Principles of Marketing

Quarter 1 – Module 7
Title : Consumer and
Organizational Markets
Principles of Marketing
Alternative Delivery Mode
Quarter 1 – Module 7: Title: Consumer and Organizational Markets
First Edition, 2020

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Principles of Marketing
Quarter 1 – Module 7:
Consumer Behavior
Introductory Message
For the facilitator:

Welcome to the PRINCIPLES OF MARKETING Alternative Delivery Mode (ADM)

Module on Consumer and Organizational Markets!

This module was collaboratively designed, developed and reviewed by educators

both from public and private institutions to assist you, the teacher or facilitator in
helping the learners meet the standards set by the K to 12 Curriculum while
overcoming their personal, social, and economic constraints in schooling.

This learning resource hopes to engage the learners into guided and independent
learning activities at their own pace and time. Furthermore, this also aims to help
learners acquire the needed 21st century skills while taking into consideration
their needs and circumstances.

In addition to the material in the main text, you will also see this box in the body of
the module:

Notes to the Teacher

This contains helpful tips or strategies
that will help you in guiding the learners.

As a facilitator you are expected to orient the learners on how to use this module.
You also need to keep track of the learners' progress while allowing them to
manage their own learning. Furthermore, you are expected to encourage and assist
the learners as they do the tasks included in the module.

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For the learner:

Welcome to the Principles of Marketing Alternative Delivery Mode (ADM) Module on

Consumer and Organizational Markets!

The hand is one of the most symbolized part of the human body. It is often used to
depict skill, action and purpose. Through our hands we may learn, create and
accomplish. Hence, the hand in this learning resource signifies that you as a
learner is capable and empowered to successfully achieve the relevant
competencies and skills at your own pace and time. Your academic success lies in
your own hands!

This module was designed to provide you with fun and meaningful opportunities
for guided and independent learning at your own pace and time. You will be
enabled to process the contents of the learning resource while being an active
learner.

This module has the following parts and corresponding icons:

What I Need to Know This will give you an idea of the skills or
competencies you are expected to learn in
the module.

What I Know This part includes an activity that aims to

check what you already know about the
lesson to take. If you get all the answers
correct (100%), you may decide to skip this
module.

What’s In This is a brief drill or review to help you link

the current lesson with the previous one.

What’s New In this portion, the new lesson will be

introduced to you in various ways such as a
story, a song, a poem, a problem opener, an
activity or a situation.

What is It This section provides a brief discussion of

the lesson. This aims to help you discover
and understand new concepts and skills.

What’s More This comprises activities for independent

practice to solidify your understanding and
skills of the topic. You may check the
answers to the exercises using the Answer
Key at the end of the module.

What I Have Learned This includes questions or blank

sentence/paragraph to be filled in to

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 process what you learned from the lesson.

What I Can Do This section provides an activity which will

help you transfer your new knowledge or
skill into real life situations or concerns.

Assessment This is a task which aims to evaluate your

level of mastery in achieving the learning
competency.

Additional Activities In this portion, another activity will be given

to you to enrich your knowledge or skill of
the lesson learned. This also tends
retention of learned concepts.

Answer Key This contains answers to all activities in the

module.

At the end of this module you will also find:

References This is a list of all sources used in

developing this module.

The following are some reminders in using this module:

1. Use the module with care. Do not put unnecessary mark/s on any part of
the module. Use a separate sheet of paper in answering the exercises.
2. Don’t forget to answer What I Know before moving on to the other activities
included in the module.
3. Read the instruction carefully before doing each task.
4. Observe honesty and integrity in doing the tasks and checking your
answers.
5. Finish the task at hand before proceeding to the next.
6. Return this module to your teacher/facilitator once you are through with it.
If you encounter any difficulty in answering the tasks in this module, do not
hesitate to consult your teacher or facilitator. Always bear in mind that you are
not alone.

We hope that through this material, you will experience meaningful learning
and gain deep understanding of the relevant competencies. You can do it!

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 What I Need to Know

This module was designed and written with you in mind. It is here to help you
master the nature and characteristics of Consumer and the organizational markets
and their buying behaviour. The scope of this module permits it to be used in many
different learning situations. The language used recognizes the diverse vocabulary
level of students. The lessons are arranged to follow the standard sequence of the
course. But the order in which you read them can be changed to correspond with
the textbook you are now using.

