1© IRWIN a Times Mirror Higher Education Group, Inc., company 1997
NAICS breakdown for broadcasting and telecommunications industries
Broadcasting andtelecommunicationsBroadcasting andtelecommunications
Radio and televisionbroadcastingRadio and televisionbroadcasting
Wiretelecommunicationcarriers
Wiretelecommunicationcarriers
PagingPaging
Cable networks andprogram distributionCable networks andprogram distribution
TelecommunicationsTelecommunications
Wirelesstelecommunicationcarriers, exceptsatellite paging
Wirelesstelecommunicationcarriers, exceptsatellite paging
TelecommunicationsresellersTelecommunicationsresellers
SatellitetelecommunicationsSatellitetelecommunications
OthertelecommunicationsOthertelecommunications
Cellular and otherwirelesstelecommunications
Cellular and otherwirelesstelecommunications
2 DigitIndustry Subsector
3 DigitIndustry Group
4 DigitIndustry
5 DigitU.S. National Industry
2© IRWIN a Times Mirror Higher Education Group, Inc., company 1997
Key characteristics of organizational buying behavior (first part)
Market Characteristics– Demand for industrial products and services
is derived.
– Few customers typically exist, and their purchaseorders are large.
Product or Service Characteristics– Products or services are technical in nature and
purchased on the basis of specifications.
– There is a predominance of raw and semifinishedgoods purchased.
– Heavy emphasis is placed on delivery time, technical assistance, postal service, and financing assistance.
3© IRWIN a Times Mirror Higher Education Group, Inc., company 1997
Key characteristics of organizational buying behavior (final part)
Buying Process Characteristics– Technically qualified and professional buyers exist and follow
established purchasing policies and procedures
– Buying objectives and criteria are typically spelled out, as are procedures for evaluating sellers and products (services).
– Multiple buying influences exist, and multiple parties participatein purchase decisions.
– Reciprocal arrangements exist, and negotiation between buyersand sellers is commonplace.
Other Marketing Mix Characteristics– Direct selling to organizational buyers is the rule, and physical
distribution is very important
– Advertising and other forms of promotion are technical in nature.
– Price is often negotiated, evaluated as part of broader seller and product (service) qualities, typically inelastic owing to deriveddemand, and frequently affected by trade and quality discounts.
4© IRWIN a Times Mirror Higher Education Group, Inc., company 1997
Key organizational buying criteria
QualitySpecifications
TechnicalCapability
PastPerformance
OrganizationalOrganizationalBuying CriteriaBuying Criteria
DeliverySchedulesPrice
Warranty/Claim Policies
ProductionFacilities/Capacity
5© IRWIN a Times Mirror Higher Education Group, Inc., company 1997
Five roles in the buying center
DecisionDecisionMakerMaker
InitiatorInitiator UserUser
InfluencerInfluencer GatekeeperGatekeeper
6© IRWIN a Times Mirror Higher Education Group, Inc., company 1997
Three types of buying situationsD
ecis
ion
tim
e an
d p
rob
lem
def
init
ion
Short/well defined
Few ManyNumber of people in buying centerand number of suppliers considered
Straightrebuy
Straightrebuy
Modifiedbuy
Modifiedbuy
Newbuy
Newbuy
Long/uncertain