2.3 analyzing business markets and business buying behaviors

7/31/2019 2.3 Analyzing Business Markets and Business Buying Behaviors

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ANALYZING BUSINESS

MARKETS AND BUSINESS

BUYING BEHAVIORS


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BUSINESS-TO-BUSINESS

MARKET

Business-to-Business Consumer

Market Market

1. Businesses

2. Government/Military

3. Institutions

Business Business Consumers


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Types of Organizational Buyers

Manufacturers

Service Producers

Retailers &Wholesalers

Governments

Grouped by Industry

Close to Customers

Buying for Targets

Bids & Regulations

Focus:

Focus:

Focus:

Focus:


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Different Types of Customers

All business andorganizational

customers

Producers

Middlemen

Governments

Nonprofits

ManufacturersFarms, mines, etc.

Financial Institutions

Other providers

National

Local

Federal

State and Local

Wholesalers

Retailers


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ORGANIZATIONAL BUYING

Business vs. Consumer Market:

Mrk.Characteristics Consumer Business

Number of buyers Many FewSize of Buyers Small Large

Supplier Relations No Close

Concentration No. YesDemand Unpredictable Derived

Demand Elastic Inelastic


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ORGANIZATIONAL BUYING

(CONT.)

Mrk.Characteristics Consumer Business

Demand Normal Fluctuating

Professional Purchasing No Yes

Purchasing Middlemen Direct

Buying Influence No Yes

Reciprocity No Yes

Leasing Some Heavy


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Organizational Buying Processes

LittleSomeMuch

NoneSomeMuch

LittleSomeMuch

LittleMediumMuch

Information Needed

Review of Suppliers

Multiple Influences

Time Required

Characteristics

New-Task

Buying

Modified

Re-buy

Straight

Re-buy

Type of Process


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Basic Methods in Organizational Buying

BasicMethods

Inspection

Description

NegotiatedContracts

Sampling


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PARTICIPATION IN BUSINESS BUYING

(Buying Centers)

BuyingCenter

InfluencersUsers

Gatekeepers Deciders

Buyers

Exhibit 7-2


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Overlapping Needs in Buying Decision

Innovation

Survival

Customer satisfaction

Growth

Profit

Other needs

CompanysNeeds

Overlapin

Needs

IndividualsNeeds

Risk

Job security

Comfort

Career advancement

Money-rewards

Other needs


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Buyer-Seller Relationships

Information sharing

Linkages

Cooperation

Legal bonds

Adaptations

RelationshipSupplier CustomerSalesperson

Quality

R&D

Accounting

Marketing

Production

Purchasing manager

Quality

Finance

R&D

Production

Accounting

Engineering


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Factors Influencing the Buying

Process

Major Influences In Business Buying:

Environmental factors:

Demand economic outlook

interest rate

Technology political life

Competition

social responsibility;


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Process (Cont.)

Major Influences in Business Buying (cont.):

Organizational factors:

Purchasing department upgrading..

Cross-functional roles.

Centralized purchasing.

Decentralized purchasing for small ticket items.

Internet purchasing.

Long term contract.

Purchasing-performance evaluation.

Lean production-high quality and JIT inventory planning.


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Process (Cont)

Interpersonal factors:

Interest, authority, status, empathy and

persuasiveness.

Individual factors:

Age,income, education, job position,

personality,risk attitudes

Cultural factors

2.3 analyzing business markets and business buying behaviors

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