ANALYZING BUSINESS
MARKETS
BUSINESS MARKET
• The Business market consist of all the organization that acquire
goods and services used in the production of other products or services
that are sold , rented or supplied to others.
• When one business sells to another business rather than to an end user.
• B2B –Business to Business .
• Any business providing products/services/information for any other
business can be called as business 2 business or B2B.
Consumer market
• The transaction of goods and services between organizations and
potential customers.
• B2C-Business to Consumer Market.
• Business sell products and services to consumers for household or
personal use.
BUSINESS Vs CONSUMER MARKET
BUSINESS V/S CONSUMER MARKET
BUSINESS TO BUSINESS BUSINESS TO CONSUMER
• TARGET MARKET-SMALLER • TARGET MARKET-LARGER
• PURCHASER-MULTIPLE • PURCHASER-SINGLE
• BUYING PROCESS-MULTIPLE STEP • BUYING PROCESS-SINGLE STEP
• SALES CYCLE-LARGER • SALES CYCLE-SHORTER
Contd…
BUSINESS TO BUSINESS BUSINESS TO CONSUMER
• Based on relationship with business • Products more important than
buyers. relationship.
• More sophisticated buyers. • Less sophisticated buyers.
• Aim is to prospects into buying • Emotional considerations affect
customer. buying behavior.
• Educational element to promotion. • Brands very important.
BUYING SITUATIONS
• Reorders supplies (office supplies, bulk chemicals) at a routine basis
Straight and chooses from list of suppliers.
Rebuy
• The buyer want to modified products specs, prices, delivery
Modified requirements from previous orders.
Rebuy
• Purchaser buys a products for the first time.
New Task
Participants in the business buying process
ROLES DESCRIPTION
INITIATOR Those who request the product.
USERS Those who will use the product or service
INFLUENCERS Those who influence the buying decision
DECIDERS Those who decides on product request and supplier
APPROVERS Those authorizing the action of buyers
BUYERS Those who have the authority to select supplier and arrange purchase terms
GATEKEEPERS Those who prevent information from reaching members of buying centers.
STAGES IN THE BUYING PROCESS:
ORDER-
PROBLEM SUPPLIER
ROUTINE
RECOGNITION SELECTION
SPECIFICATION
GENERAL
PROPOSAL PERFORMANCE
NEED
SOLICITATION REVIEW
DESCRIPTION
PRODUCT SUPPLIER
SPECIFICATION SEARCH
THE BUYGRID FRAMEWORK:
NEW TASK MODIFIED REBUY STRAIGHT REBUY
1. Problem recognition Yes Maybe No
2. General need Yes Maybe No
description
3. Product specification Yes Yes Yes
4. Supplier search Yes Maybe No
5. Proposal solicitation Yes Maybe No
6. Supplier selection Yes Maybe No
7. Order-routine Yes Maybe No
specification
8. Performance review Yes Yes Yes
TAPPING INTO THE GLOBAL MARKETS
WHAT IS GLOBAL FIRM?
A global firm is one that operates in more than one country and
captures R&D, production, logistical, marketing, and financial
advantages in its costs and reputation that are not available to purely
domestic competitors.
Major Decisions In The International Market:
Deciding Deciding Deciding how
whether to go which market to enter the
abroad to enter market
Deciding on Deciding on
the marketing the marketing
organisation program
Reasons for Pursuing Global Markets
• Better profit opportunities.
• Larger customer base to achieve
economies of scale.
• Less dependence on any one market.
• Desire to counterattack global competitors
in their home markets.
• Customers require international service.
Risks of Going Abroad
• Lack of knowledge of foreign culture.
• Lack of understanding of foreign needs.
• Lack of understanding of foreign regulations.
• Lack of managers with international expertise.
• Changes in the country environment.
FIVE MODES OF ENTRY INTO FOREIGN MARKETS:
Indirect Direct Joint Direct
Licensing
exporting exporting Ventures Investment
Commitment, Risk, Control and profit potential
