Analysing Industrial Markets

7/31/2019 Analysing Industrial Markets

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INDUSTRIAL MARKETS vs.

CONSUMER MARKETS FEWER, LARGER BUYERS

CLOSE SUPPLIERCUSTOMER RELATIONSHIP

PROFESSIONAL BUYING

MULTIPLE BUYING INFLUENCES MULTIPLE SALES CALLS

DERIVED DEMAND

INELASTIC DEMAND FLUCTUATING DEMAND

GEOGRAPHICALLY CONCENTRATED BUYERS

DIRECT PURCHASING


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UNDERSTANDING THE

CONSUMER (CORPORATE)

Location: urban/ rural ; metro / non-metro; proximity to theCco.

Industry type , size and growth Innovativeness and centralisation of decision-making (=>

type and speed of service required) Duration of relationship : loyalty levels Parameters of evaluation : rates, response time, flexibility&

customisation, reach and coverage, proactiveness Perceptions of the Co. : friendly, innovative, proactive,

branch network, flexible, customised products, reasonablerates

Expectations: Salesmanship, Reputation, Flexibility,Reciprocity,Size, Tech-savviness


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First time customer

Repeat customerClient

Supporter

Advocate

Member

Partner


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Contact

Involvement

Intimacy

Repair

Deterioration

Dissolution

exit


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BUYING SITUATIONS STRAIGHT REBUY

MODIFIED REBUY NEW TASK


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THE BUYING CENTER

INITIATOR

USER INFLUENCER

DECIDER

APPROVER BUYER

GATEKEEPER


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STAGES IN THE BUYING PROCESSNEW MODIFIED STRAIGHTTASK REBUY REBUY

1.PROBLEMRECOGNITION

2.GENERAL NEEDDESCRIPTION

3.PRODUCTSPECIFICATION

4.SUPPLIERSEARCH

5. PROPOSAL

SOLICITATION6. SUPPLIERSELECTION

7. ORDER-ROUTINESPECIFICATION

8.PERFORMANCE

REVIEW


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Supplier Search

Trade directories; contacts with other companies;trade ads, trade shows

Internet: catalog sites

vertical markets

e-hubs

pure play auction sites

spot markets

private exchanges

Barter markets Buying alliances

E-procurement: vertical hubs; functional hubs;extranet links to suppliers; buying alliances; company

buying sites


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B2B buyers are rational decision makers (or a committee ofrational decision makers) who are not swayed byemotionalfactors such as brands.

B2B purchases are all about the relationship between the

individual sales rep and the buyer; if the B2B brand meansanything, it is created by the sales rep.

B2B products do not promise to make you cool or sexy or anyother aspirational attribute. Price is the only thing that matters.

B2B products are too complex to reduce to a tagline or ad.

B2B companies sell to narrow audiences, so advertising tocreate a brand does not make sense.


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WHY B2B BRANDING? Buyers use rational as well as emotional criteria for

selection.

HeuristicsAvoidance of negative emotions: Nobody ever got

fired for buying IBM

Positive relationship between consumer perceptions

and sales revenue


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BUYING CENTRE EXPECTATIONS INFLUENCING

INDUSTRIAL PURCHASE BEHAVIOUR

EXPLICIT*Product quality*Delivery schedule*Quantity of supply

* After-sales-service*Price

IMPLICIT*Reputation*Size*Location

*Reciprocity*Personality*Technical expertise

*Salesmanship*Life -style


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POSITIONING

Positioning is the act of designing the companysoffer and image so that it occupies a distinct andvalued place in the target customers minds. -

- Philip Kotler

Creating both physical and perceptual differencesis what effective positioning seeks to accomplish.


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TYPES OF POSITIONING

PHYSICAL ( ATTRIBUTE)

POSITIONING PERCEPTUAL POSITIONING


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THE PROCESS OF POSITIONINGIdentify relevant set of competitive

products serving a target market

Identify the set of determinant attributesdefining the product space where

positions of current offerings are located

Collect information from a sample ofrespondents /potential respondents aboutperceptions of each product on the

determinant attributes

Determine products current positioningIn the product space and intensity thereof

(

(Contd.)


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THE PROCESS OF POSITIONING

Determine customers most preferredcombination of determinant attributes

Examine the fit between preferences of marketSegments and current positioning of the product

Write positioning statement ( value proposition)toguide development and implementation ofmarketing strategy


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TALKING DIRECTLY TO THE USERS: INTEL, ASIAN PAINTS,PAHARPUR

Documents

Analysing Industrial Markets