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Lecture Basic Marketing: A global-managerial approach: Chapter 7 - William D. Perreault, E. Jerome McCarthy

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When you finish this chapter, you should: Know who the business and organizational customers are, see why multiple influence is common in business and organizational purchase decisions and understand how it affects the practice of marketing, understand the problem-solving behaviour of organizational buyers, know the basic methods used in organizational buying,...

Chapter 7:    Business and Organizational Customers and Their Buying Behavior For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Chapter Objectives When you finish this chapter, you should 7­2 1.  Know who the business and  organizational customers are 2.  See why multiple influence is  common in business and  organizational purchase  decisions 3.  Understand the problem­ solving behavior of  organizational buyers 4.  Know the basic methods used  in organizational buying 5.  Understand the different types  of buyer­seller relationships  and their benefits and  limitations 6.  Know about the number and  distribution of manufacturers  and why they are an  important customer group  7.  Know how buying by service  firms, retailers, wholesalers,  and governments is similar to   —and different from—  buying by manufacturers 8. Understand the important new  terms For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Different Types of Customers Manufacturers Producers Farms, mines, etc Financial Institutions Other providers All business and organizational customers Middlemen Governments Nonprofits Exhibit 7­1 7­3 Wholesalers Retailers Federal State and Local National Local For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Buying Centers Buyers Users Buying Center Gatekeepers Influencers Deciders Exhibit 7­2 7­4 For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Overlapping Needs Risk Innovation Job security Survival Comfort Individual’s Needs Career advancement Customer satisfaction Overlap in Needs Money-rewards Other needs Company’s Needs Growth Profit Other needs Exhibit 7­3 7­5 For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Organizational Buying Processes Type of Process Characteristics New-Task Buying Modified Rebuy Straight Rebuy Time Required Much Medium Little Multiple Influences Much Some Little Review of Suppliers Much Some None Information Needed Much Some Little Exhibit 7­4 7­6 For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Basic Methods in Organizational Buying Inspection Sampling Basic Methods Description Negotiated Contracts 7­7 For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Buyer-Seller Relationships Information sharing Linkages Finance R&D Cooperation Quality Quality R&D Salesperson Purchasing manager Supplier Relationship Accounting Marketing Accounting Production Exhibit 7­6 7­8 Customer Production Engineering Legal bonds Adaptations For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Types of Organizational Buyers Manufacturers Service Producers Retailers & Wholesalers Governments 7­9 Focus: Grouped by Industry Focus: Close to Customers Focus: Buying for Targets Focus: Bids & Regulations For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Key Terms Business and Organizational    Customers ISO 9000 Purchasing Managers Multiple Buying Influence Buying Center Vendor Analysis New­Task Buying Straight Rebuy Modified Rebuy Requisition 7­10 Inspection Buying Sampling Buying Description Buying Competitive Bids Negotiated Contract Buying Just­in­Time Delivery Reciprocity NAICS Codes Open to Buy Resident Buyers Foreign Corrupt Practices Act For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill ... Nonprofits Exhibit? ?7? ?1 7? ?3 Wholesalers Retailers Federal State and Local National Local For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Buying... Inspection Sampling Basic Methods Description Negotiated Contracts 7? ?7 For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Buyer-Seller Relationships... Engineering Legal bonds Adaptations For use only with Perreault and McCarthy texts © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Types of Organizational Buyers Manufacturers Service

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