Scribd
Upload
50 views

Analyzing Business Markets: Chapter - 7

This document discusses organizational buying and business-to-business marketing. It defines business markets and explains that organizational buying involves fewer, larger buyers and close supplier-customer relationships. The document outlines different buying situations like straight rebuy, modified rebuy, and new tasks. It also describes the buying center participants and stages in the business purchasing process from problem recognition to performance review. Finally, it discusses developing effective business-to-business marketing programs through communication, branding, systems selling, and services.

Uploaded by

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

Analyzing Business Markets: Chapter - 7

This document discusses organizational buying and business-to-business marketing. It defines business markets and explains that organizational buying involves fewer, larger buyers and close supplier-customer relationships. The document outlines different buying situations like straight rebuy, modified rebuy, and new tasks. It also describes the buying center participants and stages in the business purchasing process from problem recognition to performance review. Finally, it discusses developing effective business-to-business marketing programs through communication, branding, systems selling, and services.

Uploaded by

Esha Chaudhary
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 15

03-09-2020

Chapter - 7

Analyzing
Business Markets

K J Somaiya Institute of Management, India

1
03-09-2020

Learning Objectives

1. What is organizational buying?


2. What buying situations do business buyers face?
3. Who participates in the business-to-business buying process?
4. How do business buyers make their decisions?
5. In what ways can business-to-business companies develop
effective marketing programs?
6. How can companies build strong loyalty relationships with
business customers?
7. How do institutional buyers and government agencies do
their buying?

K J Somaiya Institute of Management, India

2
03-09-2020

What is
Organizational Buying?

▪ Business market
▪ Consists of all the organizations that acquire goods and services used in the production of other products or
services that are sold, rented, or supplied to others

K J Somaiya Institute of Management, India

3
03-09-2020

Business markets

▪Fewer, larger buyers •Multiple sales calls


▪Close supplier–customer • Derived demand
relationships •Inelastic demand
▪Professional purchasing •Fluctuating demand
▪Multiple buying influences •Geographically
concentrated buyers
• Direct purchasing

K J Somaiya Institute of Management, India

4
03-09-2020

Buying situations

Straight Rebuy

Modified Rebuy

New Task

K J Somaiya Institute of Management, India

5
03-09-2020

▪ In a straight rebuy, the purchasing department reorders items like


office supplies and bulk chemicals on a routine basis and chooses
from suppliers on an approved list. The suppliers make an effort to
maintain product and service quality and often propose automatic
reordering systems to save time.

▪ The buyer in a modified rebuy wants to change product specifications,


prices, delivery requirements, or other terms. This usually requires
additional participants on both sides.

▪ New task. A new-task purchaser buys a product or service for the first
time (an office building, a new security system). The greater the cost
or risk, the larger the number of participants, and the greater their
information gathering—the longer the time to a decision.

K J Somaiya Institute of Management, India

6
03-09-2020

The buying center

✓ Initiators
✓ Users
✓ Influencers
✓ Deciders
✓ Approvers
✓ Buyers
✓ Gatekeepers

K J Somaiya Institute of Management, India

7
03-09-2020

Targeting within the Business Center

▪Who are the major decision


participants?
▪What decisions do they
influence, and how deeply?
▪What evaluation criteria do
they use?

K J Somaiya Institute of Management, India

8
03-09-2020

The Purchasing/
Procurement Process
▪Business buyers seek the highest benefit
package (economic, technical, service, and
social) in relationship to a market offering’s
costs

K J Somaiya Institute of Management, India

9
03-09-2020

Stages in the Buying Process

▪Problem recognition
▪Someone in the company recognizes a problem or need
that can be met by acquiring a good or service
▪General need description and product specification
▪Next, the buyer determines the needed item’s general
characteristics, required quantity, and technical
specifications

K J Somaiya Institute of Management, India

10
03-09-2020

Stages in the Buying Process

▪Supplier search

Vertical
Catalog sites
markets

Buying “Pure Play”


alliances auction

Private Spot & barter


exchanges markets

K J Somaiya Institute of Management, India

11
03-09-2020

E-procurement

▪Vertical hubs
▪Functional hubs
▪Direct extranet links to major
suppliers
▪Buying alliances
▪Company buying sites

K J Somaiya Institute of Management, India

12
03-09-2020

Stages in the Buying Process

▪Proposal solicitation
▪ The buyer next invites qualified suppliers to submit written proposals
▪Supplier selection
▪ Before selecting a supplier, the buying center will specify and rank
desired supplier attributes

K J Somaiya Institute of Management, India

13
03-09-2020

Stages in the Buying Process

▪Order-routine specification
▪ After selecting suppliers, the buyer negotiates the final order, listing
the technical specifications, the quantity needed, the expected time
of delivery, return policies, warranties, etc.
▪Performance review
▪ The buyer periodically reviews the performance of the chosen
supplier(s)

K J Somaiya Institute of Management, India

14
03-09-2020

Developing Effective b2b Marketing Programs

▪Communication and branding activities


▪Systems buying and selling
▪Total problem solution from one seller (turnkey
solution)
▪Role of services

K J Somaiya Institute of Management, India

15

You might also like