1
7
Analyzing
Business Markets
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
Multiple sales calls
Close supplier-
Derived demand
customer
Inelastic demand
relationships
Fluctuating demand
Professional
Geographically
purchasing concentrated buyers
Many buying
Direct purchasing
influences
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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
Approvers
Initiators
Users
Buyers
Influencers
Gatekeepers
Deciders
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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
Conjoint analysis
assessment
Benchmarks
Field value-in-use
Compositional
assessment approach
Focus-group value
Importance ratings
assessment
Direct survey
questions
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Order Routine Specification
Stockless purchase plans
Vendor-managed inventory
Continuous replenishment
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Categories of Buyer-Seller
Relationships
Cooperative
Basic buyingsystems
and selling
Bare bones
Collaborative
Contractual
Mutually adaptive
transaction
Customer is
supply
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 © 2012 Pearson Education 7-19
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 © 2012 Pearson Education 7-20