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1、Copyright 2003 Prentice-Hall,Inc.Chapter 8Analyzing Business Markets and Business Buying BehaviorbyPowerPoint byPowerPoint byMilton M.PressleyMilton M.PressleyUniversity of New OrleansUniversity of New Orleans1Copyright 2003 Prentice-Hall,Inc.Kotler on Marketing Many businesses are wisely turning th
2、eir suppliers and distributors into valued partners.2Copyright 2003 Prentice-Hall,Inc.Chapter ObjectivesIn this chapter,we focus on six questions:What is the business market,and how does it What is the business market,and how does it differ from the consumer market?differ from the consumer market?Wh
3、at buying situations do organizational buyers What buying situations do organizational buyers face?face?Who participates in the business buying process?Who participates in the business buying process?What are the major influences on organizational What are the major influences on organizational buye
4、rs?buyers?How do business buyers make their decisions?How do business buyers make their decisions?How do institutions and government agencies do How do institutions and government agencies do their buying?their buying?3Copyright 2003 Prentice-Hall,Inc.What is Organizational Buying?Organizational buy
5、ingOrganizational buyingThe business market versus the consumer marketBusiness marketBusiness market Fewer buyersFewer buyers Larger buyersLarger buyers Close supplier-customer relationshipClose supplier-customer relationship Geographically concentrated buyersGeographically concentrated buyers4Copyr
6、ight 2003 Prentice-Hall,Inc.Copyright 2003 Prentice-Hall,Inc.Blue Shield of Californias mylifepathBlue Shield of Californias mylifepath6Copyright 2003 Prentice-Hall,Inc.What is Organizational Buying?Several buying influencesSeveral buying influences Multiple sales callsMultiple sales calls Directed
7、purchasingDirected purchasing ReciprocityReciprocity LeasingLeasing7Copyright 2003 Prentice-Hall,Inc.If you were tasked with marketing a product or service to an organization,would you attempt to initially contact the purchasing department,or potential users of your companys offerings?Why?Would the
8、product youwere selling make a difference?Why?8Copyright 2003 Prentice-Hall,Inc.Copyright 2003 Prentice-Hall,Inc.What are some of the benefits to an organization that can be derived from a single source solution,or a systems buying arrangement with a prime contractor?What are some of the potential p
9、itfalls?What can the company do to protect itself from these hazards?10Copyright 2003 Prentice-Hall,Inc.Participants in the Business Buying ProcessThe Buying CenterInitiatorsInitiatorsUsersUsersInfluencersInfluencersDecidersDecidersApproversApproversBuyersBuyersGatekeepersGatekeepers Key buying infl
10、uencersKey buying influencers Multilevel in-depth sellingMultilevel in-depth selling11Copyright 2003 Prentice-Hall,Inc.Copyright 2003 Prentice-Hall,Inc.Major Influences on Buying DecisionsEnvironmental FactorsOrganizational FactorsPurchasing-Department UpgradingPurchasing-Department UpgradingCross-F
11、unctional RolesCross-Functional RolesCentralized PurchasingCentralized PurchasingDecentralized Purchasing of Small-Ticket Decentralized Purchasing of Small-Ticket ItemsItemsInternet PurchasingInternet Purchasing13Copyright 2003 Prentice-Hall,Inc.Copyright 2003 Prentice-Hall,Inc.Covisints Web site of
12、fers both services and Covisints Web site offers both services and informationinformation15Copyright 2003 Prentice-Hall,Inc.Major Influences on Buying DecisionsOther Organizational FactorsOther Organizational Factors Long-Term ContractsLong-Term Contracts Vendor-managed inventoryVendor-managed inven
13、tory Continuous replenishment programsContinuous replenishment programs Purchasing-Performance Evaluation and Buyers Purchasing-Performance Evaluation and Buyers Professional DevelopmentProfessional Development Improved Supply Chain ManagementImproved Supply Chain Management Lean ProductionLean Prod
