Organizational Buying

1
Organizational Buying Buyer Behavior

• Chapter 6

2
Business Marketing

• 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 produce and market to other business
  customers, as well as individuals and ultimate
  consumers.

3
Organization Buyers

• Those manufacturers, wholesalers, retailers, or
  government agencies which are buying the goods.
• Could be for their own consumption or resale
• Whats the difference between wholesale/retail
  and manufacturers?

4
Organizational Buyers

• Three types
• Industrial markets
• Reseller markets
• Government markets

5
Researching These Markets

• SIC?NAICS
• North American Industry Classification System
• Important researching tool

6
Organizational Buying Characteristics

• 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

7
B2B Characteristics

• Demand characteristics
• Derived demand
• Size of the Order or Purchase
• Much larger
• Number of Potential Buyers
• Fewer number of buyers

8
B2B Characteristics

• Organizational Buying Objectives
• Why do they buy the products?
• Organizational Buying Criteria
• What criteria do they use in choosing a vendor?
• ISO 9000
• Reverse marketing
• Wal-Mart and RFID

9
Buyer-Seller Relationship and Supply Partnerships

• B2B- Lengthy negotiations and contracts
• Reciprocity
• Supply partnerships
• PG Wal-Mart

10
The Buying Center

• Can be a person or committee
• Roles
• Users
• Influencers
• Buyers
• Deciders
• Gatekeepers
• Buying Classes
• Straight rebuy
• Modified rebuy
• New buy

11
B2B Buying Process

• Problem Recognition
• Make-buy decisions
• Information Search
• Value analysis
• Alternative Evaluation
• Bidders list
• Purchase Decision
• Post-purchase Behaviors

12
B2B Online

• 80 of all total dollar value of all online
  transactions
• E-Marketplaces
• Online auctions
• Traditional auctions
• Reverse auctions