Chapter 7 Analyzing Business Markets and Buyer Behavior
![Chapter 7 Analyzing Business Markets and Buyer Behavior Power. Point by Karen E. James Chapter 7 Analyzing Business Markets and Buyer Behavior Power. Point by Karen E. James](https://slidetodoc.com/presentation_image_h/d460c4d320cc4c7b941fffca0e4315dd/image-1.jpg)
Chapter 7 Analyzing Business Markets and Buyer Behavior Power. Point by Karen E. James Louisiana State University - Shreveport © 2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2 nd Edition 0
![Objectives § Understand the nature of the business market and how it differs from Objectives § Understand the nature of the business market and how it differs from](http://slidetodoc.com/presentation_image_h/d460c4d320cc4c7b941fffca0e4315dd/image-2.jpg)
Objectives § Understand the nature of the business market and how it differs from the consumer market. § Learn how institutions and government agencies buy. § Identify the different buying situations faced by organizational buyers. © 2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2 nd Edition 1
![Objectives § Identify the participants in the business buying process and the various influences Objectives § Identify the participants in the business buying process and the various influences](http://slidetodoc.com/presentation_image_h/d460c4d320cc4c7b941fffca0e4315dd/image-3.jpg)
Objectives § Identify the participants in the business buying process and the various influences impacting business buying decisions. § Understand how business buyers make their decisions. © 2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2 nd Edition 2
![Organizational Buying § Organizational buying is: “the decision-making process by which formal organizations establish Organizational Buying § Organizational buying is: “the decision-making process by which formal organizations establish](http://slidetodoc.com/presentation_image_h/d460c4d320cc4c7b941fffca0e4315dd/image-4.jpg)
Organizational Buying § Organizational buying is: “the 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. ” © 2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2 nd Edition 3
![Organizational Buying § Compared to Consumer Markets, Business Markets have. . . – Fewer Organizational Buying § Compared to Consumer Markets, Business Markets have. . . – Fewer](http://slidetodoc.com/presentation_image_h/d460c4d320cc4c7b941fffca0e4315dd/image-5.jpg)
Organizational Buying § Compared to Consumer Markets, Business Markets have. . . – Fewer buyers – Larger buyers – Geographically concentrated buyers – Close relationships with their supplier-customers © 2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2 nd Edition 4
![Organizational Buying Other Business Market Characteristics § Fluctuating demand § Multiple buying influences § Organizational Buying Other Business Market Characteristics § Fluctuating demand § Multiple buying influences §](http://slidetodoc.com/presentation_image_h/d460c4d320cc4c7b941fffca0e4315dd/image-6.jpg)
Organizational Buying Other Business Market Characteristics § Fluctuating demand § Multiple buying influences § Derived demand § Inelastic demand § Multiple sales calls § Professional purchasing § Direct purchasing § Reciprocity § Leasing © 2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2 nd Edition 5
![Organizational Buying § The Business Market Includes For-Profit Companies and Two Specialized Groups: – Organizational Buying § The Business Market Includes For-Profit Companies and Two Specialized Groups: –](http://slidetodoc.com/presentation_image_h/d460c4d320cc4c7b941fffca0e4315dd/image-7.jpg)
Organizational Buying § The Business Market Includes For-Profit Companies and Two Specialized Groups: – The institutional market l Schools, hospitals, prisons, etc. with captive audiences l Cost and quality standards drive purchases – The government market l Bidding © 2003 Prentice Hall, Inc. process awards contracts To accompany A Framework for Marketing Management, 2 nd Edition 6
![Organizational Buying Situations § Straight rebuy § Modified rebuy § New task © 2003 Organizational Buying Situations § Straight rebuy § Modified rebuy § New task © 2003](http://slidetodoc.com/presentation_image_h/d460c4d320cc4c7b941fffca0e4315dd/image-8.jpg)
Organizational Buying Situations § Straight rebuy § Modified rebuy § New task © 2003 Prentice Hall, Inc. § Routine reorders from approved vendor list § Low involvement, minimal time commitment § Example: copier paper To accompany A Framework for Marketing Management, 2 nd Edition 7
![Organizational Buying Situations § Straight rebuy § Modified rebuy § New task § Specifications, Organizational Buying Situations § Straight rebuy § Modified rebuy § New task § Specifications,](http://slidetodoc.com/presentation_image_h/d460c4d320cc4c7b941fffca0e4315dd/image-9.jpg)
