7

Analyzing
Business Markets

Marketing Management, 13th ed

 What is Organizational Buying?

Organizational buying refers

to the decision-making process by
which formal organizations establish
the need for purchased products and
services, and identify, evaluate, and
choose among alternative brands
and suppliers.

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

 Characteristics of Business Markets

Fewer, larger buyers Multiple sales calls

Close supplier- Derived demand
customer Inelastic demand
relationships Fluctuating demand
Professional Geographically
purchasing concentrated buyers
Many buying Direct purchasing
influences

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 Buying Situation

Straight
Straight rebuy
rebuy

Modified
Modified rebuy
rebuy

New
New task
task

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

 The Buying Center
Initiators
Initiators

Users
Users

Influencers
Influencers

Deciders
Deciders

Approvers
Approvers

Buyers
Buyers

Gatekeepers
Gatekeepers
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall
 Of Concern to Business Marketers

Who are the major decision

participants?
What decisions do they influence?
What is their level of influence?
What evaluation criteria do they use?

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

 Stages in the Buying Process:
Buyphases
Problem recognition
General need description
Product specification
Supplier search
Proposal solicitation
Supplier selection
Order-routine specification
Performance review
Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall
 Table 7.3 Vendor Analysis

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall

 Handling Price-Oriented Customers

Limit
Limit quantity
quantity purchased
purchased

Allow
Allow no
no refunds
refunds

Make
Make no
no adjustments
adjustments

Provide
Provide no
no services
services

Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall