MarketingBasicsL3 - 080905 Lecture 3 BTB-markets STP-marketing and competition Chapter Outline 1 2 3 4 Business Markets and Buyer Behavior

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08‐09‐05 1 Lecture 3 BTB-markets, STP-marketing and competition Chapter Outline 1. Business Markets and Buyer Behavior 2. Segmentation and Targeting 3. Differentiation and Positioning 4. Competition – analysis and strategies Business Markets Characteristics Fewer and larger buyers Geographic concentration Derived demand • Inelastic demand • Fluctuating demand Buyer and seller dependency
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08‐09‐05 2 Business Buyer Behavior Major Types of Buying Situations Straight rebuy is a routine purchase decision such as a reorder without any modification Modified rebuy is a purchase decision that requires some research where the buyer wants to modify the product specification, price, terms, or suppliers New task is a purchase decision that requires thorough research such as a new product Business Buyer Behavior Major Types of Buying Situations Systems selling involves the purchase of a packaged solution from a single seller Two-step process of selling: Interlocking products System of production, inventory control, distribution, and other services to meet the buyer’s need for a smooth-running operation Business Buyer Behavior Participants in the Business Buying Process Buying center is all of the individuals and units that participate in the business decision- making process Users Influencers Buyers Deciders Gatekeepers
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08‐09‐05 3 Business Buyer Behavior Participants in the Business Buying Process Users are those that will use the product or service Influencers help define specifications and provide information for evaluating alternatives Buyers have formal authority to select the supplier and arrange terms of purchase Deciders have formal or informal power to select and approve final suppliers Gatekeepers control the flow of information Business Buyer Behavior The Buying Process 1. Problem recognition 2. General need description 3. Product specification 4. Value analysis 5. Supplier search 6. Proposal solicitation 7. Supplier selection 8. Order-routine specifications 9. Performance review Market Segmentation Market segmentation is the process that companies use to divide large heterogeneous markets into small markets that can be reached more efficiently and effectively with products and services that match their unique needs
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08‐09‐05 4 Market Segmentation Segmenting Consumer Markets Geographic segmentation divides the market into different geographical units such as nations, regions, states, counties, or cities Demographic segmentation
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This note was uploaded on 12/06/2010 for the course BUSINESS EFO202 taught by Professor Anna during the Spring '07 term at Mälardalens högskola.

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MarketingBasicsL3 - 080905 Lecture 3 BTB-markets STP-marketing and competition Chapter Outline 1 2 3 4 Business Markets and Buyer Behavior

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