Chapter 7 analyzing business markets. Chapter 2022-12-12

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Chapter 7: Analyzing Business Markets

Business markets, also known as B2B markets, refer to the buying and selling of goods and services between organizations, rather than between organizations and individual consumers. These markets play a crucial role in the economy, as businesses rely on each other to produce and distribute their products or services. Understanding and analyzing business markets is essential for businesses to make informed decisions about their target customers, marketing strategies, and overall business operations.

One key aspect of analyzing business markets is identifying the types of buyers and sellers involved. There are various types of buyers in business markets, including original equipment manufacturers (OEMs), resellers, and governments. OEMs are businesses that purchase raw materials, components, or finished products to be incorporated into their own products. Resellers, on the other hand, are businesses that buy products or services with the intention of reselling them to their own customers. Governments, as the largest buyers in many countries, can also be a significant player in business markets.

In addition to identifying the types of buyers, it is important to understand the purchasing process in business markets. This process is typically more complex than in consumer markets due to the larger size of the transactions and the involvement of multiple decision-makers. The purchasing process may involve evaluating multiple suppliers, negotiating prices and terms, and conducting thorough product or service evaluations.

Another crucial aspect of analyzing business markets is understanding the competition. This includes analyzing the strengths and weaknesses of competitors, as well as their marketing strategies and target markets. It is also important to consider any potential barriers to entry, such as high startup costs or regulatory hurdles.

Finally, businesses must also consider the macroeconomic environment in which they operate. This includes factors such as economic growth, inflation, and unemployment rates, which can all impact the demand for a company's products or services.

In conclusion, analyzing business markets is essential for businesses to make informed decisions about their target customers, marketing strategies, and overall operations. Understanding the types of buyers and sellers, the purchasing process, the competition, and the macroeconomic environment are all key components of this analysis. By thoroughly analyzing these factors, businesses can position themselves for success in the ever-changing business landscape.

ANALYZING BUSINESS MARKETS

chapter 7 analyzing business markets

Wind Copyright © 2012 Pearson Education, Inc. PSBA-QC MBA Marketing Management 1 Chapter 7 Analyzing Business Markets Name of Reporter Franz Carmel B. Convincing C-level executives to embrace the marketing concept and support robust marketing programs. Characteristics of BusinessMarketsFewer, largerbuyers Professional purchasing Close supplier-customer relationshipsMany buyinginfluencesMultiple sales callsDerived demandInelastic demandGeographicallyFluctuating concentrated buyersdemandDirectpurchasing 3. This type of buyer tends to be more knowledgeable than normal consumers and so basically separates consumer markets from business markets.

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chapter 7 analyzing business markets

A survey of top business-to-business firms identified the following as challenges they faced: 1. Copyright © 2012 Pearson Education, Inc. Webster Jr and Y. What buying situations do organizational buyers face? Publishing as Prentice Hall Slide 17 of 27 Stages in the Buying Process Trade directories Trade advertisements Trade shows E-Procurement Copyright © 2012 Pearson Education, Inc. The major industries making up the business market are agriculture, forestry, and fisheries; mining; manufacturing; construction; transportation; communication; public utilities; banking, finance, and insurance; distribution; and services. How do institutional buyers and government agencies do their buying? Methods of e-ProcurementWebsites organizedWebsites organizedusing vertical hubsusing functional hubs Direct extranet links to major suppliers Buying alliancesCompany buyingsites 5. Chapter 7 Analyzing Business Markets Name of Reporter Franz Carmel B.

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Ch 7

chapter 7 analyzing business markets

Publishing as Prentice Hall Inelastic Demand Fluctuating Slide 8 of 27 Buying Situations New Task Straight Rebuy Modifed Rebuy Copyright © 2012 Pearson Education, Inc. Copyright © 2012 Pearson Education, Inc. Calculating better marketing performance and accountability metrics; 5. A paper manufacturer might buy from a chemical company that buys a considerable amount of its paper. General need description Yes Maybe No 3.