The module is divided into three lessons, namely:

 Lesson 1 –Consumer Markets
 Lesson 2 –Consumer Behavior
 Lesson 3 –Organizational Markets & its Buying Behavior

After going through this module, you are expected to:

1. Identify what constitute the consumer markets;
2. explain the consumer buying process;
3. Understand the different buying roles of consumer;
4. Analyze the different factors affecting consumer behavior;
5. Describe the different organizational markets;
6. Explain the organizational markets buying process
7. Determine the factors involved when buying a product
 What I Know

Choose the letter of the best answer. Write the chosen letter on a separate sheet of
paper.

1. These are products that are purchased for ultimate consumption.

a. Buyer’s choice
b. Consumer goods
c. Food Shelter and Clothing
d. Packaging

2. They make purchases in smaller quantities, due to their tendency to use

products gradually over a period of time.
a. Alternative evaluator
b. Consumer
c. Company owners
d. Seller

3. This refers to how an individual is raised, his educational background, the

collective behavior of his family and the society where he belongs.
a. Birth
b. Class
c. Culture
d. Well Being

4. These refer to all the individuals and companies who purchase goods and
services for some use other than personal consumption.
a. Buy and Sell businesses
b. Influencers
c. Organizational Markets
d. Wholesalers

5. The person who actually consumed the product/service bought.

a. Buyer
b. Initiator
c. Decider
d. User
 Lesson

1 CONSUMER MARKETS

Why do you call for Jollibee Delivery Hotline whenever you have a craving for
chicken joy and their classic spaghetti? Why does your mother stock canned goods
in your cabinet? Why does your best friend travel far just to purchase his favorite
coffee when the local coffee shop is much closer in his area? The answer to these
questions are not obvious, but they directly affect every aspect of marketing
strategy, including the development of a particular product, the level it is priced,
and the way it is promoted. This lesson focuses on individual purchasing behavior
which applies to all of us as consumers. Consumer behaviour is the process
through which the ultimate buyer makes purchase decision from bath soap to
gadgets to automobile.

What’s In

In order to gain knowledge on the process involved when purchasing a product.

Answer the following questions related to the latest purchase you made. Take note
to think of a huge purchase which required a lot of deliberation, such as computer,
laptop, mobile phone, tablet, shoes, book, etc.

1. What particular product did you purchase?

_____________________________________________________________________
2. What led you to consider purchasing the product?
___________________________________________________________________________

3. Who were involved in the decision-making and how?

___________________________________________________________________________

“Know what your customers want most and what your

company does best. Focus on where those two meet.”
-Kevin Stirtz
Web Marketing Consultant
 What’s New

Consumer Markets Defined

Consumer markets include individuals and/or households who purchase products
and services for own personal consumption. They normally make purchases in
smaller quantities, due to their tendency to consume products gradually over a
period of time.

The Consumer Buying Process

The consumer buying process shows the steps a buyer goes through when
purchasing a product or service. It is vital that a marketer knows this process to
better comprehend how consumer buys a product.

Figure 1. The Consumer Buying Process

Need/Problem Recognition
STEP1

Information Research
STEP2

Alternative Evaluation
STEP3

Purchase Decision
STEP4

Post-Purchase Behavior
STEP5
 What is It

Consumer Buying Roles

There are five roles individuals may portray in a consumer buying decision:

INITIATOR Person who initially suggest buying a particular product or

service

INFLUENCE Person who tries to convince others of the need for the
R product/service and influences the purchase decision.

DECIDER The person who makes the final decision to purchase or makes
the final decision on any product/service components such as
what to buy, how to buy, where to buy, etc.

BUYER The person who makes the actual purchase

USER The person who actually uses the product/service whether or not
he was involved in the buying decision.

