Transcript Kotler Keller 2 - Department of Business Administration

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7
Analyzing
Business Markets
Chapter Questions
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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-tobusiness buying process?
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Chapter Questions
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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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What is Organizational Buying?
Organizational buying refers to 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.
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Top Marketing Challenges
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Understanding customer needs in new ways;
Identifying new opportunities for growth;
Improving value management techniques
Calculating better marketing performance and
accountability metrics;
Competing and growing in global markets
Countering the threat of product and service
commoditization
Convincing C-level executives to embrace the
marketing concept
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Characteristics of
Business Markets
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Fewer buyers
Close suppliercustomer
relationships
Professional
purchasing
Many buying
influences
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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
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The Buying Center
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Initiators
Users
Influencers
Deciders
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Approvers
Buyers
Gatekeepers
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Of Concern to Marketers
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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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Stages in the Buying Process:
Buyphases
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Problem recognition
General need description
Product specification
Supplier search
Proposal solicitation
Supplier selection
Order-routine specification
Performance review
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Table 7.1 Buygrid Framework
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Forms of Electronic Marketplaces
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Catalog sites
Vertical markets
Pure play auction sites
Spot markets
Private exchanges
Barter markets
Buying alliances
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Table 7.2 An Example of
Vendor Analysis
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Methods for Researching
Customer Value
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Internal engineering
assessment
Field value-in-use
assessment
Focus-group value
assessment
Direct survey
questions
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Conjoint analysis
Benchmarks
Compositional
approach
Importance ratings
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Order Routine Specification
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Stockless purchase plans
Vendor-managed inventory
Continuous replenishment
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Categories of Buyer-Seller
Relationships
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Basic buying and
selling
Bare bones
Contractual
transaction
Customer supply
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Cooperative
systems
Collaborative
Mutually adaptive
Customer is king
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Institutional Markets
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For Review
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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?
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
7-19
For Review



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?
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall
7-20