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ORGANIZATIONAL MARKETS AND BUYER BEHAVIOR THE NATURE AND SIZE OF ORGANIZATIONAL MARKETS Business marketing Organizational buyers Type and number of US organizational customers THE NATURE AND SIZE OF ORGANIZATIONAL MARKETS Industrial Markets Industrial firms Reseller Market Resellers

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Presentation Transcript
slide2

THE NATURE AND SIZE OF ORGANIZATIONAL MARKETS

  • Business marketing
  • Organizational buyers
slide4

THE NATURE AND SIZE OF ORGANIZATIONAL MARKETS

  • Industrial Markets
      • Industrial firms
  • Reseller Market
      • Resellers
  • Government Markets
      • Government Units
  • Global Organizational Markets
slide5
North American Industry Classification System

MEASURING DOMESTIC AND GLOBAL INDUSTRIAL, RESELLER, AND GOVERNMENT MARKETS

slide8

CHARACTERISTICS OF ORGANIZATIONAL BUYING

  • Demand Characteristics
      • Derived demand
  • Size of the Order or Purchase
  • Number of Potential Buyers
  • Organizational Buying Objectives
slide9

CHARACTERISTICS OF ORGANIZATIONAL BUYING

  • Organizational Buying Criteria
      • ISO 9000
      • Reverse marketing
slide10

CHARACTERISTICS OF ORGANIZATIONAL BUYING

  • Buyer-Seller Relationships and Supply Partnerships
      • Reciprocity
      • Supply partnership
slide11

CHARACTERISTICS OF ORGANIZATIONAL BUYING

  • The Buying Center: A Cross-Functional Group
    • People in the Buying Center
    • Roles in the Buying Center
    • Buying Situations and the Buying Center
      • Buy classes
slide13

CHARTING THE ORGANZATIONAL BUYING PROCESS

  • Stages in the Organizational Buying Process
      • Organizational buying behavior
slide14

CHARTING THE ORGANZATIONAL BUYING PROCESS

  • Problem Recognition
    • Make-buy decision
  • Information Search
    • Value analysis
slide16

CHARTING THE ORGANZATIONAL BUYING PROCESS

  • Alternative Evaluation
    • Bidder’s list
  • Purchase Decision
  • Postpurchase Behavior
slide17

ONLINE BUYING IN ORGANIZATIONAL MARKETS

  • Prominence of Online Buying in Organizational Markets
  • E-Marketplaces: Virtual Organizational Markets
  • Online Auctions in Organizational Markets
slide19

ONLINE BUYING IN ORGANIZATIONAL MARKETS

  • Online Auctions in Organizational Markets
      • Traditional auction
      • Reverse auction
business marketing
Business Marketing

Business marketing is the marketing of goods and services to commercial enterprises, governments, and other profit and not-for-profit organizations for use in the creations of goods and services that they then produce and market to other business consumers, as well as individuals and ultimate consumers.

organizational buyers
Organizational Buyers

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

industrial firms
Industrial Firms

Industrial firms reprocess a product or service they buy before selling it again to the next buyer.

resellers
Resellers

Wholesalers and retailers who buy physical products and resell them again without an reprocessing are resellers.

government units
Government Units

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

north american industry classification systems
North American Industry Classification Systems

The North American Industry Classification System (NAICS) provides common industry definitions for Canada, Mexico, and the United States.

derived demand
Derived Demand

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

organizational buying criteria
Organizational Buying Criteria

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

iso 9000
ISO 9000

ISO 9000 standards are standards for registration and certification of a manufacturer’s quality management and assurance system based on an on-site audit of practices and procedures.

reverse marketing
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.

reciprocity
Reciprocity

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

supply partnership
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 and/or increasing the value of products and services delivered to the ultimate consumer.

buying center
Buying Center

A buying center is made up of several people in an organization who participate in the buying process.

buy classes
Buy Classes

Buy classes are straight rebuy, modified rebuy, and new buy.

organizational buying behavior
Organizational Buying Behavior

Organizational buying behavior is the decision-making process that organizations use to establish the need for products and services and identify, evaluate, and chose among alternative brands and suppliers.

make buy decision
Make-Buy Decision

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

value analysis
Value Analysis

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

bidder s list
Bidder’s List

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

e marketplaces
E-Marketplaces

E-marketplaces are online trading communities that bring together buyer and seller organizations.

traditional auction
Traditional Auction

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

reverse auction
Reverse Auction

In a reverse auction,a buyer communicates a need for a product of service and would-be suppliers are invited to bid in competition with each other.