© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin REACHING GLOBAL MARKETS 7 7 C HAPTER.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin ORGANIZATIONAL MARKETS AND BUYER BEHAVIOR 6 6...
Transcript of © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin ORGANIZATIONAL MARKETS AND BUYER BEHAVIOR 6 6...
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
ORGANIZATIONAL MARKETS AND
BUYER BEHAVIOR66CHAPTER
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Distinguish among industrial, reseller, and government markets.
• Recognize key characteristics of organizational buying that make it different from consumer buying.
AFTER READING THIS CHAPTERYOU SHOULD BE ABLE TO:
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Understand how buying centers and buying situations influence organizational purchasing
• Recognize the growing important of online buying in industrial, reseller, and government markets.
AFTER READING THIS CHAPTERYOU SHOULD BE ABLE TO:
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
BUYING PAPER IS SERIOUS BUSINESS AT JCPENNEY.
ORGANIZATIONAL MARKETS AND BUYER BEHAVIOR
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Business marketing
• Organizational buyers
THE NATURE AND SIZE OF ORGANIZATIONAL MARKETS
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Industrial Markets Industrial firms
• Reseller Market Resellers
• Government Markets Government Units
• Global Organizational Markets
THE NATURE AND SIZE OF ORGANIZATIONAL MARKETS
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• North American Industry Classification System
MEASURING DOMESTIC AND GLOBAL INDUSTRIAL, RESELLER,
AND GOVERNMENT MARKETS
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
1. What are the three main types of organizational buyer?
A: Industrial firms, resellers, and government units.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
2. What is the North American industry Classification System (NAICS)?
A: NAICS provides common industry definitions for Canada, Mexico, and the United States, which facilitate the measurement of economic activity in the three member countries of the North American Free Trade Agreement.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Demand Characteristics Derived demand
• Size of the Order or Purchase
• Number of Potential Buyers
• Organizational Buying Objectives
CHARACTERISTICS OF ORGANIZATIONAL BUYING
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Organizational Buying Criteria ISO 9000 Reverse marketing
• Buyer-Seller Relationships and Supply Partnerships
Reciprocity Supply partnership
CHARACTERISTICS OF ORGANIZATIONAL BUYING
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• The Buying Center: A Cross-Functional Group• People in the Buying Center
• Roles in the Buying Center
• Buying Situations and the Buying Center Buy classes
CHARACTERISTICS OF ORGANIZATIONAL BUYING
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
1. What one department is almost always represented by a person in the buying center?
A: Purchasing Department
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
2. What are the three types of buying situations or buying classes?
A: Straight rebuy, modified rebuy, and new buy
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Stages in the Organizational Buying Process
Organizational buying behavior
CHARTING THE ORGANZATIONAL BUYING PROCESS
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Buying a Machine Vision System• Problem Recognition
Make-buy decision
• Information Search Value analysis
CHARTING THE ORGANZATIONAL BUYING PROCESS
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Buying a Machine Vision System (cont.)• Alternative Evaluation
Bidder’s list
• Purchase Decision
• Postpurchase Behavior
CHARTING THE ORGANZATIONAL BUYING PROCESS
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
1. What is a make-buy decision?
A: An evaluation of whether components and assemblies will be purchased from outside suppliers or built by the company itself.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
2. What is a bidder’s list?
A: A list of firms believed to be qualified to supply a given item.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Prominence of Online Buying in Organizational Markets
• E-Marketplaces: Virtual Organizational Markets
• Online Auctions in Organizational Markets
ONLINE BUYING IN ORGANIZATIONAL MARKETS
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
• Online Auctions in Organizational Markets (cont)
Traditional auction Reverse auction
ONLINE BUYING IN ORGANIZATIONAL MARKETS
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
1. What are e-marketplaces?
A: E-marketplaces are online trading communities that bring together buyers and supplier organizations.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
2. In general, which type of online auction creates upward pressure on bid prices and which type creates downward pressure on bid prices?
A: traditional auction, reverse auction.