Podcast
Questions and Answers
Which of the following best describes the primary focus of organizations when making purchase decisions in the B2B market?
Which of the following best describes the primary focus of organizations when making purchase decisions in the B2B market?
- Economic factors and potential profitability. (correct)
- Aesthetic appeal and design of the product.
- Social responsibility and ethical considerations.
- Emotional connections with the seller's brand.
When marketing to organizational customers, what overlapping needs should a seller's marketing mix satisfy?
When marketing to organizational customers, what overlapping needs should a seller's marketing mix satisfy?
- The needs of the end consumers and the needs of the company's marketing department.
- The needs of the customer company's shareholders and the local community.
- The needs of the customer company and the needs of individuals who influence the purchase. (correct)
- The needs of the company's employees and the seller's shareholders.
In a large organization, who should marketers primarily contact to present their products and services?
In a large organization, who should marketers primarily contact to present their products and services?
- The purchasing managers within the procurement department. (correct)
- The CEO or other top-level executive.
- The head of the research and development department.
- The marketing director responsible for vendor relations.
Which role in the buying center is responsible for controlling the flow of information within the organization?
Which role in the buying center is responsible for controlling the flow of information within the organization?
Which of the following roles in the buying center is MOST likely to set product specifications?
Which of the following roles in the buying center is MOST likely to set product specifications?
In a buying center, which role has the authority to make the final decision on selecting a supplier?
In a buying center, which role has the authority to make the final decision on selecting a supplier?
What does 'multiple buying influence' refer to in the context of organizational buying?
What does 'multiple buying influence' refer to in the context of organizational buying?
Why might the composition of a buying center change from one purchase to the next?
Why might the composition of a buying center change from one purchase to the next?
How do case studies on a seller's website primarily benefit buyers?
How do case studies on a seller's website primarily benefit buyers?
What is a primary risk associated with firms openly sharing information with their partners in a B2B e-commerce environment?
What is a primary risk associated with firms openly sharing information with their partners in a B2B e-commerce environment?
Why might a supplier reduce its selling price when offered long-term commitments on larger order quantities?
Why might a supplier reduce its selling price when offered long-term commitments on larger order quantities?
Which activity is the FINAL task in step 3 of the model of organizational buying?
Which activity is the FINAL task in step 3 of the model of organizational buying?
What does 'just-in-time' delivery primarily ensure for the customer?
What does 'just-in-time' delivery primarily ensure for the customer?
When a buying organization chooses to outsource, what specific actions are typically taken?
When a buying organization chooses to outsource, what specific actions are typically taken?
Which scenario is most appropriate for a straight rebuy situation?
Which scenario is most appropriate for a straight rebuy situation?
In which buying situation would a new supplier have the greatest opportunity to gain business with a customer?
In which buying situation would a new supplier have the greatest opportunity to gain business with a customer?
How can a marketing manager utilize NAICS codes to identify potential customers?
How can a marketing manager utilize NAICS codes to identify potential customers?
What is the primary purpose of 'vendor analysis' in organizational buying?
What is the primary purpose of 'vendor analysis' in organizational buying?
Which NAICS codes should a marketing manager consult if they need the most general breakdown of a particular industry?
Which NAICS codes should a marketing manager consult if they need the most general breakdown of a particular industry?
In small service firms, who typically handles purchasing decisions?
In small service firms, who typically handles purchasing decisions?
An organizational buyer needs to purchase a complex piece of machinery with unique specifications. Which type of buying process is the buyer MOST likely to undertake?
An organizational buyer needs to purchase a complex piece of machinery with unique specifications. Which type of buying process is the buyer MOST likely to undertake?
What is the role of purchasing specifications in organizational buying?
What is the role of purchasing specifications in organizational buying?
Which of the following is the LEAST likely scenario for a vendor to sell to a buyer?
Which of the following is the LEAST likely scenario for a vendor to sell to a buyer?
What primarily distinguishes a 'modified rebuy' from a 'new-task buying' situation?
What primarily distinguishes a 'modified rebuy' from a 'new-task buying' situation?
