Organizational Buying & Buyer
Behavior
Chapter 6
Business Marketing
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“Marketing of goods or services to
commercial enterprises, governments, and
other profit and non-profit organizations
for use in the creation of goods and
services that they then produce and
market produce and market to other
business customers, as well as individuals
and ultimate consumers.”
Organization Buyers
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Those manufacturers, wholesalers,
retailers, or government agencies which
are buying the goods.
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Could be for their own consumption or resale
What’s the difference between
wholesale/retail and manufacturers?
Organizational Buyers
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Three types
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Industrial markets
Reseller markets
Government markets
Researching These Markets
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SIC→NAICS
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North American Industry Classification System
Important researching tool
Organizational Buying
Characteristics
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Demand Characteristics
Size of the Order or Purchase
Number of Potential Buyers
Organizational Buying Objectives
Organizational Buying Criteria
Buyer-Seller Relationship and Supply
Partnerships
The Buying Center
B2B Characteristics
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Demand characteristics
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Size of the Order or Purchase
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Derived demand
Much larger
Number of Potential Buyers
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Fewer number of buyers
B2B Characteristics
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Organizational Buying Objectives
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Why do they buy the products?
Organizational Buying Criteria
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What criteria do they use in choosing a
vendor?
ISO 9000
Reverse marketing
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Wal-Mart and RFID
Buyer-Seller Relationship and
Supply Partnerships
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B2B- Lengthy negotiations and contracts
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Reciprocity
Supply partnerships
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P&G & Wal-Mart
The Buying Center
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Can be a person or committee
Roles
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Users
Influencers
Buyers
Deciders
Gatekeepers
Buying Classes
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Straight rebuy
Modified rebuy
New buy
B2B Buying Process
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Problem Recognition
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Information Search
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Value analysis
Alternative Evaluation
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Make-buy decisions
Bidder’s list
Purchase Decision
Post-purchase Behaviors
B2B Online
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80% of all total dollar value of all online
transactions
E-Marketplaces
Online auctions
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Traditional auctions
Reverse auctions