Lecture Basic Marketing: A global managerial approach - Chapter 7: The buying behaviour of business and organizational customers

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When you finish chapter 7, you should: Know who the business and organizational customers are, see why multiple influence is common in business and organizational purchase decisions and understand how it affects the practice of marketing, understand the problem-solving behaviour of organizational buyers, know the basic methods used in organizational buying,...

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Nội dung Text: Lecture Basic Marketing: A global managerial approach - Chapter 7: The buying behaviour of business and organizational customers

Chapter 7: The Buying Behaviour of Business and Organizational Customers For use with Shapiro, Wong, Perreault, and McCarthy texts. Copyright © 2002 McGraw-Hill Ryerson Limited.
Business vs. Consumer Buying The following is a summary of the characteristics of business to business markets when compared to consumer markets: Business to Business Characteristic Market Consumer Market Sales volume Greater Smaller Purchase volume Larger Smaller Number of buyers Fewer Many Size of individual buyers Larger Smaller Location of buyers Geographically concentrated Diffuse Buyer-seller relationship Closer More impersonal Nature of channel More direct More indirect Nature of buying More professional More personal Nature of buying influence Multiple Single Type of negotiations More complex Simpler Use of reciprocity Yes No Use of leasing Greater Smaller Primary promotional method Personal selling Advertising Source: Bingham, F.G., Jr., and Raffield, B.T., Business to Business Marketing Management, Irwin, 1990. Exhibit 71 72 For use with Shapiro, Wong, Perreault, and McCarthy texts. Copyright © 2002 McGraw-Hill Ryerson Limited.
Different Types of Customers Manufacturers Farms, mines, etc. Producers Financial Institutions Other providers Wholesalers Intermediaries All business and Retailers organizational customers Federal Governments Provincial and Local National Nonprofits Local Exhibit 72 73 For use with Shapiro, Wong, Perreault, and McCarthy texts. Copyright © 2002 McGraw-Hill Ryerson Limited.
Typical Components of Cost-in Use ACQUISITION POSSESSION USAGE TOTAL + + = COSTS COSTS COSTS COST-IN-USE Price Interest Field defects Paperwork Storage Training Shopping time Quality control User labour Expediting Taxes & insurance Product longevity Mistakes in order Shrinkage & Replacement obsolescence Prepurchase General Disposal product internal evaluation handling SOURCE: Cespedes, Frank V., Concurrent Marketing, Harvard School of Business Press, 1995 Exhibit 73 74 For use with Shapiro, Wong, Perreault, and McCarthy texts. Copyright © 2002 McGraw-Hill Ryerson Limited.
Buying Centres Buyers Users Buying Influencers Centre Gatekeepers Deciders 75 For use with Shapiro, Wong, Perreault, and McCarthy texts. Copyright © 2002 McGraw-Hill Ryerson Limited.
Overlapping Needs Risk Innovation Job security Survival Comfort Customer satisfaction Overlap Individual’s in Company’s Needs Needs Needs Career advancement Growth Money-rewards Profit Other needs Other needs 76 For use with Shapiro, Wong, Perreault, and McCarthy texts. Copyright © 2002 McGraw-Hill Ryerson Limited.
Organizational Buying Processes Type of Process Characteristics New-Task Modified Straight Buying Rebuy Rebuy Time Required Much Medium Little Multiple Influences Much Some Little Review of Suppliers Much Some None Information Needed Much Some Little Exhibit 75 77 For use with Shapiro, Wong, Perreault, and McCarthy texts. Copyright © 2002 McGraw-Hill Ryerson Limited.
Basic Methods in Organizational Buying Inspection Sampling Basic Methods Description Negotiated Contracts 78 For use with Shapiro, Wong, Perreault, and McCarthy texts. Copyright © 2002 McGraw-Hill Ryerson Limited.
Buyer-Seller Relationships Information sharing Linkages Finance R&D Quality Cooperation Quality R&D Salesperson Purchasing manager Supplier Relationship Customer Marketing Accounting Production Accounting Engineering Production Legal bonds Exhibit 77 Adaptations 79 For use with Shapiro, Wong, Perreault, and McCarthy texts. Copyright © 2002 McGraw-Hill Ryerson Limited.
Types of Organizational Buyers Focus: Manufacturers Grouped by Industry Focus: Service Producers Close to Customers Retailers & Focus: Wholesalers Buying for Targets Focus: Governments Bids & Regulations 710 For use with Shapiro, Wong, Perreault, and McCarthy texts. Copyright © 2002 McGraw-Hill Ryerson Limited.