BUSINESS MARKET & BUSINESS BUYER BEHAVIOUR

1. BUSINESS MARKET & BUSINESS BUYER BEHAVIOUR Dony Eko Prasetyo, S.IP.

2. Business Market

3. Business Market • The Business Market - all the organizations that buy goods and services to use in the production of other products and services that are sold, rented, or supplied to others. • Business markets involve many more dollars and items do consumer markets.

4. Business Market Characteristic • Sales in the business market far exceed sales in consumer markets. • Business markets differ from consumer markets in many ways. • Marketing structure and demand • Nature of the buying unit • Types of decisions and the decision process

5. Business Buyer Behavior • Business buyer behavior refers to the buying behavior of the organizations that buy goods and services for use in the production of other products 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.

6. Model of Business Buyer Behavior

7. 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

8. Maslow’s Hierarchy of Needs

9. Major Influences on Business Buyer Behavior

10. Segmentation

11. Market Segmentation 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

12. Segmenting Consumer Markets

13. Segmenting International Markets

14. Market Segmentation To be useful, market segments must be:

15. 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

16. Market Targeting Segment size and growth Segment structural attractiveness Company objectives and resources Evaluating Market Segments .

17. Market Targeting Undifferentiated marketing targets the whole market with one offer • Mass marketing • Focuses on common needs rather than what’s different Target Marketing Strategies

18. 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

19. 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

20. 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 Target Market Strategies

21. Market Targeting Local marketing involves tailoring brands and promotion to the needs and wants of local customer groups Cities Neighborhoods Stores Target Market Strategies

22. Market Targeting Individual marketing involves tailoring products and marketing programs to the needs and preferences of individual customers Also known as: • One-to-one marketing • Mass customization • Markets-of-one marketing Target Market Strategies

23. Market Targeting Depends on: Company resources Product variability Product life-cycle stage Market variability Competitor’s marketing strategies Choosing a Targeting Strategy

24. Market Targeting Benefits customers with specific needs Concern for vulnerable segments Children • Alcohol • Cigarettes • Internet abuses Socially Responsible Target Marketing

25. Differentiation and Positioning Product position is the way the product is defined by consumers on important attributes—the place the product occupies in consumers’ minds relative to competing products • Perceptions • Impressions • Feelings

26. Differentiation and Positioning • Positioning maps show consumer perceptions of their brands versus competing products on important buying dimensions

27. Differentiation and Positioning Identifying a set of possible competitive advantages to build a position Choosing the right competitive advantages Selecting an overall positioning strategy Developing a positioning statement Choosing a Differentiation and Positioning Strategy

28. Differentiation and Positioning Competitive advantage is an advantage over competitors gained by offering consumers greater value, either through lower prices or by providing more benefits that justify higher prices Identifying Possible Value Differences and Competitive Advantages

29. 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

30. Differentiation and Positioning Difference to promote should be: Choosing the Right Competitive Advantage