Chapter 3 II

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1

Business Markets and Business

Buyer Behavior


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Learning Goals

1. Explain the importance of organizational buyingprocess.

2. Identify the major factors that influence businessbuyer behavior

3. List and define the steps in the business buyingdecision process

4. Identify the group markets in the tourism industry


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Definition

Business Buyer Behavior:

The buying behavior of organizations that buygoods and services for use in the production


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Importance of Organizational Buying Process(OBP)

Tends to have greater complexity (more peopleinvolve in decisionmaking process)

Competitive bids may required

Objective factors (costs and service facilityamenities) may weigh more than ones emotion.

Do not behave exactly the same (differs constraintsand influences)

Goal 1: Importance of OBP


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Major Influences on Business Buyers

Environmental

Organizational

Interpersonal

Individual

Level of primary demand

Economic outlook Cost of money

Supply conditions

Rate of technologicalchange

Political and regulatorydevelopments

Competitive developments

Key Factors

Goal 2: Identify the major factors that influence business buyer behavior


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Environmental

Organizational

Interpersonal

Individual

Objectives

Policies Procedures

Organizationalstructure

Systems

Key Factors



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Environmental

Organizational

Interpersonal

Individual

Influence of

members in thebuying center Authority

Status

Empathy Persuasiveness

Key Factors



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Environmental

Organizational

Interpersonal

Individual

Personal characteristics ofmembers in the buying center

Age and income Education

Job position

Personality

Risk attitudes

Key Factors



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Stages in the Business Buying Process

Goal 3: List and define the steps in the business buying decision process

ProblemRecognition

General NeedDescription

ProductSpecification

SupplierResearch

ProposalSolution

Supplierselection

Order- RoutineSpecification

PerformanceReview


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Stage 1: Problem Recognition

Someone recognize a problem or need that can be metby acquiring a good or a service

Stage 2: General Need Description

The buyer determines the requirements of theproducts

Stage 3: Product Specification

once general requirement determined, specific

requirement of product can be developed Stage 4: Supplier Search

Buyer tries identify most appropriate suppliers



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Stage 5: Proposal SolicitationAfter short list, qualified suppliers will be invited tosubmit proposal

Stage 6: Supplier Selection

Members review proposal, move toward supplierselection.

Stage 7: Order-Routine Specification

Buyer writes final order with chosen supplier listing

technical specification of meeting Stage 8: Performance Review

buyer does post-purchase performance review ofproduct



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Group Business Market

More sophisticated and requires more

technical information

Book more than 1 year in advance

Cognitive dissonance may develop

So, marketers have to keep contact, andassure they made right decision

Goal 4: Identify the group markets in the tourism industry


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4 main categories of Group

ConventionsAssociation

Meetings

CorporateMeetings

SMERF


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1. Conventions

Requires extensive meeting facilities

(annual meeting, general sessions,

committee meetings, special-interestsessions)

Select 2-5 years in advance, if large, 10-15

years before) Choose accessible and attractive to

members



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1. Conventions

Most important factors in choosing destination

Availability hotels and facilities

Ease transport Transport cost

Distance from attendee

Climate Recreation

Sights and cultural activities



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1. Conventions

Important attributes of hotel

Meeting rooms

Rates

Food quality

Sleeping rooms

Support service

Billing procedures

Check in and out

Staff assignment Wireless internet

Exhibit spaces

Previous experience



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1. Conventions

Food quality very important

Audiovisual (AV) facilities

Good billing procedures (want bill thatunderstandable, accurate, deliver timelymanner)

Convention Bureaus= nonprofit marketingorganizations helps hotel sign conventionsand meetings



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2. Association Meetings

Sponsor many types of meetings, regional,

special interest, educational and board

meetings.

Gather once a month at luncheon or

dinner meeting



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Important attributes of destination

Availability of hotel and facilities

Ease transport

Distance from attendee

Transportation cost

(the meeting itself is the major draw)



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Selecting hotel:

Food quality

Rates

Meeting rooms

Billing procedures

Same as exhibition EXCEPT exhibitionspace

F&B MOST IMPORTANT attribute



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3. Corporate Meetings

Def: Command performance

directed to attend the meeting without

choice with a short lead time (a fewweeks)

Types: training, management, planning,

incentive meeting



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Important attributes in choice destination:

Availability of hotels

Ease of transportation Transportation costs

Distance from attendees



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Important attributes in hotel:

Food quality

Meeting rooms Rates

Sleeping rooms

Support service

Billing procedures



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Small group

Small corporate meeting

Less than 50 rooms

Incentive Travel

A unique subset of corporate group business

Reward for achieving or exceeding goals

List of attributes: Climate, recreationalfacilities, sightseeing opportunities

Last 3-5 days

Average expenditure: >$3000

Handled by: in house, large incentive house,travel agencies, consultants, travel fulfillmentfirms


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4. SMERF

S

M E

R F



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4. SMERF

Price sensitive

More flexible in requirements ensure

lower rate Get help from internet

Group price more affordable than

individual bookings.



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TEST 1 SELEPAS RAYA

CHAPTER 2: ANALYZING MARKETING

OPPORTUNITIES


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Chapter 3 II

Documents

Transcript of Chapter 3 II