MARKETING MANAGEMENT 12 th edition 7 Analyzing Business Markets KotlerKeller.

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?

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?

7-4

Organizational Buying

Decision-making process by whichformal organizations establish theneed for purchased products and

services, and identifyevaluate, and choose among

alternative brands and suppliers.

7-5

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

7-6

Buying Situation

Straight rebuy Modified rebuy New task

7-7

The Buying Center

Initiators Users Influencers Deciders Approvers Buyers Gatekeepers

7-8

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?

7-9

Types of Business Customers

Price-oriented Solution-oriented

Gold-standard Strategic-value

7-10

Handling Price-Oriented Customers

Limit quantity purchased Allow no refunds Make no adjustments Provide no services

7-11

Purchasing Orientations

Buying Procurement Supply chain management

7-12

Product-Related Purchasing Processes

Routine products Leverage products Strategic products Bottleneck products

7-13

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

7-14

Forms of Electronic Marketplaces

Catalog sites Vertical markets Pure play auction sites Spot markets Private exchanges Barter markets Buying alliances

7-15

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

7-16

Order Routine Specification and Inventory Stockless purchase plans Vendor-managed inventory Continuous replenishment

7-17

Desirable Outcomes of a B2B transaction: OTIFNE

On time In full No error

7-18

Establishing Corporate Credibility

Expertise Trustworthiness Likeability

7-19

Factors Affecting Buyer-Supplier Relationships Availability of alternatives Importance of supply Complexity of supply Supply market dynamism

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

7-21

Opportunism

Some form of cheating orundersupply relative to animplicit or explicit contract.