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Product & Service Decisions service to another organization, it is called organizational marketing, Internet boom of the late 1990s, B-to-B business-to-business marketing.” - Russell

Trang 2

Key Learning Points

and industrial marketing.

when such purchases are made.

Trang 3

Product & Service

Decisions

service to another organization, it

is called organizational marketing,

Internet boom of the late 1990s,

B-to-B (business-to-business)

marketing.”

- Russell S Winer

Trang 4

Organizational Buying

ƒ Buying Centers

collectively involved in an

organizational buying decision

industrial purchase decision making as the dynamics of group decision making differ significantly from an individual’s decision-making process

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complex than consumer goods.

supply chain.

complex.

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Product & Service

Decisions

Key Decisions

Who Are the Customers?

Segmentation Variables for

ƒ Personal Characteristics

ƒ Demographic

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Product & Service

Decisions

Key Decisions

Who Are the Customers?

Segmentation for Medical Equipment Manufacturer

Number of Samples Processed Per Researcher

Few Researchers Few Samples

Many Researchers Many Samples

Few Researchers Many Samples

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Who Are the Customers?

ƒ Regardless of descriptors chosen,

resulting segments must behave

differently & desire different benefits.

ƒ Organizations make different types

of purchases, which can be

classified into buy classes

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Who Are the Customers?

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Who Are the Customers?

Buy Classes ƒ Routine purchases that have changed in

some way (e.g., hard drive size, processor speed, amount of

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Who Are the Customers?

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Who Are the Customers?

ƒ Segmenting in Technology-Based

Markets

will be earlier adopters of new

technologies than will be others.

testing, and can help new technologies

be adopted.

must be modified for high-tech markets.

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Product & Service

DecisionsHigh-tech companies rely

on innovators to help spread the word about new technology.

endorsements from IBM, Bayer, and Avaya for

their new CRM software in the

ad at left.

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Who Are the Customers?

ƒ Segmenting in Technology-Based Markets: The Chasm Model

indicates a smooth transition from one stage to the next The Chasm Model recognizes this as a fallacy.

and pragmatists (early majority) is called the chasm.

categories.

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Figure 5-2:

The Chasm Model

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Who Are the Customers?

ƒ Marketing Research Implications

judgment often replaces hard data.

sources of information are used most often.

often provide data useful for segmentation purposes.

that may be useful for segmentation.

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Figure 5-3:

Workstation Brand

Mindshare Report

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Who Are the Customers?

ƒ Marketing Research Implications

differences in the behavioral variable of interest?

associated with the segment that make it more or less attractive?

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Why Do Customers Buy?

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Why Do Customers Buy?

to solve problem or fill need.

recognition.

options are available but would need to research alternatives.

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Product & Service

Decisions

Many ads in trade magazines are

feature, rather than benefit oriented

Smart marketers create benefit-

oriented ads, particularly when targeting senior, non-technical

management, as

in the ad at left.

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How Do Customers Make

Purchase Decisions?

of the product.

decision.

the payment.

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How Do Customers Make

Purchase Decisions?

ƒ Business-to-business marketers

must understand patterns of

influence within organizations.

influencers and decision makers and

tailor presentation to needs of each.

successful.

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Product & Service

Decisions

National Semiconductor’s website appeals to the specific needs of different buying center members

The parametric table feature allows customers

to sort products

by arranging them in

ascending or descending order according to one

or more attributes.

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How Do Customers Make

Purchase Decisions?

are determined after need recognition.

contact with potential suppliers.

features.

specifications for a new task purchase.

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How Do Customers Make

Purchase Decisions?

evoked set by ensuring that it is included on a buyer’s list of potential suppliers.

according to key criteria.

proposals indicating price, delivery date, and product specifications of products best

meeting desired specifications.

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How Do Customers Make

Purchase Decisions?

has input into the final decision.

decision-making process to formalize the

evaluation process Requires:

regarding how much of each attribute is present.

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1 What types of positions would most

likely be part of the buying center?

position fulfill?

using for the supplier evaluation?

of each selected attribute?

Discussion Questions

Suppose an organization was computerizing its workforce for the very first time

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Product & Service

Decisions

Key Decisions

Who Are the Customers?

Buying Center Decision Making

Purchasing Manager Key user Attribute

Cost Quality Warranty Reputation

Weight Brand A Brand B Weight Brand A Brand B

.3 4 2 1

.1 6 3 0

4 8 3 6

6 5 6 3

3 6 5 7

6 6 5 7

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How Do Customers Make

Purchase Decisions?

ƒ Perform Postpurchase Evaluation

between suppliers and customers.

of feedback

suppliers must solicit information.

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How Do Customers Make

Purchase Decisions?

Influence the Purchase Process:

willingness to take risks.

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How Do Customers Make

Purchase Decisions?

Buying Behavior

for global organizational culture

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Figure 5-6:

Country Positioning Using Power

Distance and Individualism

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Where and When Do

Customers Buy?

ƒ Where do customers buy?

distribution have been growing.

ƒ When do customers buy?

economic cycles are most relevant.

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Product & Service

DecisionsW W Grainger, the world’s

largest distributor of industrial and commercial equipment and supplies, has taken advantage

of Internet channels of distribution The online catalogue lists over

220,000 items.

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