Tutorial 5 & 6

1. Discuss the three types of business buying situation.

there are three major types of buying situations, which are straight modified, modified rebuy
and new task. 
Straight Modified: - Reordering without modification.
Modified rebuy: - Requires modification to prior purchase.
New task: - first - time purchase.
2. In a buying center purchasing process, which buying center participant is most likely to
make each of the following statement?
a) “This bonding agent better be good because I have to put this product together.” (Deciders)
b) “I specified this bonding agent on another job, and it worked for them.” (Influencers)
c) “Without an appointment, no sales rep gets in to seeMs. Johnson.” (Gatekeepers)
d) “Okay, it’s a deal; we’ll buy it.”• “I’ll place the order first thing tomorrow.” (Buyers)
3. Briefly explain the stages of the business buying process.
There are major eight stages of business buying process.

  Problem recognition: The buying starts when a person recognizes a problem or need. He wants
the product that can meet this need. This is called problem reorganization.
  General needs description:  After recognized a need, general needs description is the next step.
It describes the characteristics and quality of the items. The expert team tries to improve the
durability, price, reliability, core value and other attributes.
  Product specification: Next the organization develops product specifications with the help of an
engineering team. Cost reduction is the important issue in this product specification. That’s why
the team carefully redesigned, standardized or adopts less costly methods and decides the best
characteristics of the product.
 Supplier search: In this stage, a buyer wants the best supplier. Buyer can make a short list of
qualified suppliers, search on Google, watch a review on YouTube, by contracting them.
 Proposal solicitation: In this stage, the buyer invites qualified suppliers to submit their
proposals. Some suppliers offer their sample of the product to the buyer; refer their websites or
promotional materials. If the product is expensive then the suppliers show a presentation of their
product.
 Supplier selection: Here, buyer reviews the supplier’s proposals and select the best one among
them. In this selection, the members make a list of desired supplier attributes and their
importance. These attributes are product quality, images, reputation, delivery systems, ethical
corporate behavior, honesty, and competitive prices. Then the buyer rates on all suppliers and
choose the best one.
 Order-routine specification: In this business buying process, the buyer prepares a formal
written order for the chosen suppliers. It is known as an order-routine specification. This routine
order contains technical specifications, quantity, quality, delivery time, return policies,
warranties, maintenance, repair, operating etc.
 Performance review: Here, buyer reviews the supplier’s whole performance. The buyer asks
their users about the products and services and requests them to rate their satisfaction. The
performance review helps the buyer to take any decision to continue the business or modify or
drop. The seller ensures the buyer about the expected satisfaction.
4. Briefly describe the four major steps in designing a customer-driven marketing
strategy.
Segmentation: - Divide the total market in to smaller segments.
Differentiation: - Differentiate the market offering to create superior customer value.
Targeting: - Select the segment or segments to enter.
Positioning: - Position the market offering in the minds of target customers.
5. Discuss the factors marketers consider when choosing a targeting strategy.
Undifferentiated (mass) Marketing: - a market coverage strategy in which a firm decides
ignore market segment differences and go after the whole market with one offer.
Differentiated (segmented) marketing: - A market-coverage strategy
in which a firm decides to target several market segments and
designs separate offers for each.
Concentrated (niche) marketing: - A market-coverage strategy in
which a firm goes after a large share of one or a few segments or
niches.
Micromarketing: - Tailoring products and marketing programs to the
needs and wants of specific individuals and local customer segments;
It includes local marketing and individual marketing.