| Business Markets and Business Buyer Behavior 165
Chapter 6 | Business Markets and Business Buyer Behavior 165
planners, and others—dedicates it- self to becoming an expert on the airline customer. They find out where the airline wants to grow, when it will be replacing planes, and its financial situation. They run Boeing and competing planes through exhaustive analysis, simu- lating the airline’s routes, cost per seat, and other factors to show that Boeing’s planes are more effective and efficient. The selling process is nerve-rackingly slow—it can take two or three years from the first marketing presentation to the day the sale is announced.
Moreover, each sale is just part of a bigger buyer-seller interaction. Boeing’s real challenge is to win buyers’ business by building day-in, day-out, year-in, year-out customer partnerships based on superior pro- ducts and close collaboration—before and after the sale. When a
new commercial aircraft in history. Boeing Selling airplanes to
customer buys an airplane, it also places its trust in a future
promised delivery of the first 787s by mid- large organizational
working relationship with Boeing. “When you buy an airplane,
2008, promising that it would deliver 109 buyers is a lot
it’s like getting married,” says a Boeing executive. “It is a long-
planes the first year. To meet that target, the different from
term relationship.”
company developed an innovative but very selling cars or
ANA’s decision to buy from Boeing was based in part on the
complex manufacturing process.
cameras to final
qualities of Boeing’s futuristic, yet-to-be-produced 787 Dreamliner
However, problems plagued the new consumers. And the
aircraft. Just as important, however, was the strong, long-
manufacturing process from the start, caus- stakes are much,
running relationship between ANA and Boeing. When ANA
ing a numbing two-year delay. The first much higher.
placed that huge order, the Dreamliner was still in the design 787 Dreamliner didn’t complete its maiden, stage. Not a single plane had yet been built or tested. That took
three-hour test flight until December 2009, and Boeing pushed back
a whole lot of trust on ANA’s part. delivery of the first 787s to ANA to the end of 2010 or even later. However, that was more than five years ago, and ANA is
The long delays caused substantial problems for both cus- still waiting for delivery of the first plane. In fact, events sur-
tomers and Boeing and put long-established customer relation- rounding the development of the 787 highlight the scale and
ships to a real test. Some airlines cancelled their orders, and complexities of business-to-business selling, for both the buyer
Boeing paid out an estimated $2.5 billion in penalties and con- and the seller. Boeing announced its plans for this radical new
cessions. But most customers stayed the course. In a nod to its midsized, wide-body commercial airplane in 2004. Fifty percent
faith in Boeing and the 787 Dreamliner, ANA remained a patient of the 787’s fuselage consists of one piece of lightweight carbon
partner and even added five more planes to its order. At the fiber—eliminating 40,000–50,000 individual fasteners and
same time, however, ANA demanded that Boeing provide a de- 1,500 aluminum sheets compared with a traditional design. That
tailed plan for avoiding more surprises and a realistic estimate puts the 787 in a design class with the stealth bomber. Add inno-
of when ANA would get its first airplane. vative new jet engines and other weight-saving innovations,
Boeing learned a long list of customer relationship lessons and the 787 will be the lightest, most fuel-efficient passenger jet
from the delays. In business-to-business partnerships, as in any re- on the market. The 787’s interior will also feature many en-
lationship, trust must be earned anew every day. Says Boeing’s hanced passenger comforts: a 60 percent quieter ride, more leg
president, “We really disappointed our customers. . . . The past room, cleaner air, and higher cabin pressure and humidity to re-
three years have been tough for our partners. [But] we are devel- duce passenger fatigue on long trips.
oping closer bonds—it’s like climbing a mountain together.” In the Sounds great? Commer-
end, meeting the revised cial airlines around the world
schedules and delivering thought so too. ANA jumped
planes to customers will be a onboard first with its April
To succeed in its business-to-business markets, Boeing
must in repairing strained re- 2004 order for 50 planes. Fifty-
must build day-in, day-out, year-in, year-out customer
lationships. Says one Boeing five other companies quickly
partnerships based on superior products, close
watcher, “good relationships followed, ballooning Boeing’s
collaboration, and trust. “When you buy an airplane,
and reputations are built on 787 orders to 895 planes and
it’s like getting married,” says a Boeing executive. “It is
outstanding performance, making it the fastest-selling
a long-term relationship.”
not delayed promises.” 1
Objective OUTLINE
Define the business market and explain how business markets differ from consumer markets.
