Chapter 6 - Summary Principles of Marketing PDF

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Professor Terry Paul- Textbook Chapter 6...

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Chapter 6 

09/21/2015

Business buyer behavior- the buying behavior of the 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 includes buying behavior of retailing and wholesaling firms   Business buying process- business buyers determine which products and services their organization need to purchase and the find, evaluate, and choose among alternative suppliers/brands   MARKET STRUCTURE AND DEMAND  

Far fewer but far larger Derived demand-ultimately derives from the demand of consumer

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goods Inelastic and more fluctuating demand o Small percentage increase in consumer demand can cause large increases in business demand

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Nature of the buying unit  More decision participants  More professional purchasing effort  B-to-B marketers work with customers to define problems, solutions, and support  customize offerings  Supplier development- systematically developing networks or supplier partners to ensure a dependable supply of products and materials that they use in making their own products or reselling to others

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Major buying situations  Straight rebuy- the buyer reorders something without any 

modifications Modified rebuy- buyer wants to modify product specifications,

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prices, terms, or suppliers New task- buying a product or service for the first time Systems selling- selling of a complete system so buyer does not have to piece together

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PARTICIPANTS  Buying center- decision making unit of a buying organization  Users- members of the organization who will use the product or 

service Influencers- define specifications and also provide information or

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evaluating alternatives Buyers- formal authority to select supplier and arrange terms of

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purchase Deciders- formal or informal power to select or approve the final

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suppliers Gate keepers- control the flow of information to others

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Influences  Environmental- the economy, supply conditions, technology, 

politics/regulation, competition, culture and customs Organizational- objectives, strategies, structure, systems,

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procedures Interpersonal- influence, expertise, authority, dynamics Individual- age/education, job position, motives, personality, preferences, buying style

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Business Buying Process

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1) Problem Recognition- someone in the company recognizes a

problem or need that can be met by acquiring a specific product or service  2) General needs description- characteristics and quantity of the needed item  3) product specifications  4) supplier search  5) proposal solicitation- the buyer invites qualified suppliers to submit proposals  6) supplier selection  7) order routine specification- final order with chose supplier and lists technical specifications , quantity, warranty time  8) Performance Review   e-procurement- online purchasing

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reverse auctions, trading exchanges, company buying sites

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institutional market- schools, hospitals, nursing homes, prisons, and

other institutions that provide goods and services to people in their care  

government market- offers large opportunities for many companies,

major buyer of goods and services

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