5 questions to ask yourself when buying a mobile phone recording solution
MARKETING MANAGEMENT Chapter Questions file• What buying situations do organizational buyers face?...
Transcript of MARKETING MANAGEMENT Chapter Questions file• What buying situations do organizational buyers face?...
MARKETING MANAGEMENT12th edition
7 Analyzing
Business Markets
Kotler Keller 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?
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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?
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SAP’s software applications automate business functions
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Organizational Buying
Decision-making process by whichformal organizations establish theneed for purchased products and
services, and identify,evaluate, and choose among
alternative brands and suppliers.
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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
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Buying Situation
Straight rebuy
Modified rebuy
New task
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Systems Buying and Selling
Turnkey solution desired;
Bids solicited
PrimeContractors
Second-tierContractors
System subcomponents
assembled
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The Buying Center
Initiators
Users
Influencers
Deciders
Approvers
Buyers
Gatekeepers
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Of Concern to Business Marketers
• Who are the major decision participants?• What decisions do they influence?• What is their level of influence?• What evaluation criteria do they use?
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Sales Strategies
Small Sellers
Large Sellers
Key Buying Influencers
MultilevelIn-depthSelling
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Types of Business Customers
Price-oriented
Gold-standard
Strategic-value
Solution-oriented
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Handling Price-Oriented Customers
Limit quantity purchased
Allow no refunds
Make no adjustments
Provide no services
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Kodak offers services that streamline processes for hospital administrators
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Purchasing Orientations
Buying
Procurement
Supply Chain Management
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Product-Related Purchasing Processes
Routine products
Leverage products
Strategic products
Bottleneck products
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Table 7.1 Buy-grid Framework
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Figure 7.1 Organizational Buying Behavior in Japan
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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
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Forms of Electronic Marketplaces
•Catalog sites•Vertical markets
•Pure play auction sites•Spot markets
•Private exchanges•Barter markets
•Buying alliances
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Table 7.2 Vendor Analysis
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Assessing Customer Value
• Internal engineering assessment
• Field value-in-use assessment
• Focus-group value assessment
• Direct survey questions
• Conjoint analysis• Benchmarks• Compositional
approach• Importance ratings
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Order Routine Specification and Inventory
Stockless purchase plans
Vendor-managedinventory
Continuous replenishment
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Desirable Outcomes of a B2B transaction: OTIFNE
OTOn time
NENo error
IFIn full
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Establishing Corporate Credibility
Expertise
LikeabilityTrustworthiness7-26
Factors Affecting Buyer-Supplier Relationships
Availability of alternatives
Supply marketdynamism
Complexity ofsupply
Importance ofsupply
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Categories of Buyer-Seller Relationships
• Basic buying and selling
• Bare bones• Contractual
transaction• Customer supply
• Cooperative systems• Collaborative• Mutually adaptive• Customer is king
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Opportunism
Some form of cheating orundersupply relative to animplicit or explicit contract.
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Aramark successfully services institutional and government markets
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Marketing Debate
How different is B-to-B Marketing?
Take a position:1. B-to-B requires special, uniquemarketing concepts and principles.2. B-to-B is really not that different;basic marketing concepts apply.
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Marketing Discussion
How might we apply the consumerbehavior topics from Chapter 6 toB-to-B settings?