Transcript KotlerMM_ch07 - UMM Directory

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?
7-2
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?
7-3
SAP’s software applications
automate business functions
7-4
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.
7-5
Characteristics of Business Markets
• 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
7-6
Buying Situation
Straight rebuy
Modified rebuy
New task
7-7
Systems Buying and Selling
Turnkey solution
desired;
Bids solicited
Prime
Contractors
System
subcomponents
assembled
Second-tier
Contractors
7-8
The Buying Center
Initiators
Users
Influencers
Deciders
Approvers
Buyers
Gatekeepers
7-9
Of Concern to Business 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?
7-10
Sales Strategies
Small Sellers
Key Buying
Influencers
Large Sellers
Multilevel
In-depth
Selling
7-11
Types of Business Customers
Priceoriented
Solutionoriented
Goldstandard
Strategicvalue
7-12
Handling Price-Oriented Customers
Limit quantity purchased
Allow no refunds
Make no adjustments
Provide no services
7-13
Kodak offers
services that
streamline
processes for
hospital
administrators
7-14
Purchasing Orientations
Buying
Procurement
Supply Chain
Management
7-15
Product-Related Purchasing Processes
Routine products
Leverage products
Strategic products
Bottleneck products
7-16
Table 7.1 Buy-grid Framework
7-17
Figure 7.1 Organizational Buying Behavior
in Japan
7-18
Methods of e-Procurement
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Websites organized using vertical hubs
Websites organized using functional hubs
Direct extranet links to major suppliers
Buying alliances
Company buying sites
7-19
Forms of Electronic Marketplaces
•Catalog sites
•Vertical markets
•Pure play auction sites
•Spot markets
•Private exchanges
•Barter markets
•Buying alliances
7-20
Table 7.2 Vendor Analysis
7-21
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
7-22
Order Routine Specification and
Inventory
Stockless
purchase plans
Vendor-managed
inventory
Continuous
replenishment
7-23
Desirable Outcomes of a B2B transaction:
OTIFNE
OT
On time
IF
In full
NE
No error
7-24
Establishing Corporate Credibility
Expertise
Trustworthiness
Likeability
7-25
Factors Affecting
Buyer-Supplier Relationships
Availability of
alternatives
Importance of
supply
Complexity of
supply
Supply market
dynamism
7-26
Categories of Buyer-Seller Relationships
• Basic buying and
selling
• Bare bones
• Contractual
transaction
• Customer supply
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Cooperative systems
Collaborative
Mutually adaptive
Customer is king
7-27
Opportunism
Some form of cheating or
undersupply relative to an
implicit or explicit contract.
7-28
Aramark successfully services institutional
and government markets
7-29
Marketing Debate
 How different is B-to-B Marketing?
Take a position:
1. B-to-B requires special, unique
marketing concepts and principles.
2. B-to-B is really not that different;
basic marketing concepts apply.
7-30
Marketing Discussion
 How might we apply the consumer
behavior topics from Chapter 6 to
B-to-B settings?
7-31