6-1

PRINCIPLES OF MARKETING
Eighth Edition
Philip Kotler and Gary Armstrong

Chapter 6

Business Markets
and
Business Buyer Behavior
 Copyright 1999 Prentice Hall
What is a Business Market? 6-2

• The Business Market - all the

organizations that buy goods and
services to use in the production of
other products and services that are
sold, rented, or supplied to others.

• Business markets involve many more

dollars and items do consumer
markets.

 Copyright 1999 Prentice Hall

Characteristics of Business Markets 6-3

Market Structure and Demand

• Fewer, larger buyers
• Geographically concentrated
• Demand derived from consumers
• Inelastic demand
• Fluctuating demand

Nature of the Buying Unit

• More buyers
• More professional purchasing
effort

Types of Decisions & the

Decision Process
• More complex decisions
• Process is more formalized
• Buyer and seller are more
dependent on each other
• Build close long-term relationships
with customers
 Copyright 1999 Prentice Hall
Model of Business Buyer Behavior 6-4

Product Marketing and Economic

Other Stimuli
Price Technological
Place Political
Promotion Cultural

The Buying Organization

Organizational Interpersonal
The Buying Center
Influences and Individual
Buying Decision Influences
Process

Product or Service Delivery Terms

Choice Buyer’s Response and Times
Supplier Choice Service Terms
Order Quantities Payment
 Copyright 1999 Prentice Hall
Business Buying Situations 6-5

New Task Buying

Involved Decision Making

Modified Rebuy

Straight Rebuy

 Copyright 1999 Prentice Hall

 6-6
Participants in the Business Buying
Process: The Buying Center

Gatekeepers Users

Buying
Deciders Center Influencers

Buyers

 Copyright 1999 Prentice Hall

Major Influences on 6-7

Business Buying
Environmental
Economic, Technological, Political, Competitive & Cultural

Organizational
Objectives, Policies, Procedures,
Structure, & Systems
Interpersonal
Authority, Status, Empathy &
Persuasiveness
Individual
Age, Education, Job Position, Personality &
Risk Attitudes

Buyers

 Copyright 1999 Prentice Hall

Stages in the Business 6-8

Buying Process
Problem Recognition

General Need Description

Product Specification

Supplier Search

Proposal Solicitation

Supplier Selection

Order Routine Specification

Performance Review

 Copyright 1999 Prentice Hall

 6-9
Institutional and Government Markets

Institutional Markets

Low Budgets Captive Patrons

Government Markets

Specialized Buying Public Review

Outside Publics Open Bids

Negotiated Contracts

 Copyright 1999 Prentice Hall