Post on 28-Dec-2015
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Business Markets and
Buyer Behavior
Chapter 5Chapter 5Chapter 5Chapter 5
McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
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Chapter GoalsChapter GoalsChapter GoalsChapter Goals
McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
• Nature and scope of the business market
• Seven categories of business buyers
• Characteristics of the business markets
• Determinants of business market demand
• Buying processes in business markets
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Business MarketBusiness Market
Individuals and organizations that buy goods and services to
Individuals and organizations that buy goods and services to
ResellResellResellResellMake other Make other goods and servicesgoods and services
Make other Make other goods and servicesgoods and services
Conduct the Conduct the organization’s organization’s
operationsoperations
Conduct the Conduct the organization’s organization’s
operationsoperations
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ComponentsComponents of the Business Market of the Business Market
AgriculturalAgriculturalAgriculturalAgricultural
ResellerResellerResellerResellerServicesServicesServicesServices
““Nonbusiness”Nonbusiness”““Nonbusiness”Nonbusiness”GovernmentGovernmentGovernmentGovernment InternationalInternationalInternationalInternational
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DeterminantsDeterminantsof Business Market Demandof Business Market Demand
Number and typesNumber and types of buyersof buyers
Number and typesNumber and types of buyersof buyers
Inelastic DemandInelastic DemandInelastic DemandInelastic Demand
Fluctuating DemandFluctuating DemandFluctuating DemandFluctuating Demand
Well-informed marketWell-informed marketWell-informed marketWell-informed market
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Buying Power of Business UsersBuying Power of Business Users
ManufacturingManufacturingManufacturingManufacturing
Activity indicators of purchasing powerActivity indicators of purchasing powerActivity indicators of purchasing powerActivity indicators of purchasing power
ConstructionConstructionConstructionConstruction
MiningMiningMiningMining
AgriculturalAgriculturalAgriculturalAgricultural
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Importance of Business Buying Importance of Business Buying
Making less Making less and buying moreand buying more
Making less Making less and buying moreand buying more Quality and timeQuality and time
pressurepressureQuality and timeQuality and time
pressurepressure
ConcentratingConcentrating purchasespurchases
ConcentratingConcentrating purchasespurchases
Right product, right time, right priceRight product, right time, right price affects firm’s performanceaffects firm’s performance
Right product, right time, right priceRight product, right time, right price affects firm’s performanceaffects firm’s performance
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Buying Motives Buying Motives
Needs that direct the purchasingNeeds that direct the purchasingbehavior of business usersbehavior of business users
Needs that direct the purchasingNeeds that direct the purchasingbehavior of business usersbehavior of business users
Organizational Organizational GoalsGoals
furtherfurther company’scompany’s
positionposition
Organizational Organizational GoalsGoals
furtherfurther company’scompany’s
positionposition
PersonalPersonal GoalsGoals
protect or protect or further one’s further one’s
positionposition
PersonalPersonal GoalsGoals
protect or protect or further one’s further one’s
positionposition
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Multiple Buying InfluencesMultiple Buying Influences
InfluencersInfluencers
BuyerBuyer
DeciderDecider UserUser
GatekeeperGatekeeper
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Buyer-Seller RelationshipsBuyer-Seller Relationships
VALUE CHAINVALUE CHAINVALUE CHAINVALUE CHAIN LOYALTYLOYALTYLOYALTYLOYALTY
Customer Relationship Management
Customer Relationship Management
TrustTrustCostEffective
CostEffective
Long-termLong-termRelationship Marketing
Relationship Marketing
SelectedCustomer Selected
Customer
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Buying PracticesBuying Practices
LeasingLeasingLeasingLeasing
DependabilityDependability of Supplyof Supply
DependabilityDependability of Supplyof Supply
Service Service ExpectationExpectation
Service Service ExpectationExpectation
ReciprocityReciprocity AgreementsAgreementsReciprocityReciprocity
AgreementsAgreements
Length ofLength of NegotiationNegotiationLength ofLength of
NegotiationNegotiation
Size of OrderSize of OrderSize of OrderSize of Order
FrequencyFrequency of Purchaseof PurchaseFrequencyFrequency
of Purchaseof Purchase
DirectDirect PurchasePurchase
DirectDirect PurchasePurchase
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Electronic CommerceElectronic Commerce
Reverse auctionsReverse auctionsReverse auctionsReverse auctions
Interactions and transactions over the Internet
Interactions and transactions over the Internet
Commodity salesCommodity salesCommodity salesCommodity sales
Electronic bulletinElectronic bulletinboardsboards
Electronic bulletinElectronic bulletinboardsboards
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Key Terms and ConceptsKey Terms and ConceptsKey Terms and ConceptsKey Terms and Concepts
McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
• Business market
• Business user
• Business marketing
• Business marketer
• Agribusiness
• Reseller market
• Disintermediation
• Government market
• Business services market
• Nonbusiness market
• International market
• Elasticity of demand
• North American Industry Classification System (NAICS)
• Value added
• Vertical business market
• Horizontal business market
• Activity indicator of buying power
• Buying motives
• Buy class
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Key Terms and ConceptsKey Terms and ConceptsKey Terms and ConceptsKey Terms and Concepts
McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
• New-task buying
• Straight rebuy
• Modified rebuy
• Buying center
• Buying roles
• Value chain
• Loyalty
• Customer relationship management (CRM)
• Electronic commerce