A basic example would be a mother in a family may suggest to her husband that
since their oldest son is about to start going to senior high school, it may be time
for their son to have his own laptop to be used for school projects and assignments.
The younger son will agree with the suggestion and inform his parents of its
practicality of providing him with a laptop. Further, his aunt suggests of a certain
brand and specific software that will fit his needs as a senior high school student.
In this case, both the younger brother and his aunt are the influencers. The father
may visit several electronic appliance stores, until he decides on the purchase and
pays for the laptop. The father is both the decider and the buyer. The eldest son
receives the laptop and uses it for his own personal consumption. He is the user.
 What’s More

Activity 8.1. SENTENCE COMPLETION

Read the statements below. Fill in the missing word/s by choosing from the set of
words. Write the letter of your chosen answer.

A. Buying C. Search E. Product

B. Initiator D. Steps F. Word of Mouth

1. The consumer buying process outlines the _____ a consumer goes

through when buying a particular product.
2. After having recognized the need, the consumer will ____ for ways to
address the need and solve the same.
3. The first step in the consumer _________ process is the most important
of all which is identifying the need or problem.
4. Marketers must recognize that both satisfied and dissatisfied
customers can promote or destroy a brand’s image through
__________.
5. ________ is a person who is the first to suggest buying a product or
service.
 What I Have Learned

1. Consumer markets include individuals and/or households who purchase

products and services for personal consumption.
2. Consumers tend to be emotional when they purchase product and/or
service.
3. Consumers’ diverse cultures have huge effect in creating product design and
marketing.
4. Consumer needs are defined as physiological necessities for human survival.
5. There is a step-by-step process a consumer undergo when buying product
or service.
6. The consumer’s purchases are initiated by a marketing stimuli. Marketing
stimuli refers to the elements of the marketing mix, product, price, place,
and promotion
7. The initial step in the consumer buying process is the most important of all
because failure of a consumer to recognize his need or problem will not
result in any sale.
8. There are consumer buying roles involved when purchasing a particular
product/service.
9. After the purchase, the consumer shall make judgement of the
product/service’s ability to satisfy his recognized need or problem. If the
customer is satisfied, he may, at the next instance of recognizing same need
or problem, will become a loyal customer of the brand.
10. The consumer’s buying role become more evident as purchases become
more complex.
 What I Can Do

Activity 8. 1.1 Observe and Ask

Observe two (2) adult members of your family. Ask them on their preferred
personal care or toiletries brand. Make a written observation report of their buying
and decision making process. Classify shopping behaviors with certain population
segments such as men, women, teenager, middle-aged, wealthy, middle-class, etc.
Document and evaluate your observation in essay form.
 Assessment

Multiple Choice. Choose the letter of the best answer. Write the chosen letter on
space provided.

A. Buyer F. Influencer

B. Consumer Market G. Problem/Need Recognition

C. Decider H. Purchase Decision

______ 1. This process is done after evaluating the brands of products

that will best address the consumer’s need.
______ 2. These are individual or households who purchase products
for personal consumption.
______ 3. These are concerns known by the consumer through
stimuli.
______ 4. He makes the final choice to purchase on a
product/service.
______ 5. He is the person who makes the actual purchase.
 Additional Activities

Activity 8.1.2. Understanding the Consumer

You are to experience what the buying behavior process really is. In the diagram
below, you will have to work through various decision stages from defining your
own personal style, preference and need, doing information research up to last
phase which is the after purchase behavior. Write your answers in the boxes
provided.
Answer Key
 What I Know

Read each statement carefully. Choose the letter of the best answer.

1. The broadest environmental determinant of consumer behavior. ____

a. Beliefs
b. Culture
c. Education
d. Family

2. The factor that involves the age, social status, occupation and economic
circumstances of a consumer. ____
a. Culture
b. Personal
c. Psychological
d. Social

3. This factor refers to how an individual behaves based on his beliefs,

learning, perception and attitudes. ____
a. Behavioral
b. Personal
c. Psychological
d. Social

4. An important element in marketing which expresses influence the consumer

on purchasing a product/service. _____
a. Aspirational factors
b. Consumer Market
c. Marketing Stimuli
d. Subcultural factors

5. This refers to the process by which people translate sensory impressions into
a coherent and unified view of the world around them. _____
a. Lifestyle
b. Perception
c. Personality
d. Values
 Lesson
Consumers’ Buying
2 Behavior

Consumers are of different genders and ages. They have varying income or salary
levels, come from different regions of the country, and have different personalities
and psychological profiles. Hence, developing ways to sell to consumers is much
difficult as they are influenced by different factors when buying product or services.
This lesson will focus on how consumers consider his culture, values, social,
personal and psychological aspect of his personality when buying a product or
service.

