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Chapter 7: Analyzing Business Markets

CHAPTER
7 ANALYZING BUSINESS
MARKETS
LEARNING OBJECTIVES
In this chapter, we will address the following 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 business-to-business 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?

CHAPTER SUMMARY
1. Organizational buying is the decision-making process by which formal organizations
establish the need for purchased products and services, then identify, evaluate, and
choose among alternative brands and suppliers. The business market consists of all the
organizations that acquire goods and services used in the production of other products or
services that are sold, rented, or supplied to others.
2. Compared to consumer markets, business markets generally have fewer and larger
buyers, a closer customer supplier relationship, and more geographically concentrated
buyers. Demand in the business market is derived from demand in the consumer market
and fluctuates with the business cycle. Nonetheless, the total demand for many business
goods and services is quite price inelastic. Business marketers need to be aware of the
role of professional purchasers and their influencers, the need for multiple sales calls, and
the importance of direct purchasing, reciprocity, and leasing.
3. The buying center is the decision-making unit of a buying organization. It consists of
initiators, users, influencers, deciders, approvers, buyers, and gatekeepers. To influence
these parties, marketers must be aware of environmental, organizational, interpersonal,
and individual factors.
4. The buying process consists of eight stages called buy phases: (1) problem recognition,
(2) general need description, (3) product specification, (4) supplier search, (5) proposal
solicitation, (6) supplier selection, (7) order-routine specification, and (8) performance
review.
5. Business marketers must form strong bonds and relationships with their customers and
provide them added value. Some customers, however, may prefer a transactional
relationship. Technology is aiding the development of strong business relationships.

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6. The institutional market consists of schools, hospitals, nursing homes, prisons, and
other institutions that provide goods and services to people in their care. Buyers for
government organizations tend to require a great deal of paperwork from their vendors
and to favour open bidding and domestic companies. Suppliers must be prepared to adapt
their offers to the special needs and procedures found in institutional and government
markets.

OPENING THOUGHT
Students unfamiliar with business and business operations will have a difficult time
understanding the concept of organizational buying. The major differences between the
consumer market and the B2B market are in the complexity of the decision process and
the amount of people involved in the final purchasing decision.

Instructors can best serve their student audiences by incorporating guest speakers from
the business community who are responsible for purchasing products and/or services to
help students understand the complexity in the buying process for businesses. Sales-
people, who sell to businesses, are also good resources to have as guest speakers when
covering this chapter. Instructors can also use university situations or other common
business examples to get across the concept of organizational buying to their students.

TEACHING STRATEGY AND CLASS ORGANIZATION


PROJECTS
At this point in the semester-long marketing project, no presentations are necessary
unless the instructor has approved a business-to-business product or service.

Students should select a local firm and interview a member of that firm’s buying staff
(buyer, head-buyer, purchasing manager, etc.) regarding their firm’s buying processes.
Using Figure 7.1 (p. 189) of this chapter as an outline, the students should draw an
organizational chart depicting all of the buying processes, members, and internal
customers that would become involved in a major purchase decision. Subsequently,
students should compare and contrast the complexity of that buying process to the ones
noted in Chapter 6—Analyzing Consumer Markets. How and where are the major points
of differences between the two markets in their purchase intensions? Can a firm market
its products to both the industrial and consumer markets with one strategy? Are there
sufficient differences between markets for different products and strategies to be
developed?

Sonic PDA Marketing Plan: Business-to-business marketers have to understand their


markets and the behaviour of members of the buying center in order to develop
appropriate marketing plans. Jane Melody has defined the business market at Sonic as
mid- to large-sized corporations that need to help their workforces stay in touch and input
or access important data from any location. She has asked you to find out:

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Chapter 7: Analyzing Business Markets

 What specific types of businesses appear to fit the business market definition used
at Sonic?
 What needs could Sonic’s PDA address for these businesses?
 Who would participate in and influence the purchase of PDAs for use in these
businesses?
 Which environmental, interpersonal, and individual influences are likely to be
most important to business buyers of PDA products—and why?

Report your findings and conclusions in a written marketing plan or type them into
the Market Demographics and Target Markets sections of Marketing Plan Pro.

ASSIGNMENTS
In small groups (five students suggested as the maximum), have the students visit your
college or university’s Central Purchasing or Procurement department (you may have to
clear this with your administration before assigning). Have the students conduct
interviews with purchasing personnel on how they buy, who is involved in a purchase
decision, and what characteristics do the best salespeople who call on them share.
Students should format their questions to the key concepts contained in this chapter.
Student reports should also characterize the differences found between government or
institutional buying, business-to-business buying, and consumer purchasing.

To improve effectiveness and efficiency, business suppliers and customers are exploring
different ways to manage their relationships. Have the students visit each of the
company’s Web sites mentioned throughout the chapter. Which one(s) do the students
feel most effectively and efficiently addresses the needs of the corporate buyer? Which
Web sites do not? Why and what in their opinion is missing from the least effective Web
sites? How can the firm do better in its execution?

The text states that cultivating the right relationship between business suppliers and
customers is paramount to the success of business marketers. Ask the students to debate
this statement, with one group of students taking the affirmative stance, and the other
group of students taking the negative.

Have the students visit GE‘s Canada’s Web site (www.ge.com/ca/en/). Given the content
in this chapter, have the students prepare a 1-2 page outline of one of GE Canada’s
product lines and how the chosen product line addresses the needs of its business
partners. What is GE Canada doing right, what is GE Canada doing wrong, and where
can GE Canada improve?

The growth of the B2B market has become a most significant trend in business today.
Ask the students to research this phenomenon further by conducting internet research and
find, read and comment on five additional articles. In their report each student take a
position that this trend will, or will not, continue, and that the methods to reach this
emerging market do, or do not, work well.

