Orientations
(Buying Orientation; Procurement Orientation; Supply Chain Management)
Types of Purchasing Process
(Routine Products; Leverage Products; Strategic Products; Bottleneck Products)
Purchasing Organization and Administration
(strategic, technical and teamwork oriented)

10. Stages in the Buying Process
someone in the company recognize the problem or need that can be met by acquiring a good or service
Problem recognition
General need description
Product specification
Supplier search
E-procurement
Proposal solicitation
Supplier selection
Order-routine specification
Performance Review
the buyer invites the qualified suppliers to submit proposal
the buyer review proposals and selects supplier
the buyer writes the final order with the chosen supplier(s), listing the technical specification, quantity needed, expected time of delivery, return policies and warranties
the company describes the general characteristics and quantity of a need item
direct extranet link to major supplier; buying alliances; company buying sites
the buyer rates its specification with suppliers, deciding whether to continue, modify or drop them
the buying organization decides on and specifies the best vendor
trade directories, contact other companies, trade advertisement, attend trade show

11. Institutional & Government Market
Institutional Market:
Schools, hospital, nursing homes, prisons and other institutions that provide goods and service to people
Government Market:
Government unit-federal, state and local that purchase or rent goods and services for carrying out the main of function government

12. The Characteristic Institutional: Government: Low budget
Captive patron
Government:
Require supplier to submit bid, and normally they award the contract to the lowest bidder
Tend to favor domestic suppliers over foreign suppliers
Provide would-be suppliers with detail guides describing how to sell to the government
Non economic consideration: favor depressed business firm and areas, small business firms and minority
Many companies that sell to the government have not been marketing oriented for some reasons.

13. Managing B2B Customer Relationship
Buyer-supplier relationship differed according to 4 factors:
Availability of suppliers
Importance of supply
Complexity of supply
Supply market dynamism