7 - 1 © 1997 south-western college publishing lhm slides created and designed by apple mountain...
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7 - 1© 1997 South-Western College Publishing
LHMLHM
Slides Created and Designed by
Apple Mountain Software, Inc.http://www.apmtnsoft.com
Marketing Marketing Charles W. Lamb, Jr.
Joseph F. Hair, Jr.Carl McDaniel
Chapter 7:Business-to-Business
Marketing
Chapter 7:Business-to-Business
Marketing
7 - 2© 1997 South-Western College Publishing
LHMLHM
Frequently Cited Strategic Alliance GoalsFrequently Cited Strategic Alliance Goals
1. Reducing risks and costs of entering new markets2. Filling gaps in current market and technological bases3. Turning excess manufacturing capacity into profits4. Accelerating new product introductions5. Overcoming legal and trade barriers6. Extending the scope of existing operations7. Cutting costs when divesting operations8. Producing economies of scale
Source: From “Strategic Alliances: Partnering for Success” by Julie Cohen Mason. Reprinted by permission of the publisher from Management Review, May 1993. Copyright © 1993, American Management Association, New York. All rights reserved.
7 - 3© 1997 South-Western College Publishing
LHMLHM
Business-to-Business CustomersBusiness-to-Business Customers
Producers Resellers
Governments Institutions
7 - 4© 1997 South-Western College Publishing
LHMLHM
Business Versus Consumer MarketsBusiness Versus Consumer Markets
CharacteristicCharacteristic
DemandDemand
VolumeVolume
# of Customers# of Customers
LocationLocation
DistributionDistribution
Nature of BuyNature of Buy
Buying InfluenceBuying Influence
NegotiationsNegotiations
ReciprocityReciprocity
LeasingLeasing
PromotionPromotion
Business-to-BusinessBusiness-to-Business
OrganizationalOrganizational
LargerLarger
FewerFewer
ConcentratedConcentrated
More DirectMore Direct
More ProfessionalMore Professional
MultipleMultiple
More ComplexMore Complex
YesYes
GreaterGreater
Personal SellingPersonal Selling
ConsumerConsumer
IndividualIndividual
SmallerSmaller
ManyMany
DispersedDispersed
More IndirectMore Indirect
More PersonalMore Personal
SingleSingle
SimplerSimpler
NoNo
LesserLesser
AdvertisingAdvertising
7 - 5© 1997 South-Western College Publishing
LHMLHM
Types of Business ProductsTypes of Business Products
Major EquipmentMajor Equipment
Accessory EquipmentAccessory Equipment
Raw MaterialsRaw Materials
Component PartsComponent Parts
Processed MaterialsProcessed Materials
SuppliesSupplies
Business ServicesBusiness Services
MajorCategories ofBusiness-to-BusinessProducts
MajorCategories ofBusiness-to-BusinessProducts
7 - 6© 1997 South-Western College Publishing
LHMLHM
Buying CentersBuying Centers
Initiator
Gatekeeper
Decider
Users
Influencer/Evaluator Purchaser
BuyingCenterRoles
7 - 7© 1997 South-Western College Publishing
LHMLHM
Buying Buying SituationsSituations
LessInvolvement
MoreInvolvement
StraightRebuy
StraightRebuy
ModifiedRebuy
ModifiedRebuy
NewBuyNewBuy
7 - 8© 1997 South-Western College Publishing
LHMLHM
Purchase ProcessPurchase Process
Acquisition and Analysis of Proposals
Search for Qualified Suppliers
Development of Specifications
Product Definition
Need Recognition
Product PerformanceEvaluation
Product Inspection
Order Placement
Selection of Supplier
7 - 9© 1997 South-Western College Publishing
LHMLHM
Rating scale
Example of Vendor AnalysisExample of Vendor Analysis
Example of Vendor Analysis in a Microcomputer Buying Situation
Poor(1)
Fair(2)
Good(3)
Excellent(4)
Unacceptable(0)Attributes
Compatibility
Affordability
Reliability
Service/support
Flexibility
Product line depth
X
X
X
X
X
X
Total score: 4 + 2 + 4 + 2 + 4 + 3 = 19Average score: 19 ÷ 6 = 3.17