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Analyzing Business Markets

.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 | Analyzing Business Markets Marketing Management, 13th ed 7 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? 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? What is Organizational Buying? Organizational buying refers to the 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. Top Business Marketing Challenges Expand understanding of customer needs Compete globally as China and India reshape markets Master analytical tools and improve quantitative skills Reinstate innovation as an engine of growth Create new organizational models and linkages 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 Buying Situation Straight rebuy Modified rebuy New task The Buying Center Initiators Users Influencers Deciders Approvers Buyers Gatekeepers 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? Stages in the Buying Process: Buyphases Problem recognition General need description Product specification Supplier search Proposal solicitation Supplier selection Order-routine specification Performance review Forms of Electronic Marketplaces Catalog sites Vertical markets Pure play auction sites Spot markets Private exchanges Barter markets Buying alliances 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 Handling Price-Oriented Customers Limit quantity purchased Allow no refunds Make no adjustments Provide no services Methods for Researching Customer Value Internal engineering assessment Field value-in-use assessment Focus-group value assessment Direct survey questions Conjoint analysis Benchmarks Compositional approach Importance ratings Order Routine Specification Stockless purchase plans Vendor-managed inventory Continuous replenishment Establishing Corporate Trust and Credibility Expertise Trustworthiness Likability Trust Dimensions Transparent Product/Service Quality Incentive Partnering Cooperating design Product comparison Supply chain Pervasive advocacy Factors Affecting Buyer-Supplier Relationships Availability of alternatives Importance of supply Complexity of supply Supply market dynamism Categories of Buyer-Seller Relationships Basic buying and selling Bare bones Contractual transaction Customer supply Cooperative systems Collaborative Mutually adaptive Customer is king What is Opportunism? Opportunism is some form of cheating or undersupply relative to an implicit or explicit contract.