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Ask the student to choose an ad for a product that is aimed at the consumer market, and
another ad for the same product that is aimed at the business market. (For example, Dell
Computers) The students should compare and contrast the ads in terms of the buying
motives appealed to in the ad.

Small businesses have been described as the “lifeblood” of the economy. Students, who
have after school jobs in small business, should be assigned to interview their employers,
managers, or purchasing departments to understand how small businesses purchase goods
and services. How many of the concepts of this chapter small business owners actually
employ (for example, is the purchasing habits of the student’s small business owner
organized, how many decision makers are involved in purchasing, how important is the
customer-supplier relationship to them, is their purchasing just transactional, etc.)?
Students should prepare to present their findings to the class in either an oral or a written
report. Students not employed should be prepared to question the presenting students as
to their understanding of the “whys” for such actions.

Using the Marketing Insight Big Sales to Small Business have student research small
business credit cards and lines of credit offered by Royal Bank, CIBC and Scotia Bank.
What are the main features and benefits (other than interest rate and fees) that banks and
credit unions use to market these products to small business.

Assign as extra reading material a sales or selling textbook used by your college or
university or one of the articles cited as sources in this chapter. Have the students share
their insights of information/material not contained in the chapter. How can this
information be helpful to marketers in designing marketing plans and objectives? Does
any of the information learned contradict the material in the chapter? Why do they think
this occurred?

MARKETING TODAY—CLASS DISCUSSION TOPICS


Invite local salespeople (those involved in B2B and those involved in consumer selling)
to speak to the class about how they sell—how they gain and deliver strong customer
relationships with their clients, what they believe are some of the necessary character-
istics of a successful salesperson for their industry, etc. In a panel setting, conduct a
discussion about the differences between the two types of selling and the similarities of
these two types of selling. Engage the students to keep notes about both the differences
and similarities discussed to help them understand these differences and the role that
these differences play in marketing their products.

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END-OF-CHAPTER SUPPORT

MARKETING DEBATE—How Different Is Business-to-Business Marketing?

Many business-to-business marketing executives lament the challenges of business-to-


business marketing, maintaining that many traditional marketing concepts and principles
do not apply. For a number of reasons, they assert that selling products and services to a
company is fundamentally different from selling to individuals. Others disagree, claiming
that marketing theory is still valid and only involves some adaptation in the marketing
tactics.

Take a position: Business-to-business marketing requires a special, unique set of


marketing concepts and principles versus business-to-business marketing is really not that
different and the basic marketing concepts and principles apply.

Pro: Business-to business marketing requires a unique set of marketing concepts and
principles versus consumer marketing. The special set of concepts and skills needed in
business-to-business marketing include professional salespeople; products that meet
specific and sometimes specially engineered needs of a set of a few customers; marketing
promotional aspects that deemphasize price in exchange for services; delivery terms;
special financing arrangements; and other traditional “non-marketing” considerations.

Finally, the other major difference between consumer and business-to-business marketing
usually involves the amount of people involved in the sale: from both the sellers firm and
the purchasing firm. In consumer selling, the user is generally the purchaser. In the
business-to-business, marketing both the selling firm and the buying firm includes
members of other disciplines (engineering, transportation, warehousing, finance, and
others) from the beginning of the process to the time of actual purchase. The addition of
these people fosters strong ties between the two firms but also lengthens the time and
complexity of the sale.

Con: Business-to-business marketing does not really differ from the consumer market in
ones approach. The major differences between the two is not in “delivering value to the
consumer” but in the implementation and time phase. Buyers still buy to “solve
problems” and business-to-business marketing and consumer marketing still has to solve
the buyers’ problems. Time and attention to detail may be extended for business-to-
business marketers but the accepted marketing principles of price, place, promotion, and
product still apply it is just their implementation and application(s) that differ.

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MARKETING DISCUSSION
Consider some of the consumer behaviour topics from Chapter 6. How might you apply
them to business-to-business settings? For example, how might non-compensatory
models of choice work?

Suggested Response:
From Chapter 6 we have learned that consumer behaviour is influenced by cultural
factors, social factors, and personal factors. These are individual considerations that apply
to the business-to-business market as well as to the consumer market. The difference is
that all of the members of the buying center will possess different sets of these
considerations and that the business-to-business marketer must try to appeal to all of
these simultaneously.

In addition, there are four main psychological processes: motivation, perception, learning,
and memory apply as well to the business-to-business market. Again, in business-to-
business marketing, each member of the buying center will exhibit different degrees of
each of these processes.

Finally, in the business-to-business buying situation, problem recognition, information


search, evaluation of alternatives, purchase decisions, and post-purchase behaviour will
differ from the consumer market. The difference(s) lie in the amount of time involved,
the degree of research expended, the decision-maker’s role and the evaluation of the
product or service.

In the business-to-business market, more attention is paid to information search, purchase


decisions, the evaluation of alternatives, and the fact that the “user” may not be the final
decision maker. In the business-to-business market, there are seven roles demonstrated by
people within the company (initiators, users, influencers, deciders, approvers, buyers, and
gatekeepers), each of which must be considered as a factor in the selling process. In the
consumer market, many of these roles are included in the single role as buyer.

Non-compensatory choice models and other “impartial” decision-making tools receive a


greater degree of importance as the business-to-business buying center tries to remove
personal choice options from the equation.

MARKETING EXCELLENCE—HOURSTON GLASCRAFT


1. What would be some differences in your company trying to sell to another business
versus to the government?

Selling to another business would more than likely not involve the level of complexity
and detail that a government contract would involve. Most business have a level of
process regarding purchasing that emphasizes efficiencies and not processes designed to
ensure a broad level of public transparency.