Business Markets (166–170)
Identify the major factors that influence business buyer behavior. Business Buyer Behavior (170–176)
List and define the steps in the business buying decision process. The Business Buying Process (176–178)
Parts
» | Marketing: Creating and Capturing Customer Value 3
» | Marketing: Creating and Capturing Customer Value 11
» | Marketing: Creating and Capturing Customer Value 13
» | Marketing: Creating and Capturing Customer Value 25
» | Marketing: Creating and Capturing Customer Value 29
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 37
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 41
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 43
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 51
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 55
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 57
» | Company and Marketing Strategy: Partnering to Build Customer Relationships 63
» | Analyzing the Marketing Environment 65
» | Analyzing the Marketing Environment 71
» | Analyzing the Marketing Environment 73
» | Analyzing the Marketing Environment 77
» | Analyzing the Marketing Environment 79
» | Analyzing the Marketing Environment 81
» | Analyzing the Marketing Environment 85
» | Analyzing the Marketing Environment 87
» | Analyzing the Marketing Environment 89
» | Managing Marketing Information to Gain Customer Insights 97
» | Managing Marketing Information to Gain Customer Insights 99
» | Managing Marketing Information to Gain Customer Insights 103
» | Managing Marketing Information to Gain Customer Insights 109
» | Managing Marketing Information to Gain Customer Insights 111
» | Managing Marketing Information to Gain Customer Insights 113
» | Managing Marketing Information to Gain Customer Insights 115
» | Managing Marketing Information to Gain Customer Insights 127
» | Managing Marketing Information to Gain Customer Insights 131
» | Consumer Markets and Consumer Buyer Behavior 133
» | Consumer Markets and Consumer Buyer Behavior 137
» | Consumer Markets and Consumer Buyer Behavior 141
» | Consumer Markets and Consumer Buyer Behavior 143
» | Consumer Markets and Consumer Buyer Behavior 159
» | Consumer Markets and Consumer Buyer Behavior 163
» | Business Markets and Business Buyer Behavior 165
» | Business Markets and Business Buyer Behavior 175
» | Business Markets and Business Buyer Behavior 179
» What is Eaton’s value proposition?
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 189
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 193
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 197
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 203
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 205
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 207
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 209
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 211
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 213
» | Customer-Driven Marketing Strategy: Creating Value for Target Customers 219
» | Products, Services, and Brands: Building Customer Value 223
» | Products, Services, and Brands: Building Customer Value 225
» | Products, Services, and Brands: Building Customer Value 229
» | Products, Services, and Brands: Building Customer Value 237
» | Products, Services, and Brands: Building Customer Value 245
» | Products, Services, and Brands: Building Customer Value 247
» | Products, Services, and Brands: Building Customer Value 249
» | Products, Services, and Brands: Building Customer Value 251
» | Products, Services, and Brands: Building Customer Value 257
» | New Product Development and Product Life-Cycle Strategies 259
» | New Product Development and Product Life-Cycle Strategies 271
» | New Product Development and Product Life-Cycle Strategies 273
» | New Product Development and Product Life-Cycle Strategies 279
» | New Product Development and Product Life-Cycle Strategies 281
» | Pricing: Understanding and Capturing Customer Value 289
» | Pricing: Understanding and Capturing Customer Value 291
» | Pricing: Understanding and Capturing Customer Value 295
» | Pricing: Understanding and Capturing Customer Value 299
» | Pricing: Understanding and Capturing Customer Value 305
» | Pricing: Understanding and Capturing Customer Value 307
» | Marketing Channels: Delivering Customer Value 339
» | Marketing Channels: Delivering Customer Value 347
» | Marketing Channels: Delivering Customer Value 351
» | Marketing Channels: Delivering Customer Value 367
» | Retailing and Wholesaling 373
» | Retailing and Wholesaling 377
» | Retailing and Wholesaling 379
» | Retailing and Wholesaling 393
» | Retailing and Wholesaling 395
» | Retailing and Wholesaling 397
» | Retailing and Wholesaling 401
» | Retailing and Wholesaling 405
» | Communicating Customer Value: Integrated Marketing Communications Strategy 407
» | Communicating Customer Value: Integrated Marketing Communications Strategy 411
» | Communicating Customer Value: Integrated Marketing Communications Strategy 413
» | Communicating Customer Value: Integrated Marketing Communications Strategy 415
» | Communicating Customer Value: Integrated Marketing Communications Strategy 429
» | Communicating Customer Value: Integrated Marketing Communications Strategy 433
» | Advertising and Public Relations 435
» | Advertising and Public Relations 439
» | Advertising and Public Relations 441
» | Advertising and Public Relations 443
» | Advertising and Public Relations 445
» | Advertising and Public Relations 447
» | Advertising and Public Relations 449
» | Advertising and Public Relations 453
» | Personal Selling and Sales Promotion 463
» | Personal Selling and Sales Promotion 469
» | Personal Selling and Sales Promotion 471
» | Personal Selling and Sales Promotion 481
» How is the sales force at Nestlé Waters structured? outsells its top competitors.
» | Direct and Online Marketing: Building Direct Customer Relationships 495
» | Direct and Online Marketing: Building Direct Customer Relationships 499
» | Direct and Online Marketing: Building Direct Customer Relationships 507
» | Direct and Online Marketing: Building Direct Customer Relationships 509
» | Direct and Online Marketing: Building Direct Customer Relationships 515
» | Direct and Online Marketing: Building Direct Customer Relationships 525
» | Creating Competitive Advantage 527
» | Creating Competitive Advantage 529
» | Creating Competitive Advantage 537
» | Creating Competitive Advantage 549
» | The Global Marketplace 551
» | The Global Marketplace 553
» | The Global Marketplace 561
» | The Global Marketplace 573
» | Sustainable Marketing: Social Responsibility and Ethics 581
» | Sustainable Marketing: Social Responsibility and Ethics 583
» | Sustainable Marketing: Social Responsibility and Ethics 587
» | Sustainable Marketing: Social Responsibility and Ethics 595
» | Sustainable Marketing: Social Responsibility and Ethics 603
» | Sustainable Marketing: Social Responsibility and Ethics 605
» | Marketing by the Numbers A21
» | Marketing by the Numbers A27
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