Org Buy Behav - Marketing
This document was uploaded by user and they confirmed that they have the permission to share it. If you are author or own the copyright of this book, please report to us by using this DMCA report form. Report DMCA
Overview
Download & View Org Buy Behav - Marketing as PDF for free.
More details
- Words: 1,247
- Pages: 31
Business Markets and Organizational Buying Behavior 48
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-1-
What is a Business Market? 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 than Consumer markets. 17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-2-
Business-to-Business Marketing
Sales to businesses rather than end-consumers Example: IBM personal computer Business-to-Business Example: Sale of a personal computer to a university for use in PC labs Consumer Marketing Example: Sale of a personal computer to a student for personal use
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-3-
Why Do Organizations Buy? Raw
Material for the goods produced Supplies which help the employees run the operations of the organisation. Eg: Stationery To sell to the consumers
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-4-
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-5-
Types of Organizational Buyers 1. Business Buyers 2. Institutional Buyers – Low Budgets – Captive Patrons
3. Government Markets – Specialized Buying – Open Bids – Negotiated Contracts
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-6-
Basic Methods in Organizational Buying
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-7-
Characteristics of Business Markets
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-8-
Market Structure and Demand Fewer,
larger buyers (large orders) Demand derived from consumers Price-inelastic demand Fluctuating demand
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-9-
Nature of the Buying Unit More
people involved in the process More professional purchasing effort
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-10-
Product / Service Characteristics Frequently
technical /complex Predominance of semi-finished goods and raw materials Important: delivery time, technical assistance, post-sale service, financing assistance
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-11-
Marketing Mix Direct
selling Price is often negotiated Advertising is often technical in nature
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-12-
Types of Decisions & the Decision Process More
complex decisions Process is more formalized Buyer and seller are more dependent on each other Build close long-term relationships with customers
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-13-
Differences between Business-to-Business and Consumer Buying Behavior Business – to – Business Business – to – Consumer Fewer people involved Many people involved Many different goals to Individual-level goals realize Less formal process Formal decision process and Decision is often implicit, info. gathering not always ‘rational’ Decision is explicit, rational Psychological factors Price/cost often most important important Generally non-negotiable Competitive bidding and prices negotiations often occur Mass communications Personal selling Longer distribution channel Shorter distribution channel
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-14-
Model of Business Buyer Behavior
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-15-
Major Influences on Business Buying
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-16-
Stages in the Business Buying Process 2. General Description of Need
3. Product Specifications
4. Supplier Search
Organizational Buying Process
5. Acquisition and Analysis of Proposals
6. Supplier Selection
7. Selection of Order Routine
8. Performance Review
1. Problem Recognition
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-17-
Participants in the Business Buying Process: The Buying Center Initiators Users Influencers Deciders Buyers Gatekeepers 17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-18-
Types of Buying Situations
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-19-
Straight Rebuy
Product specifications are not modified Small DMU (decision-making unit) - generally one person Low perceived risk Routine / automated Often based on a minimum acceptable quality “In supplier” “Out suppliers” find it hard to get a “foot in the door” Pray for an “in supplier” to mess up, or requirements to change
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-20-
Modified Rebuy Intention
to modify specifications, prices, terms, suppliers, etc. More participants than straight rebuy A “mini” or “aging” version of new task A window of opportunity for “out” suppliers
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-21-
New Task
Rarest, most glamorous type Big DMU - depending on cost and risk Lots of people involved, lots of indirect influence Gather and weigh lots of information Decide on product, suppliers, payment terms, delivery times etc. Slower-than-usual processes Opportunity and threat for marketers Performance matters a lot (not just price)
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-22-
Organizational Buyers Are Problem Solvers
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
-23-
Buyer-Seller Relationships
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-24-
Buyer-Seller Relationships in Business Markets Close Close Relationships Relationships May May Produce Produce Mutual Mutual Benefits Benefits
-
Relationships Relationships May May Not Not Make Make Sense Sense
Reliable source of supply
BUT
-
Cost reductions
-
Price stability or concessions
-
Reduced uncertainty
-
Joint problem solving
-
Improved quality 17 – Aug – 2004
-
Reduced flexibility
-
Some purchases are too small or infrequent
-
Higher risk from greater purchase concentration
Business Markets & Organisational Buying Behaviour
© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
-25-
Prominence of Online Buying in Organizational Markets
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-26-
Prominent for three major reasons I.
– – – – – I. II.
Technology provides timely supplier information product availability technical specifications application uses price delivery schedules. Technology substantially reduces buyer order processing costs. Technology can reduce marketing costs, particularly sales and advertising expense, and broaden their potential customer base for many types of products and services.
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-27-
e-marketplaces Bring
together buyers and supplier organizations. Make possible the real-time exchange of information, money, products, and services B2B exchanges
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-28-
Independent e-marketplaces
Charge a fee for service Small business use to expand customer base Exist in settings that have one or more of the following features – Thousands of geographically dispersed buyers and sellers. – Volatile prices caused by demand and supply fluctuations. – Time sensitivity due to perishable offerings and changing technologies. – Easily comparable offerings from a variety of suppliers.
