Phillip

Kevin Lane

Kotler Keller
Marketing Management 14e

Analyzing Business
Markets

Discussion Ques>ons
1. What is the business market, and how does it dier
from the consumer market?
2. What buying situa>ons do organiza>onal buyers face?
3. Who par>cipates in the B2B buying process?
4. How do business buyers make their decisions?
5. How can companies build strong rela>onships with
business customers?
6. How do ins>tu>onal buyers and government agencies
do their buying?
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Organiza>onal Buying
The decision-making process by which
formal organiza>ons establish the need
for purchased products and services and
iden>fy, evaluate, and choose among
alterna>ve brands and suppliers.

-- F. Webster Jr and Y. Wind

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Slide 4 of 27

Business Markets
Transporta>on
& Distribu>on
Construc>on

Agriculture

Forestry
Manufacturing

Communica>ons
Banking & Finance
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Business Markets
Similari>es to the Consumer Market
Understanding deep customer needs
Iden>fy areas for growth
Improving value management techniques
Calcula>ng be\er marke>ng metrics
Compe>ng and growing in global markets
Countering product commodi>za>on
Gain support for the marke>ng concept
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Business Markets
Dierences to the Consumer Market

Geographically
Concentrated

Fewer, Larger
Buyers
Professional
Buyers
Mul>ple
Sales Calls
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Personal
Rela>onships
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Business Markets
Dierences to the Consumer Market
Derived Demand
Inelas>c Demand

Demand
Derived
Inelas>c
Fluctua>ng
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Fluctua>ng Demand
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Buying Situa>ons

New Task

Straight Rebuy

Modied Rebuy
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Systems Buying and Selling

r
e
y
Bu

r
o
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c
a
tr
n
o
C

Prime

r
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>
d
n
o
c
e
S
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o
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Business Buying Par>cipants

Ini>ator/
Users

Buyers

Inuencer

Gatekeeper

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Decider

Approver
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Buying Center Inuences

Par$cipants dier by:

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Interest
Authority
Status
Persuasiveness
Decision criteria

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Targe>ng Firms and Buying Centers

Who to target?
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Purchasing/Procurement Process

Diverse supplier base

Benets vs. Costs

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Stages in the Buying Process

Problem
Recogni>on

Descrip>on and
Characteris>cs

Supplier
Search
Proposal
Solicita>ons

Performance
Review

Order
Specica>on

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Supplier
Selec>on

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Stages in the Buying Process

Problem
Recogni>on

Internal s$muli
New product being developed
Broken machine
Low stock level

External s$muli
Trade show visit
Adver>sement

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Stages in the Buying Process

Descrip>on and
Characteris>cs

Technical specica$ons
Reliability
Durability
Price

Product value analysis

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Stages in the Buying Process

Supplier
Search

Trade directories
Trade adver>sements
Trade shows

E-Procurement
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Lead genera>on
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Stages in the Buying Process

Proposal
Solicita>ons

Formal presenta>on

Wri\en
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Stages in the Buying Process

Supplier
Selec>on

Supplier-evalua>on model
Number of suppliers

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Stages in the Buying Process

Order
Specica>on

Stockless
purchase
plan

Technical specica>ons
Quan>ty
Delivery >me
Return policy
Warran>es
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Stages in the Buying Process

Performance
Review

End user evalua>ons

Weighted-score
method

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4
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Buygrid Framework

Buyphases

Table 7.1

Buyclasses
New Task

Modied
Rebuy

Straight
Rebuy

1. Problem Recogni>on

Yes

Maybe

No

2. General need descrip>on

Yes

Maybe

No

3. Product specica>on

Yes

Yes

Yes

4. Supplier search

Yes

Maybe

No

5. Proposal solicita>on

Yes

Maybe

No

6. Supplier Selec>on

Yes

Maybe

No

7. Order-rou>ne specica>on

Yes

Maybe

No

8. Performance review

Yes

Yes

Yes

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Managing B2B Rela>onships

Online social media

One-to-one Marke>ng
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Managing B2B Rela>onships

Ver>cal Coordina>on

Rela>onship Factors

Availability of alterna>ves
Importance of supply
Complexity of supply
Supply market dynamism

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Buyer-Seller Rela>onship Categories

Coopera>ve systems

Collabora>ve

Customer is king

Contractual transac>on
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Mutually adap>ve
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Ins>tu>onal and Governments Markets

Prisons

Government
agencies

Schools

Hospitals
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