ANALYZING

BUSINESS MARKETS

Marketing Management

07 February 2014

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Decision-making process by organizations

Establish the need for purchased products and services

Identify, evaluate, and choose among alternative brands and suppliers

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What Is INSTITUTIONAL BUYING?

- Also known as business-to-business or

B2B market

- Consists of all organizations that acquire

goods and services used in the

production of other products or services

that are sold, rented, or supplied to

others.

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What Is BUSINESS MARKET?

1. Fewer, larger buyers

2. Close supplier-customer

relationship

3. Professional purchasing

4. Multiple buying influences

5. Multiple sales calls

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B2B Features

6. Derived demand

7. Inelastic demand

8. Fluctuating demand

9. Geographically concentrated

buyers

10. Direct purchasing

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B2B Features

1. Straight Rebuy

2. Modified Rebuy

3. New Task

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3 Types of BUYING SITUATIONS

Participants in Buying Process

(The Buying Center)

1. Initiators – request that something be

purchased

2. Users – use the product

3. Influencers – influence the buying

decision, e.g. technical personnel

4. Deciders – decide on product

requirements or on suppliers

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Participants in Buying Process

(The Buying Center)

5. Approvers – authorize the proposed

actions of deciders or buyers

6. Buyers – authorized to select the supplier

and arrange the purchase terms

7. Gatekeepers – with power to prevent

sellers from reaching members of the

buying center

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8 Stages in BUYING PROCESS

(BUYPHASES)

1. Problem Recognition

2. General Need Description

3. Product Specification

4. Supplier Search

5. Proposal Solicitation

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6. Supplier Selection

7. Order-routine Specification

8. Performance Review

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8 Stages in BUYING PROCESS

(BUYPHASES)

OTHER MARKETS

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1. Institutional Market –provides goods and

services to people under their care. E.g.

hospitals, schools, prisons

2. Government Market – requires much

paperwork from vendors and favors open

bidding

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SUMMARY

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Business-to-Business

Marketing requires a special,

unique set of marketing

concepts and principles

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