Organizational Buying & Buyer Behavior Chapter 6
Business Marketing n “Marketing of goods or services to commercial enterprises, governments, and other profit and non-profit organizations for use in the creation of goods and services that they then produce and market to other business customers, as well as individuals and ultimate consumers. ”
Organization Buyers n Those manufacturers, wholesalers, retailers, or government agencies which are buying the goods. n n Could be for their own consumption or resale What’s the difference between wholesale/retail and manufacturers?
Organizational Buyers n Three types Industrial markets n Reseller markets n Government markets n
Researching These Markets n SIC→NAICS n n North American Industry Classification System Important researching tool
Organizational Buying Characteristics n n n n Demand Characteristics Size of the Order or Purchase Number of Potential Buyers Organizational Buying Objectives Organizational Buying Criteria Buyer-Seller Relationship and Supply Partnerships The Buying Center
B 2 B Characteristics n Demand characteristics n n Size of the Order or Purchase n n Derived demand Much larger Number of Potential Buyers n Fewer number of buyers
B 2 B Characteristics n Organizational Buying Objectives n n Why do they buy the products? Organizational Buying Criteria What criteria do they use in choosing a vendor? n ISO 9000 n Reverse marketing n n Wal-Mart and RFID
Buyer-Seller Relationship and Supply Partnerships n B 2 B- Lengthy negotiations and contracts Reciprocity n Supply partnerships n n P&G & Wal-Mart
The Buying Center n n Can be a person or committee Roles n n n Users Influencers Buyers Deciders Gatekeepers Buying Classes n n n Straight rebuy Modified rebuy New buy
B 2 B Buying Process n Problem Recognition n n Information Search n n n Value analysis Alternative Evaluation n n Make-buy decisions Bidder’s list Purchase Decision Post-purchase Behaviors
B 2 B Online n n n 80% of all total dollar value of all online transactions E-Marketplaces Online auctions Traditional auctions n Reverse auctions n
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