Wk. 3.

1
Market Analysis
Kotler Market Analysis
Top Business Marketing
Challenges

Expand understanding of custoer needs

Copete glo!ally as China and "ndia

reshape arkets

Master analytical tools and ipro#e

$uantitati#e skills

%einstate inno#ation as an engine of

gro&th

Create ne& organisational odels and

linkages
Characteristics of Business
Markets

'e&er( larger
!uyers

Close supplier)
custoer
relationships

*rofessional
purchasing

Many !uying
in+uences

Multiple sales calls

,eri#ed deand

"nelastic deand

'luctuating
deand

-eographically
concentrated
!uyers

,irect purchasing
Business as a Custoer

Business organisations do not only

sell. they also !uy #ast $uantities of
ra& aterials( anufactured
coponents( plant and e$uipent(
supplies( and !usiness ser#ices.
What is /rganisational
Buying0

Organisational buying refers

to the decision)aking process
!y &hich foral organisations
esta!lish the need for purchased
products and ser#ices( and identify(
e#aluate( and choose aong
alternati#e !rands and suppliers.
Buying 1ituations

1traight re!uy

Modi2ed re!uy

3e& task
1ystes Buying and
1elling

Buyers prefer to !uy a total solution

to a pro!le fro one seller.

*rie contractors

1econd)tier contractors

Turn-key solutions

1ellers ha#e adopted the practice of

selling a total solution to a pro!le.

1ystes contracting
The Buying Centre

"nitiators

4sers

"n+uencers

,eciders

Appro#ers

Buyers

-atekeepers
The *urchasing5*rocureent
*rocess

More strategically oriented

purchasing departents.

A ission to seek the !est #alue fro

fe&er and !etter suppliers.

1trategic supply departents

responsi!le for glo!al sourcing and
partnering.
1tages in the Buying
*rocess6 Buy phases

*ro!le recognition

-eneral need description

*roduct speci2cation

1upplier search

*roposal solicitation

1upplier selection

/rder)routine speci2cation

*erforance re#ie&
1upplier 1earch6
A Mo#e to Electronic
Marketplaces

Catalogue sites

7ertical arkets

*ure play auction sites

1pot arkets

*ri#ate exchanges

Barter arkets

Buying alliances
1upplier 1earch6
E)*rocureent

We!sites organised using #ertical

hu!s

We!sites organised using

functional hu!s

,irect extranet links to a8or

suppliers

Buying alliances

Copany !uying sites

1upplier 1election6 9andling
*rice)/riented Custoers

:iit $uantity purchased

Allo& no refunds

Make no ad8ustents

*ro#ide no ser#ices

%isk and gain sharing

,e#eloping Copelling
Custoer 7alue *ropositions

"nternal
engineering
assessent

'ield #alue)in)use
assessent

'ocus)group #alue
assessent

,irect sur#ey
$uestions

Con8oint analysis

Bencharks

Copositional
approach

"portance ratings
/rder)%outine
1peci2cation

1tockless purchase plans

7endor)anaged in#entory

Continuous replenishent
Managing Business)to)
Business Custoer
%elationships

Bene2ts of #ertical coordination

Corporate credi!ility and trust

Expertise

Trust&orthiness

:ika!ility

%isks and opportunis

Trust ,iensions
'actors A;ecting
Buyer)1upplier %elationships

A#aila!ility of alternati#es

"portance of supply

Coplexity of supply

1upply arket dynais

Categories of Buyer)1eller
%elationships

Basic !uying and

selling

Bare !ones

Contractual
transaction

Custoer supply

Cooperati#e
systes

Colla!orati#e

Mutually
adapti#e

Custoer is king
What is /pportunis0

Opportunism is soe for of

cheating or undersupply relati#e to
an iplicit or explicit contract.

/pportunis linked to reputation.

"nstitutional and
-o#ernent Markets

Institutional market < schools( hospitals(

prisons( etc.

Must pro#ide goods and ser#ices to people in

their care

3eed iniu $uality standard at lo& price

Government is a a8or !uyer of goods

and ser#ices

Tender process

:o&est !idder =exceptions on $uality>

3eed to follo& detailed guidelines