Kotler07_basic.ppt 144KB Aug 31 2008 08:52:54 PM

MARKETING MANAGEMENT
12th edition
7
Analyzing
Business Markets

Kotler

Keller

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-tobusiness 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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Organizational Buying
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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Characteristics of Business

Markets
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Fewer, larger buyers
Close suppliercustomer relationships
Professional
purchasing
Many buying influences
Multiple sales calls

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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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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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Types of Business Customers
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Price-oriented
Solution-oriented

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Gold-standard
Strategic-value

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Handling Price-Oriented Customers
Limit quantity purchased
 Allow no refunds
 Make no adjustments

 Provide no services
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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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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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Assessing 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 and
Inventory
Stockless purchase plans
 Vendor-managed inventory

 Continuous replenishment
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Desirable Outcomes of a B2B
transaction: OTIFNE
On time
 In full
 No error
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Establishing Corporate Credibility
Expertise
 Trustworthiness
 Likeability
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Factors Affecting
Buyer-Supplier Relationships
Availability of alternatives
 Importance of supply
 Complexity of supply
 Supply market dynamism
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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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Opportunism

Some form of cheating or
undersupply relative to an
implicit or explicit contract.

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