business markets
-individuals, organizations, groups that purchase specific kind of product for resale, direct use in producing other products, or use in general daily operations
-similar to marketing to consumer markets, but some essential differences
business markets types
-producer markets
-reseller markets
-government markets
-institutional markets
producer markets
individuals and business organizations that produce products in order to make a profit by using them in producing other products or in their organizations
reseller markets
intermediaries (wholesalers/retailers) who buy finished goods and resell them for a profit
factors reseller considers
-level of demand
-space required relative to potential profit
-ease of placing order
-availability of technical assistance
-training programs for producers
-compete or complement?
government markets
federal, state, county, local governments that buy goods and services to support their internal operations and provide products to their constituencies
institutional markets
organizations with charitable, educational, community, or other non-business goals
characteristics of transactions with business customers
-differ from consumer sales
-larger
-may involve expensive items
-discussions/negotiations can require considerable marketing time and selling effort
reciprocity
an arrangement in which two organizations agree to buy from each other
attributes of business customers
-well informed about products they purchase
-demand detailed information & technical specifications
-help firm achieve organizational objectives
-engage in rational buying behavior
-often form partnerships with suppliers
primary concerns of business customers
-price
-product quality
-service
-supplier relationships
methods of business buying
-description
-inspection
-sampling
-negotiation
types of business purchases
-new task purchase
-straight rebuy purchase
-modified rebuy purchase
types of demand for business products
-derived demand (stem from demand for consumer products)
-inelastic demand (demand not altered by price change)
-joint demand (demand for product drives demand for both items)
the buying center
-group of people within organization who make business purchase decisions
roles of the buying center
-users
-influencers
-buyers
-deciders
-gatekeepers
evaluating products and suppliers
-value analysis (evaluation of each component of potential purchase)
-vendor analysis (evaluation of current/potential vendors)
-multiple sourcing (use several suppliers)
-sole sourcing (use only one supplier)
influences on business buying
-environmental
-organizational
-interpersonal
-individual
establishing corporate credibility
-trustworthiness
-likeability
-expertise