We think you have liked this presentation. If you wish to download it, please recommend it to your friends in any social system. Share buttons are a little bit lower. Thank you!
Presentation is loading. Please wait.
Published byJames Prow
Modified over 6 years ago
Copyright 2004 © Pearson Education Canada Inc. 8-1 Chapter 8 Analyzing Business Markets and Business Buying Behaviour
Copyright 2004 © Pearson Education Canada Inc. 8-2 Kotler on Marketing Many businesses are wisely turning their suppliers and distributors into valued partners.
Copyright 2004 © Pearson Education Canada Inc. 8-3 Chapter Objectives In this chapter, we focus on six 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 buying process? –What are the major influences on organizational buyers? –How do business buyers make their decisions? –How do institutions and government agencies do their buying?
Copyright 2004 © Pearson Education Canada Inc. 8-4 What is Organizational Buying? –Organizational buying The business market versus the consumer market –Business market Fewer buyers Larger buyers Close supplier-customer relationship Geographically concentrated buyers
Copyright 2004 © Pearson Education Canada Inc. 8-5 What is Organizational Buying? Derived demand Inelastic demand Fluctuating demand Professional purchasing
Copyright 2004 © Pearson Education Canada Inc. 8-6 What is Organizational Buying? Several buying influences Multiple sales calls Directed purchasing Reciprocity Leasing
Copyright 2004 © Pearson Education Canada Inc. 8-7 If you were tasked with marketing a product or service to an organization, would you attempt to initially contact the purchasing department, or potential users of your company’s offerings? Why? Would the product you were selling make a difference? Why?
Copyright 2004 © Pearson Education Canada Inc. 8-8 What is Organizational Buying? Buying Situations –Straight rebuy –Modified rebuy –New Task Systems Buying and Selling –Systems buying –Turnkey solution –Systems selling
Copyright 2004 © Pearson Education Canada Inc. 8-9 What are some of the benefits to an organization that can be derived from a single source solution, or a systems buying arrangement with a prime contractor? What are some of the potential pitfalls? What can the company do to protect itself from these hazards?
Copyright 2004 © Pearson Education Canada Inc. 8-10 Participants in the Business Buying Process The Buying Center –Initiators –Users –Influencers –Deciders –Approvers –Buyers –Gatekeepers Key buying influencers Multilevel in-depth selling
Copyright 2004 © Pearson Education Canada Inc. 8-11 Figure 8.1: Major Influences on Industrial Buying Behaviour
Copyright 2004 © Pearson Education Canada Inc. 8-12 Major Influences on Buying Decisions Environmental Factors Organizational Factors –Purchasing-Department Upgrading –Cross-Functional Roles –Centralized Purchasing –Decentralized Purchasing of Small-Ticket Items –Internet Purchasing
Copyright 2004 © Pearson Education Canada Inc. 8-13 The e-hub Plastics.com home page offers buyers and sellers of plastics a marketplace plus news and information
Copyright 2004 © Pearson Education Canada Inc. 8-14 Major Influences on Buying Decisions –Other Organizational Factors Long-Term Contracts –Vendor-managed inventory –Continuous replenishment programs Purchasing-Performance Evaluation and Buyers’ Professional Development Improved Supply Chain Management Lean Production –Just-in-time
Copyright 2004 © Pearson Education Canada Inc. 8-15 Major Influences on Buying Decisions Interpersonal and Individual Factors Cultural Factors –France –Germany –Japan –Korea –Latin America
Copyright 2004 © Pearson Education Canada Inc. 8-16 The Purchasing/ Procurement Process Incentive to purchase Three Company Purchasing Orientations –Buying Orientation Commoditization Multisourcing –Procurement Orientation Materials requirement planning (MRP) –Supply Chain Management Orientation
Copyright 2004 © Pearson Education Canada Inc. 8-17 The Purchasing/ Procurement Process Types of Purchasing Processes –Routine products –Leverage products –Strategic products –Bottleneck products
Copyright 2004 © Pearson Education Canada Inc. 8-18 The Purchasing/ Procurement Process Stages in the Buying Process –Problem Recognition –General Need Description and Product Specification Product value analysis –Supplier Search Vertical hubs Functional hubs Direct external links to major suppliers Buying alliances Company buying sites –Request for proposals (RFPs)
Copyright 2004 © Pearson Education Canada Inc. 8-19 Table 8.1: Buygrid Framework: Major Stages (Buyphases) of the Industrial Buying Process in Relation to Major Buying Situations (Buyclasses) Buyclasses NewModifiedStraight TaskRebuy 1. Problem recognitionYesMaybeNo 2. General need descriptionYesMaybeNo 3. Product specificationYes Buyphases4. Supplier searchYesMaybeNo 5. Proposal solicitationYesMaybeNo 6. Supplier selectionYesMaybeNo 7. Order-routine specification YesMaybeNo 8. Performance reviewYes
Copyright 2004 © Pearson Education Canada Inc. 8-20 The Purchasing/ Procurement Process –Proposal Solicitation –Supplier Selection
Copyright 2004 © Pearson Education Canada Inc. 8-21 Table 8.2: An Example of Vendor Analysis Attributes Rating Scale Importance Weights Poor (1) Fair (2) Good (3) Excellent (4) Price.30x Supplier reputation.20x Product reliability.30x Service reliability.10x Supplier Flexibility.10x Total score:.30(4) +.20(3) +.30(4) +.10(2) +.10(3) = 3.5
Copyright 2004 © Pearson Education Canada Inc. 8-22 The Purchasing/ Procurement Process Customer value assessment Routine-order products Procedural-problem products Political-problem products –Order-Routine Specification Blanket contract Stockless purchase plans –Performance Review Buyflow map
Copyright 2004 © Pearson Education Canada Inc. 8-23 Figure 8.2: Organizational Buying Behaviour in Japan
Copyright 2004 © Pearson Education Canada Inc. 8-24 Institutional and Government Markets Institutional market
Business-to-Business (B2B) Marketing
Understanding Organizational Markets and Buying Behavior
ANALYZING BUSINESS MARKETS AND BUSINESS BUYING BEHAVIORS
Kotler / Armstrong, Chapter 6
Chapter 6 Business Markets and Business Buyer Behavior
McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc
CH 7. Organizational buying refers to the decision-making process by which formal organizations establish the need for purchased products and services,
Principles of Marketing
What is Industrial sales? B2 B Marketing Institutional sales Government.
Analyzing Business Markets
Kotler / Armstrong 11e, Chapter 6 Business buyer behavior includes retailers and wholesalers who buy things with the purpose of making a profit. 1.True.
Business Markets and Business Buying Behavior
Chapter 7 Analyzing Consumer Markets and Buyer Behavior by
Chapter 8 Analyzing Business Markets and Business Buying Behavior by
Learning Goals Define the business market and how it differs from consumer markets Identify the major factors that influence business buyer behavior List.
A Framework for Marketing Management
7 Analyzing Business Markets 1. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall 7-2 What is Organizational Buying? Organizational.
Kotler Keller PhillipKevin Lane Marketing Management 14e.
Business Markets and Business Buyer Behavior Chapter 7.
© 2021 SlidePlayer.com Inc. All rights reserved.