Analyzing Business Markets and Business Behavior

Reported by :Group 3

Organizational BuyingReported by : Rosein Marie Recaña

Organizational Buying

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

Business Market Vs. Consumer Market

Business Market

Business Market consists of all the organizations that acquire goods and services used in the production of other products and services that are sold, rented or supplied to others.

Characteristics of Business Market

Fewer and Larger Buyers

Close Supplier-Customer Relationship

Geographically Concentrated Buyers

Characteristics of Business Market

Derive Demand

Inelastic Demand

Fluctuating Demand

Professional Purchasing

Multiple Buying Influences

Multiple Sales Calls

Characteristics of Business Market

Characteristics of Business Market

Direct Purchasing

Reciprocity

Leasing

Consumer Markets

Consumer markets are the markets for products and services bought by individuals for their own or family use.

Characteristics of Consumer Markets

Fast Moving Consumer Goods

Consumer Durables

Soft Goods Services

Buying Situations

Straight

RebuyModified Rebuy

New Task

Less Involvement More Involvement

Aw

are

nes

s

Inte

rest

Eva

luat

ion

Tria

l and

A

dopt

ion

Stages in New Task Buying

Systems in Buying and Selling

System Buying

System Selling

System Contracting

Participants in the Business Buying Process

Reported by : Ej Lazo

Buying Center

Buying Center

The Buying Center: is the decision-making unit of a buying organization consists of all those individuals and groups who participate in the purchasing decisions making process, who share some common goals and the risk arising from the decisions.

Buying Center Roles

Major Influences in Buying BehaviorENVIRONMENTA

L• Level of

demand• Economic

outlook• Interest rate• Rate of

technological change

• Political and regulatory development

• Competitive developments

• Social responsibility concerns

ORGANIZATIONAL• Objectives• Policies• Procedures• Organizationa

l structures• Systems

INTERPERSONAL• Interests• Authority• Status• Empathy• Persuasiven

ess

INDIVIDUAL• Age

• Income• Education

• Job position• Personality

• Risk attitudes

• culture

Business

Buyer

The Purchasing / Procurement Process

Reported by : Thalia Patricio

3 Company Purchasing Orientations

Buying

Procurement

Supply Management

Stages in the ProcessProblem

RecognitionGeneral need Description

Product Specification

Supplier Selection

Proposal Solicitation

Supplier Search

Order- Routine Specification

Performance Review

Institutional and Government Markets

Reported by : Ma. Agatha Mendiola

Institutional Markets

Institutional markets consist of schools, hospitals, nursing homes, prisons and other institutions that must provide goods n services to people in their care. These are characterized by low budgets and captive clienteles. The focus here is on quality and cost minimization and profit are not objectives.

Characteristics : Governments invite bids for contracts and

award to lowest bidder.Might make exceptions for superior quality

or reputation Favor domestic suppliers over foreign

onesGovernments have a lot of red tape and

bureaucracy which tends to put off most people from doing business with them

Government Markets

Governments have traditionally never seen a whole package – but have always bargained on price and used that as a decision factor. They are moving towards web based procurement and more transparency in their dealings. Marketing people have realized that where product features are advertised, differentiation doesn’t really help and similarly for price as well.

Reference :

MARKETING MANAGEMENT by Philip Kotler