What’s In

Give three (3) examples of products or service that you would buy without
much thinking.

Is there anything that the above three products have in common? What is
it? ________________________________________________________________________

___________________________________________________________________________

“Consumer behavior is the study of individuals and

organizations and how they select and use products and
services. It is mainly concerned with psychology,
motivations, and behavior.”
-Kit Smith
 What’s New

Factors That Affect Consumer Behavior

Consumers’ purchases are initiated by marketing stimuli and are influenced by the
product or service that they see and hear from mass media, the internet and
through the word of mouth. The way we perceive, react, or are affected by products
and services is a function of a host of factors. The following are factors that tend to
have an effect on consumer behaviour.

Figure 1. Factors affecting Consumer Behavior

SOCIAL PSYCHOLOGICAL PERSONAL

CULTURE FACTORS
FACTORS FACTORS
overall culture reference motivation, age, gender, life
of a group of groups, family, perception, cycle stage,
people roles and status learning, beliefs occupation and
and attitudes economic
circumstances

Cultural characteristics particularly play a huge role in consumer interest and

eventual purchase. Products and services must “fit” the cultural background of the
buyer and not run contrary to it. While, personality refers to individual differences
in characteristic patterns of thinking, feeling and behaving. The individual
personalities of consumers also affect their buying behavior. Perception is the
process by which people translate sensory impressions into a coherent and unified
view of the world around them.
 What is It

Types of Buying Behavior

The act and process of purchase is, in itself, the function of a goal. The consumer
felt a state of need and has the urge to address it. So what we now have is a
motivated consumer. Motivated consumers can now proceed to engage in a
number of behavior that they may deem necessary in order to achieve their goal.
This includes information gathering, information processing and generating
conclusions about the products. The level of motivation, however, will vary
depending on how the consumer relates with the object of involvement or the
product being sought. The consumer’s attitude toward the product can affect the
buying relationship as well. If the product that is considered expensive, very
important or durable in nature, then the consumer will spend lot of time being
involved in its purchase-something known as high effort. Whereas, if the consumer
does not have much stake at its purchase, if its considered inexpensive or of no
importance, then the consumer will tend to have less of an involvement in the
buying process-also known as effort behaviour.

Four Different Types of Buying Behavior (Assael, 1995)

HIGH INVOLVEMENT LOW INVOLVEMENT

Significant COMPLEX BUYING VARIETY-SEEKING

Difference
BEHAVIOR BEHAVOR
Between Brands

Few Differences DISSONANCE-REDUCING HABITUAL BUYING

Between Brands BUYING BEHAVIOR BEHAVIOR
 What’s More

Activity 8.2.1.
Learning the Skill: Identify the different factors affecting buying behaviors of
consumers. Read carefully the following sentences. Choose the letter of your best
answer.

A. Complex Buying B. Emotional Decisions C. Lifecycle

Behavior
D. Socio-economic class E. Social Factors F. Psychological Factors

1. It is the result of how individuals are raised, who they interact with and
what are their life history is.
2. The market also look up to certain aspirational groups whose behaviors they
seek to emulate and may even look down on certain groups that they want to
dissociate from.
3. It is a social factor that reflects the consumption reality an individual
believes in.
4. The consumer’s age and current state of mind pretty much determine what
products and services they will likely spend on.
5. This is when a consumer undertakes lot of searching and analyzing before
they make the purchase.
 What I Have Learned

