Business Buying

Behaviour
-ectives:
Describe business marketing.
Major differences between
business and consumer markets.
Unique aspects of business buying
behavior.
B2B Marketing
Deals with organizational
purchases of goods and
services to support production
of other products, to facilitate
daily company operations, or
for resale.
omparing Business-to-Business
Marketing and onsumer Marketing
ndividual or household
unit makes decision
Diverse group of organization
mem-ers makes decision
Decision-Making
Process
omparatively infrequent
contact, relationship of
relatively short duration
Relatively enduring and
complex
Customer
ReIations
Product passes through a
num-er of intermediate
links en route to consumer
Relatively short, direct channels
to market
Distribution
Emphasis on advertising Emphasis on personal selling Promotion
List prices ompetitive -idding for unique
items, list prices for standard
items
Price
Standardized form,
service important -ut less
than for -usiness products
Relatively technical in nature,
exact form often varia-le,
accompanying services very
important
Product
CONSUMER
MARKETING
BUSINESS-TO-BUSINESS
MARKETING
%hree General ategories of
Business Buying Situations
1. Straight Re-uying
%he simplest -uying situation is a straight re-uy, a recurring
purchase decision in which an existing customer places a
new order.
2. Modified Re-uying
A purchaser is willing to reevaluate availa-le options. %he
decision makers see some advantage in looking at
alternative offerings.
Perceived quality and cost differences can also provoke
modified re-uys.
3. New-%ask Buying
%he most complex category of -usiness -uyingfirst time or
unique purchase situations that require considera-le effort.
ften requires a purchaser to carefully consider alternative
offerings and vendors.
Economic
Political
Regulatory
ompetitive
%echnological
onsideration
ustomers'
organizational
structures
Policies
Purchasing
systems
Should know who
influences -uying
decisions:
Group
ndividual
ommittees
nfluences on Purchase Decision
EnvironmentaI
Factors
OrganizationaI
Factors
InterpersonaI
InfIuences
IndividuaI Factors Affecting the
Behaviors of
Buying Center Members
%he Buying enter
User
Buyer
Analyzer
nfluencer
Gatekeepers
Decider
Decision Process
Business -uying decisions comprise
the following stages:
Need assessment
Developing choice criteria
Request for proposals (RFPs)
Supplier evaluation
Supplier selection
Fulfillment and monitoring
%hank You