Transcript Document
Slide 8.1 Business-to-business marketing Chapter 8 Slide 8.2 Typical transactions of business markets Figure 8.1 Business transactions involved in producing and distributing a pair of shoes Slide 8.3 Characteristics of business markets • Business markets differ from consumer markets by structure and demand – Geographically concentrated • e.g. London for Financial services – Derived demand • Derived from the demand for consumer goods. – Inelastic demand • Total demand for a product that is not much affected by price changes, especially in the short-term. – Fluctuating demand • Small change in consumer demand may result in large business demand. Slide 8.4 Nature of the purchase unit • More buyers • More professional purchasing process Slide 8.5 Types of decision and the decision process • Business buyers generally involved in more complex buying decisions • Buying process more formalised • Buyer and seller more dependent upon each other • Sellers frequently customise the products for the buyers • Build close long-term relationships • Proactive planning Slide 8.6 Other characteristics of business markets • Direct purchasing – Fewer intermediaries • Reciprocity – Leveraging products and services in associated companies • Leasing – Predominantly in capital equipment, cash flow management and tax advantages as well as upgrade facilities Slide 8.7 Model of business buyer behaviour Figure 8.2 A model of business buyer behaviour Slide 8.8 Business buyer behaviour Figure 8.3 Three types of business buying situation Source: Ben M. Enis, Marketing Principles, 3rd edn (1980). © 1980 Scott, Foresman & Co. Slide 8.9 Main types of buying situation • Straight re-buy – Routinely reorders something without modification • Modified re-buy – Buyer needs to modify product specifications, prices, terms or suppliers • New task – Order product or service for the first time Slide 8.10 Participants in the business buying process • • • • • • Buying centre Users Influencers Buyers Deciders Gatekeepers Slide 8.11 Figure 8.4 The main influences on business buying behaviour Slide 8.12 Main influences on business buyers • Environmental factors – Economic environment influencing demand, interest rates etc. • Organisational factors – Upgraded purchasing mechanisms e.g. electronic data interchange • Strategic materials management, TQM and JIT – Centralised purchasing – Long-term contracts – Purchasing performance evaluation • Interpersonal factors • Individual factors – Every buyer has unique personal attributes that will affect the process. Slide 8.13 Table 8.1 Key stages of the business buying process in relation to important buying situations Source: Adapted from Patrick J. Robinson, Charles W. Faris and Yoram Wind, Industrial Buying and Creative Marketing (Boston: Allyn & Bacon, 1967), p. 14. Slide 8.14 How do business buyers make their buying decisions? • • Problem recognition General need description – General characteristics and quantity needed • Product specification – Value analysis approach to cost reduction. • Supplier search – Key attributes specific to value adding partnerships • Proposal solicitation – Formalised process of quotations • Supplier selection – Preferred supplier status • Order-routine specification – Order generation • Performance review – Rating of supplier performance against set criteria Slide 8.15 Institutional and Government markets • Institutional markets • Schools, hospitals, nursing homes, prisons and other institutions that provide goods and services to people in their care. • Characterised by low budgets, captive patrons and often have unique needs. • Government markets offer huge opportunities for many companies due to volume and regularity of demand. • Predominantly tender or bid driven and practices vary from country to country. • High level of bureaucracy Slide 8.16 • Svara på frågorna 327.