Lecture Marketing: The core (5/e): Chapter 5 – Kerin, Hartley, Rudelius

                             McGraw­Hill/Irwin                                                                                          Copyright © 2013 by The McGraw­Hill Companies, Inc.  All rights reserved.


LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 5, YOU SHOULD BE ABLE TO:

LO1

LO2

Distinguish among industrial, reseller,
and government organizational
markets.
Describe the key characteristics of
organizational buying that make it
different from consumer buying.

5­2


LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 5, YOU SHOULD BE ABLE TO:

LO3

LO4

Explain how buying centers and
buying situations influence
organizational purchasing.
Recognize the importance and nature

of online buying in organizational
markets.

5­3


BUYING PUBLICATION PAPER IS A SERIOUS
MARKETING RESPONSIBILITY AT JCPENNEY

5­4


LO1

THE NATURE AND SIZE OF
ORGANIZATIONAL MARKETS



Business Marketing



Organizational Buyers
• Industrial Markets
(Industrial Firms)

• Reseller Markets • Government Markets
(Resellers)
(Government Units)

 Wholesalers
 Retailers
Mars Curiosity
5­5


FIGURE 5-A Type and number of
organization establishments in the U.S.: 2007

5­6


LO1



MEASURING DOMESTIC AND GLOBAL
INDUSTRIAL, RESELLER, AND
GOVERNMENT MARKETS

North American
Industry
Classification
System (NAICS)



North American
Free Trade
Agreement

(NAFTA)

5­7


FIGURE 5-1 NAICS breakdown for the
information industries sector:
NAICS code 51 (abbreviated)

5­8


FIGURE 5-2 Key characteristics and
dimensions of organizational buying
behavior

5­9


LO2

CHARACTERISTICS OF
ORGANIZATIONAL BUYING



Derived Demand



Size of Order or Purchase



Number of Potential Buyers



Organizational Buying Objectives
• Profits

• Efficiency

• Women/Minority
Suppliers/Vendors

• Environment
5­10


LO2

CHARACTERISTICS OF
ORGANIZATIONAL BUYING



Organizational Buying Criteria



Supplier Development
5­11


MARKETING MATTERS
LO2

Harley-Davidson’s Supplier Collaboration
Creates Customer Value…and a Great Ride

5­12


FIGURE 5-3 Product and supplier selection
criteria for buying machine vision equipment
emphasize factors other than price
An optic component in a larger
machine vision system for soft drink cans

Percentage of machine vision buyers
citing individual selection criteria

5­13


LO2



CHARACTERISTICS OF
ORGANIZATIONAL BUYING

Buyer-Seller Relationships and
Supply Partnerships
• Reciprocity
• Supply Partnership
• Sustainable Procurement
5­14


LO2

MAKING RESPONSIBLE DECISIONS
Sustainable Procurement for Sustainable Growth

Starbucks

5­15


LO3

CHARTING THE
ORGANIZATIONAL BUYING PROCESS
STAGES IN THE ORGANIZATIONAL BUYING PROCESS



Organizational Buying Behavior

• Problem Recognition
• Information Search
• Alternative Evaluation
• Purchase Decision
• Postpurchase Behavior
5­16


FIGURE 5-4 Comparing the stages in a
consumer and organizational purchase
decision process

5­17


CHARACTERISTICS OF
ORGANIZATIONAL BUYING

LO3

THE BUYING CENTER



Buying Center



Buying Committee



People in the Buying Center



Roles in the Buying Center
• Users

• Deciders

• Influencers

• Gatekeepers

• Buyers

5­18


LO3

CHARACTERISTICS OF
ORGANIZATIONAL BUYING
THE BUYING CENTER



Buy Classes
• New Rebuy

• Straight Rebuy
• Modified Rebuy
5­19


FIGURE 5-5 The buying situation affects
buying center behavior in different ways

5­20


LO4



ONLINE BUYING IN
ORGANIZATIONAL MARKETS

Prominence of Online Buying
in Organizational Markets



E-marketplaces



Online Auctions in
Organizational Markets

Agentrics
Video

• Traditional Auction
• Reverse Auction
5­21


LO4

MARKETING MATTERS
eBay Means Business for Entrepreneurs

5­22


FIGURE 5-6 How buyer and seller
participants and price behavior differ by
type of online auction

5­23