2-1

Chapter Overview

• Business Markets/ Customers• Types of Business Markets• Business Buying Centers• Factors to choose Business Buying

Centers• Business Sales• Business to Business Buying

Process

Business to BusinessBuyer Behavior3

2-2

• How did Intel reach the point “Best”?

• What are the obstacles faced by Intel to target market?

• Who are the target customers of Intel?

• Identify the needs of the Intel Customers?

Intel Bunnies

3

2-3

What Is Business Marketing?

The marketing of goods and

services to individuals and

organizations for purposes

other than personal

consumption.

2-4

T A B L E 4 . 1Business Customers

Major Categories of Business Customers

Producers/ Manufacturers

Resellers

Governments

Institutions

OEMs

WholesalersRetailers

FederalMunicipalLocal

Schools Hospitals CollegesChurches Unions Fraternal groupsCivic Clubs FoundationsNonbusiness organizations

2-5

Business MarketingBusiness Marketing

InstitutionsInstitutionsResellersResellers

Wholesalers

Retailers

ProducersProducers

OEMs

GovernmentsGovernments

Federal

State

Municipal

County

Unions

CivicClubs

Other

Churches

Foundations

Nonprofits

Major Categories of Business Customers

2-6

OriginalEquipment

Manufacturers

OriginalEquipment

Manufacturers

Producers

OEMs.

Individuals and organizations

that buy business goods and

incorporate them into the

products that they produce for

eventual sale to other producers

or to consumers.

2-7

Business versus Consumer Markets

2-8

Buying CenterBuying Center

Buying Centers

All those persons in an

organization who become

involved in the purchase

decision.

2-9

Users are those that will use the product or service

Influencers help define specifications and provide information for evaluating alternatives

Buyers have formal authority to select the supplier and arrange terms of purchase

Deciders have formal or informal power to select and approve final suppliers

Gatekeepers control the flow of information

Five Roles in Buying Center

2-10

Emotions also play a role in business buying. Volvo stresses that the trucks’ benefits will make “drivers a lot more possessive”.

2-11

Factors affecting Business Buying Centers

1. Organizational factors

2. Individual factors

3. Cultural

4. Social

2-12

New BuyNew BuyA situation requiring the purchase of a product for the first time.

A situation requiring the purchase of a product for the first time.

ModifiedRebuy

ModifiedRebuy

A situation where the purchaser wants some change in the original good or service.

A situation where the purchaser wants some change in the original good or service.

StraightRebuy

StraightRebuy

A situation in which the purchaser reorders the same goods or services without looking for new information or investigating other suppliers.

A situation in which the purchaser reorders the same goods or services without looking for new information or investigating other suppliers.

Business Sales

2-13

Business to BusinessBuying Process

2-14

Eight Stages:– Stage 1: Problem

Recognition– Stage 2: General

Need Description– Stage 3: Product

Specification • Value analysis

helps to reduce costs

Business Buying Process

2-15

Eight Stages:– Stage 4:

Supplier Search• Supplier

development

Business Buying Process

2-16

Eight Stages:– Stage 5: Proposal

Solicitation

Business Buying Process

2-17

Eight Stages:– Stage 6: Supplier Selection– Stage 7: Order-Routine Specification

• Blanket contracts are often used for maintenance, repair and operating items.

– Stage 8: Performance Review

Business Buying Process

2-18

• Choose a brand name for your product.• What image do you want to project?• Create a brand logo.• Choose a positioning strategy.

Building Your IMC Campaign