Chapter 7

Organizational Buyer Behavior

of Group Market

Marketing for Hospitality and Tourism, 3e

Philip Kotler, John Bowen, James Makens

2003 Pearson Education, Inc.

Upper Saddle River, NJ 07458

Characteristics of Business
Markets
Nature of the Buying
Unit
Business purchases
involve more buyers.
Business buying involves
a more professional
purchasing effort.
Salespeople must have
knowledgeable and create
value through their
consultative advice.
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens

2003 Pearson Education, Inc.

Upper Saddle River, NJ 07458

Participants in the Organizational

Buying Process
Users
Ethical
DecisionMaking
Unit of a
Buying
Organizati
Attitudes
on is
Attitudes
of
of Its
Called
Others
Others
Buying
Center.

Unexpected
Unexpected
Situational
Situational
Factors
Factors

Roles
Include

Marketing for Hospitality and Tourism, 3e

Philip Kotler, John Bowen, James Makens

Influencer
s
Decider
s
Approvers

Gatekeepe
rs

Buyers

2003 Pearson Education, Inc.

Upper Saddle River, NJ 07458

Major Influences on
Organizational Buyers
Environmental
Economic
developments

Organizatio
nal

Supply
Conditions

Objectives

Technological
change
Political and
regulatory
developments
Competitive
Developments

Policies
Procedures
Organizational
Structure
Systems

Interpersonal
Authority
Status
Empathy
Persuasiveness

Individu
al

Buyers

Age
Education
Job Position
Personality
Risk
Attitudes

Culture and customs

Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens

2003 Pearson Education, Inc.

Upper Saddle River, NJ 07458

The Organizational Buying Process

Stage 1. Problem Recognition
Stage 2. General Need Description
Stage 3. Product Specification
Stage 4. Supplier Search
Stage 5. Proposal Solicitation
Stage 6. Supplier Selection
Stage 7. Order-Routine Specification
Stage 8. Performance Review
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens

2003 Pearson Education, Inc.

Upper Saddle River, NJ 07458

Organization Buying on the Internet

Organizational buyers may
purchase electronically by:
Electronic data interchange
links (EDI)
The Internet

Connecting to customers to:

Share marketing information,

Sell products & services,
Provide customer support, and
Maintain on-going relationships.
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens

2003 Pearson Education, Inc.

Upper Saddle River, NJ 07458

Hotel Market Segments

Conventions - associations - 2-5 years

out
Association meetings
Corporate meetings

Incentive travel

SMERF, social, military, educational,

religious, fraternal
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens

2003 Pearson Education, Inc.

Upper Saddle River, NJ 07458

Hotel Market Segments

Associations

Long lead time

Marketing for Hospitality and Tourism, 3e

Philip Kotler, John Bowen, James Makens

Destination
important

2003 Pearson Education, Inc.

Upper Saddle River, NJ 07458

Incentive Travel
Excellent facilities
and good
destination
important
High revenue per
person

Marketing for Hospitality and Tourism, 3e

Philip Kotler, John Bowen, James Makens

2003 Pearson Education, Inc.

Upper Saddle River, NJ 07458

SMERF
Social, military, educational, religious,
and fraternal organizations
Price sensitive
Can book slow periods

Marketing for Hospitality and Tourism, 3e

Philip Kotler, John Bowen, James Makens

2003 Pearson Education, Inc.

Upper Saddle River, NJ 07458

10

Corporate Meetings
Short lead time-can be as short as one
month
Food and beverage important
Ability to conduct serious meeting
important

Marketing for Hospitality and Tourism, 3e

Philip Kotler, John Bowen, James Makens

2003 Pearson Education, Inc.

Upper Saddle River, NJ 07458

11

The Corporate Account

Rate
Amenities-Health club, paper, breakfast
Quick check-in and check-out
Airport transportation
Business center important for upper
management
Marketing for Hospitality and Tourism, 3e
Philip Kotler, John Bowen, James Makens

2003 Pearson Education, Inc.

Upper Saddle River, NJ 07458

12