Intro to Marketing Assignment

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Understanding Organizations As Customers

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LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 6, YOU SHOULD BE ABLE TO:

Distinguish among industrial, reseller, and government organizational markets.

Describe the key characteristics of organizational buying that make it different from consumer buying.

Explain how buying centers and buying situations influence organizational purchasing.

Recognize the importance and nature of online buying in industrial, reseller, and government organizational markets.

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BUSINESS-TO-BUSINESS MARKETING AND ORGANIZATIONAL BUYERS

Business-to-Business Marketing

Organizational Buyers

Industrial Markets (Industrial Firms)

Reseller Markets (Resellers)

Wholesalers

Retailers

Government Markets (Government Agencies)

NASA

Courtesy of Lockheed Martin Company

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Key characteristics and dimensions of organizational buying behavior.

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ORGANIZATIONAL BUYING DEMAND CHARACTERISTICS

Derived Demand

Size of Order or Purchase

Number of Potential Buyers

Organizational Buying Objectives

Profits

Women and Minority Suppliers and Vendors

Efficiency

Environment and Sustainability

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CHARACTERISTICS OF ORGANIZATIONAL BUYING ORGANIZATIONAL BUYING CRITERIA

Organizational Buying Criteria

Price

Ability to Meet Specs

Ability to Meet Schedules

Technical Capacity

Past Performance

Warranties

Production Capacity

Supplier Development

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ORGANIZATIONAL BUYING FUNCTION AND PROCESS AND THE BUYING CENTER

Organizational Buying Behavior

Buying Function in Organization Responsible for:

Selection and Purchase of Products

For Organization’s Use or Resale

Formal Bids

Purchasing Contract Awards

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Comparing the stages in a consumer and organizational purchase decision process.

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ORGANIZATIONAL BUYING PROCESS AND THE BUYING CENTER

Buying Center

Buying Committee

People in the Buying Center

Roles in the Buying Center

Users

Influencers

Buyers

Deciders

Gatekeepers

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CHARACTERISTICS OF ORGANIZATIONAL BUYING THE BUYING CENTER

Number of People in Buying Center Depends on the Buying Situation

Buy Classes

New Rebuy

Straight Rebuy

Modified Rebuy

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FIGURE 6-4 The buying situation affects buying center behavior in different ways.

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VIDEO CASE 6 TREK: BUILDING BETTER BIKES THROUGH ORGANIZATIONAL BUYING

Trek Video Case

©Jean Christophe Bott/Keystone/AP Images

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WHAT WE LEARNED FROM CHAPTER 6

Distinguish among industrial, reseller, and government organizational markets.

Describe the key characteristics of organizational buying that make it different from consumer buying.

Explain how buying centers and buying situations influence organizational purchasing.

Recognize the importance and nature of online buying in industrial, reseller, and government organizational markets.

Trek video

©McGraw-Hill Education.