2. MERX claims to have levelled the playing field in that business of any size have
equal access to information on contracting opportunities with the Government of

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Canada. Is this website helping or hindering the government and Canadian


businesses?

It is perhaps a doubled edged sword. On the one hand, providing access to one central
web site where all Canadian businesses can access information regarding government
tendered contract allows business of all sizes to compete in a fair and open process. On
the other hand, the processes outlined at the MERX web site would appear to be complex
and cumbersome for small or medium sized businesses.

3. Are there situations when a government contract could be undesirable?

Yes. For small business a government contract could potentially be undesirable if it


cannot meet the strict conditions set out by a large organization, such as the government.

4. What are some ethical challenges that could arise from pursuing a government
contract?

Yes. Business’ is oriented towards a profit motive which could be in ethical conflict with
the broader social goals of government policy.

DETAILED CHAPTER OUTLINE


Business organizations do not only sell; they also buy vast quantities of raw materials,
manufactured components, plant and equipment, supplies, and business services. To
create and capture value, sellers need to understand these organizations’ needs, resources,
policies, and buying procedures.

Many principles of basic marketing also apply to business marketers. They need to embrace
holistic marketing principles, such as building strong relationships with their customers, just
like any marketer. But they also face some unique considerations in selling to other
businesses.

WHAT IS ORGANIZATIONAL BUYING?


Webster and Wind define organizational buying as 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.

The Business Market versus the Consumer Market


The business market consists of all the organizations that acquire goods and services used
in the production of other products or services that are sold, rented, or supplied to others.
A) More dollars and items are involved in sales to business buyers than to consumers.

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B) Given the highly competitive nature of business-to-business markets, the biggest


enemy to marketers here is commoditization.
C) Commoditization eats away margins and weakens customer loyalty. It can be
overcome only if target customers are convinced that meaningful differences exist in
the marketplace, and that the unique benefits of the firm’s offerings are worth the
added expense.
D) Thus, a critical step in business-to-business marketing is to create and communicate
relevant differentiation from competitors.
E) Business marketers contrast sharply with consumer markets in some ways, however:
1) Fewer, larger buyers
2) Close supplier-customer relationship
3) Professional purchasing
4) Multiple buying influences
5) Multiple sales calls
6) Derived demand
7) Inelastic demand
8) Fluctuation demand
9) Geographically concentrated buyers
10) Direct purchasing

Buying Situations
The business buyer faces many decisions in making a purchase. How many depends on
the complexity of the problem being solved, newness of the buying requirement, number
of people involved, and time required. Three types of buying situations are the straight re-
buy, modified re-buy, and new task.
A) Straight re-buy is when the purchasing department reorders on a routine basis and
chooses from suppliers on an “approved list.”
B) Modified re-buy is when the buyer wants to change product specifications, prices,
delivery requirements, or other terms.
C) New task is when the purchaser buys a product or service for the first time.
1) The business buyer makes the fewest decisions in the straight re-buy situation
and the most in the new-task situation.
2) New-task buying is the marketer’s greatest opportunity and challenge. The
process passes through several stages: awareness, interest, evaluation, trial, and
adoption.
3) In the new-task situation, the buyer has to determine product specifications,
price limits, delivery terms and times, service terms, payment terms, order

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quantities, acceptable suppliers, and the selected supplier. This situation is the
marketer’s greatest opportunity and challenge.
4) Because of the complicated selling required, many companies use a missionary
sales force consisting of their most effective salespeople for new-task situations.
5) Once a customer has been acquired, in-suppliers are continually seeking ways to
add value to their market offer to facilitate re-buys.
6) Customers considering dropping six or seven figures on one transaction for big-
ticket goods and services want all the information they can get. One way to
entice new buyers is to create a customer reference program in which satisfied
existing customers act in concert with the company’s sales and marketing
department by agreeing to serve as references.
7) Business marketers are also recognizing the importance of their brand and how
they must execute well in a number of areas to gain marketplace success.

Systems Buying and Selling


Many business buyers prefer to buy a total solution to a problem from one seller. Called
systems buying, this practice originated with the government. It consists of:
A) Prime contractors
B) Second-tier contractors
C) One variant of systems selling is systems contracting, in which a single supplier
provides the buyer with its entire requirement of MRO (maintenance, repair,
operating) supplies.
D) Systems selling is a key industrial marketing strategy in bidding to build large-scale
industrial projects such as dams, steel factories, irrigation systems, sanitation systems,
pipelines, utilities, and even new towns. Customers present potential suppliers with a
list of project specifications and requirements.

PARTICIPANTS IN THE BUSINESS BUYING PROCESS


Purchasing agents are influential in straight-re-buy and modified-re-buy situations,
whereas engineering personnel usually have a major influence in selecting product
components, and purchasing agents dominate in selecting suppliers.

The Buying Center


Webster and Wind call the decision-making unit of a buying organization the buying
center. It consists of “all those individuals and groups who participate in the purchasing
decision-making process, who share some common goals and the risks arising from the
decisions.”
The buying center includes all members of the organization who play any of seven roles
in the purchase decision process:
A) Initiators—requests the product
B) Users—will use the product

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C) Influencers—influences the buying decision


D) Deciders—makes the decision of what to purchase
E) Approvers—authorizes the proposal
F) Buyers—have the formal authority to purchase
G) Gatekeepers—have the power to prevent seller information from reaching members of
the buying center
Several people can occupy a given role such as user or influencer, and one person may play
multiple roles.
Buying Center Influences
Buying centers usually include several participants with differing interests, authority,
status, and persuasiveness.
A) Each member of the buying center is likely to give priority to very different decision
criteria.
B) Business buyers also respond to many influences when they make their decisions.
C) Business buyers also have personal motivations, perceptions, and preferences
influenced by their:
1) Age
2) Income
3) Education
4) Job position
5) Personality
6) Attitudes toward risk
7) Culture
D) Individuals are motivated by their own needs and perceptions in an attempt to
maximize the rewards.
E) Personal needs “motivate” the behaviour of individuals.
F) Organizational needs “legitimate” the buying decision process and its outcomes.
G) People are not buying “products;” they are buying solutions to two problems:
1) The organization’s economic and strategic problem.
2) Their own personal need for individual achievement and reward.
H) Recognizing these extrinsic, interpersonal influences, more industrial firms have
put greater emphasis on strengthening their corporate brand.

