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Business Markets and Customer Insights

This document discusses business markets and environment. It covers types of business customers like commercial enterprises, government, and institutions. Industrial products are classified as materials, capital items, and supplies/services. Marketing implications depend on product type and customer. Business customers' purchasing orientations include buying, procurement, and supply chain management. Their practices involve departments and procedures that differ for commercial enterprises, government, and other organizations. The types of environment are internal and external, and the external environment can be managed proactively through various strategies.

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Yandex Prithu
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6 views11 pages

Business Markets and Customer Insights

This document discusses business markets and environment. It covers types of business customers like commercial enterprises, government, and institutions. Industrial products are classified as materials, capital items, and supplies/services. Marketing implications depend on product type and customer. Business customers' purchasing orientations include buying, procurement, and supply chain management. Their practices involve departments and procedures that differ for commercial enterprises, government, and other organizations. The types of environment are internal and external, and the external environment can be managed proactively through various strategies.

Uploaded by

Yandex Prithu
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

2/1

Chapter 2

Understanding Business Markets

and Environment
2/2

Chapter Questions
• Who are the business customers?
• How are industrial products classified?
• What are the marketing implications for different
types of customers and products?
• What are the business customers’ purchasing
orientations and practices?
• What are the different types of environment?
• How to manage external environment?
2/3

Types of Business Customers

• Commercial enterprises (Private Sector firms)

• Government customers

• Institutional customers

• Cooperative societies
2/4

Classification of Industrial Products and


Services

• Materials and parts

• Capital items

• Suppliers and services


2/5

Marketing Implications for Different


Products and Customers

• Materials and parts often sold to business


customers directly.
• Capital items often sold to business customers
directly.
• Supplies and services often sold to business
customers directly.
2/6

Purchasing Orientations of Business


Customers

• Buying orientation

• Procurement orientation

• Supply chain management orientation


2/7

Purchasing Practice of Business


Customers
In commercial Enterprises
• Involvement of various departments
• Major tasks performed
1. Identify, negotiate, Select suppliers.
2. Ensure purchase objectives and efficiency
achieved.
3. Good relationship with suppliers.
4. Establish procedure and documentation.
2/8

Purchasing in Government Organizations


• Establish purchase procedure.
• Purchasing through Competitive Bidding /
Tenders
1. Closed / sealed tenders
2. Open / limited tenders
• Other Government contracts
• DGS & D contracts
2/9

Purchasing in Institutions and


Cooperative Societies
• Government institutes follow government
process.

• Often private sector institutes follow commercial


enterprise’s buying process.

• Better to study each major customer’s purchase


process.
2/10

Types of environment
Company location, reputation, R&D,
Internal HR, Production, Finance, Marketing
Customers
(S& W Analysis)
Micro Competitors
(Affects Suppliers
a firm)
Environment
Economic

Demographic

Natural
Technological
External
Govt., Political, Legal
(O& T Analysis)
Macro Cultural, Social
(Affects Public
all firm)
2/11

Managing External Environment


• First, continuously collect and monitor relevant
information on external environment.
• Identify changes in opportunities and threats
• Manage proactively, using strategies:
1)Independent
2)Cooperative
3)Strategic planning

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