...incorporation in their products or services (Hutt & Speh, 2010). Business-to-consumer (B2C) markets products or services to individual buyers for their own personal consumption (Hutt & Speh, 2010). Although both are selling products and services, there are differences that distinguishes these two types of market from each other, especially when it comes to formulating strategies and marketing activities. Therefore, I agree with the statement. In general B2B is relationship-driven whereas B2C is product-driven. B2B focuses on relationship marketing efforts by retaining loyalty and meeting the needs of buyers while B2C focuses on developing products that fit into specific target markets rather than based on buyer needs. One of the difference is the market structure of both markets. B2B market is niche size. There are relatively few buyers however those buyers are large buyers. B2C market is large in size but consists of small buyers. Also, B2C market is pure competition whereby there are many sellers and buyers in the market. Due to the target market being a mass market, a single buyer or seller does not have much effect on the market. However, the niche size B2B market is oligopolistic competition with very few sellers, hence they are sensitive to each other’s pricing and marketing strategies. Therefore, B2C can afford to lose buyers as the loss is much lower than B2B, thus explains the different drives. For example in the information technology (IT) industry, the chosen...
Words: 1789 - Pages: 8
...Information sharing/ technology advancement 5. Improve overall customer orientation or service level. Why collaboration? There are many traditional companies in the industries that refused to collaborate with their suppliers being fear that information/ technology sharing might put their companies in risk of confidential information within the organization to being leak into competitor vicinity. Therefore, we must be able to convince those companies that collaborating with their suppliers have had many benefit in it. Not only proved to be improving customer satisfaction level but also able to provide quality control of the products. Delivery JIT The term "Just-in-Time" is a production strategy that originated from Toyota Lean Manufacturing. JIT mean reducing the lead time of a manufacturing process and facilitate faster turnover lead time for buyer by reducing inventory cost. In this process, supplier are able to eliminate wastage and identify problem during production process. Long term relationship between buyer and supplier must be established in order for JIT to be a successful program. Buyer will benefit from such process due to the lead time is short and when lead time is short, there will be more happy customer. JIT allow buyers to buy in small quantity through a fast lead time, minimize paper work; human errors and faster order processing time. With the use of Electric Data Interchange, buyer not only able to know the "real time" of their products status but...
Words: 1171 - Pages: 5
...Analyze the buyer decision process of a traditional Porsche buyer As we know the buyer decision involves five steps: 1. Need recognition. The buyer identifies what his needs are, or simply, what he is looking for. The traditional Porsche buyer looks to the car as a luxury, a privilege, not just a means of transport which reflect against them. 2.Information search Porsche buyers would be satisfied a luxury sports car. 3. Evaluation of Alternatives In the third step the buyer evaluates all the choices of the companies that create cars fitting his or her requirements. 4. Purchase decision After the consumer has evaluated all the options and would be having the intention to purchase the product,. 5. Post purchase Behavior The traditional buyer has greater levels of satisfaction. This is proven to be true with the examples of the Porsche sports car lines, where essentiality was not taken as a factor. How does the traditional Porsche customer decision process contrast with the decision process for a Cayenne or Panamera customer? The traditional Porsche customers skip most of the decision process and jump right to the purchase decision. The traditional Porsche customers put more concentration on the appearance and focus more attention on the new model. They develop a personal relationship with their cars, one that has more to do with the way the car sounds, vibrates, and feels, rather than looking at the functional facilities. Unlike the traditional Porsche...
Words: 732 - Pages: 3
...Lecture Topic 6 Ch. 5 & 6 (p. 188 - 201) Buyer Behavior MKTG 2501 Lecturer: Yin Mei NG Model of Consumer Behavior External Stimuli • Marketing Stimuli • Environmental Forces BUYER’S BLACK BOX • Buyer’s decision process • Buyer’s characterist ics Buyer Responses • Buying attitude and preference • Purchase behavior (what, when, where, and how much) • Relationship behavior with brand and company Five Stages in the Consumer Decision Process Need recognition Information search Evaluation of alternatives Purchase decision Class Discussion: Customer Needs • What do parents-to-be need? • How can a company meet their important needs? Identify and Evaluate Alternatives Example: Brand Choice of Your Computer Purchased Recently Company: What can you do? Dear Company, We’re sorry to let you know your brand is not in our evoked set. To: The Company Yours sincerely, Your target customers Question: • What can a company do if its brand is NOT in the evoked set of the target consumers? – Inept set (avoided alternatives) – Inert set (backup alternatives) – Unawareness set Example: A customer’s evaluation of 3 computer brands • Which brand would this consumer most likely choose to purchase? • Which brand would this consumer least likely choose to purchase? Attributes (Criteria) Importance Weight (Sum = 1.0) Evaluation on the Performance of Alternative Computer Brands (Score: 1-7) Evaluation of Alternatives Brand A Price Speed Warranty Size ...