Targeting Firms and Buying Centers


Successful business-to-business marketing requires that business marketers know which
types of companies to focus on in their selling efforts, as well as who to concentrate on

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within the buying centers in those organizations.

TARGETING FIRMS Business marketers may divide the marketplace in many


different ways to decide on the types of firms to which they will sell.

Marketing Insight: Big sales to small business


Illustrates how some very large companies in Canada are reaching the small businesses
which in Canada employ over 5 million people and are defined as having fewer than 100
employees.

In developing selling efforts business marketers can also consider their customers’
customers, or end users, if these are appropriate. Many business-to-business transactions
are to firms using the products they purchase as components or ingredients in products
they sell to the ultimate end-users.

Targeting Within the Business Center


To target their efforts properly, business marketers have to figure out: Who are the major
decision participants? What decisions do they influence? What is their level of influence?
What evaluation criteria do they use?
A) Small sellers concentrate on reaching the key buying influencers.
B) Large sellers go for multilevel in-depth selling to reach as many participants as
possible.
C) Business marketers must periodically review their assumptions about buying center
participants.

THE PURCHASING/PROCUREMENT PROCESS


Business buyers seek to obtain the highest benefit package (economic, technical, services,
and social) in relation to a market offering’s costs.

A business buyer’s incentive to purchase will be a function of the difference between


perceived benefits and perceived costs.

The marketer’s task is to construct a profitable offering that delivers superior customer
value to the target buyers.

Business marketers must therefore ensure that customers fully appreciate how the firm’s
offerings are different and better.
1) Framing occurs when customers are given a perspective or point of view that
allows the firm to “put its best foot forward.”
2) Framing can be as simple as making sure customers realize all the benefits or cost

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savings afforded by the firm’s offerings, or becoming more involved and


influential in the thought process behind how customers view the economics of
purchasing, owning, using and disposing product offerings.
3) Framing requires understanding how business customers currently think of and
choose among products and services, and then determining how they should
ideally think and choose.
4) Supplier diversity is a benefit that may not have a price tag but that business
buyers overlook at their risk. As the CEOs of many of the country’s largest
companies see it, a diverse supplier base is a business imperative.
5) Minority suppliers are the fastest-growing segment of today’s business landscape.

Today’s purchasing departments are more strategically orientated and have a mission to
seek the best value from fewer and better suppliers.

Recent competitive pressures have led many companies to upgrade their purchasing
departments and elevate administrators to vice presidential rank. These new, more
strategically oriented purchasing departments have a mission to seek the best value from
fewer and better suppliers.

STAGES IN THE BUYING PROCESS


Robinson and Associates have identified eight stages and called them buy phases.
A) Problem recognition
B) General need description
C) Product specification
D) Supplier search
E) Proposal solicitation
F) Supplier selection
G) Order-routine specification
H) Performance review

Problem Recognition
The buying process begins when someone in the company recognizes a problem or need.
The recognition can be triggered by internal or external stimuli.

General Need Description and Product Specification


Next, the buyer determines the needed item’s general characteristics and required
quantity. The buying organization now develops the item’s technical specifications.
Suppliers can use product value analysis as a tool for positioning themselves to win an
account.

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Supplier Search
The buyer next tries to identify the most appropriate suppliers through trade directories,
contacts with other companies, trade advertisements, trade shows, and the Internet.

Companies that purchase over the Internet are utilizing electronic marketplaces in several
forms:
A) Catalogue sites
B) Vertical markets
C) “Pure Play” auction sites
D) Spot or (exchange) markets
E) Private exchanges
F) Barter markets
G) Buying alliances

Online buying offers several advantages:


A) Shaves transaction costs
B) Reduces time between order and delivery
C) Consolidates purchasing systems
D) Forges closer relationships

On the downside, online ordering may:


A) Help to erode supplier-buyer loyalty.
B) Create potential security problems.

E-Procurement
Web sites are organized around two types of e-hubs: vertical hubs centered on industries
and functional hubs.
A) In addition to using these Web sites, companies can use e-procurement in
other ways:
B) Direct extranet links to major suppliers
1) Buying alliances
2) Company buying sites
B) Moving into e-procurement means more than acquiring software; it requires changing
purchasing strategy and structure.
C) This often means creating a well-designed and easy-to-use Web site.

Lead Generation
The supplier’s task is to ensure it is considered when customers are in the market
searching for a supplier.

1) Marketing must find the right balance between the quantity and quality of leads.

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2) Suppliers that lack the required production capacity or suffer from a poor
reputation will be rejected.

Proposal Solicitation
The buyer invites qualified suppliers to submit proposals. If the item is complex or
expensive, the proposal will be written and detailed.

A) Business marketers must be skilled in researching, writing, and presenting


proposals.

Supplier Selection
Before selecting a supplier, the buying center will specify and rank desired supplier
attributes, often using a supplier-evaluation model.

Marketing Memo: Developing compelling customer value propositions


States that to command price premiums in competitive B-to-B markets, firms must create
compelling customer value propositions. Lists the top 8 ways to research the customer.

