V47 Ch7 Business Markets Batisan Ronaldo

1

ANALYZING BUSINESS MARKETS

Ronaldo S. BatisanDecember 1, 2009

Ateneo Graduate School of Business

Top 10 Concepts

Outline: Analyzing Business Markets consists of:

1. Organizational Buying (what?)

2. Difference between Business Market and Consumer Market

3. Buying Situations

4. Systems Buying & Selling

5. Participants in the Business Buying Process (who?)

Outline: Analyzing Business Markets consists of:

6. Purchasing Department Perceptions

7. Stages in the Buying Process

8. Managing Business-to-Business Customer Relationships

9. Business Relationships: Risks and Opportunism

10. Institutional & Government Markets

Concept 1:

Organizational Buying

• Decision-making

• Establishing the needs

• Identification

• Evaluation

• Choosing

• Fewer, larger buyers• Close supplier-customer relationship• More geographically concentrated

buyers

Concept 2:

Difference between Business Market and Consumer Market

Concept 3: Buying Situations

• Buying a total solution to a problem from one seller

Concept 4: Systems Buying

Concept 5:

Participants in the Business Buying Process

• Purchasing departments were perceived to occupy a low position in the management hierarchy, in spite of often managing more than half the company’s costs.

• However, nowadays, most purchasing professionals describe their jobs as more strategic, technical, team oriented and involving more responsibility than ever before.

Concept 6: Purchasing Department Perceptions

• Problem Recognition• General Need Description and Product

Specification• Supplier Search• Proposal Solicitation• Supplier Selection• Order-Routine Specification• Performance Review

Concept 7:

Stages in the Buying Process

Concept 8:

Managing Business-to-Business Customer Relationships

Concept 9:

Business Relationships: Risks and Opportunism

Concept 10:

Institutional & Government Markets

Summary: Analyzing Business Markets consists of:

1. Organizational Buying (what?)

2. Difference between Business Market and Consumer Market

3. Buying Situations

4. Systems Buying & Selling

5. Participants in the Business Buying Process (who?)

Summary: Analyzing Business Markets consists of:

6. Purchasing Department Perceptions

7. Stages in the Buying Process

8. Managing Business-to-Business Customer Relationships

9. Business Relationships: Risks and Opportunism

10. Institutional & Government Markets

My Conclusion: Analyzing Business Markets

Business organizations do not only sell; they also buy vast quantities of raw materials, manufactured components, plant and equipment, supplies and business services. To create and capture value, sellers need to understand these organizations’ needs, resources, policies and buying procedures.

17

ANALYZING BUSINESS MARKETS

Ronaldo S. BatisanAteneo Graduate School of Business

Top 10 Concepts