Flashcards
Problem Recognition
Problem Recognition
The initial step in defining a problem when making purchases.
Organizational Buying
Organizational Buying
A purchasing process involving businesses that have specific needs and specifications.
Straight Rebuy
Straight Rebuy
A routine repurchase of items previously bought, with little to no new information sought.
New-task Buying
New-task Buying
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Modified Rebuy
Modified Rebuy
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Vendor Analysis
Vendor Analysis
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Purchasing Specifications
Purchasing Specifications
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Impersonal Marketing Sources
Impersonal Marketing Sources
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B2B Market
B2B Market
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Organizational Customers
Organizational Customers
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Purchasing Managers
Purchasing Managers
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Multiple Buying Influence
Multiple Buying Influence
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Deciders
Deciders
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Gatekeepers
Gatekeepers
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Buying Center
Buying Center
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Individual Needs in Organizations
Individual Needs in Organizations
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Case Studies
Case Studies
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Competitive Bids
Competitive Bids
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Just-in-Time Delivery
Just-in-Time Delivery
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Outsourcing
Outsourcing
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NAICS Codes
NAICS Codes
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Manufacturing Output Trends
Manufacturing Output Trends
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Regional Manufacturing Concentration
Regional Manufacturing Concentration
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Buyer Decision Makers
Buyer Decision Makers
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Study Notes
Organizational Customers
- Marketing managers consider all organizational customers (businesses, governments, nonprofits) as the B2B market.
- Producers of goods and services are organizational customers.
- Purchase decisions are often driven by economic factors to meet market demands.
- A seller's marketing mix must satisfy both the needs of the customer company and individual influences.
Individual Needs
- Individual needs within an organization include comfort, risk, job security, career advancement, money/rewards.
- Organizational Needs include profit, growth, survival, and innovation.
- Specialists (purchasing managers) ensure purchases are handled efficiently.
Purchasing Managers
- Purchasing managers are the primary buying specialists in large organizations.
- They work in procurement departments and have significant influence.
- Marketers must target purchasing managers to present products/services.
Deciders & Other Roles
- Deciders have the power to select or approve suppliers (sometimes top management for larger purchases).
- Buyers arrange terms of sale with suppliers.
- Influencers (engineering or R&D) help write specifications and supply evaluation information.
- Users are the people who will utilize the purchased product.
- Gatekeepers control information flow within the organization.
Types of Buying Situations
- Straight rebuy: Routine repurchase of frequently needed items (e.g., paper supplies).
- Modified rebuy: Some review of the buying situation, but less extensive than new-task buying.
- New-task buy: A new need requires extensive information gathering and supplier selection.
Buying Center
- A buying center comprises individuals involved in the purchase decision (users, influencers, buyers, deciders, gatekeepers).
- Buying center members vary depending on the purchase.
- Organizational Buyers often buy based on written or electronic specifications outlining the desired product.
E-Commerce and Purchase Processes
- E-commerce systems automate portions of straight rebuys.
- New-task buying provides an opportunity for new suppliers to gain business.
- Buyers gather information, assess proposals, and select suppliers.
Supplier Relationships & Performance
- Vendor analysis evaluates suppliers based on performance metrics (e.g., costs).
- A vendor is least likely to sell to a buyer who has not previously purchased from them.
- The buyer may seek new information or different suppliers only if the purchase is not a straight rebuy and is a new or modified rebuy.
- Buyers look for case studies that show how the product solved problems for other potential customers.
- Sellers use written specifications in their proposals to demonstrate industry best practices and desired outcomes.
- Long-term commitments often motivate lower prices; buyers often benefit from long-term purchase agreements.
- Just-in-time delivery methods reliably provide products to customers right before they are needed.
- Outsourcing often results in organizational adaptations.
Additional Considerations
- NAICS codes are used for classifying businesses based on industry categories.
- Small businesses typically have only a few people involved in purchase decisions.
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Description
Organizational customers in the B2B market include businesses, governments, and nonprofits. Purchase decisions are driven by economic factors and influenced by individual needs like comfort, risk and rewards. Marketing should target purchasing managers, the primary buying specialists.