Organizational Buying Situations § Straight rebuy § Modified rebuy § New task § Specifications, prices, delivery terms or other aspects require modification § Moderate level of involvement and time commitment § Example: desktop computers © 2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2 nd Edition 8
![Organizational Buying Situations § Purchasing a product or service for the first time § Organizational Buying Situations § Purchasing a product or service for the first time §](http://slidetodoc.com/presentation_image_h/d460c4d320cc4c7b941fffca0e4315dd/image-10.jpg)
Organizational Buying Situations § Purchasing a product or service for the first time § Straight rebuy § High level of involvement and time commitment; multiple influences § Modified rebuy § New task § Example: selecting a web site design firm or consultant © 2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2 nd Edition 9
![Organizational Buying § Systems Buying – A single provider provides the total package for Organizational Buying § Systems Buying – A single provider provides the total package for](http://slidetodoc.com/presentation_image_h/d460c4d320cc4c7b941fffca0e4315dd/image-11.jpg)
Organizational Buying § Systems Buying – A single provider provides the total package for the buyer’s needs – May involve turnkey solutions § Systems Selling – Manufacturers sell entire systems – Supplier provides all MRO items © 2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2 nd Edition 10
![Participants in Business Buying center members fill one or more roles in the purchase Participants in Business Buying center members fill one or more roles in the purchase](http://slidetodoc.com/presentation_image_h/d460c4d320cc4c7b941fffca0e4315dd/image-12.jpg)
Participants in Business Buying center members fill one or more roles in the purchase decision process: § Initiators § Deciders § Users § Approvers § Influencers § Buyers §Gatekeepers © 2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2 nd Edition 11
![Influences on Business Buyers Major Influences § Environmental § Organizational § Interpersonal § Individual Influences on Business Buyers Major Influences § Environmental § Organizational § Interpersonal § Individual](http://slidetodoc.com/presentation_image_h/d460c4d320cc4c7b941fffca0e4315dd/image-13.jpg)
Influences on Business Buyers Major Influences § Environmental § Organizational § Interpersonal § Individual © 2003 Prentice Hall, Inc. § Demand level § Economic outlook § Interest rates § Technological change § Politics/regulations § Competition § Concerns for social responsibility To accompany A Framework for Marketing Management, 2 nd Edition 12
![Influences on Business Buyers Major Influences § Objectives § Policies § Environmental § Organizational Influences on Business Buyers Major Influences § Objectives § Policies § Environmental § Organizational](http://slidetodoc.com/presentation_image_h/d460c4d320cc4c7b941fffca0e4315dd/image-14.jpg)
Influences on Business Buyers Major Influences § Objectives § Policies § Environmental § Organizational § Procedures § Interpersonal § Organizational structures § Individual § Systems © 2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2 nd Edition 13
![Influences on Business Buyers Major Influences § Interests § Authority § Environmental § Organizational Influences on Business Buyers Major Influences § Interests § Authority § Environmental § Organizational](http://slidetodoc.com/presentation_image_h/d460c4d320cc4c7b941fffca0e4315dd/image-15.jpg)
Influences on Business Buyers Major Influences § Interests § Authority § Environmental § Organizational § Interpersonal § Status § Empathy § Persuasiveness § Individual © 2003 Prentice Hall, Inc. To accompany A Framework for Marketing Management, 2 nd Edition 14
![Influences on Business Buyers Major Influences § Age § Income § Environmental § Education Influences on Business Buyers Major Influences § Age § Income § Environmental § Education](http://slidetodoc.com/presentation_image_h/d460c4d320cc4c7b941fffca0e4315dd/image-16.jpg)
Influences on Business Buyers Major Influences § Age § Income § Environmental § Education § Organizational § Job position § Interpersonal § Personality § Individual © 2003 Prentice Hall, Inc. § Risk attitudes § Culture To accompany A Framework for Marketing Management, 2 nd Edition 15
![Purchasing/Procurement Process Eight Buyphases of Industrial Buying § Problem recognition § Proposal solicitation § Purchasing/Procurement Process Eight Buyphases of Industrial Buying § Problem recognition § Proposal solicitation §](http://slidetodoc.com/presentation_image_h/d460c4d320cc4c7b941fffca0e4315dd/image-17.jpg)
Purchasing/Procurement Process Eight Buyphases of Industrial Buying § Problem recognition § Proposal solicitation § General need description § Supplier selection § Product specification § Supplier search © 2003 Prentice Hall, Inc. § Order-routine specification § Performance review To accompany A Framework for Marketing Management, 2 nd Edition 16
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