This is part 4 of my 15 lecture series class for Integrated Marketing Course at IOBM Karachi

1. Session 3 Ali Raza Merchant IMC CourseBusiness-to-Business Buyer Behaviour IMC 2011 by ARM

2. Defining various types or categories of business-to- business buyers Major roles associated with making purchases, called the business buying center Steps of business purchasing decision are outlined Important new factors and issues in business-to-business sales are discussed Topic Content Summary IMC 2011 by ARM

3. Business-to-Business Customer Types IMC 2011 by ARM

5. These can include services like employee medical insurance, cleaning & maintenance services etc

6. Each requires a distinct marketing approachAccessories Major Equipment Process Materials Component Parts

7. IMC 2011 by ARM Business Customers & What They Buy

8. IMC 2011 by ARM Business Buying Centers Actual Users of Product or Service such as Secretarial Staff (Stationery), Factory Workers (Tin Cans/ RM) or HR (Hiring Services) 1. Users 5. Gatekeeper 2. Buyers Controls flow of info to members of buying center Lets them know if certain alternatives have been rejected Responsible for making purchases In large organizations buyers can be purchasing agents or members of purchase department in a company 3. Influencers Who shape purchasing decisions by providing information specs or criteria e.g. Engineers Individuals who authorize buying decision Can by CFO, VP, MD 4. Deciders

9. Was set up by AK Sumar and MNA in the 1960’s, during Ayub Khan’s Govt. Was unique in many ways as it was unconventional in its advertising – never used models Had a high quality fabric manufacturers’ perception among consumers due to which it commanded higher price In the early 1990’s MFTM was a large textile company in Pakistan with a 50 50 emphasis on dressing fabrics for local as well as home textile products for export MFTM was a vertically integrated unit with spinning, weaving, bleaching & dying, printing and stitching units Mohd. Farooq Textile Mills (MFTM) - Backgrounder IMC 2011 by ARM

10. IMC 2011 by ARM Mohd. Farooq Textile Mills (MFTM)

11. MFTM was manufacturing Lawn Fabric for women, 100% Cotton Fabric, Wash & Wear Fabric for the local market Production for local market was marketed through two distributors under the supervision of Head of local sales The brand was well respected and commanded a higher price, which affording consumers were willing to pay Local market was not the company’s business focus IMC 2011 by ARM Interesting Facts About MFTM

12. MFTM exports were growing at a phenomenal rate The export market was value added and allowed the company to make greater margins, particularly in view of the govt. rebates and foreign exchange earnings The company sold home textile products to manufacturers and retail store brands in Germany, France, Holland & Switzerland The flagship product were 100% Satin for Home Textiles which included single and double bed sets i.e. Quilt Cover and Pillow In addition to Satin the company also manufactured Flannel and 100 Cretonne, a comparatively low priced cotton fabric The average gross margin of Satin was 45% The company did not have its own brand for exports – it was a toll manufacturer for other brands like Luxorette, Irisette, Carfour, La Redoute, Kaufhoff, Neckermann etc IMC 2011 by ARM Interesting Facts About MFTM

13. IMC 2011 by ARM Home textile Portfolio

14. IMC 2011 by ARM Home textile Portfolio

15. Pakistan was one of the markets that was limited in its export of textiles through quota Quota meant that a manufacturer could only export a particular category of textile goods to a country if they possessed quota in value terms Therefore, if MFTM had an order of $100,000 for home textiles from Europe, it needed to have equivalent quota to ship the goods. If not they could buy quota from a manufacturer with surplus quota Quota was barrier tariff created by USA, Europe and Australia to restrict Pakistani textiles which were low cost and were eating away their own textile industry Since MFTM sold high priced Satin products its export value resulted in higher quota every year IMC 2011 by ARM Exporter Quota – A Barrier to Entry

16. Management Structure of MFTM IMC 2011 by ARM

18. Inlay Cards

19. PE or PP Bags for PackingHome Textiles (Labels & Packaging) Stitching Spinning Thread and accessories for stitching Stitching machines spares & maintenance Manager Purchase Raw Cotton was the main input material Also required was polyester for blended yarn Grey Cloth Chemicals & dyes for fabric processing Screens for printing Parts & maintenance Chemicals for sizing yarn Parts and maintenance for weaving looms Bleaching, Dying & Printing

20. IMC 2011 by ARM B2B Buying Process Identification of Need Establishment of Specs Identification of Alternatives Evaluation of Vendors Selection of Vendors Negotiation of purchase terms

22. Create different brands

23. Use multiple channels or different channels