1. NUML(KARACHI
CAMPUS)
NAME:WAQAR AHMED
CLASS:BBA-III
SUBJECT: Marketing
6-1

2. Business Markets and
Business Buyer Behavior
Chapter 6

3. Learning Goals
1. Define the business market and how it
differs from consumer markets
2. Identify the major factors that influence
business buyer behavior
3. List and define the steps in the business
buying decision process
4. Compare the institutional and government
markets and explain how they make their
buying decisions
6-3

4. Characteristics of
Business Markets
 Sales in the business market far exceed
sales in consumer markets.
 Business markets differ from consumer
markets in many ways.
• Marketing structure and demand
• Nature of the buying unit
• Types of decisions and the decision process
6-4
Goal 1: Define the business market

5. Business Markets
Characteristics Compared to
consumer markets:
 Business markets
Marketing Structure • have fewer but larger
customers
and Demand  Business customers
Nature of the • are more
Buying Unit geographically
concentrated
Types of Decisions  Demand is different
and the Decision • Demand is derived
• Demand is price
Process inelastic
• Demand fluctuates
more
6-5
Goal 1: Define the business market

6. Business Markets
Characteristics Compared to consumer
purchases:
Marketing Structure  Involve more buyers in
and Demand the decision process
 More professional
Nature of the
purchasing effort
Buying Unit
Types of Decisions
and the Decision
Process
6-6
Goal 1: Define the business market

7. Business Markets
Characteristics Compared to consumer
purchases
 More complex buying
Marketing Structure decisions
and Demand  The buying process is
Nature of the more formalized
Buying Unit  Buyers and sellers work
Types of Decisions more closely together
and the Decision and build long-term
Process relationships
6-7
Goal 1: Define the business market

8. Definition
Business Buyer Behavior:
 The buying behavior of organizations that buy
goods and services for use in the production of
other products and services that are sold, rented,
or supplied to others.
 Also included are retailing and wholesaling firms
that acquire goods for the purpose of reselling or
renting them to others at a profit.
6-8
Goal 1: Define the business market

9. Business Buyer Behavior
Major Types of Buying Situations
 Straight rebuy
• Reordering without modification
 Modified rebuy
• Requires modification to prior
purchase
 New task
• First-time purchase
6-9
Goal 1: Define the business market

10. Business Buyer Behavior
Systems Selling
 Buying a packaged solution to a
problem from a single seller.
 Often a key marketing strategy for
businesses seeking to win and hold
accounts.
6 - 10
Goal 1: Define the business market

11. Business Buyer Behavior
Buying Center
 The decision-making unit of a
buying organization
 Includes all individuals and units
that participate in the decision
making
6 - 11
Goal 1: Define the business market

12. Business Buyer Behavior
Members of the Buying Center
Users Influencers
Buyers Deciders
Gatekeepers
6 - 12
Goal 1: Define the business market

13. Major Influences on
Business Buyers
Key Factors Economic trends
Supply conditions
Technological, political
Environmental and competitive
Organizational changes
Interpersonal Culture and customs
Individual
6 - 13
Goal 2: Identify the major factors that influence business buyer behavior

14. Major Influences on
Business Buyers
Key Factors Objectives
Policies
Environmental Procedures
Organizational Organizational
Interpersonal structure
Systems
Individual
6 - 14
Goal 2: Identify the major factors that influence business buyer behavior

15. Major Influences on
Business Buyers
Key Factors Influence of
members in the
Environmental buying center
 Authority
Organizational  Status
Interpersonal  Empathy
Individual  Persuasiveness
6 - 15
Goal 2: Identify the major factors that influence business buyer behavior

16. Major Influences on
Business Buyers
Key Factors Personal characteristics
of members in the buying
center
Environmental 

Age and income
Education
Organizational  Job position
 Personality
Interpersonal  Risk attitudes
Buying styles
Individual

6 - 16
Goal 2: Identify the major factors that influence business buyer behavior

17. Stages in the Business
Buying Process
Stage 1: Problem Recognition
Stage 2: General Need Description
Stage 3: Product Specification
 Value analysis helps to reduce
costs
Stage 4: Supplier Search
 Supplier development
6 - 17
Goal 3: List and define the steps in the business buying decision process

18. Stages in the Business
Buying Process
Stage 5: Proposal Solicitation
Stage 6: Supplier Selection
Stage 7: Order-Routine
Specification
 Blanket contracts are often used
for maintenance, repair and
operating items.
Stage 8: Performance Review
6 - 18
Goal 3: List and define the steps in the business buying decision process

19. Business Buying
on the Internet
 E-procurement is growing rapidly
 Online auctions and online trading
exchanges (e-marketplaces) account for
much of the online purchasing activity
 E-procurement offers many benefits:
• Access to new suppliers
• Lower purchasing costs
• Quicker order processing and delivery
6 - 19
Goal 3: List and define the steps in the business buying decision process

20. Institutional and
Government Markets
Institutional Markets
 Consist of churches, schools,
prisons, hospitals, nursing homes
and other institutions that provide
goods and services to people in
their care.
6 - 20
Goal 4: Compare the institutional and government markets

21. Institutional and
Government Markets
Institutional Markets
 Often characterized by low budgets
and captive patrons.
 Marketers may develop separate
divisions and marketing mixes to
service institutional markets.
6 - 21
Goal 4: Compare the institutional and government markets

22. Government Markets
• More than 82,000 buying units in
the U.S.
• Require suppliers to submit bids
and often give job to lowest
bidder
• Favor domestic suppliers
• Much “red tape” can exist
6 - 22
Goal 4: Compare the institutional and government markets