Words: 918 - Pages: 4
...Study 1. Analyze the buyer decision process of a traditional Porsche customer. The buyer decision process of a traditional Porsche customer reflects the four factors influencing consumer behavior; cultural, social, personal, and psychological. Porsche targets the affluent and creates a culture of exclusivity in owning a Porsche. The typical customer buys into this culture and buys the car for these reasons. Porsche owners tend to believe they are their own Social class. Porsche customers’ social factors are driven by roles and status. Porsche owners feel that have a certain status and the Porsche vehicle reflects that role or status to others when they are seen driving it. The personal factors that drive a Porsche customer are economic situation and lifestyle. Porsche customers are generally in a higher economic class and they don’t like if their car is affordable to the masses. Porsche owners also feel that owning the care is a lifestyle, driving the car is an adventure. The psychological factors of a Porsche customer are their beliefs and attitudes. Porsche buyers truly believe they are in a class all by themselves and display that confident and exclusive attitude when driving the car. (Kotler, Armstrong, 2014, pg. 137-151) 2. Contrast the traditional Porsche customer decision process to the decision process for a Cayenne or Panamera customer. The customer decision process of a traditional Porsche owner to Cayenne customer or a Panamera customer has many similarities...
Words: 763 - Pages: 4
...Shipping Process | American President Lines | International Business 1 | Fauziyah Kurniawati (01420110)/ Furqoni Agustina (014201100062)/ Icha’mar (01420110)/ Mazaya Ulfa (01420110)/ Mega Dewanti (014201100155)/ Saroha M.Manalu (014201100218)/ Sekar Pratiwi (01420110)/ Sofi Oktavia (014201100190)/ Velencia (01420110) I. Introduction On this report, we provide information about Shipping Process that we get from APL (American President Lines). As for, the data we got such as the requirement, documents that needed in shipping process, and also the overall shipping process that already told by our resources in the interview. We conduct an interview with Captain Nugroho Subroto as the Chief of Operation Advisor of APL (American President Lines) to gather the data below. * APL’s Company Profile APL (American President Lines) is the seventh world largest ocean carrier which offers more than 140 ports destination in worldwide. APL is a wholly-owned subsidiary of Singapore-based Neptune Orient Lines, a global transportation and logistics company. APL provides customers around the world with container transportation services through a network combining high-quality intermodal operations with state-of-the-art information technology. With more than 150 years’ experiences, APL has the knowledge and the expertise to help the customer negotiates the increasingly complex and ever-changing global marketplace. In Indonesia, APL was established in 2001. There are several...
Words: 2628 - Pages: 11
...Analyze the buyer decision process of a traditional Porsche customer. The buyer decision process of a traditional Porsche customer starts with the consumer’s recognition of a need for the product. In this case it is the need for a new car. The Porsche marketers look to those needs that consumers look for in a car and find out what brought previous customers to their product so they can satisfy the needs of the new customers searching for their next car. After deciding the need for a car the consumer will potentially indulge in further research towards the options available. This can include searching on the Porsche website, looking through ads of their products, or even going to the dealerships to gather more information on the car that they may want. After researching about the Porsche cars the consumer is interested in and then look at the competitors of Porsche such as the Toyota Supra, Nissan GT-R, BMW 6 series, Etc. The next step is for the Porsche consumer is to make the decision to buy their car. When the consumer decides on the Porsche then comes the post purchase behavior. The new Porsche owner will be zooming around the streets marketing Porsche without even having to say a word. This new owner can give feedback to the company where they can turn that feedback into a marketing technique for new customers to purchase their car. 2. Contrast the traditional Porsche customer decision process to the decision process for a Cayenne or Panamera customer. For the buyer process...