Overcoming Price Pressures


The buying center may attempt to negotiate with preferred suppliers for better prices and
terms before making the final selection.
A) Despite moves toward strategic sourcing, partnering, and participation in cross-
functional teams, buyers still spend a large chunk of their time haggling suppliers on
price.
a. Marketers can counter request for a lower price in a number of ways.
i. “total cost of ownership”
ii. “life-cycle cost”
B) Improving productivity helps alleviate price pressures.
C) Some companies handle price-oriented buyers by setting a lower price but
establishing restrictive conditions: (1) limited quantities, (2) no refunds, (3) no
adjustments, and (4) no services.

Number of Suppliers
Companies are increasing reducing the number of suppliers in order to cut costs.
A) These companies want their chosen suppliers to be responsible for a larger
component system, they want them to achieve continuous quality and
performance improvement, and at the same time they want them to lower prices
each year by a given percentage.
B) They expect their suppliers to work closely with them during product
development, and they value their suggestions.

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C) There is even a trend toward single sourcing, though companies that use multiple
sources often cite the threat of a labour strike as the biggest deterrent to single
sourcing.

Order-Routine Specifications
After selecting suppliers, the buyer negotiates the final order, listing the technical
specifications, the quantity needed, the expected time of delivery, return policies,
warranties, and so on.
A) The lessee gains a number of advantages: the latest products, better service, the
conservation of capital, and some tax advantages. The lessor often ends up with a
larger net income and the chance to sell to customers that could not afford outright
purchase.
B) In the case of maintenance, repair, and operating items, buyers are moving toward
blanket contracts rather than periodic purchase orders.
C) A blanket contract establishes a long-term relationship in which the supplier
promises to resupply the buyer as needed, at agreed-upon prices, over a specified
period of time.
D) Because the seller holds the stock, blanket contracts are sometimes called stockless
purchase plans.
E) Companies that fear a shortage of key materials are willing to buy and hold large
inventories.
F) They will sign long-term contracts with suppliers to ensure a steady flow of
materials. Some companies go further and shift the ordering responsibility to their
suppliers in systems called vendor-managed inventory (VMI).
G) These suppliers are privy to the customer’s inventory levels and take responsibility
for replenishing automatically through continuous replenishment programs.

Performance Review
A) The buyer periodically reviews the performance of the chosen supplier(s).
B) Many companies have set up incentive systems to reward purchasing managers for
good buying performance, in much the same way sales personnel receive bonuses for
good selling performance.

MANAGING BUSINESS-TO-BUSINESS CUSTOMER RELATIONSHIPS


To improve effectiveness and efficiency, business suppliers and customers are exploring
different ways to manage their relationships. Closer relationships are driven in part by
supply chain management, early supplier involvement, and purchasing alliances.
Business-to-business marketers are avoiding “spray and pray” approaches to attracting
and retaining customers in favour of honing in on their targets and developing one-to-one
marketing approaches. They are increasingly using online social media in the form of
company blogs, online press releases, and forums or discussion groups to communicate

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Chapter 7: Analyzing Business Markets

with existing as well as prospective customers.

The Benefits of Vertical Coordination


Much research has advocated greater vertical coordination between buying partners and
sellers, so they can transcend merely transacting and instead engage in activities that
create more value for both parties.

Marketing Insight: Establishing corporate trust and credibility


Defines the terms: corporate credibility, expertise, and trustworthiness.

Building trust is one prerequisite to healthy long-term relationships.

Trust is the willingness of a firm to rely on a business partner. It depends on a number of


interpersonal and inter-organizational factors, such as the firm’s perceived competence,
integrity, honesty, and benevolence.
Building trust can be especially tricky in online settings, and firms often impose more
stringent requirements on their online business partners than on others.

Knowledge that is specific and relevant to a relationship partner is also an important


factor in the strength of inter-firm ties.
A number of forces influence the development of a relationship between business
partners.
FFFour relevant factors are:
A) availability of alternatives,
B) importance of supply,
C) complexity of supply,
D) and supply market dynamism.
Based on these we can classify buyer-supplier relationships into eight categories:
A) Basic buying and selling
B) Bare bones
C) Contractual transactions
D) Customer supply
E) Cooperative systems
F) Collaborative
G) Mutually adaptive
H) Customer is King

Business Relationships: Risks and Opportunism


Researchers have noted that establishing a customer-supplier relationship creates tension
between safeguarding (ensuring predictable solutions) and adaptation (allowing for
flexibility for unanticipated events).

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Chapter 7: Analyzing Business Markets

Vertical coordination can facilitate stronger customer-seller ties but at the same time may
increase the risk to the customer and supplier’s specific investments.
A) Specific investments are those expenditures tailored to a particular company and value
chain partner.
B) Specific investments also entail considerable risk to both customer and supplier.
C) Opportunism is “some form of cheating or undersupply relative to an implicit or
explicit contract.”
D) A more passive form of opportunism might be a refusal or unwillingness to adapt to
changing circumstances.
E) Opportunism is a concern because firms must devote resources to control and
monitoring.
F) Their specific investments shift from expropriation (increased opportunism on the
receiver’s part) to bonding (reduced opportunism).
G) The presence of a significant future time horizon and/or strong solidarity norms
typically causes customers and suppliers to strive for joint benefits.

New Technology and Business Customers


Top firms are comfortable using technology to improve the way they do business with
their business-to-business customers.

INSTITUTIONAL AND GOVERNMENT MARKETS


The institutional market consists of schools, hospitals, nursing homes, prisons, and other
institutions that must provide goods and services to people in their care.
A) Many of these organizations are characterized by low budgets and captive
clienteles.
B) In most countries, government organizations are a major buyer of goods and
services.

C) A major complaint of multinationals operating in Europe was that each country


showed favouritism toward its nationals despite superior offers from foreign
firms.

