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Chapter 6

PRINCIPLES OF MARKETING Eighth Edition Philip Kotler and Gary Armstrong. Chapter 6. Business Markets and Business Buyer Behavior.

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Chapter 6

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  1. PRINCIPLES OF MARKETING Eighth Edition Philip Kotler and Gary Armstrong Chapter 6 Business Markets and Business Buyer Behavior

  2. The Business Market - all the organizations that buy goods and services to use in the production of other products and services that are sold, rented, or supplied to others. Business markets involve many more dollars and items do consumer markets. What is a Business Market?

  3. Characteristics of Business Markets Market Structure and Demand • Fewer, larger buyers • Geographically concentrated • Demand derived from consumers • Inelastic demand • Fluctuating demand Nature of the Buying Unit • More buyers • More professional purchasing • effort Types of Decisions & the Decision Process • More complex decisions • Process is more formalized • Buyer and seller are more • dependent on each other • Build close long-term relationships • with customers

  4. Marketing and Other Stimuli Model of Business Buyer Behavior Product Price Place Promotion Economic Technological Political Cultural The Buying Organization Interpersonal and Individual Influences Organizational Influences The Buying Center Buying Decision Process Buyer’s Response Delivery Terms and Times Service Terms Payment Product or Service Choice Supplier Choice Order Quantities

  5. Business Buying Situations New Task Buying Modified Rebuy • Involved Decision Making Straight Rebuy

  6. Participants in the Business BuyingProcess: The Buying Center Gatekeepers Users Buying Center Deciders Influencers Buyers

  7. Environmental Economic, Technological, Political, Competitive & Cultural Organizational Objectives, Policies, Procedures, Structure, & Systems Major Influences on Business Buying Interpersonal Authority, Status, Empathy & Persuasiveness Individual Age, Education, Job Position, Personality & Risk Attitudes Buyers

  8. Problem Recognition General Need Description Stages in the BusinessBuying Process Product Specification Supplier Search Proposal Solicitation Supplier Selection Order Routine Specification Performance Review

  9. Institutional Markets Government Markets Institutional and Government Markets Low Budgets Captive Patrons Public Review Specialized Buying Outside Publics Open Bids Negotiated Contracts

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