Business Markets & Buying Behavior PDF
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This document provides a summary of business markets, comparing business markets and consumer markets, looking at business buyer behavior, and discussing the buying process. It outlines a marketing information system and defines marketing research and its process, along with three types of buying situations, decision-making units, and business buyer behavior models. Key terms from marketing management are introduced.
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# Chapter 6 Business Markets & Business buying behavior Business buying behavior - refers to the buying behavior of organizations that buy goods and services for use in the production of other products and services that are sold, rented and supplied to others. Business buying process refers to the...
# Chapter 6 Business Markets & Business buying behavior Business buying behavior - refers to the buying behavior of organizations that buy goods and services for use in the production of other products and services that are sold, rented and supplied to others. Business buying process refers to the decision process by which buyers determine which products their organization needs and then find, evaluate and choose among alternative suppliers and brands. ## Difference between Consumer Market and Business Market * **Consumer market** refers to a market where products are sold by businesses to customers for final consumption. * **Business market** refers to a market where goods are sold to other businesses entities for further production or resale. ## Business Buyer Behavior ### The buying process | BM | CM | Business Buyer Behavior | |--------------|-----------------|-----------------------------------------------------------| | Demand volume| organizational | Problem Recognition: General need description | | | more | | | # Customers | less | Product specification: Supplier search proposal | | Distribution | direct | | | Location | centralized | Solicitation: Supplier selection order - routine | | Buy influence | multiple | | | Reciprocity | yes | Specification: Performance review | | Leasing | more | | | Promotion | personal selling | | | | less | | | | advertising | | # Chapter 7 Managing Market Information ## Marketing information system (4 main components) * **Internal Records** * Provides reliable inside information of the company. * **Marketing intelligence** * Collection & analysis of publicly available info about competitors & consumers & developments. * **Marketing research** * Is used to solve specific Marketing problems of the company. * **Marketing Decision Support System** * Are tools that help marketing managers analyze data to take better marketing decisions. ## Marketing Research The collection & analysis of data relevant to a specific marketing situation facing an organization ### The Marketing Research Process 1. **Identify the Problem** 2. **Develop the Research Plan** 3. **Conduct Research** 4. **Analyze and report findings** 5. **Take Action!** # Three Types of Buying situations 1. **Straight Rebuy** is a business buying situation where the buyer routinely reorders something without modifications. 2. **Modified Rebuy** isa business buying situation where the buyer wants to modify Product specifications (price, mode of payment, supplier). 3. **New task** is a business buying situation where the buyer purchases a product for the first time. ## Decision-making unit of a buying organization * **Deciders:** Individuals in the buying center who have formal & informal power to select and approve final suppliers. * **Gatekeepers:** individuals in the buying center who control the flow of information to others. ## Business Buyer behavior model | The environment | The buying organization | Buyer Responses | |-----------------------------------|-----------------------------|---------------------------------------------------| | Marketing Stimuli: | The buying center | Product/ service choice | | Product, Price, Place, Promotion | Buying Decision Process | Supplier choice | | Other stimuli: | (Interpersonal & | Order quantities | | Economic, technological, cultural, | individual influences) | | | competitivness | (organizational influence) | Payment | ## Major Influences on Business buyer behavior | Environmental | Organizational | Interpersonal | Individual | Buyers | |---------------|-----------------|----------------|----------------|-------------| | The economy | Objectives | Influence | Age / education| | | Competition | Strategies | Expertise | Job postition | | | Culture | Structure | Authority | Motive | | | Politics | System | Dynamics | Personality | | | Supply conditions | Procedures | | Preferences | | | Technology | | | Buying style | |
