Business Marketing
The marketing of goods and services to individuals and organizations for purposes other than personal consumption.

Business Markets & Business Buyer Behavior

The business market is vast and involves far more MONEY and items than do consumer markets. Business buyer behavior refers to 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.

Organizational Markets

Industrial market includes businesses that buy goods to be converted into other products or used during production Reseller market consists of intermediaries that buy and resell finished goods Government and institutional market consists of nongovernmental buyers of goods and services

Organizational vs. Consumer Buying Behaviors

Differences in Buyers: Organizational buyers are professional, specialized and expert Differences in the Buyer-Seller Relationship: Organizational buying involves frequent and enduring buyer-seller

Business Markets

Market Structure and Demand:
 

Contains far fewer but larger buyers. Customers are more geographically concentrated. Business demand is derived from consumer demand.

Nature of the Buying Unit:
 

Business purchases involve more decision participants. Business buying involves a more professional purchasing effort.


Business Products
Are used to manufacture other products Become part of another product Aid the normal operations of an organization Are acquired for resale

Key is intended use

Types of Decisions and the Decision Process
Business buyers usually face more complex buying decisions.

Business buying process tends to be more formalized.

Buyers and sellers are much more dependent on each other.

Business Buying Behavior
Buying Centers Evaluation Criteria Aspects of Business Buying Behavior Buying Situations Purchasing Ethics Customer Service

Buying Center
All those persons in an organization who become involved in the purchase decision.

Participants in the Business Buying Process

Decision-making unit of a buying organization is called its buying center. Not a fixed and formally identified unit. Will vary for different products and buying situations.

Roles in the Buying Center
Initiator Decider Influencers Purchaser Gatekeepers Users


Evaluative Criteria for Business Buyers

Buying Situations
New Buy Modified Rebuy

Straight Rebuy

Buying Situations
New Buy
A situation requiring the purchase of a product for the first time. A situation where the purchaser wants some change in the original good or service. A situation in which the purchaser reorders the same goods or services without looking for new information or investigating other suppliers.

Modified Rebuy Straight Rebuy

Major Influences on Business Buyer Behavior

Model of Business Buyer Behavior

The Business Buying Process (Fig. 6-8)

Sign up to vote on this title
UsefulNot useful