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C HAPTER ORGANIZA-TIONAL MARKETS AND BUYER BEHAVIOR Slide 6-2 THE NATURE AND SIZE OF ORGANIZATIONAL MARKETS Business Marketing Organizational Buyers Industrial Markets ( Industrial Firms ) Reseller Markets ( Resellers ) Government Markets ( Government Units ) Global Organizational Markets

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Presentation Transcript
slide1

CHAPTER

ORGANIZA-TIONAL MARKETS AND BUYER BEHAVIOR

Slide 6-2

slide2

THE NATURE AND SIZE OF ORGANIZATIONAL MARKETS

  • Business Marketing
  • Organizational Buyers
  • Industrial Markets (Industrial Firms)
  • Reseller Markets (Resellers)
  • Government Markets (Government Units)
  • Global Organizational Markets

Slide 6-6

slide5

MEASURING DOMESTIC AND GLOBAL INDUSTRIAL, RESELLER, AND GOVERNMENT MARKETS

  • North AmericanIndustry ClassificationSystem (NAICS)
  • North American Product Classification System (NAPCS)

Slide 6-9

slide6

FIGURE 6-2NAICS breakdown for information industries sector:NAICS code 51 (abbreviated)

Slide 6-10

slide7

CHARACTERISTICS OF ORGANIZATIONAL BUYING

  • Demand Characteristics
  • Derived Demand
  • Size of the Order or Purchase
  • Number of Potential Buyers
  • Organizational Buying Objectives

Slide 6-13

slide9

CHARACTERISTICS OF ORGANIZATIONAL BUYING

  • Organizational Buying Criteria
  • ISO 9000
  • Reverse Marketing

Slide 6-16

slide11

MARKETING NEWSNET

Harley-Davidson’s Supplier Collaboration Creates Customer Value…and a Great Ride

Slide 6-18

slide12

CHARACTERISTICS OF ORGANIZATIONAL BUYING

  • Buyer-Seller Relationships andSupply Partnerships
  • Reciprocity
  • Supply Partnership

Slide 6-19

slide13

ETHICS AND SOCIAL RESPONSIBILITY ALERT

Scratching Each Other’s Back—The Ethics of Reciprocity in Organizational Buying

Slide 6-20

slide14

CHARACTERISTICS OF ORGANIZATIONAL BUYING

  • The Buying Center: A Cross-Functional Group
  • Buying Center
  • Buying Committee
  • People in the Buying Center

Slide 6-21

slide15

CHARACTERISTICS OF ORGANIZATIONAL BUYING

  • The Buying Center: A Cross-Functional Group
  • Roles in the Buying Center
  • Users
  • Deciders
  • Influencers
  • Gatekeepers
  • Buyers

Slide 6-22

slide16

Buying Center

Who is in the buying center andwhat roles do they play?

Slide 6-23

slide18

CHARACTERISTICS OF ORGANIZATIONAL BUYING

  • The Buying Center: A Cross-Functional Group
  • Buying Situations (Buy Classes) and the Buying Center
  • Straight Rebuy
  • Modified Rebuy
  • New Buy

Slide 6-25

slide20

CHARTING THE ORGANIZATIONAL BUYING PROCESS

  • Organizational Buying Behavior
  • Stages in the Organizational Buying Process

Slide 6-29

slide21

FIGURE 6-5Comparing the stages in consumer and organizational purchases

Slide 6-30

slide22

CHARTING THE ORGANIZATIONAL BUYING PROCESS

  • Buying a Machine Vision System
  • Problem Recognition
  • Make-Buy Decision
  • Information Search
  • Value Analysis
  • Alternative Evaluation
  • Bidder’s List

Slide 6-31

slide23

CHARTING THE ORGANIZATIONAL BUYING PROCESS

  • Buying a Machine Vision System
  • Purchase Decision
  • Postpurchase Behavior

Slide 6-32

slide24

ONLINE BUYING IN ORGANIZATIONAL MARKETS

  • Prominence of Online Buying in Organizational Markets
  • E-marketplaces: Virtual Organizational Markets

