Cherry De Castro
• What is the business market, and how does it
differ from the consumer market?
• What buying situations do organizational
buyers face?
• Who participates in the business-to-business
buying process?
• How do business buyers make their decisions?
• How can companies build strong relationships
with business customers?
• How do institutional buyers and government
agencies do their buying?
Refers to the decision-making process by
which formal organizations establish the need for
purchased products and services, and identify,
evaluate, and choose among alternative brands
and suppliers.
• Expand understanding of customer needs
• Compete globally as China and India reshape
markets
• Master analytical tools and improve quantitative
skills
• Reinstate innovation as an engine of growth
• Create new organizational models and linkages
• Fewer, larger buyers • Multiple sales calls
• Close supplier- • Derived demand
customer relationships • Inelastic demand
• Professional • Fluctuating demand
purchasing • Geographically
• Many buying concentrated buyers
influences • Direct purchasing
• Initiators • Approvers
• Users • Buyers
• Influencers • Gatekeepers
• Deciders
• Who are the major decision
participants?
• What decisions do they
influence?
• What is their level of influence?
• What evaluation criteria do they
use?
• Problem recognition
• General need description
• Product specification
• Supplier search
• Proposal solicitation
• Supplier selection
• Order-routine specification
• Performance review
• Catalog sites
• Vertical markets
• Pure play auction sites
• Spot markets
• Private exchanges
• Barter markets
• Buying alliances
• Websites organized using vertical
hubs
• Websites organized using functional
hubs
• Direct extranet links to major
suppliers
• Buying alliances
• Company buying sites
• Limit quantity purchased
• Allow no refunds
• Make no adjustments
• Provide no services
• Internal • Conjoint analysis
engineering • Benchmarks
assessment • Compositional
• Field value-in-use approach
assessment • Importance
• Focus-group value ratings
assessment
• Direct survey
questions
• Stockless purchase plans
• Vendor-managed inventory
• Continuous replenishment
• Expertise
• Trustworthiness
• Likability
• Transparent • Cooperating
• Product/Service design
Quality • Product
• Incentive comparison
• Partnering • Supply chain
• Pervasive
advocacy
• Availability of alternatives
• Importance of supply
• Complexity of supply
• Supply market dynamism
• Basic buying and • Cooperative
selling systems
• Bare bones • Collaborative
• Contractual • Mutually adaptive
transaction • Customer is king
• Customer supply
is some form of cheating
or undersupply relative to
an implicit or explicit
contract.
