This document discusses business markets and behaviors. It defines a business market as including all clients except individual consumers, and notes they make up a significant portion of markets. Business markets are divided into four types: production markets, sales company markets, government markets, and non-commercial markets. The document also outlines key characteristics of business markets, such as demand being derived and inelastic, and notes purchasing processes in business markets tend to involve multiple stakeholders within a buying center. Major influences on business purchasing are identified as environmental, organizational, interpersonal, and individual factors. The document concludes by describing three types of business purchasing situations - straight rebuy, modified rebuy, and new task - and outlining the typical purchasing decision process.

1. BUSINESS MARKETS
AND BEHAVIOURS
Seymur QULİYEV

2. August 1, 2017PhD. C. Seymur M. GULIYEV 2

3. What is a Business Market…
What is a business market?
 Includes all clients except the consumers buying the
goods and services for their personal and families’
needs and wants.
 The weight of business markets and buyers is high
enough.
 All resources, agricultural lands, forests and seas
belong to business markets.
 Manufacturing, mining, trade, finance, insurance,
service, etc.
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PhD. C. Seymur M. GULIYEV

4. Types of Business Market
1. Production Markets
2. Sales company markets
3. Government (State) Markets
4. Non-Commercial Markets
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PhD. C. Seymur M. GULIYEV

5. Production Markets
 Includes the clients buying the raw materials, semi-
finished product, goods and used goods for their
personal production process.
 Clients buying the raw materials, semi-finished
product to produce new goods and services for
consumers’ usage.
Sales company markets
 Clients buying the goods and services for re-
selling. Wholesalers, retailers, agents.
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PhD. C. Seymur M. GULIYEV

6. Government (State) Markets
 State based organizations purchase all types of
products for different purposes. It is very risky to
lose this client. It can be the end of the company.
Non-Commercial Markets
 Red-cross, charities, exhibitions, orphans home,
and so on…
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8. Business Market Structure and Specifications
Specifications of the demand of Business makets’
product
 Demand is derived
 Demand is Inelastic
 Demand is more fluctuated
 Having enough info about markets
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10. Important specifications, behaviours
 Specification – quality, price, service
 Few number of buyers
 Personal sale is used instead of ad
 Product is ordered with high quantity and very seldom
 Purchasing process takes a long period
 Direct buying and selling
 More than one people have a vote to buy a product
within the company
 And so on.
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12. Purchasing methods Business
Buyers/Customers
1. Check up purchasing
2. Sample based purchasing
3. Recommendation based purchasing
4. Negotiating based purchasing
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13. Participants in the Business
Buying
Process: The Buying Center
Buying
Center
Buying
Center
UsersGatekeepers
Deciders Influencers
Buyers
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14. Business Buyer Behavior
Participants in the Business Buying ProcessParticipants in the Business Buying Process
UsersUsers are those that will use the product or serviceare those that will use the product or service
InfluencersInfluencers help define specifications and provide informationhelp define specifications and provide information
for evaluating alternativesfor evaluating alternatives
BuyersBuyers have formal authority to select the supplier andhave formal authority to select the supplier and
arrange terms of purchasearrange terms of purchase
DecidersDeciders have formal or informal power to select and approvehave formal or informal power to select and approve
final suppliersfinal suppliers
GatekeepersGatekeepers control the flow of informationcontrol the flow of information 6-17

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16. Major Influences on
Business Buying:-
Environmental
Economic, Technological, Political, Competitive & Cultural
Environmental
Economic, Technological, Political, Competitive & Cultural
Organizational
Objectives, Policies, Procedures,
Structure, & Systems
Organizational
Objectives, Policies, Procedures,
Structure, & Systems
Interpersonal
Authority, Status, Empathy &
Persuasiveness
Interpersonal
Authority, Status, Empathy &
Persuasiveness
Individual
Age, Education, Job Position, Personality &
Risk Attitudes
Individual
Age, Education, Job Position, Personality &
Risk Attitudes
BuyersBuyers
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17. Factors having an influence on
Purchasing process
 Environment (macro)
 Organizational Activities
 Relationships between individuals
 Individual factors
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18. Major Types of Buying Situations:-
The buyer routinely reorders
something without any
modifications.
Straight Re-buy
Modified Re-buy
New Task
The buyer wants to modify
product specifications,
prices, terms, or suppliers.
The buyer purchases a
product or service for the
first time.
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19. Purchasing decision types
 New Task
 Modified Rebuy or Altered Purchasing
 Straight rebuy or Rutin Purchasing
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20. Characteristics of theCharacteristics of the
Three Types of BuyingThree Types of Buying
Decisions:-Decisions:-
Newness of Problem or NeedNewness of Problem or Need
Information RequirementsInformation Requirements
Information SearchInformation Search
Consideration of New AlternativesConsideration of New Alternatives
Multiple Buying InfluenceMultiple Buying Influence
Financial RisksFinancial Risks
StraightStraight
RebuyRebuy
LowLow
MinimalMinimal
MinimalMinimal
NoneNone
Very SmallVery Small
LowLow
Routine
response
ModifiedModified
RebuyRebuy
MediumMedium
ModerateModerate
LimitedLimited
LimitedLimited
ModerateModerate
ModerateModerate
Limited
prob.
solving
NewNew
TaskTask
HighHigh
MaximumMaximum
ExtensiveExtensive
ExtensiveExtensive
LargeLarge
HighHigh
Extended
prob solving
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21. Purchasing decision process
1. Determining of needs and wants
2. Determining and improving of the specifications
of the products
3. Finding out products and sellers
4. Comparing of specifications
5. Choosing an optimum specification
6. After sale behaviours
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