D) Because their spending decisions are subject to public review, government


organizations require considerable paperwork from suppliers, who often complain
about bureaucracy, regulations, decision-making delays, and frequent shifts in
procurement staff.
But the fact remains that the Canadian government buys goods and services valued at $14
billion annually.

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Chapter 7: Analyzing Business Markets

A) Government decision makers often think vendors have not done their homework.
Different types of agencies—defence, civilian, intelligence—have different needs,
priorities, purchasing styles, and timeframes.

B) Just as companies provide government agencies with guidelines about how best to
purchase and use their products, governments provide would-be suppliers with
detailed guidelines describing how to sell to the government.

C) Several federal agencies that act as purchasing agents for the rest of the
government have launched Web-based catalogues that allow authorized defence and
civilian agencies to buy everything from medical and office supplies to clothing
online.

Copyright © 2013 Pearson Canada Inc.


183
Another random document with
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The Project Gutenberg eBook of Mabel's mishap
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and most other parts of the world at no cost and with almost no
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Title: Mabel's mishap

Author: Amy Ella Blanchard

Illustrator: Ida Waugh

Release date: February 19, 2024 [eBook #72983]

Language: English

Original publication: Philadelphia: George W. Jacobs & Company,


1900

Credits: Carla Foust, David E. Brown, and the Online Distributed


Proofreading Team at https://www.pgdp.net (This file was
produced from images generously made available by The
Internet Archive)

*** START OF THE PROJECT GUTENBERG EBOOK MABEL'S


MISHAP ***
“THE TWO CHILDREN WITH LITTLE LOUIE WERE
PLAYING IN THE LAUNDRY.”
MABEL’S MISHAP
BY
Amy E. Blanchard

Author of “Kittyboy’s Christmas,” “Taking a Stand,”


“A Dear Little Girl,” etc.

