McGraw-Hill/Irwin
Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.
LEARNING OBJECTIVES (LO)
After reading Chapter 6, you should be able to:
LO1
Distinguish among industrial, reseller, and
government organizational markets.
LO2
Describe the key characteristics of
organizational buying that make it different
from consumer buying.
LO3
Explain how buying centers and buying
situations
organizational purchasing.
LO4
Recognize the importance and nature of online
buying in industrial, reseller, and government
organizational markets.
1-2
The Organisation as a Customer
The Cement Business
Business-to-Business (B2B) Marketing by PT Semen Gresik
1-3
Opening Story –Strategic Procurement in Fujitsu
Nature & Size of Organisational Markets
B2B Marketing

Business Marketing

Organizational Buyers
• Industrial Markets
(Industrial Firms)
• Reseller Markets
(Resellers)
• Government Markets
(Government Units)
 Wholesalers
 Retailers
• Global Organizational Markets
LO1
1-4
Various types of Organisational Markets
FIGURE 6-1 Types of Organizational Customers
LO1
1-5
Various types of Organisational Markets
Measuring Domestic & Global Markets
Industrial, Reseller & Government Markets

Industrial Classification System
• International Standards Industrial
Classification (ISIC)
• Used by national statistic bodies,
research institution, and market
research firms
LO1
1-6
Various types of Organisational Markets
FIGURE 6-2
The
International
Standard
Industrial
Classification
system of the
United
Nations
(Rev 4)
LO1
1-7
Various types of Organisational Markets
FIGURE 6-3 Breakdown of Textile
industries in the ISIC system of
the United Nations
LO1
1-8
Various types of Organisational Markets
Characteristics of Organisational Buying
B2B Consumer Behaviour

Derived Demand


Size of Order or Purchase


Dependent on industry
Organizational Buying Objectives

LO2
Generally in great numbers/bulk
Number of Potential Buyers


Dependent on demand from consumers
Not simply price / value / brand
1-9
Unique Characteristics of B2B Marketing
FIGURE 6-4 Key characteristics and dimensions
of organizational buying behaviour
LO2
1-10
Unique Characteristics of B2B Marketing
Characteristics of Organisational Buying
B2B Consumer Behaviour

Organizational Buying Criteria

ISO 9000

Supplier Development
• Just-in-Time
LO2
1-11
Unique Characteristics of B2B Marketing
Price isn’t Everything
Other criteria matter as well
1-12
Characteristics of Organisational Buying
B2B Consumer Behaviour

Buyer-Seller Relationships and
Supply Partnerships
• Reciprocity
• Supply Partnership
LO2
1-13
Unique Characteristics of B2B Marketing
The Buying Centre
A Cross-Functional Group

Buying Center

Buying Committee

People in the Buying Center

Roles in the Buying Center
• Users
• Deciders
• Influencers
• Gatekeepers
• Buyers
LO3
1-14
Buying Centres, Situations and Organisational Purchasing
The Buying Centre
A Cross-Functional Group

Buy Classes
• Straight Rebuy
• Modified Rebuy
• New Rebuy
LO3
1-15
Buying Centres, Situations and Organisational Purchasing
FIGURE 6-5 The buying situation affects
buying center behavior in different ways
LO3
1-16
Buying Centres, Situations and Organisational Purchasing
FIGURE 6-6 Comparing the stages in a consumer
and organizational purchase decision process
LO3
1-17
Buying Centres, Situations and Organisational Purchasing
The Organisational Buying Process
CASE: Stages in buying a machine vision system

Stage 1: Problem Recognition
• Make-Buy Decision

Stage 2: Information Search
• Value Analysis
LO3
1-18
Buying Centres, Situations and Organisational Purchasing
The Organisational Buying Process
CASE: Stages in buying a machine vision system

Stage 3: Alternative Evaluation
• Bidder’s List
LO3

Stage 4: Purchase Decision

Stage 5: Postpurchase Behavior
1-19
Buying Centres, Situations and Organisational Purchasing
Online Buying in Organisational Markets
Importance of the Internet

Prominence of Online Buying
in Organizational Markets


LO4
E-marketplaces
Online Auctions in
Organizational Markets

Traditional Auction

Reverse Auction
1-20
The Nature & Importance of Online Buying in Industrial Markets
FIGURE 6-7 How buyer and seller
participants and price behavior differ by
type of online auction
LO4
1-21
The Nature & Importance of Online Buying in Industrial Markets