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Chapter

chapter 7 analyzing business markets

Publishing as Prentice Hall Slide 24 of 27 Managing B2B Relationships Vertical Coordination Relationship Factors Availability of alternatives Importance of supply Complexity of supply Supply market dynamism Copyright © 2012 Pearson Education, Inc. Order Routine Specifications Stockless Purchase Plans Vendor Managed Inventory Continuous Replenishment. Publishing as Prentice Hall Mutually adaptive Slide 26 of 27 Institutional and Governments Markets Prisons Government agencies Schools Hospitals Copyright © 2012 Pearson Education, Inc. Who participates in the business-to- business buying process? Order-routine specifcation Yes Maybe No 8. Publishing as Prentice Hall Slide 3 of 27 ef D d ne Organizational Buying 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. Objectiv e: To address the following questions 1. Publishing as Prentice Hall Slide 19 of 27 Stages in the Buying Process Supplier-evaluation model Number of suppliers Copyright © 2012 Pearson Education, Inc.

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Chapter 7: Analyzing Business Markets

chapter 7 analyzing business markets

Sales Strategies Small Sellers Key Buying Influencers Large Sellers Multilevel In- depth Selling 4. How can companies build strong relationships with business customers? Improving value management techniques and tools; 4. Publishing as Prentice Hall Slide 23 of 27 Managing B2B Relationships Online social media One-to-one Marketing Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 9 of 27 Systems Buying and Selling r e y Bu e Prim ctor ra t n o C r e i t d n o c rs Se o t c ra t n o C Copyright © 2012 Pearson Education, Inc. What is the business market, and how does it differ from the consumer market?. Business: Far fewer, much larger buyers; not purchased for personal use; must make customized offerings to individual buyers; purchased by trained purchasing agents; more people influence business buying decisions; on avg. Product specifcation Yes Yes Yes 4.

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Chapter 7 Analyzing Business Markets

chapter 7 analyzing business markets

They, therefore, go an extra mile to evaluate some business processes and make informed decisions to ensure that they get the best deals. Publishing as Prentice Hall Slide 20 of 27 Stages in the Buying Process Order Specifcati on Technical Stockles s purchas e plan specifcations Quantity Delivery time Return policy Warranties Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall Slide 27 of 27. Countering the threat of product and service commoditization by bringing innovative offerings to market faster and moving to more competitive business models; and 7. How can companies build strong relationships with business customers? Costs Copyright © 2012 Pearson Education, Inc. Business Market versus Consumer Market Business marketers face many of the same challenges as consumer marketers. How do institutional buyers and government agencies do their buying? Services , Use printing , Resale selling to end-user.

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Market Management Chapter 7: Analyzing Business Markets Flashcards

chapter 7 analyzing business markets

What buying situations do organizational buyers face? Problem Recognition Yes Maybe No 2. In particular, understanding their customers and what they value is of paramount importance to both. Competing and growing in global markets, particularly China; 6. Publishing as Prentice Hall Interest Authority Status Persuasiveness Decision criteria Slide 12 of 27 Targeting Firms and Buying Centers Who to target? Performance review Yes Yes Yes Buyphas es New Task Copyright © 2012 Pearson Education, Inc. Organizational Buying is 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. Understanding deep customer needs in new ways; 2.

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Chapter 7

chapter 7 analyzing business markets

Supplier search Yes Maybe No 5. Identifying new opportunities for organic business growth; 3. Who participates in the B2B buying process? How do business buyers make their decisions? How do business buyers make their decisions? Publishing as Prentice Hall Slide 6 of 27 Business Markets Differences to the Consumer Market Geographical ly Concentrate d Fewer, Larger Buyers Profession al Buyers Multiple Sales Calls Copyright © 2012 Pearson Education, Inc. Organizational buyers make buying decisions for their organizations and purchase products and services professionally. Orgs that acquire goods and services used in the production of other products and services that are sold, rented, or supplied to others. This is where organizational buying comes. What is the business market, and how does it differ from the consumer market? Publishing as Prentice Hall Slide 25 of 27 Buyer-Seller Relationship Categories Cooperative systems Collaborative Customer is king Contractual transaction Copyright © 2012 Pearson Education, Inc.

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chapter 7 analyzing business markets

There are people in charge of purchasing products and services for organizations, governments and business. Chapter 7 :Analyzing Business Markets 2. Publishing as Prentice Hall 7 9 4 Slide 22 of 27 Buygrid Framework Table 7. Gamier 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. Proposal solicitation Yes Maybe No 6. The market typically is divided into four different categories: food, beverages, transportation and retail. Publishing as Prentice Hall Lead generation Slide 18 of 27 Stages in the Buying Process Formal presentation Writte n Copyright © 2012 Pearson Education, Inc.

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