Core 5e Ch05ppt r1

Marketing: The Core 6e MGH
Slide 5-1
Sean M. Keyani MKT304; David Nazarian College of Business and Economics
BUYING IS MARKETING, TOO! PURCHASING
PUBLICATION PAPER FOR JCPENNEY
JC Penney
Web site

Slide 5-2
THE NATURE AND SIZE OF
ORGANIZATIONAL MARKETS
Business Marketing
Organizational Buyers
Industrial Markets Reseller Markets Government Markets
(Industrial Firms) (Resellers) (Government Agencies)
Wholesalers
Retailers NASA

Slide 5-3
FIGURE 5-A Type and number of organization
establishments in the U.S.: 2007

Slide 5-4
MEASURING DOMESTIC AND GLOBAL
LO 5-1 INDUSTRIAL, RESELLER, AND
GOVERNMENT MARKETS
North American North American

Industry Free Trade
Classification Agreement
System (NAICS) (NAFTA)

Slide 5-5
FIGURE 5-1 NAICS breakdown for the
information industries sector:NAICS code 51

Slide 5-6
FIGURE 5-2 Key characteristics and
dimensions of organizational buying behavior

Slide 5-7
CHARACTERISTICS OF
ORGANIZATIONAL BUYING
Derived Demand
Size of Order or Purchase
Number of Potential Buyers
Organizational Buying Objectives
Profits Efficiency
Women/Minority Environment/
Suppliers/Vendors Sustainability
Slide 5-8
CHARACTERISTICS OF
ORGANIZATIONAL BUYING CRITERIA
Organizational Buying Criteria
Supplier Development

Slide 5-9
FIGURE 5-B Key organizational buying criteria

Slide 5-10
CHARACTERISTICS OF
BUYER-SELLER RELATIONSHIPS & SUPPLY PARTNERSHIPS
Reciprocity
Supply Partnership
Sustainable Procurement to
benefit the environment

Slide 5-11
FIGURE 5-3 Product and supplier selection
criteria for buying machine vision equipment
emphasize factors other than price
Machine vision inspection camera used Percentage of machine vision buyers
in auto industry to perform a gear citing individual selection criteria as
inspection important when making supplier
decision

Slide 5-12
MARKETING MATTERS
Milsco Mfg.Delivering a Great Ride
for Customers Seats
Harley-Davidson Video

Slide 5-13
MAKING RESPONSIBLE DECISIONS
Sustainable Procurement for Sustainable Growth
Starbucks
Sustainability

Slide 5-14
FIGURE 5-4 Comparing the stages in a
consumer and organizational purchase
decision process

Slide 5-15
ORGANIZATIONAL BUYING PROCESS AND
THEY BUYING CENTER
Buying Center
Buying Committee
People in the Buying Center
Roles in the Buying Center

Users Deciders
Influencers Gatekeepers
Buyers
Slide 5-16
CHARACTERISTICS OF
THE BUYING CENTER
Buy Classes
New Rebuy
Straight Rebuy
Modified Rebuy

Slide 5-17
FIGURE 5-5 The buying situation affects
buying center behavior in different ways

Slide 5-18
ONLINE BUYING IN
ORGANIZATIONAL MARKETS
Prominence of Online Buying

in Organizational Markets
E-marketplaces
Online Auctions in
Organizational Markets
Traditional Auction
Reverse Auction
Slide 5-19
MARKETING MATTERS
eBay Means Business for Entrepreneurs
eBay Web site

Slide 5-20
FIGURE 5-6 How buyer and seller participants
and price behavior differ by type of online
auction

Slide 5-21
Business Marketing
Business marketing involves the

marketing of goods and services
to companies, governments, or
not-for-profit organizations for use
in the creation of goods and
services that they can produce
and market to others.

Slide 5-22
Organizational Buyers
Organizational buyers are those

manufacturers, wholesalers,
retailers, and government
agencies that buy goods and
services for their own use or for
resale.

Slide 5-23
North American Industry
Classification System (NAICS)
The North American Industry

Classification System (NAICS)
provides common industry definitions for
Canada, Mexico, and the United States,
which makes it easier to measure
economic activity in the three member
countries of the North American Free
Trade Agreement (NAFTA).

Slide 5-24
Derived Demand
Derived demand is the demand

for industrial products and
services that is driven by, or
derived from, the demand for
consumer products and services.

Slide 5-25
Organizational Buying Criteria
Organizational buying criteria

are the objective attributes of the
suppliers products and services
and the capabilities of the supplier
itself.

Slide 5-26
Supplier Development
Supplier development is the

deliberate effort by organizational
buyers to build relationships that
shape suppliers products,
services, and capabilities to fit a
buyers needs and those of its
customers.

Slide 5-27
Reciprocity
Reciprocity is an industrial
buying practice in which two
organizations agree to purchase
each others products and
services.

Slide 5-28
Supply Partnership
A supply partnership is a
relationship that exists when a buyer
and its supplier adopt mutually
beneficial objectives, policies, and
procedures for the purpose of
lowering the cost or increasing the
value of products and services
delivered to the ultimate consumer.

Slide 5-29
Buying Center
A buying center consists of the

group of people in an organization
who participate in the buying
process and share common goals,
risks, and knowledge important
to a purchase decision.

Slide 5-30
Buy Classes
Buy classes consist of three

types of organizational buying
situations: straight rebuy, new buy,
and modified rebuy.

Slide 5-31
E-marketplaces
E-marketplaces are online trading

communities that bring together
buyers and supplier organizations to
make possible the real time exchange
of information, money, products, and
services. Also called B2B exchanges
or e-hubs.

Slide 5-32
Traditional Auction
A traditional auction, in
an e-marketplace, is an online
auction in which a seller puts an
item up for sale and would-be
buyers are invited to bid in
competition with each other.

Slide 5-33
Reverse Auction
A reverse auction, in an
e-marketplace, is an online
auction in which a buyer
communicates a need for a
product or service and would-be
suppliers are invited to bid in
competition with each other.

Slide 5-34

Core 5e Ch05ppt r1

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Marketing: The Core 6e MGH

Marketing: The Core 6e MGH

Marketing: The Core 6e MGH

Marketing: The Core 6e MGH

North American North American

Marketing: The Core 6e MGH

Marketing: The Core 6e MGH

Marketing: The Core 6e MGH

Organizational Buying Criteria

Marketing: The Core 6e MGH

Marketing: The Core 6e MGH

Marketing: The Core 6e MGH

Marketing: The Core 6e MGH

Marketing: The Core 6e MGH

Marketing: The Core 6e MGH

Marketing: The Core 6e MGH

People in the Buying Center

Roles in the Buying Center

Marketing: The Core 6e MGH

Marketing: The Core 6e MGH

Prominence of Online Buying

eBay Web site

Marketing: The Core 6e MGH

Marketing: The Core 6e MGH

Business marketing involves the

Marketing: The Core 6e MGH

Organizational buyers are those

Marketing: The Core 6e MGH

The North American Industry

Marketing: The Core 6e MGH

Derived demand is the demand

Marketing: The Core 6e MGH

Organizational buying criteria

Marketing: The Core 6e MGH

Supplier development is the

Marketing: The Core 6e MGH

Marketing: The Core 6e MGH

Marketing: The Core 6e MGH

A buying center consists of the

Marketing: The Core 6e MGH

Buy classes consist of three

Marketing: The Core 6e MGH

E-marketplaces are online trading

Marketing: The Core 6e MGH

Marketing: The Core 6e MGH

Marketing: The Core 6e MGH

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