6-1
6-1
Chapter 6
Chapter 6
PRINCIPLES OF MARKETING
Eighth Edition
Philip Kotler and Gary Armstrong
Business Markets
and
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6-2
What is a Business Market?
What is a Business Market?
•
The
Business Market
Business Market
- all the
-
organizations that buy goods and
services to use in the production of
other products and services that are
sold, rented, or supplied to others.
•
Business markets involve many more
6-3
6-3
Types of Decisions & the Decision Process
Types of Decisions & the Decision Process
Characteristics of Business Markets
Characteristics of Business Markets
Market Structure and Demand
Market Structure and Demand
• Fewer, larger buyers
• Geographically concentrated
• Demand derived from consumers
• Inelastic demand
• Fluctuating demand
• Fewer, larger buyers
• Geographically concentrated
• Demand derived from consumers
• Inelastic demand
• Fluctuating demand
Nature of the Buying Unit
Nature of the Buying Unit
• More buyers
• More professional purchasing effort
• More buyers
• More professional purchasing effort
• More complex decisions • Process is more formalized • Buyer and seller are more dependent on each other
• Build close long-term relationships with customers
• More complex decisions • Process is more formalized • Buyer and seller are more dependent on each other
6-4
6-4
The Buying Organization The Buying Organization
Model of Business Buyer Behavior
Model of Business Buyer Behavior
Marketing and
Other Stimuli
Marketing and
Other Stimuli
Buyer’s Response
Buyer’s Response
Product Price Place Promotion Economic Technological Political Cultural Interpersonal and Individual Influences Organizational InfluencesProduct or Service Choice Supplier Choice Order Quantities Delivery Terms and Times Service Terms Payment
The Buying Center Buying Decision
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6-5
Business Buying Situations
Business Buying Situations
Straight Rebuy
Straight Rebuy
New Task Buying
New Task Buying
Modified Rebuy
Modified Rebuy
In
vo
lv
ed
D
ec
is
io
n
M
ak
in
6-6
6-6
Participants in the Business Buying
Process: The Buying Center
Participants in the Business Buying
Process: The Buying Center
Buying
Center
Buying
Center
Users
Gatekeepers
Deciders
Influencers
6-7
6-7
Major Influences on
Business Buying
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
Buyers
6-8
6-8
Stages in the Business
Buying Process
Stages in the Business
Buying Process
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
Performance Review
6-9
6-9
Institutional and Government Markets
Institutional and Government Markets
Institutional Markets
Institutional Markets
Low Budgets
Low Budgets
Captive Patrons
Captive Patrons
Government Markets
Government Markets
Specialized Buying
Specialized Buying
Public Review
Public Review
Negotiated Contracts
Negotiated Contracts
Outside Publics
