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Organizational Buying & Buyer Behavior

Organizational Buying & Buyer Behavior. Chapter 6. Business Marketing.

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Organizational Buying & Buyer Behavior

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  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 • What’s 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 • P&G & 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 • Bidder’s 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

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