Business Marketing

Perspective
Business Market

 All except consumers

Types of Bus Mkt Customers

 Commercial
 Institutional
 Government
Commercial market

 Concentration of buyers
 Far fewer
 Far larger
 Geographically concentrated

 Small market difficult to serve

Institutional Markets

 Hospitals
 Schools

 May employ purchase agent

 Cooperative group purchasing
Government Market

 Formal Advertising open bidding

 Negotiable contract
Target

 1. How much potential does market have?

 2. Who makes the decision?
What separates business and consumer
markets
 Intended use of product
 Intended customer

 Black and decker vs DeWalt

Market Driven Marketing

 A set of values and beliefs that place customer interest first

 The ability to generate, disseminate and productively use superior
information about customers
 The coordinated use of interfunctional resources e.g. R&D, manufacturing
 Market Driven Marketing

 Distinctive Capabilities
 Market sensing capability
 Customer linking capability

 Manage Customers as Assets

 Emphasize Profit Focus
 Partnering for increased value
DNA of Marketer Leader

 Instigator
 Innovator
 Integrator
 Implementer
Create Customer Value Perception

 Benefits no one else provides

 Points of Parity
 Points of Difference
Characteristics of business Markets

 Derived Demand
 Fluctuating demand
 Stimulating demand
 Price Sensitivity
The Supply Chain
Commercial Enterprise types

 Users
 OEMs
 Dealers/ Distributors

 Overlap of Categories
 Ford OEM seats from vendor/ User of Machine Tools

 Understanding Buyer Motivation

 Restaurant seats vs Car seats
Classifying Goods for Business Markets
 Entering
 Raw material, Manufactured Materials and component parts
 Foundation-
 Installations- building and equipment
 Accessory Equipment- lift truck, desk, PCs
 Facilitating (Expense items)
 Supplies
 Operating supplies- lubricants
 Maintenance and Repair- paint, screw
 Business Services
 Maintenance and repair service
 Business Advisory
 Outsourcing
Key influencers

 Who are the key participants in purchasing process?

 What is their relative importance?
 What criteria does each participant apply to the decision?