Slide 6-36

slide25

WEB LINK

eBay Means Business Too

Slide 6-37

slide26

ONLINE BUYING IN ORGANIZATIONAL MARKETS

  • Online Auctions in Organizational Markets
  • Traditional Auction
  • Reverse Auction

Slide 6-38

slide27

FIGURE 6-6How buyer and seller participants and price behavior differ by type of online auction

Slide 6-39

slide28

Business Marketing

Business marketing is the marketingof goods and services to companies, governments, or not-for-profit organizations for use in the creation of goods and services that they can produce and market to others.

Slide 6-57

slide29

Organizational Buyers

Organizational buyers are those manufacturers, wholesalers, retailers, and government agencies that buy goods and services for their own use or for resale.

Slide 6-58

slide30

Industrial Firms

Industrial firms are organizational buyers that in some way reprocesses a product or service they buy before selling it again to the next buyer.

Slide 6-59

slide31

Resellers

Resellers are wholesalers and retailers that buy physical products and resell them again without any processing.

Slide 6-60

slide32

Government Units

Government units are the federal, state, and local agencies that buy goods and services for the constituents they serve.

Slide 6-61

slide33

North American Industry Classification System (NAICS)

The NAICS provides common industry definitions for Canada, Mexico, and the United States, which makes easier the measurement of economic activity in the three member countries of the North American Free Trade Agreement (NAFTA).

Slide 6-62

slide34

Derived Demand

Derived demand means the demandfor industrial products and services is driven by, or derived from, demand for consumer products and services.

Slide 6-63

slide35

Organizational Buying Criteria

Organizational buying criteria arethe objective attributes of the supplier’s products and services and the capabilities of the supplier itself.

Slide 6-64

slide36

ISO 9000

ISO 9000 consists of standards for registration and certification of a manufacturer’s quality managementand assurance system based on anon-site audit of practices and procedures developed by the International Standards Organization (ISO).

Slide 6-65

slide37

Reverse Marketing

Reverse marketing involves the deliberate effort by organizational buyers to build relationships that shape suppliers’ products, services, and capabilities to fit a buyer’s needs and those of its customers.

Slide 6-66

slide38

Reciprocity

Reciprocity is an industrial buying practice in which two organizationsagree to purchase each other’s products and services.

Slide 6-67

slide39

Supply Partnership

A supply partnership exists when a buyer and its supplier adopt mutually beneficial objectives, policies, and procedures for the purpose of lowering the cost or increasing the value of products and services delivered to the ultimate consumer.

Slide 6-68

slide40

Buying Center

A buying center is the group of peoplein an organization who participate in the buying process and share common goals, risks, and knowledge important to a purchase decision.

Slide 6-69

slide41

Buy Classes

Buy classes consist of three typesof buying situations: straight rebuy; modified rebuy; and new buy.

Slide 6-70

slide42

Organizational Buying Behavior

Organizational buying behavior isthe decision-making process that organizations use to establish the needfor products and services and identify, evaluate, and choose among alternative brands and suppliers.

Slide 6-71

slide43

Make-Buy Decision

A make-buy decision is an evaluation of whether components and assemblies will be purchased from outside suppliers or built by the company itself.

Slide 6-72

slide44

Value Analysis

Value analysis is a systematic appraisal of the design, quality, and performance of a product to reduce purchasing costs.

Slide 6-73

slide45

Bidder’s List

A bidder’s list is a list of firms believed to be qualified to supply a given item.

Slide 6-74

slide46

E-Marketplaces

E-marketplaces are online trading communities that bring together buyers and supplier organizations to make possible the real time exchange of information, money, products, and services.

Slide 6-75

slide47

Traditional Auction

A traditional auction is an online auction in which a seller puts an item up for sale and would-be buyers are invited to bid in competition with each other.

Slide 6-76

slide48

Reverse Auction

A reverse auction is an online auction in which a buyer communicates a need for a product or service and would-be suppliers are invited to bid in competition with each other.

Slide 6-77