KOTCHA06.ppt 257KB Sep 15 2006 06:59:30 PM

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PRINCIPLES OF MARKETING
Eighth Edition
Philip Kotler and Gary Armstrong

Chapter
Chapter 66
Business Markets
and
Business Buyer Behavior

 Copyright 1999 Prentice Hall

What
What is
is aa Business
Business Market?
Market?


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• The 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
dollars and items do consumer markets.

 Copyright 1999 Prentice Hall

Characteristics
Characteristics of
of Business
Business Markets
Markets
Market
MarketStructure

Structureand
andDemand
Demand
••Fewer,
Fewer,larger
largerbuyers
buyers
••Geographically
Geographicallyconcentrated
concentrated
••Demand
Demandderived
derivedfrom
fromconsumers
consumers
••Inelastic
Inelasticdemand
demand
••Fluctuating
Fluctuatingdemand

demand

Nature
Natureof
ofthe
theBuying
BuyingUnit
Unit
••More
Morebuyers
buyers
••More
Moreprofessional
professionalpurchasing
purchasing
effort
effort

Types
Typesof

ofDecisions
Decisions&&the
the
Decision
DecisionProcess
Process
••More
Morecomplex
complexdecisions
decisions
••Process
Processisismore
moreformalized
formalized
••Buyer
Buyerand
andseller
sellerare
aremore
more

dependent
on
each
other
dependent on each other
••Build
Buildclose
closelong-term
long-termrelationships
relationships
with
customers
with customers
 Copyright 1999 Prentice Hall

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Model
Model of

of Business
Business Buyer
Buyer Behavior
Behavior
Product
Price

Marketing
Marketing and
and
Other
Other Stimuli
Stimuli

Economic
Technological

Place

Political


Promotion

Cultural

Organizational
Influences

Product or Service
Choice

The
The Buying
Buying Organization
Organization
The Buying Center
Buying Decision
Process

Buyer’s

Buyer’s Response
Response

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Interpersonal
and Individual
Influences

Delivery Terms
and Times

Supplier Choice

Service Terms

Order Quantities

Payment

 Copyright 1999 Prentice Hall

Business
Business Buying
Buying Situations
Situations

Involved Decision Making

New
New Task
Task Buying
Buying

Modified
Modified Rebuy
Rebuy

Straight
Straight Rebuy

Rebuy
 Copyright 1999 Prentice Hall

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Participants
Participants in
in the
the Business
Business Buying
Buying
Process:
Process: The
The Buying
Buying Center
Center

Gatekeepers


Deciders

Users

Buying
Buying
Center
Center
Buyers

 Copyright 1999 Prentice Hall

Influencers

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Major
Major Influences
Influences on
on
Business
Business Buying
Buying
Environmental
Environmental

Economic,
Economic,Technological,
Technological,Political,
Political,Competitive
Competitive&& Cultural
Cultural

Organizational
Organizational

Objectives,
Objectives,Policies,
Policies,Procedures,
Procedures,
Structure,
Structure,&& Systems
Systems

Interpersonal
Interpersonal

Authority,
Authority,Status,
Status,Empathy
Empathy&&
Persuasiveness
Persuasiveness

Individual
Individual

Age,
Age,Education,
Education,Job
Job Position,
Position,Personality
Personality&&
Risk
RiskAttitudes
Attitudes

Buyers
Buyers

 Copyright 1999 Prentice Hall

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Stages
Stages in
in the
the Business
Business
Buying
Buying Process
Process
Problem
Problem Recognition
Recognition
General
General Need
Need Description
Description
Product
Product Specification
Specification
Supplier
Supplier Search
Search
Proposal
Proposal Solicitation
Solicitation
Supplier
Supplier Selection
Selection
Order
Order Routine
Routine Specification
Specification
Performance
Performance Review
Review
 Copyright 1999 Prentice Hall

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Institutional
Institutional and
and Government
Government Markets
Markets
Institutional
Institutional Markets
Markets
Low
Low Budgets
Budgets

Captive
Captive Patrons
Patrons

Government
Government Markets
Markets
Specialized
Specialized Buying
Buying
Outside
Outside Publics
Publics

Public
Public Review
Review
Open
Open Bids
Bids

Negotiated
Negotiated Contracts
Contracts
 Copyright 1999 Prentice Hall

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