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Copyright 1999 Prentice Hall
6-16-1
Chapter 6Chapter 6
PRINCIPLES OF MARKETINGEighth Edition
Philip Kotler and Gary Armstrong
Business Marketsand
Business Buyer Behavior
Copyright 1999 Prentice Hall
6-26-2What is a Business Market?What is a Business Market?
• The Business Market 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
6-36-3
Types of Decisions & the Decision Process
Types of Decisions & the Decision Process
Characteristics of Business MarketsCharacteristics of Business Markets
Market Structure and DemandMarket Structure and Demand
• Fewer, larger buyers • Geographically concentrated• Demand derived from consumers • Inelastic demand • Fluctuating demand
• Fewer, larger buyers • Geographically concentrated• Demand derived from consumers • Inelastic demand • Fluctuating demand
Nature of the Buying UnitNature of the Buying Unit
• More buyers • More professional purchasing effort
• More buyers • More professional purchasing effort
• More complex decisions• Process is more formalized• Buyer and seller are more dependent on each other• Build close long-term relationships with customers
• 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
6-46-4
The Buying OrganizationThe Buying Organization
Model of Business Buyer BehaviorModel of Business Buyer BehaviorMarketing andOther Stimuli
Marketing andOther Stimuli
Buyer’s ResponseBuyer’s Response
Product
Price
Place
Promotion
Economic
Technological
Political
Cultural
Interpersonal and Individual Influences
Organizational Influences
Product or Service Choice
Supplier Choice
Order Quantities
Delivery Terms and Times
Service Terms
Payment
The Buying Center
Buying DecisionProcess
Copyright 1999 Prentice Hall
6-56-5Business Buying SituationsBusiness Buying Situations
Straight RebuyStraight Rebuy
New Task BuyingNew Task Buying
Modified RebuyModified Rebuy
In
volv
ed D
ecis
ion
Mak
ing
Copyright 1999 Prentice Hall
6-66-6Participants in the Business BuyingProcess: The Buying CenterParticipants in the Business BuyingProcess: The Buying Center
Buying Center
Buying Center
UsersGatekeepers
Deciders Influencers
Buyers
Copyright 1999 Prentice Hall
6-76-7Major Influences on Business BuyingMajor Influences on Business Buying
EnvironmentalEconomic, Technological, Political, Competitive & Cultural
EnvironmentalEconomic, Technological, Political, Competitive & Cultural
OrganizationalObjectives, Policies, Procedures,
Structure, & Systems
OrganizationalObjectives, Policies, Procedures,
Structure, & Systems
InterpersonalAuthority, Status, Empathy &
Persuasiveness
InterpersonalAuthority, Status, Empathy &
Persuasiveness
IndividualAge, Education, Job Position, Personality &
Risk Attitudes
IndividualAge, Education, Job Position, Personality &
Risk Attitudes
BuyersBuyers
Copyright 1999 Prentice Hall
6-86-8Stages in the BusinessBuying ProcessStages in the BusinessBuying Process
Problem RecognitionProblem Recognition
General Need DescriptionGeneral Need Description
Product SpecificationProduct Specification
Supplier SearchSupplier Search
Proposal SolicitationProposal Solicitation
Supplier SelectionSupplier Selection
Order Routine SpecificationOrder Routine Specification
Performance ReviewPerformance Review
Copyright 1999 Prentice Hall
6-96-9Institutional and Government MarketsInstitutional and Government Markets
Institutional MarketsInstitutional Markets
Low BudgetsLow Budgets Captive PatronsCaptive Patrons
Government MarketsGovernment Markets
Specialized BuyingSpecialized Buying Public ReviewPublic Review
Negotiated ContractsNegotiated Contracts
Outside PublicsOutside Publics Open BidsOpen Bids
