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Wk. 3.1

Market Analysis

Kotler Market Analysis

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Top Business MarketingChallenges

Expand understanding of custoer needs

Copete glo!ally as China and "ndiareshape 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

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Characteristics of BusinessMarkets

'e&er( larger!uyers

Close supplier)

custoerrelationships

*rofessional

purchasing Many !uying

in+uences

Multiple sales calls

,eri#ed deand

"nelastic deand

'luctuatingdeand

-eographically

concentrated!uyers

,irect purchasing

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Business as a Custoer

Business organisations do not onlysell they also !uy #ast $uantities ofra& aterials( anufacturedcoponents( plant and e$uipent(supplies( and !usiness ser#ices.

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What is /rganisationalBuying0

Organisational buyingrefersto the decision)aking process

!y &hich foral organisationsesta!lish the need for purchasedproducts and ser#ices( and identify(e#aluate( and choose aong

alternati#e !rands and suppliers.

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Buying ituations

traight re!uy

Modi2ed re!uy

e& task

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ystes Buying andelling

Buyers prefer to !uy a total solutionto a pro!le fro one seller.

*rie contractors

econd)tier contractors

Turn-keysolutions

ellers ha#e adopted the practice ofselling a total solution to a pro!le.

ystes contracting

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The Buying Centre

"nitiators

4sers

"n+uencers ,eciders

Appro#ers

Buyers

-atekeepers

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The *urchasing5*rocureent*rocess

More strategically orientedpurchasing departents.

A ission to seek the !est #alue frofe&er and !etter suppliers.

trategic supply departentsresponsi!le for glo!al sourcing andpartnering.

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tages in the Buying*rocess6 Buy phases

*ro!le recognition

-eneral need description

*roduct speci2cation

upplier search

*roposal solicitation

upplier selection /rder)routine speci2cation

*erforance re#ie&

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upplier earch6A Mo#e to Electronic

Marketplaces Catalogue sites 7ertical arkets

*ure play auction sites pot arkets

*ri#ate exchanges

Barter arkets Buying alliances

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upplier earch6E)*rocureent

We!sites organised using #erticalhu!s

We!sites organised usingfunctional hu!s

,irect extranet links to a8or

suppliers Buying alliances

Copany !uying sites

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upplier election6 9andling*rice)/riented Custoers

:iit $uantity purchased

Allo& no refunds

Make no ad8ustents *ro#ide no ser#ices

%isk and gain sharing

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,e#eloping CopellingCustoer 7alue *ropositions "nternal

engineeringassessent

'ield #alue)in)useassessent

'ocus)group #alueassessent

,irect sur#ey$uestions

Con8oint analysis

Bencharks

Copositional

approach

"portance ratings

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/rder)%outinepeci2cation

tockless purchase plans

7endor)anaged in#entory

Continuous replenishent

M i B i

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Managing Business)to)Business Custoer

%elationships Bene2ts of #ertical coordination

Corporate credi!ility and trust Expertise

Trust&orthiness

:ika!ility

%isks and opportunis

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Trust ,iensions

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'actors A;ectingBuyer)upplier %elationships

A#aila!ility of alternati#es

"portance of supply

Coplexity of supply

upply arket dynais

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Categories of Buyer)eller%elationships

Basic !uying andselling

Bare !ones

Contractualtransaction

Custoer supply

Cooperati#esystes

Colla!orati#e

Mutuallyadapti#e

Custoer is king

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What is /pportunis0

Opportunismis soe for ofcheating or undersupply relati#e toan iplicit or explicit contract.

/pportunis linked to reputation.

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"nstitutional and-o#ernent Markets

Institutional market< schools( hospitals(prisons( etc.

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

their care eed iniu $uality standard at lo& price

Governmentis a a8or !uyer of goodsand ser#ices

Tender process

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

eed to follo& detailed guidelines