Philadelphia
George W. Jacobs & Co.
103-105 So. Fifteenth Street
Copyright, 1900 By
GEORGE W. JACOBS & CO.
CONTENTS
CHAPTER I 7
CHAPTER II 23
CHAPTER III 37
CHAPTER IV 52
CHAPTER V 66
CHAPTER VI 82
CHAPTER VII 98
LIST OF ILLUSTRATIONS
“THE TWO CHILDREN, WITH LITTLE LOUIE, WERE
PLAYING IN THE LAUNDRY.”
“O, HAROLD, HERE IT IS!”
“SHE OCCUPIED HERSELF WITH TRYING TO PLAY
MARBLES.”
CHAPTER I.
IT was raining dismally. Mabel, leaning her arms on the broad
window-sill, watched the drops trickling down the panes. Before her
was an array of paper dolls in gay tissue dresses. They sat perched
upon pasteboard chairs in front of a circle of queer creatures with flat
heads, and no feet; hand in hand these stood, rather flimsy in
appearance. Mabel had cut them all in one from a bit of newspaper.
Presently she gave the whole company a sweep off on the floor.
“I’m tired of you,” she said. “And it’s raining, and I don’t know what to
do. I wish I were twins, so I could have someone to play with.”
“Why, Mabel,” said her mother, “suppose I had two discontented little
Mabels to be fretting around on a rainy day, what should I do?”
“You wouldn’t have to have two Mabels,” returned the little girl, “you
could call one something else: Maude, or—oh, mamma, you could
call one May and one Belle. I think I’d like to be May, myself. That’s
what I’ll do next time I play by myself: I’ll pretend I have a twin sister
named Belle.”
“Suppose you pick up that company of people, lying there by the
window, now, and play with your twin awhile.”
Mabel looked up mischievously. “I think I’ll let Belle pick them up,”
she said.
“Well, let me see her do it. There is a looking glass in which I can
watch her.”
“Oh, like ‘Alice in the Looking Glass Country’. You watch and see
Belle pick them up.” And she set to work, glancing over her shoulder
once in a while to see if her mother took in the performance. “There!”
she said, after a time, “Belle has picked them up, but we are both
tired of paper dolls. Mamma, there is a red flag hanging out by a
door across the street; in that house where the little boy lives. What
is it for? Do you suppose he has scarlet fever?”
Her mother laughed. “No, there is an auction—a sale going on.”
“What for?”
“Why, I don’t know, dear. For some reason they are selling off their
household goods and furniture.”
“Oh, I wonder if the little boy likes to do that. Who is selling the things
—his papa?”
“No, an auctioneer.”
“Does he say, ‘Going, going, gone,’ like Uncle Lewis does when he
pretends to sell me?”
“Yes.”
“Can anybody go to a—a nauction?”
“Why, yes. How many questions a little girl can ask.”
“Well, mamma, I think if you’ll ’scuse me, I’ll go down stairs and find
something else to do.”
“I’ll excuse you, certainly. Don’t get into mischief.”
But Mabel was out of the door and on her way down the steps by
this time. She stopped at the parlor, peeped in, and then went over
to the piano which she opened and began to drum softly upon it, but
she knew her mamma did not allow this, so she went across the hall
to the library. This was a favorite room, especially on a rainy day,
and, when her father was not busy there, Mabel was often allowed to
curl herself up in one of the big chairs with a book. To-day, however,
she did not feel inclined to settle down and looked around to find
something to invite her attention. A box of water-colors stood open
upon the desk where her father had been working. He had been
coloring some drawings to use in his class at the university.
Mabel stood gazing at the colors longingly; they did look so bright
and pretty. She took up one of the brushes and wet it in the glass of
water her father had been using; then she dipped it in the brightest
vermillion in the box.
“I wish I had something to paint,” she said to herself. Looking
through a pile of newspapers, she found nothing that would do, and
her eyes next sought the books nearest her. She opened one; it was
fresh and new. “Oh, I couldn’t take that,” she said. “But this old one, I
don’t believe he cares much for this. It has pictures in it, but they are
very queer, and so yellow, I’m sure the book isn’t of any account at
all. I think it would look much better if I were to paint it up a little.”
And, the action being suited to the word, the brush was soon making
dabs at the colors on the box, and the figures in the engravings were
given startling costumes of red, or blue, or yellow, as Mabel’s fancy
dictated.
She could not help feeling a little guilty, though all the time telling
herself that it was a worthless old book, and that her mamma often
gave her old magazines to try her own paints upon.
Yet, when she heard a step on the stairs, she started guiltily, and
shut the book with a snap, then put down her brush, unaware that
she had upset the glass of water in her haste, and that it was running
across the table and soaking through the book.
She hurried out of the door leading to the porch. Here she could
listen to the voice of the auctioneer, as it came to her ears quite
distinctly from across the street. It had stopped raining, though little
puddles still lay among the bricks of the walk.
“Any one can go,” thought Mabel; “mamma said so. I should love to
see a nauction. And that little boy, I wonder if he is there.”
It was mild spring weather, and Mabel thought she could dispense
with a hat. She would rather not go in the house again just then; “I’ll
go to the nauction,” she said. “It’s no more than going to a store;
mamma said so.”
So, running across the street, she stood for a moment before the
gate of the little boy’s home, then slipped in; another moment found
her in a room full of people. She turned to run away, as several
turned to look at her, but she caught sight of the forlorn figure of a
little boy huddled up in one corner, hugging a large dog, and towards
these two she made her way.
The little boy looked up with a faint smile as Mabel approached, then
made room for her on the box on which he was sitting.
“Isn’t it funny?” whispered Mabel, while the auctioneer went on
rapidly: “A dollar an’ a half an’ a half.”
But the little boy didn’t look as if he thought it very funny, for he
turned his head away, and Mabel thought she saw two tears rolling
down his cheeks.
“Is your father here?” she asked.
The little fellow shook his head, and just then, the articles in that
room being disposed of, the crowd went into the next, and the two
children were left alone.
“Are you going to move?” asked Mabel. “I live across the street, you
know, and I saw the red flag hanging out, so I just came over.”
The boy nodded.
“I’m Mabel Ford. My sister told me your name; it’s Harold, isn’t it?
What a dear dog that is. What’s his name?” Mabel was not to be
daunted by Harold’s silence.
“Don.” This time he answered her.
“I wish you were not going away. Do you want to?” Mabel’s questions
continued.
“No,” returned Harold, “but you know father has to go with his
regiment to Cuba, and so I have to go.”
“Oh, are you going to Cuba? What will you do when they are
fighting? When are you going?”
“I don’t know when I am going, but I am not going to Cuba.”
“Oh, I should think you would be glad not to. Will they take all the
things out of the house?”
“Yes, I suppose so. I expected to go to my aunt’s to-day, but Drake
hasn’t heard from her; neither have I.”
“And your papa went and left you all alone?”
“He had to, for he had to join his troops, and he thought my aunt
would be here before this.”
Mabel thought this a dreadful state of affairs, and looked her
sympathy.
“You see,” Harold went on, “these aren’t our things; not many of
them. Father rented the house furnished, and only brought a few of
our own things here.”
“Oh!” That was better, Mabel thought, but her curiosity was still
unsatisfied. “Where shall you go to-night?”
“Oh, I’ll go home with Drake, I suppose.”
“Who is he?”
“The coachman. Well, not the coachman, exactly. He does all sorts
of things, and his wife has kept house for us all winter.”
“Oh, yes; but I should think it would be much nicer with your aunt.”
“Perhaps it will be when I can go to her, but I can’t yet. You see, she
is probably away from home, and if I started without knowing all
about it, I might get to her house and find no one there, and then
what should I do in a strange place?” Harold was fast growing more
communicative.
