Podcast
Questions and Answers
What is one of the important differences in emphasis between consumer and organizational buying?
What is one of the important differences in emphasis between consumer and organizational buying?
Why do suppliers invest in long-term relationships with large customers in organizational buying?
Why do suppliers invest in long-term relationships with large customers in organizational buying?
What is reflected in the growth of key account selling in organizational buying?
What is reflected in the growth of key account selling in organizational buying?
What is the significance of one customer to a business-to-business marketer in industrial products, compared to a consumer marketing company?
What is the significance of one customer to a business-to-business marketer in industrial products, compared to a consumer marketing company?
Signup and view all the answers
What is likely true about organizational buying compared to consumer buying?
What is likely true about organizational buying compared to consumer buying?
Signup and view all the answers
Why will a company marketing industrial products have fewer potential buyers than one marketing in consumer markets?
Why will a company marketing industrial products have fewer potential buyers than one marketing in consumer markets?
Signup and view all the answers
In business-to-business marketing, why do sellers tailor their product offerings to meet the specific requirements of buyers?
In business-to-business marketing, why do sellers tailor their product offerings to meet the specific requirements of buyers?
Signup and view all the answers
Why may an organizational buyer be in a powerful negotiating position with a seller?
Why may an organizational buyer be in a powerful negotiating position with a seller?
Signup and view all the answers
Why are business-to-business markets sometimes characterized by a contract being agreed before the product is made?
Why are business-to-business markets sometimes characterized by a contract being agreed before the product is made?
Signup and view all the answers
In organizational buying, who may influence the decision of which expensive purchase to make?
In organizational buying, who may influence the decision of which expensive purchase to make?
Signup and view all the answers
What is important in understanding consumer buying behavior?
What is important in understanding consumer buying behavior?
Signup and view all the answers
How do many consumer purchases occur?
How do many consumer purchases occur?
Signup and view all the answers
What role might a person assume when making a household purchase decision?
What role might a person assume when making a household purchase decision?
Signup and view all the answers
Study Notes
Organizational Buying vs Consumer Buying
- Emphasis on rational decision-making and long-term relationships are key differences between organizational buying and consumer buying.
Importance of Long-term Relationships
- Suppliers invest in long-term relationships with large customers in organizational buying to secure repeat business and build trust.
Key Account Selling
- The growth of key account selling reflects the importance of building strong relationships with high-value customers in organizational buying.
Significance of One Customer
- One customer can be crucial to a business-to-business marketer in industrial products, as they may account for a significant proportion of sales, unlike in consumer marketing.
Organizational Buying Characteristics
- Organizational buying is likely to involve more formalized and complex decision-making processes compared to consumer buying.
Number of Potential Buyers
- A company marketing industrial products will have fewer potential buyers than one marketing in consumer markets due to the specialized nature of the products.
Tailored Product Offerings
- Sellers tailor their product offerings to meet the specific requirements of buyers in business-to-business marketing to ensure a good fit and build long-term relationships.
Negotiating Position
- An organizational buyer may be in a powerful negotiating position with a seller due to their large order volumes and repeat business potential.
Contractual Agreements
- Business-to-business markets are sometimes characterized by a contract being agreed upon before the product is made, ensuring a guaranteed order quantity and specifications.
Influencers in Decision-Making
- In organizational buying, influencers such as technical experts, users, and top management may influence the decision of which expensive purchase to make.
Understanding Consumer Buying Behavior
- Understanding consumer buying behavior is important, as it involves emotional and psychological factors driving purchasing decisions.
Consumer Purchase Decisions
- Many consumer purchases occur on impulse, with little planning or deliberation.
Roles in Household Purchase Decisions
- A person may assume various roles, such as decider, influencer, or user, when making a household purchase decision.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Explore the differences between consumer and organizational buying, and their implications for marketing goods and services. Learn about the important distinctions in emphasis and potential buyers in industrial and consumer markets.
