Se ha denunciado esta presentación.
Utilizamos tu perfil de LinkedIn y tus datos de actividad para personalizar los anuncios y mostrarte publicidad más relevante. Puedes cambiar tus preferencias de publicidad en cualquier momento.
Chapter No. O6
BUSINESSMARKETS&
BUSINESSBUYERBEHAVIOR.
Learning Outcome:
Business Markets.
Business Buyer Behavior.
The Business Buying Process.
Institutional & Government M...
Market:
“ A market is an area or a place where buyers and sellers
negotiate for the exchange of a well defined commodity.”
Business Market:
 A marketplace where organizations purchase raw material, natural
resources and component of other produ...
Consumer Market :
It is a market in
which buyer purchase
product and services
for Personal
Consumption.
Business Market:
I...
Characteristics Of Business Market:
 There Are 3 main characteristics of Business Market which are:
1) Market structure a...
Market structure and demand:
 Business markets contains fewer but larger buyers.
 Business buyer demand is derived from ...
Nature of the buying unit:
 Business purchases involves more buyers.
 Business buying involves a more professional purch...
Types of decision and the decision
process:
 Business buyers usually face more complex buying decisions.
 The business b...
Business Buyer Behavior
 Definition of Business buyer behavior
 General Model of business buyer behavior
 Major types o...
Definition of Business buyer behavior
Business buyer behavior refers to the buying
behavior of the organizations that buy ...
General Model of business buyer behavior
 The Marketing stimuli
 The Other stimuli
 The Buying organization
 Responses...
The Marketing stimuli
• Price
• Place
• Product
• Promotion
The Other stimuli
Additional stimuli include major economic forcesPolitical
• Political
• Economic
• Technological
• Cultu...
The Buying organization
Within a buying organization the buying activity consist of two major parts ;
I. The buying decisi...
Responses of Buying organization
• Product or service choice
• Supplier choice
• Order quantities
• Delivery
• Service
• P...
Major types of buying situations
• Straight rebuy
• Modified rebuy
• New task
Major Types of Buying Situations
Straight rebuy is a routine purchase decision such as a reorder
without any modification
...
Participants in Business Buying
Process:
Buying Center:
 All the individual and units that play a role in the purchase decision
making process.
 This group inclu...
Participants:
 There are five participant in the business buying process.
1. Users: Member of the buying organization who...
Buying process for:
 Simple purchases: These are routine purchases and one person may assume all
buying center roles.
 C...
Major Influences on Business
Buyers
Influences are the forces that affect the decisions of business buying processes.
Thes...
Influencing Factors:
 These factors affect the decisions of business buyers.
1. Environmental Factors
2. Organizational F...
1.Environmental Factors
Environmental
Factors
o The economy
o Competition
o Technology
o Supply Conditions
o Politics
o Cu...
2.Organizational Factors
Organizational
Factors
o Objectives
o Strategies
o Structure
o Systems
o Procedures
Every organiz...
3.Interpersonal Factors
Interpersonal
factors
o Influence
o Expertise
o Authority
o Dynamics
In buying center there are ma...
4.Individual Factors
Individual factors
o Age
o Education
o Job position
o Motives
o Personality
o Preferences
o Buying st...
Business Buyer
Organization
al factors
Individual
factors
Interpersonal
factors
Environment
al factors
The Buying Process
1. Problem recognition
2. General need description
3. Product specification
4. Value analysis
5. Suppli...
1.Problem recognition
It occurs when someone in the company recognizes a problem or need.
• Internal stimuli
• Need for ne...
2.General need description describes the characteristics and
quantity of the needed item.
3.Product specification describe...
7.Supplier selection is the process when the buying center creates
a list of desired supplier attributes and negotiates wi...
Institutional and
Government Markets
Institutional Markets:
 Consist of:
churches, schools, prisons, hospitals, nursing homes and other institutions,
that pro...
Institutional Markets:
 Often characterized by low budgets and captive patrons.
 Marketers may develop separate division...
Government Markets:
 Governmental units which may be,
 federal,
 state, or,
 local,
that purchase or rent goods and se...
Government Markets:
 More than 82,000 buying units.
 Require suppliers to submit bids.
 Favor domestic suppliers.
 Ext...
Government buyers often favor:
 Depressed business firms and areas
 Small businesses
 Minority-owned businesses
 Firm...
Most firms that sell to government buyers
are not marketing oriented.
Some companies have separate
government marketing ...
Próxima SlideShare
Cargando en…5
×

