6-Principles of marketing.ppt (670Kb)

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  PRINCIPLES OF MARKETING Eighth Edition Philip Kotler and Gary Armstrong

  Chapter 6 Chapter 6 Business Markets and Business Buyer Behavior

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  What is a Business Market? What is a Business Market?

• The Business Market - all the
• - Business Market 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.

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• 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> More buyers
• More professional purchasing effort> More buyers
• More professional purchasing effort

  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

  

Nature of the Buying Unit

  Nature of the Buying Unit

• 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
• Build close long-term relationships with customers

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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

  Product Price Place Promotion Economic Technological Political Cultural Interpersonal and Individual Influences Organizational Influences Product or Service Choice Supplier Choice Order Quantities

  Delivery Terms and Times Service Terms Payment

  The Buying Center

Buying Decision

Process

Buyer’s Response

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  Business Buying Situations Business Buying Situations

  New Task Buying New Task Buying g in ak M Modified Rebuy Modified Rebuy n io is ec D ed lv Straight Rebuy Straight Rebuy vo n

  I

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

  Users Gatekeepers Deciders Influencers

Buying Center

  

Buyers

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  Major Influences on Business Buying Major Influences on Business Buying

  Environmental Economic, Technological, Political, Competitive &amp; Cultural

  

Environmental

Economic, Technological, Political, Competitive &amp; Cultural

  Organizational Objectives, Policies, Procedures, Structure, &amp; Systems

  

Organizational

Objectives, Policies, Procedures,

Structure, &amp; Systems

  Interpersonal Authority, Status, Empathy &amp; Persuasiveness

  Interpersonal Authority, Status, Empathy &amp; Persuasiveness

  Individual Age, Education, Job Position, Personality &amp; Risk Attitudes

  Individual Age, Education, Job Position, Personality &amp; Risk Attitudes

  

Buyers

Buyers

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  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

Proposal Solicitation

Supplier Search

  

Proposal Solicitation

Supplier Selection

  

Supplier Selection

  

Order Routine Specification

Performance Review

Order Routine Specification

  

Performance Review

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  Institutional and Government Markets Institutional and Government Markets

  

Institutional Markets

Institutional Markets Low Budgets

  Captive Patrons Low Budgets

Captive Patrons Government Markets Government Markets Specialized Buying

  Public Review Specialized Buying Public Review

  

Outside Publics Open Bids

Outside Publics Open Bids Negotiated Contracts Negotiated Contracts