Phillip Kevin Lane

Kotler Keller
Marketing Management 14e
 7
e r
p t
a
Ch

Analyzing Business
Markets
Discussion Questions
1. What is the business market, and how does it
differ from the consumer market?
2. What buying situations do organizational buyers
face?
3. Who participates in the B2B buying process?
4. How do business buyers make their decisions?
5. How can companies build strong relationships
with business customers?
6. How do institutional buyers and government
agencies do their buying?
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 3 of 27
 d
ne
ef
D Organizational 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

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 4 of 27

 Business Markets
Transportatio
n&
Distribution

Agriculture Construction

Forestry
Manufacturin
g

Communicati
ons Banking &
Finance
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 5 of 27
Business Markets
Similarities to the Consumer
Market Understanding deep customer
needs
Identify areas for growth
Improving value management
techniques
Calculating better marketing
metrics
Competing and growing in global
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 6 of 27
 Business Markets
Differences to the Consumer Geographical
Market ly
Concentrate
d

Fewer,
Larger
Buyers

Profession
al Buyers

Multiple Personal
Sales Relationshi
Calls
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall ps Slide 7 of 27
 Business Markets
Differences to the Consumer
Market

Derived
Demand
Inelastic
Demand

Demand
Derived
Inelastic
Fluctuating
Fluctuating
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 8 of 27
Buying Situations

New Task
Straight Rebuy

Modifed Rebuy
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 9 of 27
Systems Buying and Selling

yer
Bu

e
Prim ctor
o n tra
C

-t ie r
co n d
Se c t o rs
o n tra
C
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 10 of 27
Business Buying Participants

Initiato Influenc Decider

r/Users er

Gatekeep Approver
Buyer
s er
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 11 of 27
Buying Center Influences

Participants
differ by:
Interest
Authority
Status
Persuasiveness
Decision criteria

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 12 of 27

Targeting Firms and Buying
Centers

Who to target?
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 13 of 27
 Purchasing/Procurement
Process

Diverse supplier
base

Benefts vs. Costs

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 14 of 27
Stages in the Buying
Process
Description
and
Characteristi
cs

Performan Order
ce Review Specifcati
on

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 15 of 27

Stages in the Buying
Process
Internal stimuli
New product being developed
Broken machine
Low stock level

External stimuli
Trade show visit
Advertisement

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 16 of 27

 Stages in the Buying
Process
Description Technical
and
specifications
Characteristi
Reliability
cs
Durability
Price

Product value
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 17 of 27
 Stages in the Buying
Process

Trade directories
Trade
advertisements
Trade shows

E-Procurement Lead
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall
generation Slide 18 of 27
Stages in the Buying
Process

Formal
presentation

Writte
n
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 19 of 27
Stages in the Buying
Process

Supplier-evaluation
model
Number of suppliers

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 20 of 27

 Stages in the Buying
Process
Order
Specifcati Stockles
on s
purchas
Technical e plan
specifcations
Quantity
Delivery time
Return policy
Warranties
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 21 of 27
 Stages in the Buying
Process
Performan
ce Review

End user
evaluations
Weighted-score
7 9 4
method

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 22 of 27

 Buygrid Framework
Table 7.1
Buyclasses
New Modifed Straight
Task Rebuy Rebuy
1. Problem Recognition Yes Maybe No
2. General need description Yes Maybe No
3. Product specifcation Yes Yes Yes
Buyphas

4. Supplier search Yes Maybe No

5. Proposal solicitation Yes Maybe No
6. Supplier Selection Yes Maybe No
es

7. Order-routine specifcation Yes Maybe No

8. Performance review Yes Yes Yes

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 23 of 27

Managing B2B Relationships

Online social
media

One-to-one
Marketing
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 24 of 27
 Managing B2B Relationships
Vertical
Coordination

Relationship Factors
Availability of
alternatives
Importance of supply
Complexity of supply
Supply market
dynamism
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 25 of 27
 Buyer-Seller Relationship
Categories
Cooperative
systems

Collaborative

Customer is
king

Contractual Mutually
transaction
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall
adaptive Slide 26 of 27
Institutional and Governments
Markets
Prisons

Government
agencies

Schools

Hospitals
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 27 of 27