ORGANIZATIONAL MARKETS AND BUYER BEHAVIOR

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CHAPTER
ORGANIZA-TIONAL MARKETS AND BUYER BEHAVIOR
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THE NATURE AND SIZE OF ORGANIZATIONAL MARKETS

• Business Marketing

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Organizational Customers in the U.S.
Not for Profit Associations

56000
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HOW TO MEASURE ORGANIZATIONAL MARKETS

• (NAICS)

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THE BENEFITS OF NAICS CODES

• 1. Find your competition
• 2. Measure your markets size and your share of
  it
• 3. Monitor growth in other industries to spot
• new business opportunities

http//www.census.gov/epcd/naics02/naico602.htmN2
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DEMAND CHARACTERISTICS OF ORGANIZATIONAL BUYING
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Characteristics of Organizational Buying Behavior
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Business vs Consumer Markets
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HOW BUSINESSES CHOOSE A VENDOR
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BUYER-SELLER RELATIONSHIPS IN ORGANIZATIONAL
BUYING

• Reciprocity Ford and Firestone

• Supply Partnership Walmart and P G

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BUYING CENTERS
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BUSINESS BUYING SITUATIONS

• Buying Situations and the Buying Center

1) Straight Rebuy
2) Modified Rebuy
3) New Buy
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How the buying situation affects buying center
behavior
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ONLINE BUYING IN ORGANIZATIONAL MARKETS

• 80 of e-trade dollar value is B2B

WHY

• Buyers need timely detailed information
• Buyers need to get that info quickly
• E-trade reduces processing costs
• E-trade reduces marketing costs
• Wider potential customer or supplier base

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ONLINE BUYING IN ORGANIZATIONAL MARKETS

• Online Auctions in Organizational Markets

• Traditional Auction looking for buyers

• Reverse Auction- looking for sellers

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How buyer and seller participants and price
behavior differ by type of online auction
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Concept Check
1. What are the three main types of
organizational buyers
A industrial firms resellers government units
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Concept Check
2. What is the North American Industry
Classification System (NAICS)
A 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 NAFTA.
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Concept Check
2. In general which type of online auction
creates upward pressure on bid prices and which
type creates downward pressure on bid prices
A traditional auction reverse auction
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Concept Check
2. What are the three types of buying situations
or buy classes
A straight rebuy modified rebuynew buy
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Concept Check
1. What are e-marketplaces
A E-marketplaces are online trading communities
that bring together buyers and supplier
organizations.
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Business Marketing
Business marketing- The marketing of goods and
services to individuals and organizations for
purposes other than personal consumption.
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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).
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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.
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Buying Center
A buying center is the group of people in an
organization who participate in the buying
process and share common goals risks and
knowledge important to a purchase decision.
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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.
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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.
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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.