Analyzing Business Markets & Buyer Behavior

Business Market• The business market comprises all 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.

• “We know specifically how we help customers make more money”

“We measure and track how much money ourcustomers make doing business withus over time”

“We measure and track how much more money our customers make doing business with us relative to our competitors”

• “We understand how we will make our customersmore money in the future”

Winning with customers

Business marketing vs. Consumer Marketing

• Buyer-seller relationship• Shorter distribution channels• Unique promotional strategies

Distribution of salt

Morton’s Salt

MC Donald’s Salt is added

to fries

Kroger’s Salt is Sold in

shakers

General foodsSalt is added in to frozen

dinners

You

Distribution of salt

Business Marketing

Business Marketing

Consumer Marketing

Morton’s Salt

MC Donald’s Salt is added

to fries

Kroger’s Salt is Sold in

shakers

General foodsSalt is added in to frozen

dinners

You

Business Marketing

Business Marketing

“For every B2C transaction there are about ten B2B transactions happening first”

The American Plastic Council ( APC)

• The American Plastics Council (APC) was a major trade association for the U.S. plastics industry.

• Comprises of leading manufacturers of plastic resins.

Plastic innovation through the decades

1862 Early 1900’s 1930 1933 1946 1946 1950

1954 1959 1960 1986 1988 1996 2000

2000 2007 2008 2010 2010

“ Light weight Plastic package”

• The American Plastics Council ad describes the latest advances that makes a plastic containers a better choice.

Places where such Ads could be posted…

Business magazines and articles

News paper • A weekly newspaper covering the business of the global

plastics industry

• Social media such as Twitter, YouTube, LinkedIn, and Facebook•Place bill boards in Trade Fairs and exhibitions

Other marketing techniques that the industry group can use to promote plastic packaging

modplas.com:• Exclusive features, archived articles, and

searchable databases• More than 900,000 global visitors in the first half

of 2007• Reinforce the advertiser’s brand and gain exposure

to an exclusive purchasing audience

E-news letters• Offer fast, direct communication with clients, prospects

and customers.• Cost effective• Interactive and reinforce your brand

Other methods includes

• Trade fairs and exhibitions• Promote Plastic recycling• Target promotions towards the consumer markets

• Established in 1970, by Paul Orfalea, Kinko's has expanded to over 1,200 branches

• In 2004, FedEx acquired and integrated Kinko in to their service offerings.

• Products: Photocopying, duplicating services, Manufactures signs & advertising specialties etc.

• Students were the main target customers when it began and as the company grew their focus changed to cater to executives, small business owners, and home office workers

Target Markets

An advertisement targeted to businesses of all sizes.

“ Are you embarrassed by dull, dingy materials? Don’t be, come to Kinko’s instead. For vibrant color that dazzles and delight. With our color technology,

Kinko’s has all the Tools You need to get your brochures & banners their brightest. So you’ll always

look your best.”

• Is the information in this ad geared towards a straight rebuy, a modified rebuy, or a new task?

Major Buying Situations

Straight Rebuy

New Task

Modified Rebuy

A firm buys the same product from the same supplier

A firm purchases a product for the first time

A firm wants something new or something added to the original good/service.

Marketing Implications of the Buy-GridBuy-Phases Marketing ElementNew Task: all steps of the buying process are taken, with emphasis on product definition and development of product specifications.

Advertising Detailed educational, must try product, substitute for old method.

Modified Rebuy:Less emphasis is on product definition and more emphasis is on search and evaluation of suppliers

Advertising Use comparison advertising to show differences between your product and similar products

Straight Rebuy:Need recognition and purchase are the only steps used

Advertising Use reminder advertising

“ Are you embarrassed by dull, dingy materials? Don’t be, come to Kinko’s instead. For vibrant color that dazzles and delight. With our color technology,

Kinko’s has all the Tools You need to get your brochures & banners their brightest. So you’ll always

look your best.”

• Is the information in this ad geared towards a straight rebuy, a modified rebuy, or a new task?

Modified Rebuy

Buying Center: Roles• Buyers: responsible for dealing with suppliers and

placing orders• Initiators: any buying center member who is the first to

determine that a need exists • Approvers: has the power to make the final purchase

decision

• How does the ad relate to problem recognition and supplier selection?

• Problem recognition:• Internal or external stimuli• Alerts customers to potential problems and then

show how their products provide solutions

• Supplier selection• Reviews key suppliers and select a supplier or

suppliers. • Influences in supplier selection:

• Quality products and services, on-time delivery, ethical corporate behavior, honest communication, and competitive prices

Performance Review

• In performance review the buyer reviews supplier performance.

• Three commonly used performance review methods:• The buyer may contact the end-users & ask for their

evaluations.• The buyer may rate the supplier on several criteria using a

weight score method• The buyer might aggregate the cost of poor supplier

performance to come up with adjusted costs of purchase, including price.

“Marketing thinking is shifting from trying to maximize company profit from each transaction to maximizing the mutual profit from each relationships” -Philip Kotler-

Thank you