Chapter 7 Organizational Buyer Behavior of Group Market

“The ideal salesperson in the company meetings segment isn’t a salesperson in the traditional sense, but rather the problem-solver. ” Robert C. Mackey © 2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism, and 4 th. Tourism, edition 4 th edition Kotler, Bowen, and. Makens

Chapter Objectives • Understand the organizational buying process • Identify and discuss the importance of the participants in the organizational buying process © 2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism, and 4 th. Tourism, edition 4 th edition Kotler, Bowen, and. Makens

Chapter Objectives • Identify the major influences on organizational buyers • List the eight stages of the organizational buying process • Identify and describe the group markets in the hospitality industry © 2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism, and 4 th. Tourism, edition 4 th edition Kotler, Bowen, and. Makens

The Organizational Buying Process • Market Structure and Demand – Organizational demand is derived demand; it comes ultimately from the demand for consumer goods or services © 2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism, and 4 th. Tourism, edition 4 th edition Kotler, Bowen, and. Makens

The Organizational Buying Process • Organizational buying decisions tend to be more complex than consumer decisions • The organizational buying process tends to be more formal than the consumer process © 2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism, and 4 th. Tourism, edition 4 th edition Kotler, Bowen, and. Makens

Participants in the Organizational Buying Process • A buying center is all those individuals and groups who participate in the purchasing decision-making process, who share common goals and the risks arising from the decisions © 2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism, and 4 th. Tourism, edition 4 th edition Kotler, Bowen, and. Makens

Participants in the Organizational Buying Process Users Influencers Ethical Decision. Unexpected Situational Factors Roles Include Deciders Making Unit of a Buying Organization is Called Its. Attitudes Buying of Center. Others Approvers Gatekeepers © 2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Buyers Marketing for Marketing Hospitality forand Hospitality Tourism, and 4 th. Tourism, edition 4 th edition Kotler, Bowen, and. Makens

Major Influences on Organizational Buyers © 2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism, and 4 th. Tourism, edition 4 th edition Kotler, Bowen, and. Makens

Organizational Buying Decisions 1. Problem Recognition 5. Proposal Solution 2. General Need Description 6. Supplier Selection 7. Order-Routine 3. Product Specification 4. Supplier Research © 2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 8. Performance Review Marketing for Marketing Hospitality forand Hospitality Tourism, and 4 th. Tourism, edition 4 th edition Kotler, Bowen, and. Makens

Problem Recognition • Problem recognition is when someone in a company recognizes a problem or need that can be met by acquiring a good or a service • Problem recognition can occur because of internal and external stimuli © 2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism, and 4 th. Tourism, edition 4 th edition Kotler, Bowen, and. Makens

General Need Description • General need description is when a company describes the general characteristics and quantity of a needed item • What are some items that would be included in a general needs description for a training meeting? © 2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism, and 4 th. Tourism, edition 4 th edition Kotler, Bowen, and. Makens

Product Specification • Product specification is when the buying organization decides on and specifies the best technical product characteristics for a needed item • What are some items that would be included in a product specification description for a training meeting? © 2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism, and 4 th. Tourism, edition 4 th edition Kotler, Bowen, and. Makens

Supplier Search • Supplier search is when a buyer tries to find the best vendor • What are the best ways for buyers to identify suppliers? © 2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism, and 4 th. Tourism, edition 4 th edition Kotler, Bowen, and. Makens

Proposal Solution • Proposal solution is when qualified suppliers are invited to submit proposals • What are some important tools for writing and researching a proposal? © 2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism, and 4 th. Tourism, edition 4 th edition Kotler, Bowen, and. Makens

Supplier Selection • Supplier selection is when a buyer receives proposals and selects a supplier or suppliers • What are the six attributes that meeting planners consider when selecting a location © 2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism, and 4 th. Tourism, edition 4 th edition Kotler, Bowen, and. Makens

Order-Routine Specification • Order-routine specification when a buyer writes the final order with the chosen supplier(s), listing the technical specifications, quantity needed, expected time of delivery, return policies, warranties, and so on © 2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism, and 4 th. Tourism, edition 4 th edition Kotler, Bowen, and. Makens

Performance Review • Performance review is when a buyer rates its satisfaction with suppliers, deciding whether to continue, modify, or drop the relationship © 2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism, and 4 th. Tourism, edition 4 th edition Kotler, Bowen, and. Makens

Group Business Markets • • • Conventions Association Meetings Corporate Meetings Incentive Travel SMERFs – Social, military, educational, religious, and fraternal organizations © 2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism, and 4 th. Tourism, edition 4 th edition Kotler, Bowen, and. Makens

Dealing with Meeting Planners • The hotel salesperson must look for items that will create value for the meeting planner without creating costs or sacrificing revenue for the hotel • Meeting planners expect timeliness and efficiency © 2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism, and 4 th. Tourism, edition 4 th edition Kotler, Bowen, and. Makens

The Corporate Account and Corporate Travel Manager • Highly sought after segment • 10% to 40% • More likely to use hotel services (restaurants, laundry, etc. ) © 2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism, and 4 th. Tourism, edition 4 th edition Kotler, Bowen, and. Makens

Best Practice • Don Walter – Convention Liaison Council’s Hall of Leaders © 2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism, and 4 th. Tourism, edition 4 th edition Kotler, Bowen, and. Makens

Key Terms • Buying center • Convention • Corporate meeting • Derived demand • General need description © 2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism, and 4 th. Tourism, edition 4 th edition Kotler, Bowen, and. Makens

Key Terms • Incentive travel • Order-routine specification • Organizational buying process • Performance review • Problem recognition © 2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism, and 4 th. Tourism, edition 4 th edition Kotler, Bowen, and. Makens

Key Terms • Product specification • SMERF • Supplier search • Supplier selection © 2006 Pearson Education, Inc. Upper Saddle River, NJ 07458 Marketing for Marketing Hospitality forand Hospitality Tourism, and 4 th. Tourism, edition 4 th edition Kotler, Bowen, and. Makens