MARKETING MANAGEMENT 12 th edition

1. MARKETING MANAGEMENT12th edition 7 Analyzing Business Markets Kotler Keller

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?

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?

4. SAP’s software applications automate business functions

5. 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.

6. 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 Characteristics of Business Markets

7. Buying Situation Straight rebuy Modified rebuy New task

8. Systems Buying and Selling Turnkey solution desired; Bids solicited System subcomponents assembled Prime Contractors Second-tier Contractors

9. The Buying Center Initiators Users Influencers Deciders Approvers Buyers Gatekeepers

10. 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?

11. Sales Strategies Key Buying Influencers Small Sellers Multilevel In-depth Selling Large Sellers

12. Types of Business Customers Price- oriented Solution- oriented Gold- standard Strategic- value

13. Handling Price-Oriented Customers Limit quantity purchased Allow no refunds Make no adjustments Provide no services

14. Kodak offers services that streamline processes for hospital administrators

15. Purchasing Orientations Buying Procurement Supply Chain Management

16. Product-Related Purchasing Processes Routine products Leverage products Strategic products Bottleneck products

17. Table 7.1 Buy-grid Framework

18. Figure 7.1 Organizational Buying Behavior in Japan

19. 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

20. Forms of Electronic Marketplaces • Catalog sites • Vertical markets • Pure play auction sites • Spot markets • Private exchanges • Barter markets • Buying alliances

21. Table 7.2 Vendor Analysis

22. Internal engineering assessment Field value-in-use assessment Focus-group value assessment Direct survey questions Conjoint analysis Benchmarks Compositional approach Importance ratings Assessing Customer Value

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

24. Desirable Outcomes of a B2B transaction: OTIFNE OT On time IF In full NE No error

25. Establishing Corporate Credibility Expertise Trustworthiness Likeability

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

27. Basic buying and selling Bare bones Contractual transaction Customer supply Cooperative systems Collaborative Mutually adaptive Customer is king Categories of Buyer-Seller Relationships

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

29. Aramark successfully services institutional and government markets

30. Marketing Debate • How different is B-to-B Marketing? Take a position: • B-to-B requires special, unique marketing concepts and principles. 2. B-to-B is really not that different; basic marketing concepts apply.

31. Marketing Discussion • How might we apply the consumer behavior topics from Chapter 6 to B-to-B settings?