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Questions and Answers
What defines an industrial market?
What defines an industrial market?
Which of the following is NOT a type of reseller?
Which of the following is NOT a type of reseller?
What is a characteristic of organizational buying behavior?
What is a characteristic of organizational buying behavior?
Which of the following best describes government markets?
Which of the following best describes government markets?
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What is the primary function of distributors in a reseller market?
What is the primary function of distributors in a reseller market?
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Which of the following is an example of a reseller market?
Which of the following is an example of a reseller market?
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What primarily drives the demand in organizational markets?
What primarily drives the demand in organizational markets?
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Why do organizations use specific criteria when making purchases?
Why do organizations use specific criteria when making purchases?
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What type of buying process occurs when a business purchases an item it has never bought before?
What type of buying process occurs when a business purchases an item it has never bought before?
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Which of the following best describes straight rebuy?
Which of the following best describes straight rebuy?
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In the buying center, who among the following is responsible for making the final decision on what to purchase?
In the buying center, who among the following is responsible for making the final decision on what to purchase?
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Which participants in the organizational buying process are known for providing advice and recommendations?
Which participants in the organizational buying process are known for providing advice and recommendations?
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Which characteristic is NOT typically associated with organizational buying?
Which characteristic is NOT typically associated with organizational buying?
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What type of buying process involves making changes to a previous order?
What type of buying process involves making changes to a previous order?
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In government markets, the purchasing process typically emphasizes which of the following?
In government markets, the purchasing process typically emphasizes which of the following?
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Reseller markets primarily deal with which of the following?
Reseller markets primarily deal with which of the following?
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What is the first step in the purchase decision-making process within organizations?
What is the first step in the purchase decision-making process within organizations?
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What is the primary focus of organizational markets?
What is the primary focus of organizational markets?
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Which factor can significantly influence what organizations buy and how much they spend?
Which factor can significantly influence what organizations buy and how much they spend?
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In which step of the purchase decision-making process does a company actually place the order?
In which step of the purchase decision-making process does a company actually place the order?
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What is likely to characterize government markets?
What is likely to characterize government markets?
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Which of the following describes a consumer market?
Which of the following describes a consumer market?
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What role do gatekeepers play in the purchasing process of organizations?
What role do gatekeepers play in the purchasing process of organizations?
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What is a major characteristic of reseller markets?
What is a major characteristic of reseller markets?
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Study Notes
Organizational Markets
- Organizational markets purchase goods for production or resale.
- Categories include industrial, reseller, wholesaler, retailer, distributor, and government markets.
Industrial Markets
- Businesses buy products to create their own.
- Example: A car manufacturer buying engine parts.
Reseller Markets
- Businesses repurchase goods for resale.
- Example: A sari-sari store buying goods from a wholesaler.
- Types of resellers include wholesalers and retailers.
Wholesaler Markets
- Businesses buy products in large quantities at low prices.
- Example: A farm selling tomatoes to a grocery wholesaler.
Retailer Markets
- Businesses buy from wholesalers or distributors and sell to consumers at higher prices.
- Example: A toy store buying toys from wholesalers to resell them to consumers.
Distributor Markets
- Businesses take products from the producer and deliver them to retailers or stores.
- Example: A company shipping shoes to various stores.
Government Markets
- Government agencies purchase products for public use or services.
- Example: The National Food Authority buying palay from farmers.
Non-Profit Organizations
- Groups that support a cause without aiming for profit.
- Example: Red Cross.
Organizational Buying and Characteristics
- Organizational buyers consider demand, potential buyers, objectives, and criteria.
- Demand: Derived from consumer demand.
- Potential Buyers: Many business buyers exist, and buyers must consider individual and family needs.
- Buying Objectives: Aim for short-term and long-term goals.
- Buying Criteria: Factors like price, quality, delivery schedules, technical skills, performance guarantees, past performance, and production capacity are important.
Size of Order/Purchase
- Organizational purchases are often larger than individual consumer purchases.
Buyer-Seller Interaction
- Interactions in organizational settings differ from consumer settings.
- The buying center involves people from various departments.
Kinds of Buying Processes
- New-Task Buying: A business purchases something for the first time. Ex: A new office computer.
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Straight Rebuy: A business repurchases a product it used before.
- Ex: A coffee shop ordering its usual coffee beans.
- Modified Rebuy: A business modifies the purchase of something it already buys.
- Ex: A company buying slightly different kinds of chairs.
- Participants in the process: Users, influencers, deciders, approvers, and buyers.
Purchase Decision-Making Process
- Recognition of the problem: Identifying a need for a product or service.
- Information search: Gathering information about products and suppliers.
- Evaluation of suppliers: Evaluating suppliers based on various factors.
- Purchase: Making the actual purchase.
- Performance evaluation: Assessing the product or service.
Factors Influencing Organizational Buyers
- Economic: Market conditions, prices, and income influence decisions.
- Personal: Buyer's personal experiences and preferences.
Market Segmentation and Targeting
- Market: The place where buyers and sellers meet.
- Buyer: Any person or business interested in buying a product/service.
- Opportunity: Where buyers and sellers meet to transact.
- Segmentation: Dividing a market into segments for targeted marketing.
- Sub-Segments: Breaking segments down further for more specific targeting.
- Example: Dividing the book market into segments based on student, teacher or genre.
Types of Markets
- Categorizations of markets by institutions, forms, and segment.
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Constitutional Markets:
- Consumer: Buyers for personal use.
- Organizational: Buyers for business or institutional use.
- Government: Buyers representing public entities.
- International: Buyers from abroad.
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Form (Markets):
- Primary: First-time buyers with little knowledge of the offered product.
- Secondary: Buyers already familiar with the product.
-
Constitutional Markets:
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Description
Explore the different types of organizational markets, including industrial, reseller, wholesaler, retailer, and distributor markets. This quiz will test your knowledge on how these markets operate and their roles in the economy. Gain a deeper understanding of how businesses purchase goods for production or resale.
