7 analyzing business markets 1. chapter questions what is the business market, and how does it...
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7Analyzing
Business Markets
1
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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?
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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?
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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.
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Top Marketing Challenges
Understanding customer needs in new ways; Identifying new opportunities for growth; Improving value management techniques Calculating better marketing performance and
accountability metrics; Competing and growing in global markets Countering the threat of product and service
commoditization Convincing C-level executives to embrace the
marketing concept
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Characteristics of Business Markets Fewer buyers Close supplier-
customer relationships
Professional purchasing
Many buying influences
Multiple sales calls Derived demand Inelastic demand Fluctuating demand Geographically
concentrated buyers Direct purchasing
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Buying Situation
Straight Rebuy
Modified Rebuy
New Task
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Systems Buying And Selling
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The Buying Center
Initiators Users Influencers Deciders
Approvers Buyers Gatekeepers
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Of Concern to Marketers
Who are the major decision participants? What decisions do they influence? What is their level of influence? What evaluation criteria do they use?
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Stages in the Buying Process: Buyphases
Problem recognition General need description Product specification Supplier search Proposal solicitation Supplier selection Order-routine specification Performance review
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Table 7.1 Buygrid Framework
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Forms of Electronic Marketplaces
Catalog sites Vertical markets Pure play auction sites Spot markets Private exchanges Barter markets Buying alliances
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Table 7.2 An Example of Vendor Analysis
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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
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Order Routine Specification
Stockless purchase plans Vendor-managed inventory Continuous replenishment
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Categories of Buyer-Seller Relationships
Basic buying and selling
Bare bones Contractual
transaction Customer supply
Cooperative systems
Collaborative Mutually adaptive Customer is king
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Institutional Markets
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For Review
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?
Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 7-19
![Page 20: 7 Analyzing Business Markets 1. Chapter Questions What is the business market, and how does it differ from the consumer market? What buying situations](https://reader036.vdocuments.us/reader036/viewer/2022062308/56649e5f5503460f94b58f38/html5/thumbnails/20.jpg)
For Review
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 © 2011 Pearson Education, Inc. Publishing as Prentice Hall 7-20