1. The way the consumer perceives, react or how they are affected by
products and services is a function of many behavioral factors.
2. Motivation addresses the issue of why a consumer buys a product or
what needs he is trying to satisfy.
3. Culture involves how a consumer is raised, his educational background,
the collective culture of his/her family and the society he belongs.
4. The individual personalities of consumers influenced their buying
behavior.
5. Personal factors include the age, life cycle stage, occupation and
economic capability of the consumer.
6. Psychological factors involve how an individual behaves. It also includes
our personal preferences and opinions.
7. Socio-economic class is a social factor which serves as an indicator of
the kind of group that a consumer feels he belongs to, whether he
belongs to the wealthiest class down to the lower class.
8. Because consumers are exposed to hundreds of commercial messages
each day, they tend to pay attention to only those that address a current
need.
9. The consumer’s level of motivation in the purchase process will vary
depending on how he relates with the object of involvement or the
product being sought.
10.Learning is a relatively lasting change in behavior that is the result of
experience. When a consumer purchases a particular brand of product
and is satisfied with it, his/her positive experience with the brand is
reinforced.
 What I Can Do

Activity 8.2.2.. “Your Choice of Brand”

What are brand of products that you buy for your personal needs? Using the table
below, indicate your preferred two (2) brand of product and write your
answer/explanation on how it affects your decision to buy the said product.

BRAND OF A (1) (2)

PRODUCT

CULTURE

SOCIAL FACTOR

PERSONAL FACTOR

PSYCHOLOGICAL
FACTOR
 Assessment

Multiple Choice. Read the statements carefully. Write A if the statement is Correct
and B if the statement is False.

_________ 1. There is what is known as the Filipino culture. However,

there is also a distinct cultural behaviors within and
among sub-cultures of Filipino culture.
__________ 2. Aside from the external social factors, the demographics
of the individual does not affect the manner by which
product and services are created.
_________ 3. Most products that target the large market are
advertised in Filipino while products that cater to those
belonging to the elite class are in English.
_________ 4. Habitual buying behavior is when consumers want to
keep life simple and usually purchases product that is
well known and popular.
_________ 5. When a consumer opt to try each product at least once,
leading to the trying of a wide selection of products is
evident of variety-seeking behavior.
 Additional Activities

Activity 8.2.3. My Convincing Power

You are tasked to convince two (2) of your family members to switch from their
favorite product to using a new brand of the same product.
Example: Ariel Laundry Power Soap to Downey Liquid Laundry Soap.

Create a Marketing Proposal on the Brand you are promoting. Present this in the
form of promotional stills or advertisement. Write your output inside the box
provided.
Answer Key
 What I Know

Read each sentence carefully. Write your chosen answer on the blanks provided.

1. Which of the following is not categorized as organizational markets? ____

a. Government owned and controlled corporations
b. Family members and relatives
c. Local Government Units
d. Manufacturers

2. What organizational markets’ characteristic which tend to locate themselves

within the same area to minimize transport, coordination and other logistic
costs. ___
a. Close customer relationships
b. Derived and fluctuating demand
c. Geographic concentration
d. Professional Purchasing

3. What organizational markets’ characterizes setting up of procurement

offices that seek to maximize the impartiality of their decisions ____
a. Close customer relationships
b. Derived and Fluctuating demand
c. Geographic concentration
d. Professional Purchasing

4. Which of the ff. referred to as the one who have formal authority to select
suppliers and arrange terms in buying product or services? ___
a. Buyers
b. Deciders
c. Gatekeepers
d. Influencers

5. What buying process involves formal selection of supplying enterprise? ____

a. General Need Description
b. Order-Routine Specification
c. Problem Recognition
d. Product Specification
 Lesson

3 ORGANIZATIONAL MARKETS

Offering of product and services to consumer markets are far different with offering
to organizational markets. Consumer markets focuses more on impulsive buying
for immediate consumption while organizational markets purchased products and
services in an organized approach and in greater volume. Organizational markets
are all the individuals and companies who purchase goods and services for some
use other than personal consumption. (So and Torres, 2016)

What’s In

Familiarize yourself with the words related to organizational markets. Answer

these reading carefully sentence. Identify the correct answer. Write the answer
below.

