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Lecture Basic Marketing: A global-managerial approach: Chapter 7 - William D. Perreault, E. Jerome McCarthy

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When you finish this chapter, you should: Know who the business and organizational customers are, see why multiple influence is common in business and organizational purchase decisions and understand how it affects the practice of marketing, understand the problem-solving behaviour of organizational buyers, know the basic methods used in organizational buying,...

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Business and

Organizational

Customers and

Their Buying Behavior

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Chapter 7 Objectives

1   Know who the business and 

organizational customers are.

2   See why multiple influence is 

common in business and 

organizational purchase 

decisions.

3   Understand the problem­

solving behavior of 

organizational buyers.

4   Know the basic methods used 

in organizational buying.

5   Understand the different types 

of buyer­seller relationships 

and their benefits and 

6   Know about the number and  distribution of manufacturers  and why they are an 

important customer group.

  7   Know how buying by service  firms, retailers, wholesalers,  and governments is similar to  

—and different from— 

buying by manufacturers.

8  Understand the important new  terms.

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Different Types of Customers

All business and

organizational

customers

Producers

Middlemen

Governments

Nonprofits

Manufacturers Farms, mines, etc.

Financial Institutions Other providers

National

Federal State and Local Wholesalers Retailers

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Buying Centers

Buying Center Influencers

Users

Gatekeepers Deciders

Buyers

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Survival Customer satisfaction

Growth Profit Other needs

Company’s Needs

Overlap

in Needs

Individual’s

Needs

Risk Job security Comfort

Career advancement

Money-rewards

Other needs

Overlapping Needs

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Little Some

Much

None

Some

Much

Little Some

Much

Little

Medium Much

Information Needed

Review of Suppliers

Multiple Influences

Time Required

Characteristics

New-Task Buying Modified Rebuy Straight Rebuy

Type of Process

Organizational Buying Processes

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Basic Methods

Inspection

Description

Negotiated Contracts Sampling Basic Methods in Organizational Buying

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Information sharing

Linkages Cooperation

Legal bonds

Relationship Supplier Customer

Salesperson Quality

R&D

Accounting

Marketing Production

Purchasing manager

Quality

Finance

R&D

Production

Accounting

Engineering

Buyer-Seller Relationships

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Types of Organizational Buyers

Manufacturers

Service Producers

Retailers &

Wholesalers

Governments

Grouped by Industry

Close to Customers

Buying for Targets

Bids & Regulations

Focus:

Focus:

Focus:

Focus:

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Inspection Buying Sampling Buying Description Buying Competitive Bids Negotiated Contract Buying Just­in­Time Delivery

Reciprocity NAICS Codes Open to Buy Resident Buyers Foreign Corrupt Practices Act

Business and Organizational

   Customers

ISO 9000

Purchasing Managers

Multiple Buying Influence

Buying Center

Vendor Analysis

New­Task Buying

Straight Rebuy

Modified Rebuy

Requisition

Key Terms

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