Business Markets & Business Buyer Behaviour

10.515 visualizaciones

Publicado el

Chapter No.6 Principles of Marketing

Publicado en: Marketing
  • Inicia sesión para ver los comentarios

Business Markets & Business Buyer Behaviour

  1. 1. Chapter No. O6 BUSINESSMARKETS& BUSINESSBUYERBEHAVIOR.
  2. 2. Learning Outcome: Business Markets. Business Buyer Behavior. The Business Buying Process. Institutional & Government Markets.
  3. 3. Market: “ A market is an area or a place where buyers and sellers negotiate for the exchange of a well defined commodity.”
  4. 4. Business Market:  A marketplace where organizations purchase raw material, natural resources and component of other product for resale. OR  It is a market in which buyer purchase product and services for resale purposes.
  5. 5. Consumer Market : It is a market in which buyer purchase product and services for Personal Consumption. Business Market: It is a market in which buyer purchase product and services for resale purposes. Difference Between Consumer Market And Business Market •We Discussed Only Business Market.
  6. 6. Characteristics Of Business Market:  There Are 3 main characteristics of Business Market which are: 1) Market structure and demand. 2) Nature of the buying unit. 3) Types of decision and the decision process.
  7. 7. Market structure and demand:  Business markets contains fewer but larger buyers.  Business buyer demand is derived from final consumer demand.  Demand in many business markets is more inelastic.  Demand in business markets fluctuates more and more quickly.
  8. 8. Nature of the buying unit:  Business purchases involves more buyers.  Business buying involves a more professional purchasing effort.
  9. 9. Types of decision and the decision process:  Business buyers usually face more complex buying decisions.  The business buying process is more formalized.  In business buying, buyers and sellers work more closely together and build close long term relationships.
  10. 10. Business Buyer Behavior  Definition of Business buyer behavior  General Model of business buyer behavior  Major types of buying situations
  11. 11. Definition of Business buyer behavior Business buyer behavior refers to the buying behavior of the organizations that buy goods and services for use in production of other products and services that are sold, rented, or supplied to others. Also included are retailing and wholesaling firms that acquire goods to resell or rent to others for profit. 6-9
  12. 12. General Model of business buyer behavior  The Marketing stimuli  The Other stimuli  The Buying organization  Responses of Buying organization
  13. 13. The Marketing stimuli • Price • Place • Product • Promotion
  14. 14. The Other stimuli Additional stimuli include major economic forcesPolitical • Political • Economic • Technological • Cultural • Competitive
  15. 15. The Buying organization Within a buying organization the buying activity consist of two major parts ; I. The buying decision process II. The buying center
  16. 16. Responses of Buying organization • Product or service choice • Supplier choice • Order quantities • Delivery • Service • Payment terms
  17. 17. Major types of buying situations • Straight rebuy • Modified rebuy • New task
  18. 18. Major Types of Buying Situations Straight rebuy is a routine purchase decision such as a reorder without any modification Modified rebuy is a purchase decision that requires some research where the buyer wants to modify the product specification, price, terms, or suppliers New task is a purchase decision that requires thorough research such as a new product
  19. 19. Participants in Business Buying Process:
  20. 20. Buying Center:  All the individual and units that play a role in the purchase decision making process.  This group includes:  Actual user of the product and services,  Those who make the buying decision,  Those who influence the buying decision,  Those who do the actual buying,  And, those who control the buying information.
  21. 21. Participants:  There are five participant in the business buying process. 1. Users: Member of the buying organization who will actually use the purchased product or service 2. Influencers: People in an organization’s buying center who affect the buying decision 3. Buyers: People in an organization’s buying center who make an actual purchase 4. Deciders: People in an organization’s buying center who have formal or informal power to select or approve the final suppliers. 5. Gatekeepers: People in an organization’s buying center who control the flow of information to others.