1. These are business organizations that purchase goods and services

for the purpose of producing other products and services.
__ N _ U S _ R _ _ S = __________________________
2. These are entities that purchase product and services in order to
sell them at profit, mostly wholesalers & retailers.
R_S_LL_R_ = __________________________
3. It comprises of agencies or administration’ units at all levels that
purchase goods and services for the purpose of producing public
services or to transfer them to third parties that need them.
_OV_RN_E__ = ___________________________
4. A value that a marketer charges for a product or service.
_R__IN_ = ___________________________
5. They provide raw materials, utilities, labor, capital and equipment.
__PP_I_R = ___________________________

“In a business market, organizations buy goods and

services for production of goods and services. In terms of
overall value business market is bigger than the consumer
market.”
-Prachi Juneja
 What’s New

Characteristics of Organizational Markets

Organizational markets have distinct features as buyers in the market. Unlike the
consumer markets which based their decision on their feelings, organizational
markets based their purchase on the current demand and need of their
organization.

Figure __. Characteristics of Organizational Markets

CLOSE CUSTOMER
FEWER AND LARGER GEOGRAPHIC
RELATIONSHIPS
BUYERS CONCENTRATION
-they value customer
- buys in bulk orders -location is same area
service

DERIVED AND
POTENTIAL FOR PROFESSIONAL
FLUCTUATING
INEALASTIC DEMAND PURCHASING
DEMAND

Types of Organizational Markets

Industries are business organizations that purchase goods and services for the
purpose of producing other products and services or for use in their production
and operating processes. Next is the resellers which are entities that buy goods
and services in order to resell them at a profit. These are distributors, wholesalers
and retailers. Last is the Government which comprises of agencies or government
units at all levels that purchase goods and services for the purpose of producing
public services or transfer them to third parties that need them.
 What is It

The buying process of organizational markets may be somewhat more complex as

compared to consumer markets.

Figure ___. Organizational Markets Buying Process

PROBLEM GENERAL NEED PRODUCT

RECOGNITION DESCRIPTION SPECIFICATION

ORDER- SUPPLIER SEARCH

PERFORMANCE SUPPLIER AND/OR
REVIEW
ROUTINE PROPOSAL
SELECTION
SPECIFICATION SOLICITATION

The organizational buying process begins with the recognition of a problem that
may be solved by a purchase of mobile phone, dress or any kind of merchandise.
In the case of organizational market, this may be equipment required in the
business operation. In some cases, the need may be stimulated from news heard,
seen in a trade show or exhibit.

As soon as the need for specific purchase is confirmed, assigned technical

personnel such as engineers and systems personnel are consulted to provide
specifications and details of the requirement. This involves describing the specific
need, features of the required equipment and the quantity needed. After the need
description and technical description provided, an enumeration of specifications of
the intended purchase is detailed and documented.

The company then searches and consider possible suppliers of the required
product or service. This may involve consulting trade contact numbers, internet
and referrals from other business partners. After securing a list of available
product suppliers, the firm usually excludes potential suppliers with insufficient
production capacities or poor industrial market reputation.
Qualified suppliers are asked to submit supply proposals or price quotations that
conform to the detailed specifications of the requirement. Some of these potential
suppliers may be requested to do a business presentation.

Quotations and proposals received are reviewed and compared. The buying firm’s
technical experts evaluate these proposals to find out the ability to comply with
specifications, including other related terms such as delivery schedule, after sales
service and technical assistance.

It is advantageous for a supplier to approach supply requirements through a need

or problem-solving approach. In this approach, the supplier is not only interested
in making the sale, but also in helping the organization’s address its problem or
need. Professionally trained purchases are employed by most organizations,
necessitating that supplier know the technical specification of their products in
details.

Once the supplier is selected, a purchase order is issued in its favor, with unit
price, total cost, terms of payment, delivery dates, service terms and the contract is
awarded to the supplier selected by the business’ purchasing or procurement
committee.

After the supply contract is fulfilled, the company conducts a performance audit to
evaluate if the purchased product has met the company’s expectations. The result
of the performance audit will determine the continuance or termination of the
company’s business relationship with the supplier.

Generally, professional buying processes are designed to minimize the risks of

purchase while unfortunately maximizing bureaucracy in the process. (Ilano, 2016)

Organizational Buying Behavior

The organizational market is structured differently from consumer markets. Some
of the major differences are as follows :

 There are far less organizational accounts than consumer accounts.

