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

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 7 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