6-1
PRINCIPLES OF MARKETING
Business
Business Markets
Markets &
&
Business
Business Buyer
Buyer Behavior
Behavior
What
What is
is Business
Business Portfolio
Portfolio Planning?
Planning?
Market
MarketStructure
Structureand
andDemand
Demand
••Fewer,
Fewer,larger
largerbuyers
buyers
••Geographically
Geographicallyconcentrated
concentrated
••Demand
Demandderived
derivedfrom
fromconsumers
consumers
••Inelastic
Inelasticdemand
demand
••Fluctuating
Fluctuatingdemand
demand
Nature
Natureof
ofthe
theBuying
BuyingUnit
Unit
••More
Morebuyers
buyers
••More
More professionalpurchasing
professional purchasing
effort
effort
Types
Typesof
ofDecisions
Decisions&&the
the
Decision
DecisionProcess
Process
••More
Morecomplex
complexdecisions
decisions
••Process
Process is moreformalized
is more formalized
••Buyer
Buyer and seller aremore
and seller are more
dependent on each other
dependent on each other
••Build
Buildclose
closelong-term
long-termrelationships
relationships
with
withcustomers
customers
Copyright 1999 Prentice Hall
Model
Model of
of Business
Business Buyer
Buyer Behavior
Behavior
6-5
6-5
Organizational The
The Buying
Buying Organization
Organization Interpersonal
The Buying Center
Influences and Individual
Buying Decision Influences
Process
New
New Task
Task Buying
Buying
Involved Decision Making
Modified
Modified Rebuy
Rebuy
Straight
Straight Rebuy
Rebuy
Process:
Process: The
The Buying
Buying Center
Center
Gatekeepers Users
Buying
Buying
Deciders Center
Center Influencers
Buyers
Environmental
Environmental
Economic,
Economic,Technological,
Technological,Political,
Political,Competitive
Competitive&&Cultural
Cultural
Organizational
Organizational
Objectives,
Objectives,Policies,
Policies,Procedures,
Procedures,
Structure,
Structure,&&Systems
Systems
Interpersonal
Interpersonal
Authority,
Authority,Status,
Status,Empathy
Empathy&&
Persuasiveness
Persuasiveness
Individual
Individual
Age,
Age,Education,
Education,Job
JobPosition,
Position,Personality
Personality&&
Risk
RiskAttitudes
Attitudes
Buyers
Buyers
Problem
Problem Recognition
Recognition
General
General Need
Need Description
Description
Product
Product Specification
Specification
Supplier
Supplier Search
Search
Proposal
Proposal Solicitation
Solicitation
Supplier
Supplier Selection
Selection
Order
Order Routine
Routine Specification
Specification
Performance
Performance Review
Review
Copyright 1999 Prentice Hall
6-10
Institutional
Institutional and
and Government
Government Markets
Markets
6-10
Institutional
Institutional Markets
Markets
Low
Low Budgets
Budgets Captive
Captive Patrons
Patrons
Government
Government Markets
Markets
Specialized
Specialized Buying
Buying Public
Public Review
Review
Outside
Outside Publics
Publics Open
Open Bids
Bids
Negotiated
Negotiated Contracts
Contracts
Copyright 1999 Prentice Hall