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MARKETING MANAGEMENT 12 th edition

MARKETING MANAGEMENT 12 th edition. 7 Analyzing Business Markets. Kotler Keller. Chapter Questions. What is the business market, and how does it differ from the consumer market? What buying situations do organizational buyers face?

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MARKETING MANAGEMENT 12 th edition

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  1. MARKETING MANAGEMENT12th edition 7 Analyzing Business Markets Kotler Keller

  2. 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?

  3. 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?

  4. Organizational Buying 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.

  5. Fewer, larger buyers Close supplier-customer relationships Professional purchasing Many buying influences Multiple sales calls Derived demand Inelastic demand Fluctuating demand Geographically concentrated buyers Direct purchasing Characteristics of Business Markets

  6. Buying Situation • Straight rebuy • Modified rebuy • New task

  7. The Buying Center • Initiators • Users • Influencers • Deciders • Approvers • Buyers • Gatekeepers

  8. Of Concern to Business Marketers • Who are the major decision participants? • What decisions do they influence? • What is their level of influence? • What evaluation criteria do they use?

  9. Price-oriented Solution-oriented Gold-standard Strategic-value Types of Business Customers

  10. Handling Price-Oriented Customers • Limit quantity purchased • Allow no refunds • Make no adjustments • Provide no services

  11. Purchasing Orientations • Buying • Procurement • Supply chain management

  12. Product-Related Purchasing Processes • Routine products • Leverage products • Strategic products • Bottleneck products

  13. Methods of e-Procurement • Websites organized using vertical hubs • Websites organized using functional hubs • Direct extranet links to major suppliers • Buying alliances • Company buying sites

  14. Forms of Electronic Marketplaces • Catalog sites • Vertical markets • Pure play auction sites • Spot markets • Private exchanges • Barter markets • Buying alliances

  15. Internal engineering assessment Field value-in-use assessment Focus-group value assessment Direct survey questions Conjoint analysis Benchmarks Compositional approach Importance ratings Assessing Customer Value

  16. Order Routine Specification and Inventory • Stockless purchase plans • Vendor-managed inventory • Continuous replenishment

  17. Desirable Outcomes of a B2B transaction: OTIFNE • On time • In full • No error

  18. Establishing Corporate Credibility • Expertise • Trustworthiness • Likeability

  19. Factors Affecting Buyer-Supplier Relationships • Availability of alternatives • Importance of supply • Complexity of supply • Supply market dynamism

  20. Basic buying and selling Bare bones Contractual transaction Customer supply Cooperative systems Collaborative Mutually adaptive Customer is king Categories of Buyer-Seller Relationships

  21. Opportunism Some form of cheating or undersupply relative to an implicit or explicit contract.

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