Marketing for Hospitality and Tourism

Kotler, Bowen and Makens

Organizational Buyer Behavior of Group Market

Chapter 7

Learning Objectives
1. Understand the organizational buying process.
2. Identify and discuss the importance of the
participants in the organizational buying process.
3. Identify the major influences on organizational buyers.
4. List the eight stages of the organizational buying
process.
5. Identify and describe the group markets in the
hospitality industry.

Marketing for Hospitality and Tourism, 6e

Kotler, Bowen and Makens

2014 by Pearson Higher Education, Inc

Upper Saddle River, New Jersey 07458 All Rights Reserved

The Organizational Buying Process

Large
Sums of
Money

Economic
Consideratio
ns

Marketing for Hospitality and Tourism, 6e

Kotler, Bowen and Makens

Complex
Technical
Features

Interactions
among Many
People

2014 by Pearson Higher Education, Inc

Upper Saddle River, New Jersey 07458 All Rights Reserved

Participants in the Organizational

Buying Process
Users

Approvers

Marketing for Hospitality and Tourism, 6e

Kotler, Bowen and Makens

Influencers

Buyers

Deciders

Gatekeepers

2014 by Pearson Higher Education, Inc

Upper Saddle River, New Jersey 07458 All Rights Reserved

Major Influences on
Organizational Buyers

Environmen
tal
Interperson
al

Marketing for Hospitality and Tourism, 6e

Kotler, Bowen and Makens

Influencer
s

Organization
al
Individual

2014 by Pearson Higher Education, Inc

Upper Saddle River, New Jersey 07458 All Rights Reserved

Buyphases

Problem
Recognition

General
Need
Description

Proposal
Solicitations

Marketing for Hospitality and Tourism, 6e

Kotler, Bowen and Makens

Product
Specification

Supplier
Selection

Supplier
Search

Order-Routine
Specification

Performance
Review

2014 by Pearson Higher Education, Inc

Upper Saddle River, New Jersey 07458 All Rights Reserved

Group Business Markets

Convention
s

Corporate
Meetings

Marketing for Hospitality and Tourism, 6e

Kotler, Bowen and Makens

Associati
on
Meetings
SMERF
(Social, Military,
Educational,
Religious &
Fraternal)

2014 by Pearson Higher Education, Inc

Upper Saddle River, New Jersey 07458 All Rights Reserved

Key Terms
Buying center All those individuals

General need description The

and groups who participate in the

purchasing and decision-making
process and who share common goals
and the risks arising from the decisions.

stage in the industrial buying process in

which a company describes the general
characteristics and quantity of a needed
item.

Convention A specialty market

requiring extensive meeting facilities. It
is usually the annual meeting of an
association and includes general
sessions, committee meetings, and
special-interest sessions.

Incentive travel A reward that

participants receive for achieving or
exceeding a goal.

Corporate meeting A meeting held by

a corporation for its employees.
Derived demand Organizational
demand that ultimately comes from
(derives from) the demand for
consumer goods.

Marketing for Hospitality and Tourism, 6e

Kotler, Bowen and Makens

Order-routine specification The

stage of the industrial buying process in
which a buyer writes the final order with
the chosen supplier(s), listing the
technical specifications, quantity
needed, expected time of delivery,
return policies, warranties, and so on.

2014 by Pearson Higher Education, Inc

Upper Saddle River, New Jersey 07458 All Rights Reserved

Key Terms (cont.)

Organizational buying process

Product specification The stage

definition to look like this. Definition to

look like this.

of an industrial buying process in which

the buying organization decides on and
specifies the best technical product
characteristics for a needed item.

Performance review The stage of an

industrial buying process in which a
buyer rates its satisfaction with
suppliers, deciding whether to continue,
modify, or drop the relationship.
Problem recognition The stage of
the industrial buying process in which
someone in a company recognizes a
problem or need that can be met by
acquiring a good or a service.

SMERF SMERF stands for social,

military, educational, religious, and
fraternal organizations. This group of
specialty markets has a common pricesensitive thread.
Supplier search The stage of the
industrial buying process in which a
buyer tries to find the best vendor.
Supplier selection The stage of the
industrial buying process in which a
buyer receives proposals and selects a
supplier or suppliers.

Marketing for Hospitality and Tourism, 6e

Kotler, Bowen and Makens

2014 by Pearson Higher Education, Inc

Upper Saddle River, New Jersey 07458 All Rights Reserved