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6-1

PRINCIPLES OF MARKETING
Eighth Edition
Philip Kotler and Gary Armstrong

Chapter
Chapter 66

Business Markets
and
Business Buyer Behavior
 Copyright 1999 Prentice Hall
What
What is
is aa Business
Business Market?
Market?
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• The Business Market - all the

organizations that buy goods and
services to use in the production of
other products and services that are
sold, rented, or supplied to others.

• Business markets involve many more

dollars and items do consumer
markets.

 Copyright 1999 Prentice Hall

Characteristics
Characteristics of
of Business
Business Markets
Markets
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Market
MarketStructure
Structureand
andDemand
Demand
••Fewer,
Fewer,larger
largerbuyers
buyers
••Geographically
Geographicallyconcentrated
concentrated
••Demand
Demandderived
derivedfrom
fromconsumers
consumers
••Inelastic
Inelasticdemand
demand
••Fluctuating
Fluctuatingdemand
demand
Nature
Natureof
ofthe
theBuying
BuyingUnit
Unit
••More
Morebuyers
buyers
••More
More professionalpurchasing
professional purchasing
effort
effort
Types
Typesof
ofDecisions
Decisions&&the
the
Decision
DecisionProcess
Process
••More
Morecomplex
complexdecisions
decisions
••Process
Process is moreformalized
is more formalized
••Buyer
Buyer and seller aremore
and seller are more
dependent
dependenton oneach
eachother
other
••Build
Buildclose
closelong-term
long-termrelationships
relationships
with
withcustomers
customers
 Copyright 1999 Prentice Hall
Model
Model of
of Business
Business Buyer
Buyer Behavior
Behavior
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Product Marketing
Marketing and
and Economic
Other
Other Stimuli
Stimuli
Price Technological
Place Political
Promotion Cultural

The
The Buying
Buying Organization
Organization
Organizational Interpersonal
The Buying Center
Influences and Individual
Buying Decision Influences
Process

Product or Service Delivery Terms

Choice Buyer’s
Buyer’s Response
Response and Times
Supplier Choice Service Terms
Order Quantities Payment
 Copyright 1999 Prentice Hall
Business
Business Buying
Buying Situations
Situations
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New
New Task
Task Buying
Buying
Involved Decision Making

Modified
Modified Rebuy
Rebuy

Straight
Straight Rebuy
Rebuy

 Copyright 1999 Prentice Hall

Participants
Participants in
in the
the Business
Business Buying
Buying
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Process:
Process: The
The Buying
Buying Center
Center

Gatekeepers Users

Buying
Buying
Deciders Center
Center Influencers

Buyers

 Copyright 1999 Prentice Hall

Major
Major Influences
Influences on
on
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Business
Business Buying
Buying
Environmental
Environmental
Economic,
Economic,Technological,
Technological,Political,
Political,Competitive
Competitive&&Cultural
Cultural

Organizational
Organizational
Objectives,
Objectives,Policies,
Policies,Procedures,
Procedures,
Structure,
Structure,&& Systems
Systems
Interpersonal
Interpersonal
Authority,
Authority,Status,
Status,Empathy
Empathy&&
Persuasiveness
Persuasiveness
Individual
Individual
Age,
Age,Education,
Education,Job
Job Position,
Position,Personality
Personality&&
Risk
RiskAttitudes
Attitudes

Buyers
Buyers

 Copyright 1999 Prentice Hall

Stages
Stages in
in the
the Business
Business
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Buying
Buying Process
Process
Problem
Problem Recognition
Recognition

General
General Need
Need Description
Description

Product
Product Specification
Specification

Supplier
Supplier Search
Search

Proposal
Proposal Solicitation
Solicitation

Supplier
Supplier Selection
Selection

Order
Order Routine
Routine Specification
Specification

Performance
Performance Review
Review

 Copyright 1999 Prentice Hall

Institutional
Institutional and
and Government
Government Markets
Markets
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Institutional
Institutional Markets
Markets

Low
Low Budgets
Budgets Captive
Captive Patrons
Patrons

Government
Government Markets
Markets

Specialized
Specialized Buying
Buying Public
Public Review
Review

Outside
Outside Publics
Publics Open
Open Bids
Bids

Negotiated
Negotiated Contracts
Contracts

 Copyright 1999 Prentice Hall