Business markets differ from consumer markets in that they have fewer, larger buyers who form close relationships and make professional, collaborative purchasing decisions. Business purchasing involves multiple participants who may play any of seven roles in the buying process, which occurs over eight stages. Business decisions are influenced by buying situations, organizational factors, and relationships between buyers and suppliers that can involve varying levels of cooperation. Marketers must target specific decision-makers and understand their evaluation criteria in order to efficiently acquire and retain business customers.
1. Chapter 7 ANALYZING BUSINESS MARKETS Kristine Bacsal-Flores Marketing Management MBAH Top 10 Concepts kristinebacsalflores.blogspot.com
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6. Concept 1 The business market differs from the consumer market kristinebacsalflores.blogspot.com Few, large buyers Close relationships Professional purchasing Multiple sales calls
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11. Concept 3 Participants play any of 7 roles Approvers Buyers Gatekeepers Initiators Influencers Deciders Users Buying Center kristinebacsalflores.blogspot.com
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13. Concept 4 Various factors influence buying centers kristinebacsalflores.blogspot.com
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17. Problem Recognition Post Purchase Purchase Info Search/ Eval Need Recognition Concept 6 8 stages in the buying process kristinebacsalflores.blogspot.com Product Specification Proposal Solicitation Supplier Selection Order Routine Specification Performance Review
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23. Concept 9 Opportunism is a form of cheating relative to a contract. Buyer Supplier Monitor C H E A T kristinebacsalflores.blogspot.com
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30. Chapter 7 ANALYZING BUSINESS MARKETS Kristine Bacsal-Flores Marketing Management MBAH Top 10 Concepts kristinebacsalflores.blogspot.com
Notes de l'éditeur
Derived – derived from demand for consumer goods Inelastic- not much affected by price changes eg oil for airlines Fluctuating – more volatile
Derived – derived from demand for consumer goods Inelastic- not much affected by price changes eg oil for airlines Fluctuating – more volatile
Once customer is acquired – suppliers mmust seek ways to add value to their market offer to facilitate rebuys. Orica- Australian explosives co. – used by quarries – research/ feedback from customers – improve performance and get desired outcome
Buying center – decision making unit of buying organization Users- those who will use products/ service Initiators- may also be users Influencers – technicalpersonnel are impt Buyers – authorized to select supplier and arrange purchase terms – high level managesr Approvers – authorize proposals of deciders or buyers Gatekeepers – have power to prevent sellers/ infor from reaching members of buying center – purchasing agents, receptionists, tel operators
OR admin – Personal - selection of suppliers based on previous experience, research/ industry knowledge Organizational – ISO-certified only policy
Symantec executives partnered with executives of key customer organizations to understand business concerns and develop products that fit their needs
VALUE-ADDED SERVICE HP determined need to sell self as advisor offering solutions to unique problems – advisory role when selling complex products like comp networks –to not only meet but EXCEED a buyer’s needs
Extranet – set up accounts with dell or office depot and employees can make purchases Buying alliances- transora, covisint – companies join forces to obtain lower prices for raw materials Buying sites – where companies posts requests for proposals, negotiates terms and places orders
Bayan trade – knowledge process outsourcing provider
Basic – simple, routine exchanges with mod hi coop and info exchange Bare bones – as above, less coop and info exchange Contractual – low levels of trust, coop – formal contract Customer supply – competition is dominant form of governance Cooperative – coupled operationally but no legal structural commitment/ adaptation approaches Collaborative – much trust and commitment – true partnership Mutually adaptive – much relationship but not necessarily strong trust/ coop Customer is king – close coop relationship but seller adapts to customers needs
robotic systems – tooling and machinery; office and manufacturing in same facility; linked telecom ESTABLISH STRONG RELATIOSHIPS AND ADD VALUE SOME BUYERS WANT ONLY TRANSACTIONAL RELATIONSHIPS
Blatant self interst or deliberate misrepresentation; may shirk/cheat/not deliver expected value Opportuisms – firms must devote resources to control and monitoring that otherwise could be allocated to more productive3 purposes 96 Ford taurus - lear committed to a contract it knew it couldn’t fulfill – missed deadlines, failed to meet weight & price objectives, furnished parts that didn’t work