  22. 22. Buying process for:  Simple purchases: These are routine purchases and one person may assume all buying center roles.  Complex purchases: The buying center includes more than one person.
  23. 23. Major Influences on Business Buyers Influences are the forces that affect the decisions of business buying processes. These may be economic factors or personal emotions.
  24. 24. Influencing Factors:  These factors affect the decisions of business buyers. 1. Environmental Factors 2. Organizational Factors 3. Interpersonal Factors 4. Individual Factors
  25. 25. 1.Environmental Factors Environmental Factors o The economy o Competition o Technology o Supply Conditions o Politics o Culture o Custom • Current and Expected economic environment, • Competitive developments or advantages in the environment, • Advancement in Technology, • Supply of raw material, • Cultures and customs strongly influence business buyer reactions to marketer’s behavior and strategies, especially in international marketing environment.
  26. 26. 2.Organizational Factors Organizational Factors o Objectives o Strategies o Structure o Systems o Procedures Every organization has it’s own: objectives, strategies, structure, systems, and, procedures, and marketers must understand these well.
  27. 27. 3.Interpersonal Factors Interpersonal factors o Influence o Expertise o Authority o Dynamics In buying center there are many participants who influence each other. The influence may be due to special expertise, authority or have special relationship with other important participants.
  28. 28. 4.Individual Factors Individual factors o Age o Education o Job position o Motives o Personality o Preferences o Buying style Every individual has his own perceptions, preferences, personality and attitudes towards risk taking. These individual factors affect buying process.
  29. 29. Business Buyer Organization al factors Individual factors Interpersonal factors Environment al factors
  30. 30. The Buying Process 1. Problem recognition 2. General need description 3. Product specification 4. Value analysis 5. Supplier search 6. Proposal solicitation 7. Supplier selection 8. Order-routine specifications 9. Performance review
  31. 31. 1.Problem recognition It occurs when someone in the company recognizes a problem or need. • Internal stimuli • Need for new product or production equipment. • External stimuli • Idea from a trade show or advertising.
  32. 32. 2.General need description describes the characteristics and quantity of the needed item. 3.Product specification describes the technical criteria. 4.Value analysis is an approach to cost reduction where components are studied to determined if they can be redesigned, standardized, or made with less costly methods of production. 5.Supplier search involves compiling a list of qualified suppliers. 6.Proposal solicitation is the process of requesting proposals from qualified suppliers.
  33. 33. 7.Supplier selection is the process when the buying center creates a list of desired supplier attributes and negotiates with preferred suppliers for favorable terms and conditions. 8.Order-routine specifications is the final order with the chosen supplier and lists all of the specifications and terms of the purchase. 9.Performance review involves a critique of supplier performance to the purchase terms.
  34. 34. Institutional and Government Markets
  35. 35. Institutional Markets:  Consist of: churches, schools, prisons, hospitals, nursing homes and other institutions, that provide goods and services to people in their care.
  36. 36. Institutional Markets:  Often characterized by low budgets and captive patrons.  Marketers may develop separate divisions and marketing mixes to service institutional markets.
  37. 37. Government Markets:  Governmental units which may be,  federal,  state, or,  local, that purchase or rent goods and services for carrying out the main functions of government.
  38. 38. Government Markets:  More than 82,000 buying units.  Require suppliers to submit bids.  Favor domestic suppliers.  Extensive paperwork is required from suppliers.
  39. 39. Government buyers often favor:  Depressed business firms and areas  Small businesses  Minority-owned businesses  Firms which practice non-discriminatory practices
  40. 40. Most firms that sell to government buyers are not marketing oriented. Some companies have separate government marketing departments. Much of government buying has migrated online.

×