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-29-
Private exchanges Link
large companies with their network of qualified suppliers and customers. They are not a neutral third party, but represent the interests of their owners
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-30-
Thank You 17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-31-
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-1-
What is a Business Market? 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 than Consumer markets. 17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-2-
Business-to-Business Marketing
Sales to businesses rather than end-consumers Example: IBM personal computer Business-to-Business Example: Sale of a personal computer to a university for use in PC labs Consumer Marketing Example: Sale of a personal computer to a student for personal use
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-3-
Why Do Organizations Buy? Raw
Material for the goods produced Supplies which help the employees run the operations of the organisation. Eg: Stationery To sell to the consumers
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-4-
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-5-
Types of Organizational Buyers 1. Business Buyers 2. Institutional Buyers – Low Budgets – Captive Patrons
3. Government Markets – Specialized Buying – Open Bids – Negotiated Contracts
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-6-
Basic Methods in Organizational Buying
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-7-
Characteristics of Business Markets
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-8-
Market Structure and Demand Fewer,
larger buyers (large orders) Demand derived from consumers Price-inelastic demand Fluctuating demand
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-9-
Nature of the Buying Unit More
people involved in the process More professional purchasing effort
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-10-
Product / Service Characteristics Frequently
technical /complex Predominance of semi-finished goods and raw materials Important: delivery time, technical assistance, post-sale service, financing assistance
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-11-
Marketing Mix Direct
selling Price is often negotiated Advertising is often technical in nature
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-12-
Types of Decisions & the Decision Process More
complex decisions Process is more formalized Buyer and seller are more dependent on each other Build close long-term relationships with customers
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-13-
Differences between Business-to-Business and Consumer Buying Behavior Business – to – Business Business – to – Consumer Fewer people involved Many people involved Many different goals to Individual-level goals realize Less formal process Formal decision process and Decision is often implicit, info. gathering not always ‘rational’ Decision is explicit, rational Psychological factors Price/cost often most important important Generally non-negotiable Competitive bidding and prices negotiations often occur Mass communications Personal selling Longer distribution channel Shorter distribution channel
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-14-
Model of Business Buyer Behavior
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-15-
Major Influences on Business Buying
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-16-
Stages in the Business Buying Process 2. General Description of Need
3. Product Specifications
4. Supplier Search
Organizational Buying Process
5. Acquisition and Analysis of Proposals
6. Supplier Selection
7. Selection of Order Routine
8. Performance Review
1. Problem Recognition
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-17-
Participants in the Business Buying Process: The Buying Center Initiators Users Influencers Deciders Buyers Gatekeepers 17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-18-
Types of Buying Situations
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-19-
Straight Rebuy
Product specifications are not modified Small DMU (decision-making unit) - generally one person Low perceived risk Routine / automated Often based on a minimum acceptable quality “In supplier” “Out suppliers” find it hard to get a “foot in the door” Pray for an “in supplier” to mess up, or requirements to change
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-20-
Modified Rebuy Intention
to modify specifications, prices, terms, suppliers, etc. More participants than straight rebuy A “mini” or “aging” version of new task A window of opportunity for “out” suppliers
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-21-
New Task
Rarest, most glamorous type Big DMU - depending on cost and risk Lots of people involved, lots of indirect influence Gather and weigh lots of information Decide on product, suppliers, payment terms, delivery times etc. Slower-than-usual processes Opportunity and threat for marketers Performance matters a lot (not just price)
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-22-
Organizational Buyers Are Problem Solvers
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
-23-
Buyer-Seller Relationships
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-24-
Buyer-Seller Relationships in Business Markets Close Close Relationships Relationships May May Produce Produce Mutual Mutual Benefits Benefits
-
Relationships Relationships May May Not Not Make Make Sense Sense
Reliable source of supply
BUT
-
Cost reductions
-
Price stability or concessions
-
Reduced uncertainty
-
Joint problem solving
-
Improved quality 17 – Aug – 2004
-
Reduced flexibility
-
Some purchases are too small or infrequent
-
Higher risk from greater purchase concentration
Business Markets & Organisational Buying Behaviour
© 2002 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
-25-
Prominence of Online Buying in Organizational Markets
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-26-
Prominent for three major reasons I.
– – – – – I. II.
Technology provides timely supplier information product availability technical specifications application uses price delivery schedules. Technology substantially reduces buyer order processing costs. Technology can reduce marketing costs, particularly sales and advertising expense, and broaden their potential customer base for many types of products and services.
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-27-
e-marketplaces Bring
together buyers and supplier organizations. Make possible the real-time exchange of information, money, products, and services B2B exchanges
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-28-
Independent e-marketplaces
Charge a fee for service Small business use to expand customer base Exist in settings that have one or more of the following features – Thousands of geographically dispersed buyers and sellers. – Volatile prices caused by demand and supply fluctuations. – Time sensitivity due to perishable offerings and changing technologies. – Easily comparable offerings from a variety of suppliers.
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-29-
Private exchanges Link
large companies with their network of qualified suppliers and customers. They are not a neutral third party, but represent the interests of their owners
17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-30-
Thank You 17 – Aug – 2004
Business Markets & Organisational Buying Behaviour
-31-
Related Documents
Org Buy Behav - Marketing
June 2020 11
History Of Org Behav Rsch001
April 2020 3
Buy Buy
June 2020 17
Organisational Behav
November 2019 15
Green Behav Dx 04
June 2020 3
Charlottesville Buy Fresh Buy Local
May 2020 10More Documents from ""
What Is Personality?
June 2020 9
Org Buy Behav - Marketing
June 2020 11
Ob Assignment Final
June 2020 9
Market Segmentation
June 2020 16
Org. Behaviour
June 2020 1