Business Market & Business Buyer Behaviour
Transcript of Business Market & Business Buyer Behaviour
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Business Market
The Business Market - all the
organizations that buy goods andservices to use in the production of
other products and services that aresold, rented, or supplied to others.
Business markets involve many moredollars and items do consumermarkets.
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Business Market
Characteristic
Sales in the business market far
exceed sales in consumer markets.
Business markets differ fromconsumer markets in many ways.
Marketing structure and demand
Nature of the buying unit
Types of decisions and the decision
process
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Business Buyer Behavior
Business buyer behaviorrefers to the buyingbehavior of the organizations that buy goods
and services for use in the production of otherproducts and services that are sold, rented, or
supplied to others. The buying behavior of organizations that buy
goods and services for use in the production
of other products and services that are sold,
rented, or supplied to others. Also included are retailing and wholesaling
firms that acquire goods for the purpose of
reselling or renting them to others at a profit.
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Model of BusinessBuyer Behavior
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Factors Influencing Consumer Behavior
Cultural
Culture
Subculture
Social Class
Social
Reference
Groups
Family
Roles & Status
Personal
Age & Life-
Cycle Stage
Occupation
Economic
Situation
Lifestyle
Personality &
Self-Concept
Psychological
Motivation
Perception
Learning
Beliefs &
Attitudes
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Maslows
Hierarchy ofNeeds
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Major Influences on Business Buyer
Behavior
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Segmentation
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Market segmentation is the process
that companies use to divide large,
heterogeneous markets into small
markets that can be reached more
efficiently and effectively with
products and services that match
their unique needs
Market Segmentation
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Segmenting ConsumerMarkets
Geographic
segmentation
Demographic
segmentation
Psychographic
segmentation
Behavioral
segmentation
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Segmenting InternationalMarkets
Geographic
location
Economic
factors
Political-legal factors
Culturalfactors
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Market Segmentation
To be useful, market segments must be:
Measurable Accessible Substantial
Differentiable Actionable
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Market Targeting
Target market consists of a set of
buyers who share common needs
or characteristics that the company
decides to serve
Selecting Target Market Segments
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Market Targeting
Segment size and growth
Segment structural
attractiveness
Company objectives andresources
Evaluating Market Segments
.
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Market Targeting
Undifferentiated marketing targets
the whole market with one offer Mass marketing
Focuses on common needs rather
than whats different
Target Marketing Strategies
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Market Targeting
Differentiated marketing targets
several different market segments
and designs separate offers for each
Goal is to achieve higher sales and
stronger position
More expensive than
undifferentiated marketing
Target Marketing Strategies
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Market Targeting
Concentrated marketing targets a
small share of a large market
Limited company resources
Knowledge of the market
More effective and efficient
Target Market Strategies
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Marketing Targeting
Micromarketing is the practice of
tailoring products and marketing
programs to suit the tastes of
specific individuals and locations
Local marketing
Individual marketing
Target Market Strategies
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Market Targeting
Local marketing involves tailoring
brands and promotion to the needs
and wants of local customer groups
Cities
Neighborhoods
Stores
Target Market Strategies
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Market Targeting
Individual marketing involves tailoring
products and marketing programs to
the needs and preferences ofindividual customers
Also known as:
One-to-one marketing
Mass customization
Markets-of-one marketing
Target Market Strategies
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Market Targeting
Depends on:
Company resources
Product variability
Product life-cycle stage
Market variability
Competitors marketing strategies
Choosing a Targeting Strategy
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Market Targeting
Benefits customers with specific
needs
Concern for vulnerable segments
Children
Alcohol
Cigarettes
Internet abuses
Socially Responsible Target Marketing
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Product position is the way the
product is defined by consumers on
important attributesthe place the
product occupies in consumers
minds relative to competing products
Perceptions
Impressions
Feelings
Differentiation and Positioning
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Positioning maps show consumer
perceptions of their brands versus
competing products on important
buying dimensions
Differentiation and
Positioning
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Differentiation andPositioning
Identifying a set of possible
competitive advantages to build aposition
Choosing the right competitive
advantages
Selecting an overall positioningstrategy
Developing a positioning statement
Choosing a Differentiation and Positioning Strategy
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Differentiation andPositioning
Competitive advantage is an
advantage over competitors gainedby offering consumers greater
value, either through lower prices
or by providing more benefits thatjustify higher prices
Identifying Possible Value Differences andCompetitive Advantages
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Differentiation and Positioning
Identifying a set of possible competitive advantages
to build a position by providing superior value
from:
Choosing a Differentiation and Positioning Strategy
Product differentiation
Services differentiation
Channel differentiation
People differentiation
Image differentiation
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Differentiation andPositioning
Difference to promote should be:
Choosing the Right Competitive Advantage
Important Distinctive Superior
Communicable Preemptive Affordable
Profitable
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