Chapter 7 - Analyzing business markets. In this chapter, we will address the following 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 B2B buying process? 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? | Kotler • Keller Phillip Kevin Lane Marketing Management • 14e Analyzing Business Markets Chapter 7 Discussion 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 B2B buying process? 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? 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. -- F. Webster Jr and Y. Wind Organizational Buying Business Markets Agriculture Communications Banking & Finance Transportation & Distribution Construction Forestry Manufacturing The business market consists of all the organizations that acquire goods and services used in the production of other products or services that are . | Kotler • Keller Phillip Kevin Lane Marketing Management • 14e Analyzing Business Markets Chapter 7 Discussion 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 B2B buying process? 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? 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. -- F. Webster Jr and Y. Wind Organizational Buying Business Markets Agriculture Communications Banking & Finance Transportation & Distribution Construction Forestry Manufacturing The business market consists of all the organizations that acquire goods and services used in the production of other products or services that are sold, rented, or supplied to others. Business Markets Understanding deep customer needs Identify areas for growth Improving value management techniques Calculating better marketing metrics Competing and growing in global markets Countering product commoditization Gain support for the marketing concept Similarities to the Consumer Market B2B marketers face similar challenges as do B2C marketers. Business Markets Professional Buyers Geographically Concentrated Multiple Sales Calls Differences to the Consumer Market Personal Relationships Fewer, Larger Buyers Other differences include: Multiple buying influences – Such as buying committees, which can be comprised of technical experts and senior management. Direct purchasing – Often large volume customers purchase directly from manufacturer, rather than intermediaries Business Markets Demand Derived Inelastic Fluctuating Derived Demand Differences to the Consumer Market Fluctuating Demand Inelastic Demand B2B markets also differ .
