Fundamental of Marketing MKT243 Chapter 3 (part 2) Business Buying BehaviorDHD 2010 MKT243 Fundamental of 1 Marketing
Slide Outline• Business Markets• Business Buyer Behavior• The Business Buying ProcessDHD 2010 MKT243 Fundamental of 2 Marketing
Business MarketsDHD 2010 MKT243 Fundamental of 3 Marketing
Business MarketsBusiness buyer behavior refers to the buying behavior of the organizations that buy goods and services for use in production of other products and services that are sold, rented, or supplied to others.Business buying process is the process where business buyers determine which products and services are needed to purchase, and then find, evaluate, and choose among alternative brandsDHD 2010 MKT243 Fundamental of 4 Marketing
Business Customer• Producers• Resellers• Governments -Federal Government -State, country and city government• InstitutionsDHD 2010 MKT243 Fundamental of 5 Marketing
Types of Business Products• Major equipment/ Installations Include capital goods as large or expensive machines, mainframe computers, building, airplanes etc. Can be depreciate over time• Accessory equipment Goods such as portable tools and office equipment that are less expensive and shorter-lived than major equipment• Raw material Unprocessed extractive for agricultural products, such as mineral ore, timber, wheat, corn, fruits etc.• Component parts Either finish items ready for assembly or products that need very little processing before becoming productDHD 2010 MKT243 Fundamental of 6 Marketing
Types of Business Products• Processed Materials Products used directly in manufacturing other product• Supplies Consumable items that do not become part of the final product. E.g: paper, detergents, pencils etc.• Business Service Expense items that do not become part of a final product. Eg: Advertising, legal, management consulting, maintenance Hiring outside provider for particular expertise.DHD 2010 MKT243 Fundamental of 7 Marketing
Business Buyer Behavior Participants in the Business Buying Process Buying center is all of the individuals and units that participate in the business decision-making process – Users – Influencers – Buyers – Deciders – GatekeepersDHD 2010 MKT243 Fundamental of 8 Marketing
Business Buyer Behavior Participants in the Business Buying Process Users are those that will use the product or service Influencers help define specifications and provide information for evaluating alternatives Buyers have formal authority to select the supplier and arrange terms of purchase Deciders have formal or informal power to select and approve final suppliers Gatekeepers control the flow of informationDHD 2010 MKT243 Fundamental of 9 Marketing
Business Buyer Behavior Major Types of Buying Situations Straight rebuy is a routine purchase decision such as reorder without any modification Modified rebuy is a purchase decision that requires some research where the buyer wants to modify the product specification, price, terms, or suppliers New task is a purchase decision that requires thorough research such as a new product. Purchase product for the first time.DHD 2010 MKT243 Fundamental of 10 Marketing
Business Buyer Behavior The Buying ProcessDHD 2010 MKT243 Fundamental of 11 Marketing
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