Chapter 7 Docslide

9/15/2016
7
Chapter Questions
• What is the business market, and how

Analyzing does it differ from the consumer
Business Markets market?
• What buying situations do
organizational buyers face?
• Who participates in the business-to-
business buying process?
Marketing Management, 13th ed

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-2
Chapter Questions CISCO Targets Businesses
• 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?
Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-3 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-4
What is Organizational Buying? Top Business Marketing Challenges
Organizational buying refers • Expand understanding of customer needs

to the decision-making process by • Compete globally as China and India
which formal organizations establish reshape markets
the need for purchased products and • Master analytical tools and improve
services, and identify, evaluate, and quantitative skills
choose among alternative brands • Reinstate innovation as an engine of growth
and suppliers. • Create new organizational models and
linkages
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Characteristics of Business Markets Buying Situation
• Fewer, larger • Multiple sales calls

buyers Straight rebuy
• Derived demand
• Close supplier- • Inelastic demand
customer • Fluctuating demand
relationships Modified rebuy
• Geographically
• Professional concentrated buyers
purchasing
• Direct purchasing
• Many buying New task
influences
Systems Buying and Selling The Buying Center

Initiators
Turnkey solution System
desired; subcomponents Users
bids solicited assembled Influencers
Deciders
Approvers
Prime Second-tier
contractors contractors Buyers
Gatekeepers
Of Concern to Business Marketers Sales Strategies
• Who are the major decision

participants?
Key Buying
• What decisions do they influence? Small Sellers Influencers
• What is their level of influence?
• What evaluation criteria do they use? Multilevel
Large Sellers In-depth
Selling
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Stages in the Buying Process:

Table 7.2 Buygrid Framework
Buyphases
• Problem recognition
• General need description
• Product specification
• Supplier search
• Proposal solicitation
• Supplier selection
• Order-routine specification
• Performance review
Forms of Electronic Marketplaces Methods of e-Procurement
• Websites organized using vertical hubs

• Websites organized using functional
hubs
• Catalog sites
• Vertical markets • Direct extranet links to major suppliers
• Pure play auction sites • Buying alliances
• Spot markets
• Company buying sites
• Private exchanges
• Barter markets
• Buying alliances
Handling Price-Oriented Customers

Table 7.3 Vendor Analysis
Limit quantity purchased
Allow no refunds
Make no adjustments
Provide no services
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Methods for Researching Order Routine Specification

Customer Value
• Internal engineering • Conjoint analysis Stockless

assessment • Benchmarks
purchase plans
• Field value-in-use • Compositional
assessment approach Vendor-managed
• Focus-group value • Importance ratings
inventory
assessment
• Direct survey Continuous
questions replenishment
Establishing Corporate Trust

and Credibility
Figure 7.1 Trust Dimensions
Cooperating
Transparent
Design
Expertise Product/Service Product
Quality Comparison
Incentive Supply Chain
Pervasive
Trustworthiness Likeability Partnering
Advocacy
Categories of Buyer-Seller
Factors Affecting Relationships
Buyer-Supplier Relationships
• Basic buying and • Cooperative
selling systems
Availability of Importance of
alternatives supply • Bare bones • Collaborative
• Contractual • Mutually adaptive
transaction • Customer is king
Complexity of Supply market • Customer supply
supply dynamism
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Aramark Successfully Services Institutional

What is Opportunism? and Government Markets
Opportunism is some form of

cheating or undersupply relative to
an implicit or explicit contract.
Marketing Debate Marketing Discussion

 how different is B-to-B marketing?
Take a position:
1. Business-to-business marketing  Consider some of the consumer
requires a special, unique set of marketing
behavior topics from Chapter 6.
concepts and principles.
 How might you apply them to business-
or to-business settings?
2. Business-to-business marketing is really
not that different and the basic marketing
principles apply.

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9/15/2016

• What is the business market, and how

Marketing Management, 13th ed

Chapter Questions CISCO Targets Businesses

• How do business buyers make their

What is Organizational Buying? Top Business Marketing Challenges

Organizational buying refers • Expand understanding of customer needs

Characteristics of Business Markets Buying Situation

• Fewer, larger • Multiple sales calls

Systems Buying and Selling The Buying Center

Of Concern to Business Marketers Sales Strategies

• Who are the major decision

Stages in the Buying Process:

Forms of Electronic Marketplaces Methods of e-Procurement

• Websites organized using vertical hubs

Handling Price-Oriented Customers

Limit quantity purchased

Methods for Researching Order Routine Specification

• Internal engineering • Conjoint analysis Stockless

Establishing Corporate Trust

Incentive Supply Chain

Aramark Successfully Services Institutional

Opportunism is some form of

Marketing Debate Marketing Discussion

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