Business Market & Business Buyer Behaviour

7/29/2019 Business Market & Business Buyer Behaviour

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Business Market

The Business Market - all the

organizations that buy goods andservices to use in the production of

other products and services that aresold, rented, or supplied to others.

Business markets involve many moredollars and items do consumermarkets.


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Business Market

Characteristic

Sales in the business market far

exceed sales in consumer markets.

Business markets differ fromconsumer markets in many ways.

Marketing structure and demand

Nature of the buying unit

Types of decisions and the decision

process


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Business Buyer Behavior

Business buyer behaviorrefers to the buyingbehavior of the organizations that buy goods

and services for use in the production of otherproducts and services that are sold, rented, or

supplied to others. The buying behavior of organizations that buy

goods and services for use in the production

of other products and services that are sold,

rented, or supplied to others. Also included are retailing and wholesaling

firms that acquire goods for the purpose of

reselling or renting them to others at a profit.


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Model of BusinessBuyer Behavior


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Factors Influencing Consumer Behavior

Cultural

Culture

Subculture

Social Class

Social

Reference

Groups

Family

Roles & Status

Personal

Age & Life-

Cycle Stage

Occupation

Economic

Situation

Lifestyle

Personality &

Self-Concept

Psychological

Motivation

Perception

Learning

Beliefs &

Attitudes


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Maslows

Hierarchy ofNeeds


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Major Influences on Business Buyer

Behavior


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Segmentation


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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

Market Segmentation


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Segmenting ConsumerMarkets

Geographic

segmentation

Demographic

segmentation

Psychographic

segmentation

Behavioral

segmentation


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Segmenting InternationalMarkets

Geographic

location

Economic

factors

Political-legal factors

Culturalfactors


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Market Segmentation

To be useful, market segments must be:

Measurable Accessible Substantial

Differentiable Actionable


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Market Targeting

Target market consists of a set of

buyers who share common needs

or characteristics that the company

decides to serve

Selecting Target Market Segments


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Market Targeting

Segment size and growth

Segment structural

attractiveness

Company objectives andresources

Evaluating Market Segments

.


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Market Targeting

Undifferentiated marketing targets

the whole market with one offer Mass marketing

Focuses on common needs rather

than whats different

Target Marketing Strategies


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Market Targeting

Differentiated marketing targets

several different market segments

and designs separate offers for each

Goal is to achieve higher sales and

stronger position

More expensive than

undifferentiated marketing

Target Marketing Strategies


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Market Targeting

Concentrated marketing targets a

small share of a large market

Limited company resources

Knowledge of the market

More effective and efficient

Target Market Strategies


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Marketing Targeting

Micromarketing is the practice of

tailoring products and marketing

programs to suit the tastes of

specific individuals and locations

Local marketing

Individual marketing



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Market Targeting

Local marketing involves tailoring

brands and promotion to the needs

and wants of local customer groups

Cities

Neighborhoods

Stores



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Market Targeting

Individual marketing involves tailoring

products and marketing programs to

the needs and preferences ofindividual customers

Also known as:

One-to-one marketing

Mass customization

Markets-of-one marketing



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Market Targeting

Depends on:

Company resources

Product variability

Product life-cycle stage

Market variability

Competitors marketing strategies

Choosing a Targeting Strategy


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Market Targeting

Benefits customers with specific

needs

Concern for vulnerable segments

Children

Alcohol

Cigarettes

Internet abuses

Socially Responsible Target Marketing


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Product position is the way the

product is defined by consumers on

important attributesthe place the

product occupies in consumers

minds relative to competing products

Perceptions

Impressions

Feelings

Differentiation and Positioning


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Positioning maps show consumer

perceptions of their brands versus

competing products on important

buying dimensions

Differentiation and

Positioning


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Differentiation andPositioning

Identifying a set of possible

competitive advantages to build aposition

Choosing the right competitive

advantages

Selecting an overall positioningstrategy

Developing a positioning statement

Choosing a Differentiation and Positioning Strategy


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Competitive advantage is an

advantage over competitors gainedby offering consumers greater

value, either through lower prices

or by providing more benefits thatjustify higher prices

Identifying Possible Value Differences andCompetitive Advantages


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Differentiation and Positioning

Identifying a set of possible competitive advantages

to build a position by providing superior value

from:

Choosing a Differentiation and Positioning Strategy

Product differentiation

Services differentiation

Channel differentiation

People differentiation

Image differentiation


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Difference to promote should be:

Choosing the Right Competitive Advantage

Important Distinctive Superior

Communicable Preemptive Affordable

Profitable


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Business Market & Business Buyer Behaviour

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