14、uction Just-in-timeJust-in-time16Copyright 2003 Prentice-Hall,Inc.Copyright 2003 Prentice-Hall,Inc.The Purchasing/Procurement Process Incentive to purchaseIncentive to purchaseThree Company Purchasing OrientationsThree Company Purchasing Orientations Buying OrientationBuying Orientation Commoditizat
15、ionCommoditization MultisourcingMultisourcing Procurement OrientationProcurement Orientation Materials requirement planning(MRP)Materials requirement planning(MRP)Supply Chain Management OrientationSupply Chain Management Orientation18Copyright 2003 Prentice-Hall,Inc.The Purchasing/Procurement Proce
16、ssTypes of Purchasing ProcessesRoutine productsRoutine productsLeverage productsLeverage productsStrategic productsStrategic productsBottleneck productsBottleneck products19Copyright 2003 Prentice-Hall,Inc.The Purchasing/Procurement ProcessStages in the Buying Process Problem RecognitionProblem Reco
17、gnition General Need Description and General Need Description and Product SpecificationProduct Specification Product value analysisProduct value analysis Supplier SearchSupplier Search Vertical hubsVertical hubs Functional hubsFunctional hubs Direct external links to major suppliersDirect external l
18、inks to major suppliers Buying alliancesBuying alliances Company buying sitesCompany buying sites Request for proposals(RFPs)Request for proposals(RFPs)20Copyright 2003 Prentice-Hall,Inc.Table 8.1:Buygrid Framework:Major Stages(Buyphases)of the Industrial Buying Process in Relation to Major Buying S
19、ituations(Buyclasses)BuyclassesBuyclassesNewNewModifiedModifiedStraightStraightTaskTaskRebuyRebuyRebuyRebuy1.Problem recognition1.Problem recognitionYesYesMaybeMaybeNoNo2.General need description2.General need descriptionYesYesMaybeMaybeNoNo3.Product specification3.Product specificationYesYesYesYesY
20、esYesBuyphasesBuyphases4.Supplier search4.Supplier searchYesYesMaybeMaybeNoNo5.Proposal solicitation5.Proposal solicitationYesYesMaybeMaybeNoNo6.Supplier selection6.Supplier selectionYesYesMaybeMaybeNoNo7.Order-routine specification7.Order-routine specificationYesYesMaybeMaybeNoNo8.Performance revie
21、w8.Performance reviewYesYesYesYesYesYes21Copyright 2003 Prentice-Hall,Inc.The Purchasing/Procurement ProcessGeneral Need Description and General Need Description and Product SpecificationProduct Specification Product value analysisProduct value analysisSupplier SearchSupplier Search Vertical hubsVer
22、tical hubs Functional hubsFunctional hubs Direct extranet links to Direct extranet links to major suppliersmajor suppliers Buying alliancesBuying alliances Company buying sitesCompany buying sites Request for proposals(RFPs)Request for proposals(RFPs)22Copyright 2003 Prentice-Hall,Inc.Copyright 2003
23、 Prentice-Hall,Inc.Table 8-2:An Example of Vendor AnalysisAttributesAttributesRating ScaleRating ScaleImportanceImportanceWeightsWeightsPoorPoor(1)(1)FairFair(2)(2)GoodGood(3)(3)ExcellentExcellent(4)(4)PricePrice.30.30 x xSupplier reputationSupplier reputation.20.20 x xProduct reliabilityProduct rel
24、iability.30.30 x xService reliabilityService reliability.10.10 x xSupplier FlexibilitySupplier Flexibility.10.10 x xTotal score:.30(4)+.20(3)+.30(4)+.10(2)+.10(3)=3.5Total score:.30(4)+.20(3)+.30(4)+.10(2)+.10(3)=3.524Copyright 2003 Prentice-Hall,Inc.The Purchasing/Procurement Process Customer value
25、 assessmentCustomer value assessment Routine-order productsRoutine-order products Procedural-problem productsProcedural-problem products Political-problem productsPolitical-problem productsOrder-Routine SpecificationOrder-Routine Specification Blanket contractBlanket contract Stockless purchase plansStockless purchase plansPerformance ReviewPerformance Review Buyflow mapBuyflow map25Copyright 2003 Prentice-Hall,Inc.Figure 8-2:Major Influences on Industrial Buying Behavior26Copyright 2003 Prentice-Hall,Inc.