To accompany A Framework for Marketing Management, 2
nd
Edition Slide 1 in Chapter 7
©
2003 Prentice Hall, Inc.
Chapter 7
Chapter 7
Analyzing Business
Analyzing Business
Markets and Buyer
Markets and Buyer
Behavior
Behavior
PowerPoint by Karen E. James
PowerPoint by Karen E. James
Louisiana State University - Shreveport
Louisiana State University - Shreveport
To accompany A Framework for Marketing Management, 2
nd
Edition Slide 2 in Chapter 7
©
2003 Prentice Hall, Inc.
Objectives
Objectives
Understand the nature of the business
market and how it differs from the
consumer market.
Learn how institutions and government
agencies buy.
Identify the different buying situations
faced by organizational buyers.
To accompany A Framework for Marketing Management, 2
nd
Edition Slide 3 in Chapter 7
©
2003 Prentice Hall, Inc.
Objectives
Objectives
Identify the participants in the
business buying process and the
various influences impacting
business buying decisions.
Understand how business buyers
make their decisions.
To accompany A Framework for Marketing Management, 2
nd
Edition Slide 4 in Chapter 7
©
2003 Prentice Hall, Inc.
Organizational Buying
Organizational Buying
Organizational buying is:
“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.”
To accompany A Framework for Marketing Management, 2
nd
Edition Slide 5 in Chapter 7
©
2003 Prentice Hall, Inc.
Organizational Buying
Organizational Buying
Compared to Consumer Markets,
Business Markets have . . .
–
Fewer buyers
–
Larger buyers
–
Geographically concentrated buyers
–
Close relationships with their
supplier-customers
To accompany A Framework for Marketing Management, 2
nd
Edition Slide 6 in Chapter 7
©
2003 Prentice Hall, Inc.
Organizational Buying
Organizational Buying
Fluctuating
demand
Derived demand
Inelastic demand
Professional
purchasing
Multiple buying
influences
Multiple sales calls
Direct purchasing
Reciprocity
Leasing
Other Business Market Characteristics