Chapter 7

Organizational
Buyer
Behavior of
Group Market

2006 Pearson Education, Inc.

Upper Saddle River, NJ 07458

Marketing for Hospitality and Tourism, 4th edition

Kotler, Bowen, and Makens

The ideal salesperson in the

company meetings segment isnt a
salesperson in the traditional sense,
but rather the problem-solver.
Robert C. Mackey

2006 Pearson Education, Inc.

Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens

Chapter Objectives
Understand the organizational buying
process
Identify and discuss the importance of
the participants in the organizational
buying process

2006 Pearson Education, Inc.

Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens

Chapter Objectives
Identify the major influences on
organizational buyers
List the eight stages of the
organizational buying process
Identify and describe the group markets
in the hospitality industry
2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens

The Organizational Buying

Process
Market Structure and Demand
Organizational demand is derived
demand; it comes ultimately from the
demand for consumer goods or
services
2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens

The Organizational Buying

Process
Organizational buying decisions tend to
be more complex than consumer
decisions
The organizational buying process
tends to be more formal than the
consumer process
2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens

Participants in the
Organizational Buying Process
A buying center is all those individuals
and groups who participate in the
purchasing decision-making process,
who share common goals and the risks
arising from the decisions

2006 Pearson Education, Inc.

Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens

Participants in the Organizational

Buying Process
Users

Influencers

Ethical
Decision-

Unexpected
Unexpected
Situational
Situational
Factors
Factors

Making Unit
of a
Buying
Roles Include
Organizatio
nAttitudes
is Called
Attitudes
Its
of
of
Buying
Others
Others
Center.
2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458

Deciders

Approvers

Gatekeepers

Buyers

Marketing for
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Kotler,Bowen,
Bowen,and
andMakens
Makens

Major Influences on
Organizational Buyers

2006 Pearson Education, Inc.

Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens

Organizational Buying
Decisions
1. Problem Recognition

5. Proposal Solution

2. General Need
Description

6. Supplier Selection

3. Product
Specification
4. Supplier Research
2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458

7. Order-Routine
Specification
8. Performance Review
Marketing for
Marketing
Hospitality
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Hospitality
Tourism,and
4thTourism,
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Kotler,Bowen,
Bowen,and
andMakens
Makens

Problem Recognition
Problem recognition is when someone
in a company recognizes a problem or
need that can be met by acquiring a
good or a service
Problem recognition can occur because
of internal and external stimuli
2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
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Hospitality
Tourism,and
4thTourism,
edition 4th edition
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Kotler,Bowen,
Bowen,and
andMakens
Makens

General Need Description

General need description is when a
company describes the general
characteristics and quantity of a needed
item
What are some items that would be
included in a general needs description
for a training meeting?
2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens

Product Specification
Product specification is when the
buying organization decides on and
specifies the best technical product
characteristics for a needed item
What are some items that would be
included in a product specification
description for a training meeting?
2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens

Supplier Search
Supplier search is when a buyer tries
to find the best vendor
What are the best ways for buyers to
identify suppliers?

2006 Pearson Education, Inc.

Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens

Proposal Solution
Proposal solution is when qualified
suppliers are invited to submit
proposals
What are some important tools for
writing and researching a proposal?

2006 Pearson Education, Inc.

Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens

Supplier Selection
Supplier selection is when a buyer
receives proposals and selects a
supplier or suppliers
What are the six attributes that meeting
planners consider when selecting a
location
2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens

Order-Routine Specification
Order-routine specification when a buyer
writes the final order with the chosen
supplier(s), listing the technical specifications,
quantity needed, expected time of delivery,
return policies, warranties, and so on

2006 Pearson Education, Inc.

Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens

Performance Review
Performance review is when a buyer
rates its satisfaction with suppliers,
deciding whether to continue, modify, or
drop the relationship

2006 Pearson Education, Inc.

Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens

Group Business Markets

Conventions
Association Meetings
Corporate Meetings
Incentive Travel
SMERFs Social, military,
educational, religious, and fraternal
organizations

2006 Pearson Education, Inc.

Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens

Dealing with Meeting Planners

The hotel salesperson must look for items
that will create value for the meeting
planner without creating costs or
sacrificing revenue for the hotel
Meeting planners expect timeliness and
efficiency

2006 Pearson Education, Inc.

Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens

The Corporate Account and

Corporate Travel Manager
Highly sought after segment
10% to 40%
More likely to use hotel services
(restaurants, laundry, etc.)
2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens

Best Practice
Don Walter Convention Liaison
Councils Hall of Leaders

2006 Pearson Education, Inc.

Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens

Key Terms
Buying center
Convention
Corporate meeting
Derived demand
General need description
2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens

Key Terms
Incentive travel
Order-routine specification
Organizational buying process
Performance review
Problem recognition

2006 Pearson Education, Inc.

Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens

Key Terms
Product specification
SMERF
Supplier search
Supplier selection
2006 Pearson Education, Inc.
Upper Saddle River, NJ 07458

Marketing for
Marketing
Hospitality
forand
Hospitality
Tourism,and
4thTourism,
edition 4th edition
Kotler,
Kotler,Bowen,
Bowen,and
andMakens
Makens