“That would be dreadful,” agreed his companion, overcome by his
lonely condition. “I tell you what I wish you’d do,” she hastened to
say: “I wish you’d come over with me. We haven’t any boys at our
house, and I’ve always wanted awfully to be a boy. You see it would
be fine if I were, for now I’m just nothing. Alice is the oldest, so she’s
some importance, and Louie is the baby, so she’s the pet, and I’m in
the middle where I can’t be anything, and I don’t have anyone to play
with, for Alice is fourteen and Louis is only two.”
“Your mother wouldn’t want me, maybe,” said Harold, though his
eyes looked wistful.
“Oh, yes she would,” returned Mabel, confidently; “I’m sure she
would. She lets me have my school friends come, and sometimes
they stay all night.”
“But I’m a boy.”
“Well, never mind, we can’t help that. You can pretend you are a girl,
if you want to, and I’ll lend you one of my frocks.”
This brought the first approach to a laugh which Harold had shown,
and he consented to go and hunt up Drake, and Mabel went with
him.
Drake, himself, was not to be found, but his wife was, and to her
Mabel made known her request.
“Well, I just wish he would go,” declared Mrs. Drake. “He’s been
moping around ever since his father went away, and we two old
people can’t cheer him up like you could. Go along, Harold, if you
like, and stay as long as you want to.”
So Harold followed his new friend across the street, and when the
situation was explained, true enough, he was given a warm welcome
by Mrs. Ford. An hour later the two children, with little Louie, were
playing in the laundry, having great times, with a tub of water and
some very primitive fishing lines.
“I don’t usually like babies tagging after me,” Mabel confided to her
friend, fearing he might think her less like a boy than she had given
him reason to suppose, “but Louie’s nurse has gone out,” she
explained.
“Oh, I don’t mind her. I think she is a dear little girl,” Harold returned,
and Mabel was relieved when his heart seemed entirely won by
Louie’s overtures to “Boy,” as she called him.
All went merrily enough till supper time; then Mabel, intent only upon
making Harold at home, brought him smilingly into the dining-room.
She had forgotten the affair of the book, but it came back to her in a
very unpleasant manner, when her father, with one of his most
severe looks, greeted her with: “Mabel, was it you who was in the
library this afternoon, meddling with my box of colors?”
Mabel turned as red as a beet, hung her head, tried to speak, and at
last, faltered out: “I—I—yes, papa.”
“I might have expected it from a baby like Louie, but a girl as big as
you must certainly have known better. You have ruined one of my
most valuable and rare books,” Mr. Ford went on to say. All this
before Harold. Poor Mabel felt as though she would sink through the
floor. She wondered what punishment would be meted out to her,
and she looked with pleading eyes at her mother.
CHAPTER II.
“THIS is Harold Evans,” Mrs. Ford said, tactfully drawing her
husband’s attention from Mabel. “Harold’s father is in the army, and
has gone to Cuba, so we are trying to make our little neighbor feel
less lonely.”
“Mr. Evans? oh, yes,” said Mr. Ford, looking up; “I know him. That’s
right, Alice, make the boy feel at home. Come here, son, and sit by
me.” And the cloud blew over, much to Mabel’s relief. But the hurt of
her remorse and shame still lingered. She did like to appear well
before her friends, and to be shown up as a naughty, meddlesome
little girl, was very hard. Besides, she really was greatly distressed at
having spoiled the book, for she knew how her father loved his
library, and treasured his rare books and papers.
“Papa,” she faltered, “I’m dreadfully sorry. I thought it was just an old
book you didn’t care for; and—yes, I knew it wasn’t right to touch it.
Is it one of your very preciousest books?”
“Yes,” replied her father; “I am afraid it is. See, Mabel; not only is this
old print marred by those dreadful glaring colors, but you upset the
glass of water I left here, and it has soaked through the book and
carried the stain of the fresh paint with it. Then, where you were
painting the pages are stuck together; and, well, you can see that
destruction has followed your meddling. I must forbid you coming
into this room again until your mother or I have given you
permission.”
“Oh!” Mabel stood the picture of distress. “I am so sorry, papa,” she
repeated. “I’ll never do so again. What can I do to myself?”
A little smile flickered around her father’s mouth. “I’m afraid nothing
you could do would restore my book. Another copy would be almost
impossible to find.”
“Where did you get this one?”
“I came across it at an auction. It was in a lot of books which were
lumped together, and went very cheap.”
“Was it an auction like that at Harold’s house this afternoon?”
“Yes.”
“How much is very cheap?”
“Oh, five dollars for the lot, I think I paid.”
Mabel was very thoughtful for a few moments. Several plans were at
work in her mind. Finally, seeing that her father wanted to return to
his work, she said: “I came to tell you how sorry I am, papa, and to
say good-night. I think maybe, if you don’t kiss me I’d feel worse.”
“Do you want to feel worse?”
“I don’t want to, but I suppose it would do me good, and make me
remember.”
“Well, my small philosopher, you completely disarm me. I confess I
was very angry at first, and still feel annoyed, but if I can help your
memory by withholding my usual good-night kiss, go to bed without
it. Good-night, daughter.”
Mabel lingered wistfully. It was very hard to make her up mind to go
without that good-night kiss, and her lips quivered as she turned
away, seeing that her father meant to follow out her suggestion. But
on the spot she formed a resolution to try to replace the book if ever
she could. Five dollars! that was a lot of money; more than she ever
had at once, but she would save up every penny. She wondered if
there were any books sold at Harold’s house that afternoon. She
would ask him.
The next morning, while the family were at breakfast, Drake
appeared with rather a perturbed countenance. “I’d like your advice,
Mr. Ford,” he began, “So long as your lady was so good as to invite
little Harold to come over here, sir, I thought, perhaps you wouldn’t
mind helping me out in getting him fixed. You see, sir, when the
Captain went away he said the boy was to go to his aunt, and that I
was to take him as soon as I heard from her. Now she writes, or
rather a nurse does, and says she’s laid up to a hospital,
sannytorum, they call it, and it’ll be weeks before she’s out again,
and will I look after the boy till she’s well. She seems to think I’m
some sort of kin-folks to him. But you see, sir, me and my wife has a
chance to go to the country to a good place, and how’ll we take the
boys, we being hired help like?”
“Humph!” Mr. Ford glanced up at his wife.
Mabel slipped down from her chair and went close to her mother.
“Mamma, let him come here,” she whispered. “He hasn’t any
mamma nor any sisters and brothers, nor anything. I’ll give up my
room if Alice will let me sleep with her.”
“Mabel proposes that we invite Harold here,” said Mrs. Ford. “She
will give up her room to him, Phillip.”
“Well, but how about you? It is something of a charge to take a boy
into the family where there are only girls.”
“I’ll take the charge willingly.”
Mr. Ford nodded with a satisfied air. “It’s settled then, Drake. We’ll
take care of the lad. Captain Evans and I are acquaintances, and I
do not think he would object to the arrangement.”
“He’d be that thankful, sir,” said the old man feelingly, but he looked
at Mabel, who at once understood.
“There’s the dear doggie, too. Do you mind him, mamma? He is
such a darling, and Harold loves him so.”
“Let’s have the whole combination,” laughed Mr. Ford, who loved
animals. “He’s a collie, isn’t he? I’ve seen him on the street and he
seemed a fine fellow.”
And so it was settled that Harold and Don should enter the family for
the time being, and Mabel proceeded, forthwith, to lay her plans and
to get her room ready for this newcomer. She took her dolls, her
specially girly books, and certain little knicknacks into her sister’s
room.
“What do boys like in their rooms?” she asked Alice.

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