NAVOTAS POLYTECHNIC COLLEGE

Bangus St., Corner Apahap St., NBBS, City of Navotas

Course Title: Marketing Management

Section:
Schedule:
Name of Faculty: PROFESSOR MARICAR TELAN ARTUZ Lpt,MBA,CME,

PROFESSOR RANDY BERNABE

Module Number: 7

Lesson Title/Topic:

 Analyzing Business Markets

Week Number: 7

Intended Learning Outcomes: (specific and measurable, and learner-

oriented)understand the concept of Marketing and why is it important

 Identify the business market and understand how does it differ from the consumer
market
 Recognize buying situations do organizational buyers face
 Identify who participates in the business-to-business buying process and how do
business buyers make their decisions
 Understand how can companies build strong relationships with business customers and
how do institutional buyers and government agencies do their buying

MOTIVATION
Chapter 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-tobusiness buying process?

• How do business buyers make their decisions?

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• How can companies build strong relationships with business customers?
• How do institutional buyers and government agencies do their buying?

What is Organizational Buying?

Organizational buying refers to 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.

Top Business Marketing Challenges

• Expand understanding of customer needs

• Compete globally as China and India reshape markets

• Master analytical tools and improve quantitative skills

• Innovation as an engine of growth

• Create new organizational models and linkages

Characteristics of Business Markets

• Fewer, larger buyers • Multiple sales calls

• Close suppliercustomer relationships • Derived demand

• Professional purchasing • Inelastic demand (not affected by price

change)
• Many buying influences
• Fluctuating demand

• Geographically concentrated buyers

• Direct purchasing

Buying Situation

Straight rebuy

• Purchasing department reorder supplies such as office supplies and bulk order.

• Goal is to get small order and then enlarge their purchase share over time

Modified rebuy

• The buyer in modified rebuy want to change product specification , prices, delivery requirement.

New task
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• A new task purchaser buy a product for first time. New task buying is marketer’s greatest
opportunity and challenge.

Participants in Business Buying Process The Buying Center

The buying center include all members of organization who play any of the Following 7 roles in
purchasing decision process

• Initiators • Approvers
• Users • Buyers
• Influencers • Gatekeepers (Ex. Purchasing agent ,
• Deciders receptionists, telephone operators)

Stages in the Buying Process: Buyphases Buygrid framework

• Problem recognition • General need description • Product specification • Supplier search •
Proposal solicitation / Tender • Supplier selection • Order-routine specification • Performance
review

Supplier Search Forms of Electronic Marketplaces

• Catalog sites • Vertical markets / specialized website • Pure play auction sites • Spot / exchange
markets • Private exchanges • Barter markets : trade a goods • Buying alliances (Ex. Flipkart + SBI)

Methods of e-Procurement
• Websites organized using vertical hubs • Websites organized using functional hubs • Direct
extranet links to major suppliers • Buying alliances • Company buying sites

Supplier Selection Handling Price-Oriented Customers

Some companies handle price oriented buyers by setting a lower price but establishing restrictive
condition:
• Limit quantity purchased • Allow no refunds • Make no adjustments • Provide no services

Methods for Researching Customer Value

• Internal engineering assessment • Conjoint analysis

• Field value-in-use assessment • Benchmarks

• Focus-group value assessment • Compositional approach

• Direct survey questions • Importance ratings

Order Routine Specification

• After selecting suppliers buyer negotiate final order, listing technical specification , quantity
needed, expected time of delivery , return policy etc.
• Stockless purchase plans
• Buyer’s computer automatically sends an order to seller when stock is needed
• Vendor-managed inventory

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• Continuous replenishment
Establishing Corporate Trust and Credibility
• Expertise • Trustworthiness • Likability
Trust Dimensions

• Transparent • Cooperating design

• Product/Service Quality • Product comparison
• Incentive • Supply chain
• Partnering • Pervasive advocacy / support

Factors Affecting Buyer-Supplier Relationships

• Availability of alternatives
• Importance of supply
• Complexity of supply
• Supply market dynamism
Managing B to B Customer relationship Categories of Buyer-Seller Relationships

• Basic buying and selling • Cooperative systems

• Bare bones • Collaborative
• Contractual transaction • Mutually adaptive
• Customer supply • Customer is king

What is Opportunism?
•Opportunism is some form of cheating or undersupply relative to an implicit or explicit contract.
•When buyers cannot easily monitor supplier performance , supplier might cheat and not deliver
expected value.
Evaluation
Interactive lectures and discussions

Power point presentations

Assessment Tasks/Outputs

The student should be able to:

 Embrace holistic marketing principles, such as building strong relationships with

their customers and to face some unique considerations in selling to other businesses.
Highlight some of the crucial similarities and differences for marketing in business markets

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Readings and Other References

Reference Lamb C., Hair J., & McDaniel C. (2013). MKTG 9, (9th ed.),
http://www.youtube.com/c/GetKnowledge...

Acknowledgements to Authors and Other Creators:

Write your complete names. Maricar Artuz
Professor Randy Bernabe