Lecture Marketing: The core (5/e): Chapter 5 – Kerin, Hartley, Rudelius

Chapter 5: Understanding organizations as customers. When you finish this chapter, you should: Distinguish among industrial, reseller, and government organizational markets; describe the key characteristics of organizational buying that make it different from consumer buying; explain how buying centers and buying situations influence organizational purchasing; recognize the importance and nature of online buying in organizational markets.

LEARNING OBJECTIVES (LO)

AFTER READING CHAPTER 5, YOU SHOULD BE ABLE TO:

Distinguish among industrial, reseller, and government organizational

markets.

LO1

Describe the key characteristics of organizational buying that make it different from consumer buying.

LO2

LEARNING OBJECTIVES (LO)

AFTER READING CHAPTER 5, YOU SHOULD BE ABLE TO:

Explain how buying centers and buying situations influence

organizational purchasing.

Recognize the importance and nature

of online buying in organizational markets.

LO4

BUYING PUBLICATION PAPER IS A SERIOUS

MARKETING RESPONSIBILITY AT JCPENNEY

• Government Markets (Government Units)

 Retailers

 Wholesalers

Mars Curiosity

FIGURE 5-A Type and number of

organization establishments in the U.S.: 2007

MEASURING DOMESTIC AND GLOBAL

INDUSTRIAL, RESELLER, AND GOVERNMENT MARKETS

FIGURE 5-1 NAICS breakdown for the

information industries sector:

NAICS code 51 (abbreviated)

FIGURE 5-2 Key characteristics and

dimensions of organizational buying

behavior

 Derived Demand

CHARACTERISTICS OF ORGANIZATIONAL BUYING

CHARACTERISTICS OF ORGANIZATIONAL BUYING

LO2

MARKETING MATTERS

Harley-Davidson’s Supplier Collaboration

Creates Customer Value…and a Great Ride

LO2

FIGURE 5-3 Product and supplier selection

criteria for buying machine vision equipment

emphasize factors other than price

An optic component in a larger

machine vision system for soft drink cans

Percentage of machine vision buyers citing individual selection criteria

CHARACTERISTICS OF ORGANIZATIONAL BUYING

MAKING RESPONSIBLE DECISIONS

Sustainable Procurement for Sustainable Growth

LO2

Starbucks

• Alternative Evaluation

CHARTING THE ORGANIZATIONAL BUYING PROCESS

STAGES IN THE ORGANIZATIONAL BUYING PROCESS

FIGURE 5-4 Comparing the stages in a

consumer and organizational purchase

decision process

CHARACTERISTICS OF ORGANIZATIONAL BUYING

THE BUYING CENTER LO3

 Buying Center

• Users

• Influencers

• Deciders

• Gatekeepers

CHARACTERISTICS OF ORGANIZATIONAL BUYING

THE BUYING CENTER LO3

 Buy Classes

FIGURE 5-5 The buying situation affects

buying center behavior in different ways

 Prominence of Online Buying

in Organizational Markets

ONLINE BUYING IN ORGANIZATIONAL MARKETS

MARKETING MATTERS

eBay Means Business for Entrepreneurs

LO4

FIGURE 5-6 How buyer and seller

participants and price behavior differ by

type of online auction