 Organizational accounts are more concentrated geographically.
 The volume of products and services they buy are much larger
 The buying decision and processes of organizational markets are more
structured.
 It involves a lot of negotiations between the seller and the organization
and it takes much time.
 Organizational markets purchase more rational than emotional.
 There are many participants in the buying process of the
organizational markets.
 Because organizations place larger orders and are fewer, firms usually
establish close relationships with these organizations.
 What’s More

Activity 8.3.1: Identify organizational markets buying roles. Choose

the letter of the correct answer.

A. Buyers C. Gatekeepers E. Initiators

B. Deciders D. Influencers F. User

1. The hospital Head Nurse saw the need for huge number of PPE for their health
personnel in attending to their Covid19 patients.
2. Chief Operating Officer to sign the Memorandum of Agreement on the procurement
of new machineries for their company.
3. Mr. Dela Cruz was tasked to proceed with the selection of new suppliers in the
manufacturing of their new product line of crying dolls.
4. The Security Guard refused to allow the Sales Representative to meet the Plant
Manager.
5. In order to protect the health of their nurses, Admin Manager supported the
recommendation of purchasing N95 facemask.
 What I Have Learned

1. Organizational markets are all the individuals and companies who

purchase goods and services for use other than personal consumption.
2. There are three types of organizational markets: Industries, resellers and
government.
3. Organizational markets purchase product and service which represent
fewer market, larger clients but buys in bulk.
4. Many individuals play roles in the organizational buying process.
5. Well-run organizations usually set up purchasing or procurement
department to implement fair regulations on their purchases.
6. The purpose of organizational markets in practicing professional
purchase is to minimize its risk and to ensure fair and competitive
assessment of potential suppliers and their products.
7. Organizational markets value close customer relationship in order to
build trust and confidence with their suppliers.
8. Segmentation variables of organizational markets are industry
affiliation, organizational size, geographic location and end-use
application.
9. Compared to consumer markets, organizational markets have access to
more information on products and services.
10.The buying process of organizational markets is designed to carefully
decide on the best product and service in order to gain profit for their
own business.
 What I Can Do

Activity 8.3.2.
Identify at least two (2) businesses that basically sell to organizational markets and
yet are well received by the consumer markets. Describe the kind of marketing
tool/strategy they give to their consumer markets and their organizational markets.

How do they sell to their How do they sell to their

consumer markets? organizational markets?

Business 1
________________________

Business 2
_________________________
 Assessment
Multiple Choice. Read carefully each sentences. Write the correct answer.
1. While consumer is often characterized as emotionally driven customer,
businesses usually set up purchasing department to handle procurement of
their needs.
a. Close Customer Relationships
b. Derived and fluctuating Demand
c. Potential for inelastic demand
d. Professional Purchasing

2. The importance of building relationship with business clients through

constant telephone calls and regular visits.
a. Close customer Relationships
b. Derived and fluctuating Demand
c. Potential for inelastic demand
e. Professional Purchasing
3. Most suppliers and buyers alike set up their business location at the same
area to save on logistics cost.
a. Close customer Relationships
b. Derived and Fluctuating demand
c. Geographic Concentration
d. Fewer and Larger buyers
4. The start of formal buying process of the organizational markets.

a. General Need Description

b. Order-Routine Specification
c. Problem Recognition
d. Performance Review
5. This is done after the purchase is made, product and customer-client
relationship is evaluated.

a. General Need Description

b. Order-Routine Specification
c. Problem Recognition
d. Performance Review
 Additional Activities

Activity 8.3.3.
Interview any member of your family who is currently working. Ask them on the
company’s buying process citing a specific need. Illustrate the same through a
Diagram.
Answer Key
References

Ilano, A.B., 2016., “Principles of Marketing” City of Manila, Rex Store

Publishing, Inc., ISBN 978-971-23-7846-1

Boone, L., et.al., 2015, “Principles of Marketing”, Cengage Learning Asia Pte
Ltd. (Philippine Branch., ISBN-13-978-128-5918-91-4

So, R.C., et.al., 2016 “Principles of Marketing” 2016, Vibal Group, Inc.
ISBN-978-971-07-3746-8

https://www.greatideasforteachingmarketing.com/creating-customer-journey-maps/
https://www.brandwatch.com/blog/how-understand-influence-consumer-behavior/
https://www.managementstudyguide.com/business-markets-and-buying-
behaviour.htm
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