Kotler_MM16e_ppt_04.pptx marketing strategy 4 P

Kotler_MM16e_ppt_04.pptx

1. Marketing Management Sixteenth Edition Chapter 4 Analyzing Business Markets Copyright © 2022 Pearson Education Ltd. All Rights Reserved.

2. Learning Objectives 4-1 Explain the key aspects of the organizational buying process. 4-2 Define the role of the buying center in an organization . 4 -3 Describe the stages of the decision process in business markets . 4 -4 Explain how organizations develop marketing programs to attract and retain business customers. 4 -5 Describe how business-to-business marketers build and maintain relationships with customers.

3. Learning Objective 1 Explain the key aspects of the organizational buying process .

4. Consumer Markets and Buyer Behavior Business buyer behavior refers to the buying behavior of the organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others. Business markets consist of all the organizations that acquire goods and services used in the production of products or services that are sold, rented, or supplied to others.

5. Business Markets Market Structure and Demand

6. Business Buyer Behavior Major Types of Buying Situations Straight rebuy is a buying situation in which the buyer routinely reorders something without any modifications. Modified rebuy is a buying situation in which the buyer wants to modify product specifications, prices, terms, or suppliers. New task is a buying situation in which the buyer purchases a product or service for the first time.

7. Learning Objective 2 Define the role of the buying center in an organization.

8. The Buying Center The Composition of The Buying Center Buying center consists of all the individuals and units that play a role in the business purchase decision-making process. Initiators Users Influencers Deciders Approvers Buyers Gatekeepers

9. The Buying Center Participants in the Business Buying Process Initiators request that something be purchased . Users are those that will use the product or service. Influencers help define specifications and provide information for evaluating alternatives . Deciders have formal or informal power to select and approve final suppliers. Approvers authorize the proposed actions of deciders or buyers. Buyers have formal authority to select the supplier and arrange terms of purchase. Gatekeepers control the flow of information.

10. The Buying Center T he role of the buying center in the organization? B uying center dynamics S elling to buying centers

11. Learning Objective 3 Describe the stages of the decision process in business markets .

12. The Business Buying Process

13. The Business Buying Process Problem recognition occurs when someone in the company recognizes a problem or need. Internal stimuli - Need for new product or production equipment External stimuli - Idea from a trade show or advertising

14. The Business Buying Process General need description describes the characteristics and quantity of the needed item. Product specification describes the technical criteria. Value analysis is an approach to cost reduction where components are studied to determine if they can be redesigned, standardized, or made with less costly methods of production.

15. The Business Buying Process Supplier search involves compiling a list of qualified suppliers to find the best vendors. Proposal solicitation is the process of requesting proposals from qualified suppliers. Supplier selection is when the buying center creates a list of desired supplier attributes and negotiates with preferred suppliers for favorable terms and conditions.

16. The Business Buying Process Order-routine specifications includes the final order with the chosen supplier and lists all of the specifications and terms of the purchase. Performance review involves a critique of supplier performance to the order-routine specifications.

17. Learning Objective 4 Discuss how d eveloping effective business marketing programs

18. Developing Effective Business Marketing Programs T ransitioning from products to solutions Enhancing services Building business-to-business brands O vercoming price pressures Managing communication

19. Learning Objective 5 Describe how business-to-business marketers build and maintain relationships with customers.

20. Managing Business-to-Business Relationships U nderstanding the buyer–supplier relationship M anaging corporate trust, credibility, and reputation R isks and opportunism in business relationships

21. Institutional and Government Markets Institutional markets consist of schools, hospitals, nursing homes, and prisons that provide goods and services to people in their care. Characteristics Low budgets Captive patrons

22. Institutional and Government Markets Government markets tend to favor domestic suppliers, require them to submit bids, and normally award the contract to the lowest bidder. Affected by environmental factors Non-economic factors considered Minority firms Depressed firms Small businesses