Words: 793 - Pages: 4
...p. 134 and 135 Ch. 7 Product-selling Strategies that Add Value Article: Harte Hanks; Create and Nurture B2B demand with social media, 2010 Article: Ricci, L.R., ― What changed our sales cycle and Why?‖, 2005. Review questions and application exercises on p. 154 and 155, case on p. 155 Ch. 8 The Buying process and buyer behaviour. Article belonging to CH 8: How you slice it; smarter segmentation for your sales force. Describe positioning as a product-selling strategy Explain the cluster of satisfactions concept Discuss product-positioning options Explain how to sell your product with a price strategy Explain how to sell your product with a valueadded strategy Positioning involves: • Those decisions and activities intended to create and maintain a certain concept of the firm‘s product in the customer‘s mind Differentiation refers to: • Your ability to separate yourself and your product from that of your competitors • It is the key to building and maintaining a competitive advantage The set of benefits and values the company promises to deliver to customers to satisfy their needs A well-informed customer will usually choose the product that offers the most value • • • Applies to both new and existing products May be necessary to reposition products several times Salespeople have an important and expanding role in differentiating products • • Direct and personalized form of communication must...
Words: 3261 - Pages: 14
...production of other production of other products or services that are sold reacted or supplied to others. Business marketers contrast sharply with consumer markets in some ways, where are: Fewer, larger buyers: The business marketer normally deals with for fewer much larger buyers than the consumer’s marketer does. Particularly in such theaters as aircraft engines, and defense weapons. Close supplier, customer relationship: Because of the smaller customer base and the importance and the power of the larger customer suppliers are frequently expected to customer their offering to individual business customer needs. Professional purchasing: Business goods are often purchased by trained purchasing agent, professional buyer spend their canners learning how to buy better. Multiple buying influences: Buying comities consisting of technical carpets and even senior management are common in purchase of major goods. Multiple sales calls: Buying situation: the business buyer faces many decisions in making a purchase. Three types of Business Buying Situations are- 1) Straight rebury: In a straight rebury, the purchasing department re-orders suppliers such as office supplies and bulk chemical on a routine basis and chooses from suppliers on as approved list. 2) Modified rebury: The buyer in a modified rebury wants to change product specification, prices, delivery requirement, or other terms. This usually requires additional participates on both sides. 3) New task: A new task purchase...
Words: 719 - Pages: 3
...crisis has forced the top management to focus on this aspect of the business more carefully. This review explores the various aspects of procurement, in order to understand the concept of procurement some of the basic concepts like buyer and supplier, business relationships and customer value have been defined. Further I have tried to establish how procurement can add value to a business and to do this I have quoted examples from various business websites and journals. The review is also able to describe how a long term business relationship between the Buyer and Supplier can benefit each other both in terms of growth and financially. Every positive side has a negative side to it, I have been able to show some aspects of the negative side of it. Overall it can be concluded that procurement does deliver value through relationships. Introduction Procurement process is one of the most essential part of a business or a project. Through this process you are exposed to the potential market that is available to you in terms of business support. The dynamics of this process is such that it allows you to interact with as many businesses available in your region or outside of it. It is a well structured process where room for mismanagement is limited. This process not only supplies the agreed product or services, the supplier takes the collaborative role of a partner and journeys...
Words: 4513 - Pages: 19
...COMMUNICATING WITH CUSTOMERS: BUSINESS MARKETS A Written Report Presented to Prof. Maria Theresa Ranquilman Pamantasan ng Lungsod ng Maynila Intramuros, Manila In Partial Fulfillment of the Requirements for the Degree Master in Business Administration By Analyn P. Deogracias October 2014 Connecting with Customers: Business Markets Organizational Buying It is a decision-making process by which formal organizations establish the need for purchased products and services and identify, evaluate, and choose among alternative brands and suppliers. Business Market versus Consumer Market Business Markets comprises all organizations that buy goods and services for use in the production of other products and services or for the purpose of reselling or renting them to others at a profit. The major industries making up the business market are agriculture, forestry, and fisheries; mining, manufacturing; construction; transportation; communication; public utilities; banking, finance, and insurance; distribution; and services. Consumer Markets is dominated by products and services designed for the general consumer. Industries in the consumer markets often have to deal with shifting brand loyalties and uncertainty about the future popularity of products and services. Differences of Business Market from Consumer Marker Market structure and demand * Business market contain Fewer but larger buyers * Business buyer demand is derived from final consumer...
