CHAPTER

1. 19 CHAPTER ORGANIZATIONAL BUYER BEHAVIOR 19-1

2. Organizational Buyer Behavior Overall Model of Organizational Buyer Behavior 19-2

3. Organizational Purchase Process • Decision-Making Unit • Purchase Situation • Steps in the Organizational Decision Process • The Internet’s Role in the Organizational Decision Process 19-3

4. Organizational Purchase Process Decision-Making Unit Can Vary Over the Product Life Cycle: Microprocessor Purchasing by OEM 19-4

5. The formal information search process can include • site visits to evaluate a potential vendor • lab tests of a new product or prototype, and • investigation of possible product specification • The informal information search process can include • discuss with sales representatives • attend trade shows • read industry-specific journals Organizational Purchase Process Information Search Information search can be both formal and informal 19-5

6. Organizational Purchase Process The Internet’s Role in the Organizational Decision Process The Internet rivals salespeople, trade shows, and trade magazines as a source of information and influence: 19-6

7. External Factors Influencing Organizational Culture Firmographics • Size • Activities and Objectives • Location • Industry Category • Organizational Composition • Macrosegmentation 19-7 Slide 7-9

8. 20 CHAPTER MARKETING REGULATION AND CONSUMER BEHAVIOR 19-8

9. Regulation and Marketing to Children • Self-Regulatory Body • The National Advertising Division of the Council of Better Business Bureaus is the primary self-regulatory body of the American advertising industry. • The Children’s Advertising Review Unit (CARU) is a special unit created by this body to review advertising aimed at children. 19-9

10. Regulation and Marketing to Children Comprehension Concerns Information-Processing-Related Guidelines of CARU 19-10

11. Regulation and Marketing to Children • CARU Guidelines Relating to Message Content • Five General Guidelines: • Communicate in truthful manner using understandable language • Address advertising to positive social behaviors • Present positive pro-social role models • Contribute positively to the parent-child relationship • Avoid marketing inappropriate products directly to children 19-11

12. Regulation and Marketing to Children Mobile Marketing and Children Sometimes referred to as the “Third Screen,” cell phones are an increasingly integral part of our lives. Marketers see younger children as the next big growth market. • Mobile Marketing Efforts • ringtones • mobile games • text-in contests 19-12

13. Regulation and Marketing to Children • Commercialization of Schools • There has been ongoing concern and controversy around the commercialization of elementary and high schools. • The following are commercialization activities as classified by the Consumers Union: • In-school Ads • Ads in Classroom • Corporate-sponsored Educational Materials and Programs • Corporate-sponsored Contests and Incentives Programs 19-13

14. Regulation and Marketing to Children Internet Marketing and Children Children are major users of the internet, and marketers use the Internet to communicate with kids. • Two major concerns have emerged: • Invading children’s privacy • Exploitation of children through manipulative sales techniques, e.g., adver-games. 19-14

15. Regulation and Marketing to Children Children’s Online Privacy Issues • Children’s Online Privacy Protection Act (COPPA) • Online privacy relates to collection and use of information from websites • COPPA passed by Congress in 1998 • Authorizes the FTC to develop specific rules to implement the provisions of the act 19-15

16. Regulation and Marketing to Adults Marketing Communications • Personal Information • Consumer Information Accuracy 19-16 Slide 7-9