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Presentation 1

  1. 1. NUML(KARACHI CAMPUS)NAME:WAQAR AHMEDCLASS:BBA-IIISUBJECT: Marketing 6-1
  2. 2. Business Markets andBusiness Buyer Behavior Chapter 6
  3. 3. Learning Goals1. Define the business market and how it differs from consumer markets2. Identify the major factors that influence business buyer behavior3. List and define the steps in the business buying decision process4. Compare the institutional and government markets and explain how they make their buying decisions 6-3
  4. 4. Characteristics of Business Markets Sales in the business market far exceed sales in consumer markets. Business markets differ from consumer markets in many ways. • Marketing structure and demand • Nature of the buying unit • Types of decisions and the decision process 6-4 Goal 1: Define the business market
  5. 5. Business MarketsCharacteristics Compared to consumer markets:  Business marketsMarketing Structure • have fewer but larger customersand Demand  Business customersNature of the • are moreBuying Unit geographically concentratedTypes of Decisions  Demand is differentand the Decision • Demand is derived • Demand is priceProcess inelastic • Demand fluctuates more 6-5 Goal 1: Define the business market
  6. 6. Business MarketsCharacteristics Compared to consumer purchases:Marketing Structure  Involve more buyers inand Demand the decision process  More professionalNature of the purchasing effortBuying UnitTypes of Decisionsand the DecisionProcess 6-6 Goal 1: Define the business market
  7. 7. Business MarketsCharacteristics Compared to consumer purchases  More complex buyingMarketing Structure decisionsand Demand  The buying process isNature of the more formalizedBuying Unit  Buyers and sellers workTypes of Decisions more closely togetherand the Decision and build long-termProcess relationships 6-7 Goal 1: Define the business market
  8. 8. DefinitionBusiness Buyer Behavior:  The buying behavior of organizations that buy goods and services for use in the production of other products and services that are sold, rented, or supplied to others.  Also included are retailing and wholesaling firms that acquire goods for the purpose of reselling or renting them to others at a profit. 6-8 Goal 1: Define the business market
  9. 9. Business Buyer BehaviorMajor Types of Buying Situations  Straight rebuy • Reordering without modification  Modified rebuy • Requires modification to prior purchase  New task • First-time purchase 6-9 Goal 1: Define the business market
  10. 10. Business Buyer BehaviorSystems Selling  Buying a packaged solution to a problem from a single seller.  Often a key marketing strategy for businesses seeking to win and hold accounts. 6 - 10 Goal 1: Define the business market
  11. 11. Business Buyer BehaviorBuying Center  The decision-making unit of a buying organization  Includes all individuals and units that participate in the decision making 6 - 11 Goal 1: Define the business market
  12. 12. Business Buyer BehaviorMembers of the Buying Center Users Influencers Buyers Deciders Gatekeepers 6 - 12 Goal 1: Define the business market
  13. 13. Major Influences on Business Buyers Key Factors Economic trends Supply conditions Technological, political Environmental and competitive Organizational changes Interpersonal Culture and customs Individual 6 - 13Goal 2: Identify the major factors that influence business buyer behavior
  14. 14. Major Influences on Business Buyers Key Factors Objectives Policies Environmental Procedures Organizational Organizational Interpersonal structure Systems Individual 6 - 14Goal 2: Identify the major factors that influence business buyer behavior
  15. 15. Major Influences on Business Buyers Key Factors Influence of members in the Environmental buying center  Authority Organizational  Status Interpersonal  Empathy Individual  Persuasiveness 6 - 15Goal 2: Identify the major factors that influence business buyer behavior
  16. 16. Major Influences on Business Buyers Key Factors Personal characteristics of members in the buying center Environmental   Age and income Education Organizational  Job position  Personality Interpersonal  Risk attitudes Buying styles Individual  6 - 16Goal 2: Identify the major factors that influence business buyer behavior
  17. 17. Stages in the Business Buying Process Stage 1: Problem Recognition Stage 2: General Need Description Stage 3: Product Specification  Value analysis helps to reduce costs Stage 4: Supplier Search  Supplier development 6 - 17Goal 3: List and define the steps in the business buying decision process
  18. 18. Stages in the Business Buying Process Stage 5: Proposal Solicitation Stage 6: Supplier Selection Stage 7: Order-Routine Specification  Blanket contracts are often used for maintenance, repair and operating items. Stage 8: Performance Review 6 - 18Goal 3: List and define the steps in the business buying decision process
  19. 19. Business Buying on the Internet  E-procurement is growing rapidly  Online auctions and online trading exchanges (e-marketplaces) account for much of the online purchasing activity  E-procurement offers many benefits: • Access to new suppliers • Lower purchasing costs • Quicker order processing and delivery 6 - 19Goal 3: List and define the steps in the business buying decision process
  20. 20. Institutional and Government MarketsInstitutional Markets  Consist of churches, schools, prisons, hospitals, nursing homes and other institutions that provide goods and services to people in their care. 6 - 20 Goal 4: Compare the institutional and government markets
  21. 21. Institutional and Government MarketsInstitutional Markets  Often characterized by low budgets and captive patrons.  Marketers may develop separate divisions and marketing mixes to service institutional markets. 6 - 21 Goal 4: Compare the institutional and government markets
  22. 22. Government Markets• More than 82,000 buying units in the U.S.• Require suppliers to submit bids and often give job to lowest bidder• Favor domestic suppliers• Much “red tape” can exist 6 - 22 Goal 4: Compare the institutional and government markets

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