Phillip

Kevin Lane

Kotler Keller
Marketing Management 14e

p
a
Ch

r
e
t

Analyzing Business
Markets

Discussion Questions
1. What is the business market, and how does it
differ from the consumer market?
2. What buying situations do organizational buyers
face?
3. Who participates in the B2B buying process?
4. How do business buyers make their decisions?
5. How can companies build strong relationships
with business customers?
6. How do institutional buyers and government
agencies do their buying?
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Slide 3 of 27

ef
D

d
ne

Organizational Buying

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.
-- F. Webster Jr and Y. Wind

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Slide 4 of 27

Business Markets
Transportatio
n&
Distribution
Construction

Agriculture

Forestry
Manufacturin
g
Communicati
ons

Banking &
Finance

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Slide 5 of 27

Business Markets
Similarities to the Consumer
Market Understanding deep customer
needs
Identify areas for growth
Improving value management
techniques
Calculating better marketing
metrics
Competing and growing in global

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Slide 6 of 27

Business Markets
Differences to the Consumer
Market

Geographical
ly
Concentrate
d

Fewer,
Larger
Buyers
Profession
al Buyers
Multiple
Sales
Calls

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Personal
Relationshi
ps

Slide 7 of 27

Business Markets
Differences to the Consumer
Market
Derived
Demand

Demand
Derived
Inelastic
Fluctuating
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Inelastic
Demand

Fluctuating
Slide 8 of 27

Buying Situations

New Task

Straight Rebuy

Modifed Rebuy
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Slide 9 of 27

Systems Buying and Selling

r
e
y
Bu
e
Prim ctor
ra
t
n
o
C

r
e
i
t
d
n
o
c
rs
Se
o
t
c
ra
t
n
o
C
Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Slide 10 of 27

Business Buying Participants

Initiato
r/Users

Buyer
s

Influenc
er

Gatekeep
er

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Decider

Approver
Slide 11 of 27

Buying Center Influences

Participants
differ by:

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Interest
Authority
Status
Persuasiveness
Decision criteria

Slide 12 of 27

Targeting Firms and Buying

Centers

Who to target?
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Slide 13 of 27

Purchasing/Procurement
Process

Diverse supplier
base

Benefts vs. Costs

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Slide 14 of 27

Stages in the Buying

Process
Description
and
Characteristi
cs

Performan
ce Review

Order
Specifcati
on

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Slide 15 of 27

Stages in the Buying

Process
Internal stimuli
New product being developed
Broken machine
Low stock level
External stimuli
Trade show visit
Advertisement

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Slide 16 of 27

Stages in the Buying

Process
Description
and
Characteristi
cs

Technical
specifications
Reliability
Durability
Price

Product value
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Slide 17 of 27

Stages in the Buying

Process
Trade directories
Trade
advertisements
Trade shows

E-Procurement
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Lead
generation

Slide 18 of 27

Stages in the Buying

Process

Formal
presentation

Writte
n

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Slide 19 of 27

Stages in the Buying

Process
Supplier-evaluation
model
Number of suppliers

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Slide 20 of 27

Stages in the Buying

Process
Order
Specifcati
on

Technical

Stockles
s
purchas
e plan

specifcations
Quantity
Delivery time
Return policy
Warranties

Copyright 2012 Pearson Education, Inc. Publishing as Prentice Hall

Slide 21 of 27

Stages in the Buying

Process
Performan
ce Review

End user
evaluations
Weighted-score
method

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4
Slide 22 of 27

Buygrid Framework
Table 7.1

Buyclasses
Modifed
Rebuy

Straight
Rebuy

1. Problem Recognition

Yes

Maybe

No

2. General need description

Yes

Maybe

No

3. Product specifcation

Yes

Yes

Yes

4. Supplier search

Yes

Maybe

No

5. Proposal solicitation

Yes

Maybe

No

6. Supplier Selection

Yes

Maybe

No

7. Order-routine specifcation

Yes

Maybe

No

8. Performance review

Yes

Yes

Yes

Buyphas
es

New
Task

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Slide 23 of 27

Managing B2B Relationships

Online social
media

One-to-one
Marketing

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Slide 24 of 27

Managing B2B Relationships

Vertical
Coordination

Relationship Factors
Availability of
alternatives
Importance of supply
Complexity of supply
Supply market
dynamism
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Slide 25 of 27

Buyer-Seller Relationship
Categories
Cooperative
systems

Collaborative

Customer is
king

Contractual
transaction

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Mutually
adaptive

Slide 26 of 27

Institutional and Governments

Markets
Prisons

Government
agencies

Schools

Hospitals
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Slide 27 of 27