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

2. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-2 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?

3. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-3 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?

4. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-4 Characteristics of Business Markets Fewer, larger buyers Close supplier- customer relationships Professional purchasing Many buying influences Multiple sales calls Derived demand Inelastic demand Fluctuating demand Geographically concentrated buyers Direct purchasing

5. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-5 Buying Situation Straight rebuy Modified rebuy New task

6. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-6 Systems Buying and Selling Turnkey solution desired; Bids solicited Prime Contractors Second-tier Contractors System subcomponents assembled

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

8. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-8 Sales Strategies Small Sellers Large Sellers Key Buying Influencers Multilevel In-depth Selling

9. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-9 Stages in the Buying Process: Buyphases Problem recognition General need description Product specification Supplier search Proposal solicitation Supplier selection Order-routine specification Performance review

10. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-10 Table 7.2 Buygrid Framework

11. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-11 Forms of Electronic Marketplaces Catalog sites Vertical markets Pure play auction sites Spot markets Private exchanges Barter markets Buying alliances

12. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-12 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

13. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-13 Table 7.3 Vendor Analysis

14. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-14 Handling Price-Oriented Customers Limit quantity purchased Allow no refunds Make no adjustments Provide no services

15. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-15 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

16. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-16 Order Routine Specification Stockless purchase plans Vendor-managed inventory Continuous replenishment

17. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-17 Establishing Corporate Trust and Credibility Expertise LikeabilityTrustworthiness

18. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-18 Figure 7.1 Trust Dimensions Transparent Product/Service Quality Incentive Partnering Cooperating Design Product Comparison Supply Chain Pervasive Advocacy

19. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-19 Factors Affecting Buyer-Supplier Relationships Availability of alternatives Supply market dynamism Complexity of supply Importance of supply

20. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-20 Categories of Buyer-Seller Relationships Basic buying and selling Bare bones Contractual transaction Customer supply Cooperative systems Collaborative Mutually adaptive Customer is king