Words: 1235 - Pages: 5
...[pic] [pic] by: ....... Table of Contents Question 1 : Analyze the buyer decision process of a traditional Porsche customer. What conclusion can you draw? 3 Question 2: How does the traditional Porsche customer decision process contrast with the decision process for a Cayenne or Panamera customer? 4 Question 3: Which concepts from the chapter explain why Porsche sold so many lower-priced models in the 1970s and 1980s? 5 Question 4 : Explain how both positive and negative attitudes toward a brand like Porsche develop. How might Porsche change consumer attitudes toward the brand? 6 Question 5: What role does the Porsche brand play in the self-concept of its buyers? 7 Conclusion: 8 Question 1 : Analyze the buyer decision process of a traditional Porsche customer. What conclusion can you draw? Buying a product goes to 5 different stages, which are: 1. Need recognition. The profile of a Porsche car buyer is a financially successful person that loves a challenge. They’re hard working people and set high goals in everything they do and often have white collar jobs. These customers separate themselves from the mass and feel attracted to exclusive sophisticated things and expect the cars that they drive in to satisfy this feeling of exclusivity. 2. Information search In information search the consumer searches about the product which would satisfy the need...
Words: 1800 - Pages: 8
...(a) Political and Legal Environment (b) Economic and Competitive Environment (c) Social Cultural Environments (d) Technological Environment 2.2 Micro Environment 2.3 Competition (a) Competitors of Bosch Kettle 3. Critical analysis of relevant theories 3.1 SWOT Analysis 3.2 Portfolio Analysis 3.3 Porter’s Matrix 3.4 The Boston Matrix (The Product Portfolio) 3.5 Response Hierarchy Model (a) The AIDA Model (b) The innovation – adoption Model (c) The DAGMAR Model Market Attractiveness Model: the GE matrix 3.6 Critical Analysis 4. Critical Analysis of Buyer Behaviour 4.1 Consumer as Buyer 4.2 Conclusion and Analysis 5.0 Buyer Behaviour 5.1 Buyer Behaviour Role in Marketing 5.2 Consumer as Buyer 5.3 Why People Buy 5.4 How people choose (a) what influence Buyers? 6.0 Segmentation Targeting and Positioning Strategies 6.1 Segment Identification 6.2 Consumer basis 6.3 Physiographic 6.4 Geodemographics 6.5 Psychographics 6.6 Segmentation Techniques 6.7 Targeting Through Marketing Mix 6.8 Positioning 6.9 Practical Approaches 7.0 Marketing Mix 7.1 Product 7.2 Price 7.3 Place 7.4 Promotion 8.0 BIBLIOGRAPHY 1. Introduction The kettle assigned for marketing is Bosch TWK 6831. We have analyzed marketing environment and the key issues that are related to...
Words: 6526 - Pages: 27
...Stages of consumer buying decision process Posted on September 12, 2012 by shma The marketer is responsible for selling the goods in the market so he must have the knowledge how the consumers actually make their buying decisions. For this he must study the consumer buying decision process or model. It involves five stages. 1.) Need recognition:- consumer buying decision process starts with need recognition. The marketer must recognize the needs of the consumer as well as how these needs can be satisfied. For example if a person is hungry then food is desired or if it is a matter of thirst than water is desirable. 2.) Information search:- in consumer buying decision process information search comes at second number. In this stage consumer searches the information about the product either from family, friends, neighborhood, advertisements, whole seller, retailers, dealers, or by examining or using the product. 3.) Evaluation of alternatives:- after getting the required knowledge about the product the consumer evaluate the various alternatives on the basis of it’s want satisfying power, quality and it’s features. 4.) Purchase decision:- after evaluating the alternatives the buyer buys the suitable product. But there are also the chances to postpone the purchase decision due to some reasons. In that case the marketer must try to find out the reasons and try to remove them either by providing sufficient information to the consumers or by giving them guarantee regarding...
Words: 1919 - Pages: 8
...Chapter1 Marketing - the process by which companies create value for customers and build strong customer relationships in order to capture value from customers in return. Needs – state of felt deprivation. A. Physical needs- foods, clothing, warmth and safety B. Social needs- belonging and affection C. Individual needs- knowledge and self-expression Wants- The form human needs take as they are shaped by culture and individual personality. Demands- human that are backed by buying power. Market Offerings- some combination of product, services, information, or experiences offered to a market to satisfy a need or want. Market myopia- the mistakes of paying more attention to the specific products a company offers than to the benefits and experiences produced by these products. Exchange- the act of obtaining a desired object from someone by offering something in return. Market- the set of all actual and potential buyers of a product or service. Marketing management – the art and science of choosing target markets and building profitable relationships with them. Market Concept Production Concept- the idea that consumers will favor products that are available and highly affordable and that the organization should therefore focus on improving production and distribution efficiency. Product Concept- holds that consumers will favour products that offer the most in quality, performance, and innovative features. Selling Concept- the idea that consumers will not...
Words: 5668 - Pages: 23
