Objectives
Objectives
Objectives
Objectives
How Business & Consumer Markets DifferHow Business & Consumer Markets Differ Organizational Buying SituationsOrganizational Buying Situations
Participants in the Business Buying Participants in the Business Buying
Process
Process
Major Influences on Organizational BuyersMajor Influences on Organizational Buyers Business Buyer Decision MakingBusiness Buyer Decision Making
Business vs. Consumer
Business vs. Consumer
Markets
Markets
Business vs. Consumer
Business vs. Consumer
Markets
Markets
Fewer buyersFewer buyers Larger buyersLarger buyers
Close supplier-customer relationshipClose supplier-customer relationship Geographically concentratedGeographically concentrated
Derived demandDerived demand Inelastic demandInelastic demand
Business vs. Consumer
Business vs. Consumer
Markets
Markets
Business vs. Consumer
Business vs. Consumer
Markets
Markets
Professional purchasing Professional purchasing Several buying influencesSeveral buying influences Multiple sales callsMultiple sales calls
Direct purchasingDirect purchasing
In
Modified Rebuy
Modified Rebuy
Modified Rebuy
Modified Rebuy
New Task Buying
New Task Buying
New Task Buying
New Task Buying
Straight Rebuy
Straight Rebuy
Straight Rebuy
Straight Rebuy
Utilities
Office Supplies Bulk chemicals
New vehicles Elec. Equip Consultants
Computer equip. Custom furniture
Installed components Buildings
Participants in the Business
Participants in the Business
Buying Process
Buying Process
Participants in the Business
Participants in the Business
Buying Process
Buying Process
Gatekeepers Initiators
Buyers
Influencers
Deciders Users
Major Influences on
Major Influences on
Industrial Buying Behavior
Industrial Buying Behavior
Major Influences on
Major Influences on
Industrial Buying Behavior
Industrial Buying Behavior
•Level of demand
•Economic outlook
•Interest rate
•Rate of techno-logical change
•Political and regulatory
developments
•Competitive developments
•Social responsi-bility concerns Environmental
•Objectives
•Policies
•Procedures
•Organizational structures
•Systems
Organizational
•Interests
•Authority
•Status
•Empathy
• Persuasive-ness
Interpersonal
•Age
•Income
•Education
•Job position
•Personality
•Risk attitudes
•Culture
Individual
Organizational Factors
Organizational Factors
Organizational Factors
Organizational Factors
Purchasing-Decentralized Purchasing
of Small Ticket Items
Internet Evaluation & Pro. Buyers
Problem Recognition Problem Recognition
General Need Description General Need Description
Product Specification Product Specification
Supplier Search Supplier Search
Proposal Solicitation Proposal Solicitation
Supplier Selection Supplier Selection
Order Routine Specification Order Routine Specification
Institutional Markets Institutional Markets Institutional Markets
Institutional Markets
Captive Patrons Captive Patrons Captive Patrons
Captive Patrons
Low Budgets Low Budgets Low Budgets
Government Markets Government Markets
Domestic Suppliers
Domestic Suppliers
Open Bids
Open Bids
Cost Minimization
Cost Minimization
Public Review
Public Review
Paperwork
Review
Review
Review
Review
How Business & Consumer Markets DifferHow Business & Consumer Markets Differ Organizational Buying SituationsOrganizational Buying Situations
Participants in the Business Buying Participants in the Business Buying
Process
Process
Major Influences on Organizational BuyersMajor Influences on Organizational Buyers Business Buyer Decision MakingBusiness Buyer Decision Making